Write a four to six (4-6) page paper in which you: Determine the key characteris
ID: 363086 • Letter: W
Question
Write a four to six (4-6) page paper in which you:
Determine the key characteristics of the users of the products and/or services of the health care provider you selected.
Analyze the competitive environment of the health care provider you selected and recommend a course of action for strategic marketing success.
Determine which tools of the marketing mix available to health care providers would be most effective for the health care provider you selected.
Determine the best possible pricing strategy for at least one of the products or services offered by the health care provider you selected.
Provide at least three (3) qualified sources, e.g., peer-reviewed journals, professional organization Website, or health care provider Websites.
Explanation / Answer
Health is the foremost wealth for every living being. While it is true that other species are unable to take due care of their health but human beings have brains and power of decision to select all such options that are necessary in maintaining good health. Selection of health care providers is one such necessity. The healthcare provider I have selected for this project is Universal Health Services Inc. The company laid its foundation stone in the year 1979 and since then it has been 36 years it has been successfully running and maintaining health care service quality. The headquarters of the company is located in King of Prussia, Pennsylvania and it operates in 37 of the states in the whole of America. The services provided includes the following:
Mainly health related issues come up at the older age while some disorders may occur at any age even at early young side too. Thus the patient age ranges from early young to old age meaning patients of all ages are served in the company hospitals and other centers. The nature of income earning of the users can be described as the users with middle and high income generally use such services and products with the insurance company making payments with the co payees. The treatment of major type of diseases like cancer, heart disorder, and women related issues are provided and thus both men and women use the services of the company. The company organizes various program in various locations to develop a better connect with the community and bring awareness of the various services offered by it and the diseases which can be well cured at reasonable cost for different ages.
“We are proud to provide mental health services to more than 5,000 active duty service members each year at our 27 Patriot Support Program facilities.” (UHS Annual Report,2015)
The Behavioral Health Division responded to the demand for more acute inpatient services by adding 344 beds to existing facilities. (UHS Annual Report,2015)
Last year, CentRx opened nine retail pharmacies in Texas, Northern Nevada and Las Vegas. CentRx offers bedside pharmacy services in our hospitals, as well as onsite storefronts and mail order services for patients and employees. (UHS Annual Report,2015)
Thus it renders service both to resident users and corporate users as indicated from its financial reports.
b. Competitive environment faced and selection of marketing strategy to face such competition
Direct Competitor Comparison
UHS
THC
HCA
CYH
Industry
Market Cap:
12.81B
2.75B
29.81B
1.40B
986.39M
Employees:
54400
103665
174000
109000
6.78K
Qtrly Rev Growth:
0.1
0.14
0.06
0.02
0.08
Revenue :
9.27B
19.25B
40.26B
19.52B
325.24M
Gross Margin:
0.43
0.36
0.38
0.38
0.33
EBITDA
1.69B
2.24B
7.92B
2.29B
40.02M
Operating Margin
0.14
0.07
0.15
0.07
0.08
Net Income
696.69M
-243.00M
2.23B
114.00M
N/A
EPS :
6.96
-2.49
5.31
0.79
0.29
P/E:
18.98
N/A
14.36
15.6
18.39
PEG :
2.06
1
1.09
0.98
0.98
P/S :
1.4
0.14
0.75
0.07
1.29
Thus we see the company faces a pretty well competition in the market in US and is not at par with the industry ratios and returns. Given the high cost of health care services in US market and the number of health care service providers available the instrumental tool in maintain a fair share in the market would be improvement in service quality and keeping the cost as low as possible without compromising the quality as health is the ultimate wealth.
The most effective tool in the hands of any health care provider would be his relations with the patients which is built over time by the quality of care its renders to them. Better is the quality, higher will be the patient’s loyalty and attraction to such provider as the time passes. However unlike a decade or two before, this is the age of technology and thus healthcare services has no more remained limited to some few cities rather expanded to more than two or three states and thus the marketing strategy needs to be in line with the technological change. The buying decision of health care service and product users thus now does not gets influenced only by quality of such services but also by cost of such service or product and the transparency provided by various tools in pricing and usage. Besides the normal health bulletins United Health Services Inc. uses its company website to provide various product and service related information to the patients and the community as a whole from time to time which serves as a great marketing tool. It also maintains patient relations representatives with their contact number typed on the patient relations section such that they can take necessary advice about any health issue before the actual onsite visit. The other effective tool is its medical records sections in the company website where it provides a tool in hands of patients to make and update their medical profile, such that whenever required the same can be shared with any of the health care provider without any further delay. Further patients also transfer their medical records to any UHS or non UHS doctors and request copy of the same for a fees.
The best possible pricing strategy for its hospital care services and surgical procedures would be transparent and detailed billing system. For the health care services the entire cost is not borne by the user himself but a significant portion is borne or claimed from the insurance companies. Thus a billing system that provides detailed information on share of cost to be borne by the user and the share to be borne by insurers would act as great catalyst in bringing transparency. Moreover it should also detail cost of each service used such that there is scope for users to compare around and select the most reasonable provider depending on each type of service required.
Direct Competitor Comparison
UHS
THC
HCA
CYH
Industry
Market Cap:
12.81B
2.75B
29.81B
1.40B
986.39M
Employees:
54400
103665
174000
109000
6.78K
Qtrly Rev Growth:
0.1
0.14
0.06
0.02
0.08
Revenue :
9.27B
19.25B
40.26B
19.52B
325.24M
Gross Margin:
0.43
0.36
0.38
0.38
0.33
EBITDA
1.69B
2.24B
7.92B
2.29B
40.02M
Operating Margin
0.14
0.07
0.15
0.07
0.08
Net Income
696.69M
-243.00M
2.23B
114.00M
N/A
EPS :
6.96
-2.49
5.31
0.79
0.29
P/E:
18.98
N/A
14.36
15.6
18.39
PEG :
2.06
1
1.09
0.98
0.98
P/S :
1.4
0.14
0.75
0.07
1.29
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