ABSTRACT
In today's marketplace, having an effective marketing strategy is key to changing a hospital's image as well as the nature of the product/service. To make the strategy effective, the focus of hospital administrators should be on getting the most out of the hospital's budget, and making a socially responsible decision that can maximize the contribution margin of all marketing expenditures. This article presents a model which attempts to maximize the contribution of various inputs toward a better image and conspicuousness of a hospital.
Subject(s)
Hospital Planning/economics , Marketing of Health Services/methods , Budgets , Hospital Administrators , Models, Economic , Product Line Management/economics , Public Relations , United StatesABSTRACT
The failures, marketing difficulties and financial hardships hospitals have experienced raises a question as to whether they have been responsive to the changes in the micro and macro-environmental factors. To determine how responsive hospitals have been to these changes, we investigate the impact of a number of selected factors on the supply of hospital services during 1972 through 1978. The findings indicate that despite the fact that the economy went through recessionary periods, and the demographic distribution exhibited both a shift and a change in the aging and birth rates of the nation, the changes in hospitals' responsiveness have been less than satisfactory. It appears that hospitals readily respond to the changes in the micro-environment than to the changes in macro-environment. Their response to the changes in the macro-environment. Their response to the changes in the macro-environment may be characterized as an effort to create a higher level of production whose goal is to create a still higher level of needs and wants.