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Hospital marketing orientation and managed care processes: are they coordinated?
K R White1, J M Thompson, U B Patel
1Graduate Program in Health Administration, Virginia Commonwealth University, Richmond, Virginia, USA. krwhite@vcu.edu
Journal of Healthcare Management / American College of Healthcare Executives
|September 26, 2001
Summary
Hospital marketing orientation declined between 1993 and 1999, with fewer managed care processes integrated into marketing functions. This shift may reflect a focus on organizational buyers by hospitals.
Area of Science:
- Healthcare Management
- Marketing Strategy
- Organizational Behavior
Background:
- The hospital marketing function is crucial for market understanding, resource acquisition, service development, and communication.
- The evolving managed care environment necessitates a deeper understanding of hospital marketing and its integration with managed care processes.
Purpose of the Study:
- To assess hospital marketing orientation changes over time (1993-1999) within a single state.
- To examine the relationship between hospital marketing functions and managed care activities.
- To identify shifts in hospital strategic focus in response to managed care growth.
Main Methods:
- Utilized Kotler and Clarke's framework to evaluate marketing orientation in hospitals.
- Conducted a longitudinal study comparing data from 1993 and 1999.
- Assessed the integration of managed care activities within hospital marketing functions.
Main Results:
- Overall marketing orientation scores decreased significantly from 1993 to 1999.
- Scores related to customer philosophy showed a slight decline.
- A significant decrease in managed care processes coordinated with formal marketing functions was observed.
Conclusions:
- Hospital marketing orientation has weakened, potentially due to a strategic shift towards organizational buyers.
- Hospitals may be prioritizing clinical quality and cost efficiency to appeal to managed care organizations.
- Further research is needed to understand the long-term implications of these trends.