Perpetual Mercy Hospital - Case Study
PERPETUAL MERCY HOSPITAL – CASE STUDY
DAVENPORT UNIVERSITY
MARKETING STRATEGIES 610
PROFESSOR PHILLIPS
SEPTEMBER 20, 2010
Perpetual Mercy Hospital (PMH) a 600 bed, independent, not-for-profit, general hospital is one of six general hospitals located in a major western city. Financially stronger than most metropolitan-based hospitals in the United States, it is debt-free and has the highest overall occupancy rate among the city’s of six general hospitals (Rodger and Peterson, 2010, p. 230). In May 1999, PMH formally opened a new Health Clinic in the city’s downtown area. The reasoning behind opening the new clinic was to help PMH expand its referral base through establishing a connection with the business community, and to increase referrals of privately insured patients. Until the 1960s, hospitals were largely charitable institutions that prided themselves on their not-for-profit orientation. Hospitals functioned primarily as workshops for physicians and were guided by civic-minded boards of trustees. Federal intervention in the 1960s changed the concept of health care services from privilege to entitlement (Rodger and Peterson, 2010, p. 228). Since the 1960s, the health care industry has experienced drastic changes that included cutbacks in subsidy programs and cost-control regulations, such as the Balanced Budget Act of 1997 that among other things was aimed to reduce Medicare spending, through reduced payments to providers such as hospitals and nurse practitioners (Wikipedia). Due to the unfavorable demographic shift that has taken place over the years at PMH a large majority of the hospital’s existing patients are covered under Medicare and therefore alternative health care reimbursement programs need to be added and or pushed through their existing or expanded patient care system. Before opening their new center, PMH collected data to determine the types of patient care services needed within the targeted area. Resulting from the
DAVENPORT UNIVERSITY
MARKETING STRATEGIES 610
PROFESSOR PHILLIPS
SEPTEMBER 20, 2010
Perpetual Mercy Hospital (PMH) a 600 bed, independent, not-for-profit, general hospital is one of six general hospitals located in a major western city. Financially stronger than most metropolitan-based hospitals in the United States, it is debt-free and has the highest overall occupancy rate among the city’s of six general hospitals (Rodger and Peterson, 2010, p. 230). In May 1999, PMH formally opened a new Health Clinic in the city’s downtown area. The reasoning behind opening the new clinic was to help PMH expand its referral base through establishing a connection with the business community, and to increase referrals of privately insured patients. Until the 1960s, hospitals were largely charitable institutions that prided themselves on their not-for-profit orientation. Hospitals functioned primarily as workshops for physicians and were guided by civic-minded boards of trustees. Federal intervention in the 1960s changed the concept of health care services from privilege to entitlement (Rodger and Peterson, 2010, p. 228). Since the 1960s, the health care industry has experienced drastic changes that included cutbacks in subsidy programs and cost-control regulations, such as the Balanced Budget Act of 1997 that among other things was aimed to reduce Medicare spending, through reduced payments to providers such as hospitals and nurse practitioners (Wikipedia). Due to the unfavorable demographic shift that has taken place over the years at PMH a large majority of the hospital’s existing patients are covered under Medicare and therefore alternative health care reimbursement programs need to be added and or pushed through their existing or expanded patient care system. Before opening their new center, PMH collected data to determine the types of patient care services needed within the targeted area. Resulting from the
References: June 7, 2010. Retrieved September 20, 2010 from http://seattletimes.nwsource.com/html/health/2012052172_treat08.html National Health Care (NHC). Hospital choice. Choosing the right hospital. Retrieved September 20, 2010 from