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Keeping the medical practice financially viable: a marketer's approach
Michelle L Patrick1, Anthony J Capraro, Candace M Credito
1Department of Management and Accountancy, University of North Carolina at Asheville, 28804, USA. mpatrick@unca.edu
Health Marketing Quarterly
|February 1, 2003
Summary
Medical practices can increase revenue by offering personalized services. A study found patients desiring more personalized care are willing to pay a premium for healthcare services.
Area of Science:
- Healthcare Management
- Patient Services
- Service Quality
Background:
- Medical practices face pressure to increase revenue.
- Patients increasingly seek personalized healthcare experiences.
- Service quality is a key differentiator in healthcare.
Purpose of the Study:
- To explore personalized service as a revenue source for medical practices.
- To investigate the relationship between desire for personalized care and willingness to pay a premium.
- To assess if personalized care can justify higher medical fees.
Main Methods:
- Survey of German patients using the SERVQUAL instrument.
- Analysis of patient preferences for personalized medical services.
- Correlation analysis between service personalization desire and premium payment willingness.
Main Results:
- A strong positive correlation was found between the desire for personalized medical care and willingness to pay a premium.
- Patients valuing personalized service are distinct from those not willing to pay more.
- Personalized care significantly influences patient's premium payment decisions.
Conclusions:
- Medical practices can develop a higher-margin revenue stream through differentiated, personalized services.
- Offering enhanced personalized care can justify charging higher fees.
- Focusing on patient-centric service models can improve profitability.