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Managing the market. Focusing on a select group of customers can keep an organization competitive.

The real challenge in healthcare marketing today is managing markets, focusing on selected groups of customers rather than on the organization or its services. Market management includes three distinct but related levels: Strategic market management assesses current and potential markets and chooses those the organization can serve best; segment management focuses on the needs and wants of subsets of chosen customers; and customer management reinforces long-term commitments to the organization. The patient care experience can be broken down into specific contacts with each staff member. The key to managing the experience is to identify and achieve standards of performance for each contact by examining what each event means to the patients and how patients judge each staff member, as well as the overall care experience. Regular feedback helps. An unavoidable risk in market management is that a given segment may decline in size, in need for services, or in cohesiveness as a segment. Yet those organizations which can identify the right segments and "manage" them effectively will have an advantage in a competitive market.

Consumer Behavior↗

Growth through capitation and physician practice management.

Capitation achieves a competitive edge, yet many subacute care providers have not aggressively pursued this strategy. To take steps toward capitation, the following points need to be addressed: (1) determine what type of capitation to pursue; (2) establish the proper infrastructure to support capitated services; (3) implement a case management system; and (4) practice total quality management.

Capitation Fee↗

Hospitals & physicians. The new relationship.

Gone are the days when the hospital with the best physicians' lounge got the best doctors in town. Today's competition is far more sophisticated, and you might argue, more critical for hospitals' survival. Physicians evaluate not only the hospital itself, but its management, services, equipment, competitive position, financial incentives and even the town itself before making a decision where to practice. From the hospital's point of view, making the right impression on the right physician can be a life-or-death matter. Nearly 80 percent of all hospitals in the United States are actively recruiting physicians. And you can bet that 100 percent are trying to retain the physicians they already have. Especially difficult for rural hospitals are recent statistics showing that fewer than 10 percent of doctors who grew up in small towns return home to practice. How can you compete against these odds, especially if your hospital, city or town might have a few drawbacks? Those most successful in recruiting and retaining physicians share the same attitude--ask not what a physician can do for your hospital but rather what your hospital (and particularly your community) can do for a physician.

Hospital Administration↗

Why will physicians in this new environment replace MHAs?

The competitive forces of managed care, capitated payment, cost constraints, and the formation of health networks are among the major precipitating factors leading to the employment of additional executives and middle managers with clinical backgrounds. These factors will require our health leaders to know how to cut costs without seriously impinging on the accessibility and quality of patient care. Physicians with leadership and management skills, and with prior hands-on patient care expertise, will continue to be sought after in the foreseeable future by various types of health organizations. With this scenario, health services management generalists are predicted to experience increasing difficulties to secure senior positions in the health industry,

Canada↗

The role of reengineering in health care delivery.

Health care reengineering is a powerful methodology that helps organizations reorder priorities, provide more cost-effective care, and increase value to customers. It should be driven by what the customer wants and what the market needs. Systemwide reengineering integrates three levels of activity: managing community and health plan partnerships; consolidating overlapping delivery system functions among participating providers and vendors; and redesigning administrative functions, clinical services, and caregiving programs to improve health status. Reengineering is not a panacea; it is a critical core competency and requisite skill for health care organizations if they are to succeed under managed care in the future.

Chronic Disease↗

The role of nutrition screening and intervention programs in managed care.

Nutrition screening and intervention programs provide managed care plans with an opportunity to meet the needs of the increasing Medicare risk population. Recently, representatives from various health plans came together to discuss program benefits as well as the best practices in the development and implementation of such programs to ensure successful outcomes. Through simple and cost-effective programs, health plans can improve member satisfaction, resource utilization, and the health status of their members.

Aged↗

When do developing countries adopt managed care policies and technologies? Part I: Policies, experience, and a framework of preconditions.

OBJECTIVE: For developing countries with constrained economic resources, managed care holds out the promise of being able to control healthcare costs and reduce unnecessary utilization. However, little empirical evidence has been gathered about when managed care techniques can be applied to these countries and no framework considers the macroeconomic context. We propose a straightforward method to evaluate the economic and policy environment of a developing country to assess when managed care might be introduced. STUDY DESIGN AND METHODS: Analysis of available developing country health system and healthcare spending data, review of the available literature, and authors' experience evaluating healthcare reforms in developing countries. RESULTS: Many countries have implemented managed care techniques, which are driven by policy efforts to increase quality or to control costs. Successful implementation of managed care, however, appears to depend on five major preconditions. One precondition is an adequately developed formal wage sector in which patients have a sufficient ability to pay for healthcare services. Another is an adequate labor supply of trained professionals to support managed care administration, foster competition, and use available information technology. CONCLUSIONS: Although managed care encompasses a range of incentives and arrangements, implementation in developing countries appears to depend on attaining macroeconomic preconditions.

Developing Countries↗

Conflict of interest and the banker-trustee.

While hospitals benefit from banker board members' advice, they need to avoid the potential conflict-of-interest situations arising from financial decision making that may involve such members' institutions. Two effective ways of doing this are developing directives to be carried out by the hospital's financial manager and stimulating competition among financial institutions for the hospital's business.

Commerce↗

Performance under capitation: the true cost of infrastructure.

Administrative costs are a major item of concern for capitated provider groups, who must maintain a sophisticated infrastructure to allow them to manage and deliver clinical care to their patients under a fixed budget. The cost of this infrastructure is under steady upward pressure, as HMOs delegate more activities to providers and step up their reporting requirements. Our experience in establishing an infrastructure for a provider network is reported, and indicates substantial costs for both start-up and ongoing operations, which are highly volume dependent. A powerful case exists in favor of centralizing and pooling administrative infrastructure across related provider groups.

Budgets↗

Informatics knowledge: the key to maximizing performance and productivity.

Nurse managers face a competitive and complex market-place that demands greater attention to customer satisfaction along with continual improvements in quality and cost-effectiveness. Without information technology, the manager cannot hope to deliver ever greater quality at less cost. The nurse managers' effective promotion and use of computer applications can have enormous impact on the performance and productivity of their health care facilities. This article explores the potential of information technology to maximize clinical and cost outcomes, optimize decision making, and enhance administrative productivity.

Computer User Training↗

Physical medicine and rehabilitation workforce study: the supply of and demand for physiatrists.

OBJECTIVE: Analysis, results, and implications of a supply and demand workforce model for physical medicine and rehabilitation. Explicit issues addressed include: (1) the supply implications of maintaining current (1994-1995) output of physiatrists from residency programs; (2) the implications of continued growth in managed care on the demand for the services of physiatrists; (3) likely future supply and demand conditions; and (4) strategies to adapt to future conditions. DESIGN: A workforce model of the supply and demand for physiatrists was developed. Parameters of the model are estimated using econometric models and by applying the judgments of a consensus panel. The model evaluated several different scenarios regarding managed care growth, competition from other providers and other factors. RESULTS: Based on the analysis, physiatrists will continue to be in excess demand through the year 2000. More aggressive growth in managed care can affect this result. CONCLUSIONS: Based on an overall assessment of supply and demand conditions, and under the assumption that the supply of new entrants each year remains in the range of 1994-1995 levels, demand for physiatrists will continue to exceed supply, on average, through the year 2000. Excess supply has, and will, emerge in selected geographic areas. If the profession is successful in informing the market regarding the advantages of physiatry, the profession can continue to grow without experiencing excess supply, in the aggregate, for the foreseeable future.

Forecasting↗

Brand management: only the strong survive.

Competition, consolidation, and couponing have made consumers savvier and brand loyalty shakier. As a result, nurturing the all-important brand demands a new level of creativity and an increased attention to strategy. Often it means a closer look at logos and package design.

Advertising↗