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Current marketing practices in the nursing home sector
Judith G Calhoun1, Jane Banaszak-Holl, Larry R Hearld
1Department of Health Management and Policy, School of Public Health, University of Michigan, Ann Arbor, USA. jgcal@umich.edu
Summary
Despite increased competition, nursing homes primarily use traditional marketing strategies, focusing on residents and staff rather than payers. Facility size correlates with marketing intensity, while occupancy and perceived control do not.
Area of Science:
- Healthcare Management
- Marketing Strategy
- Long-Term Care Administration
Background:
- Marketing is crucial in healthcare, yet nursing home marketing research remains limited.
- Long-term care facilities have increasingly adopted marketing practices since the 1990s amidst rising competition.
- Understanding evolved marketing strategies in nursing homes is essential for competitive positioning.
Purpose of the Study:
- To assess the development of formulated marketing strategies in nursing homes over two decades.
- To explore managers' perceptions of marketing control and competition impact.
- To identify areas for enhanced competitive positioning in the nursing home sector.
Main Methods:
- Survey of 230 nursing home administrators in Southeastern Michigan regarding marketing practices, staff involvement, and perceived control.
- Assessment of adoption levels for approximately 40 best-practice marketing strategies.
- Analysis of perceived local competition and control over marketing decision-making.
Main Results:
- Surveyed nursing homes operate in highly competitive markets but employ traditional, constrained marketing practices.
- Customer relationship management focuses intensely on residents, families, referrers, and staff, with minimal payer engagement.
- Marketing initiative intensity correlates positively with facility size (beds) but negatively with occupancy and perceived control.
Conclusions:
- Nursing homes' marketing strategies have not significantly evolved despite market competition.
- Effective marketing requires a broader engagement strategy, including payers.
- Facility size, occupancy, and perceived control influence marketing intensity and strategy adoption.