Posted: May 1st, 2025

CHP 475 Marketing Plan part 7

Marketing Plan Part 7 Marketing Mix: Advertising Strategies:

MARKETING PLAN RUBRIC Part 7 Marketing Mix: Advertising Strategy
MARKETING PLAN NAME
PERFORMANCE RUBRIC
CRITERION
Advertising
NEEDS
IMPROVEME
NT Score 0- 69
Little to no
information is
provided
AVERAGE/SATISFACTORY Score 70-89
EXCELLENT Score 90-100
The plan contains limited details on the
advertising campaign used; limited
definition of the classification of
advertising as it pertains to your
product/service; limited discussion in the
comprehensive detail on the components
of an advertising campaign that includes
the following: addressing target audience;
determining the advertising objectives
using 5 levels, determining the budget;
developing a message using 4 approaches,
discussing 4 appropriate medium and
vehicle for delivering the message for the
product/service; and addressing inbound
marketing as it applies to your
product/service.
The plan contains comprehensive details on the advertising
campaign used; define the classification of advertising as it
pertains to you product/service; discussed in comprehensive
detail the components of an advertising campaign that addresses
target audience; determined the advertising objectives using the
5 levels; determined the budget; develop a message using 4
approaches, discussing 4 appropriate medium and vehicle for
delivering the message for the product/service; and addressing
inbound marketing as it applies to your product/service.
MARKETING PLAN RUBRIC Part 7 Marketing Mix: Advertising Strategy
MARKETING PLAN NAME
PERFORMANCE RUBRIC
ADVERTISING STRATEGIES .
Discuss the classifications of advertising: product vs institutional.
Define how you classified your product/service (10 points)
Discuss the developing of your advertising campaign:
1) Define the target audience. (10 points)
2) Determine the advertising objective by addressing each step in the hierarch of effects. (20 points)
3) Determine the budget by discussing which methods that were chosen. (15 points)
4) Develop the message, by discussing 4 different approaches that you would use. (20 points)
5) Discuss your select of 4 medium of advertising and the vehicle for delivering the message. (20 points)
6) Discuss inbound marketing as it pertains to your product/service. (5 points)
CRITERION
NEEDS
IMPROVEMENT Score
0-29
AVERAGE/SATISFACTORY Score 30-39
EXCELLENT Score 40-50
MARKETING PLAN RUBRIC Part 7 Marketing Mix: Advertising Strategy
MARKETING PLAN NAME
PERFORMANCE RUBRIC
Marketing Plan Project: Open Arms Mental Health Center
CHP475: Healthcare Marketing
Name
Type of Organization
Mount Vernon Healthcare Center is a nonprofit inpatient treatment facility dedicated to
addressing the healthcare needs of the elderly population. Specifically designed to cater to the
unique challenges faced by senior citizens, the organization is staffed with experts in geriatric
medicine, nursing, and allied health professions. The center provides comprehensive care and
support to elderly individuals with physical ailments, cognitive disorders, and other age-related
health concerns.
Name of Organization
Mount Vernon Healthcare Center
Organization’s Mission
The mission of Mount Vernon Healthcare Center is “To enhance the quality of life for elderly
individuals through compassionate and specialized healthcare services.” The organization is
committed to delivering personalized care that addresses the physical, emotional, and cognitive
well-being of elderly residents. The goal is to create an environment that fosters dignity, respect,
and a sense of community for all residents and their families.
Organization’s Strategy Models
As an inpatient healthcare facility, Mount Vernon Healthcare Center specializes in providing
round-the-clock care for elderly individuals. The treatments and procedures offered require close
observation by healthcare professionals over an extended period. Residents stay in the facility
until their health conditions stabilize and discharge is approved by the medical team or per the
family’s preference. The center ensures a private and comfortable environment for residents
during their stay, promoting safety and well-being.
Hours of Operations
Office: Monday-Friday, 8 a.m. – 6 p.m.
Scope of Service Line
Mount Vernon Healthcare Center offers services tailored to elderly residents facing physical and
cognitive challenges. The facility has specialized units designed to address various health
conditions prevalent among the elderly. The dedicated staff, including skilled nurses and geriatric
specialists, provide personalized care within a supportive community. The center’s approach
involves individualized treatment plans, therapeutic activities, and continuous monitoring to
ensure the well-being of each resident.
Clients Served
The organization serves elderly individuals aged 65 and above who require inpatient care due to
various health issues such as chronic illnesses, cognitive impairments, or rehabilitation needs.
Mount Vernon Healthcare Center is committed to providing inclusive care, and no resident will
face discrimination based on factors such as ethnicity, economic status, lifestyle, or religious
beliefs.
Locations of Clinics or Services
The inpatient facility is in Mount Vernon, New York, serving the broader Mount Vernon
metropolitan area.
Description of Business
Mount Vernon Healthcare Center operates as a comprehensive senior healthcare practice,
offering a wide range of services and resources to enhance the overall well-being of elderly
individuals in the Mount Vernon community. The organization aims to be a hub for affordable
and quality healthcare solutions, fostering positive relationships between caregivers and
residents. With a team of dedicated healthcare professionals specially trained in geriatrics, the
center strives to achieve optimal outcomes for its elderly population.
Financial Health or Positions
Mount Vernon Healthcare Center is a not-for-profit organization that relies on donations and
earned income to sustain its operations. The organization operates with a mix of volunteer and
paid staff, ensuring that all funds generated or received go directly back into maintaining and
improving the quality of services. Endowment funds are crucial in supporting the center’s
programs, with investments contributing to the organization’s overall financial stability and
sustainability.
Social Changes
The demographic landscape is witnessing a significant shift with an aging population, leading to
an increased demand for senior healthcare services. The prevalence of chronic conditions and
cognitive disorders among the elderly is on the rise. Mount Vernon Healthcare Center
acknowledges these social changes and is dedicated to adapting its services to meet the evolving
healthcare needs of the aging population in the Mount Vernon area.
Economic Factors
Socioeconomic factors play a crucial role in the well-being of elderly residents. Like many other
cities, Mount Vernon faces economic challenges that can impact the health of its senior
population. Mount Vernon Healthcare Center strives to mitigate financial barriers by accepting
various payment options, including Medicaid and various insurance plans. This approach ensures
that elderly individuals in need can access essential healthcare services without financial
constraints.
Demographic Changes
The aging demographic trend has implications for the prevalence of mental health conditions and
chronic illnesses among the elderly (Mental Health and Aging). Data from national health
organizations indicates a rise in mental health conditions and substance use disorders in the
elderly population (Baker et al., 2021). Mount Vernon Healthcare Center is attuned to these
demographic changes. It is poised to address the evolving healthcare needs of seniors,
acknowledging that mental health concerns persist in older age groups.
Healthcare Delivery
The healthcare delivery process at Mount Vernon Healthcare Center is organized into four key
steps, which include assessment, diagnosis, treatment, and monitoring. Each resident undergoes a
thorough assessment to determine the most appropriate level of inpatient care. The medical team
diagnoses and formulates a tailored treatment plan, incorporating therapeutic activities,
rehabilitation, and cognitive support. Continuous monitoring ensures the ongoing well-being of
residents, with the ultimate goal of successful discharge.
Regulatory or Political Changes
Recent regulatory changes, such as the Elderly Care Enhancement Act of 2023, emphasize the
importance of specialized healthcare services for older people (Gharagozloo et al., 2023). Mount
Vernon Healthcare Center aligns with these legislative efforts, contributing to the enhancement
of elderly care systems. The organization supports ongoing education and training for its staff to
comply with evolving regulations, ensuring the seamless integration of behavioral health and
primary care for elderly residents.
Competitive Factors
Mount Vernon Healthcare Center competes for skilled healthcare professionals by offering
advanced training opportunities and state-of-the-art equipment. The organization strongly
emphasizes customer satisfaction and strives to attract residents by providing a comprehensive
range of services, excellent amenities, and competitive pricing. Medicaid coverage ensures that
the cost of treatments and programs is accessible to all, eliminating barriers to quality care.
Barriers to Entry
Advancements in healthcare technology pose a potential barrier to entry, as the adoption and
integration of new technologies can be challenging for some healthcare providers. Mount Vernon
Healthcare Center remains committed to overcoming this barrier by investing in ongoing staff
training and technology integration, ensuring that the organization stays at the forefront of
healthcare delivery.
Barriers to Exit
Mount Vernon Healthcare Center faces emotional barriers that could prevent an exit from the
market. Over time, the organization has built a loyal community of employees and residents. The
center’s vital role in supporting the health and well-being of the elderly population in Mount
Vernon establishes a strong emotional connection, making it challenging to contemplate exiting
the market.
References
Baker, S. T., Deady, M., Birrell, L., Ross, K., Fitzpatrick, S., Newton, N., … & Chapman, C.
(2021). Prevention of mental and substance use disorders: Shaping priorities for research
and implementation. Mental Health & Prevention, 24, 200211.
https://doi.org/10.1016/j.mhp.2021.200211
Gharagozloo, F., Poston, R., & Gruessne, R. W. (2023). Constitutional Violations by the Health
Care Quality Improvement Act (HCQIA) and the National Practitioner Databank (NPDB)
Reporting: Focusing on Preservation of the Civil Rights of Physicians. Journal of
Medicine and HealthCare, 5(3), 1-3. DOI: doi.org/10.47363/JMHC/2023(5)227
Mental Health and Aging. www.cdc.gov/aging/olderadultsandhealthyaging/mental-healthandaging.html.
Marketing Plan Part 2: Product Service Overview Target
CHP 475: Healthcare Marketing
Name
Proposed new service unique features
The proposed unique features of the services offered at the hospital are supporting and
educating patients on implementing healthy behaviors such as eating a balanced diet, being
physical active, and refraining from tobacco and alcohol. The programs aim to promote overall
well-being of patients by targeting vulnerable groups, like those who have chronic health issues
or the ones who live in remote areas. Lack of healthy behaviors contributes to mortality and
disability (Shen 2019). The education provided to patients will help change their lifestyle, which
will improve their well-being and overall health. In addition, the hospital will offer
evidencebased care and guidance, ensuring patients trust they will receive the best care.
Hospital Values to the target markets
One of the values the facility will ensure is the quality of care and service the patients
receive once they visit the hospital. Once the senior citizens age after toiling for several years
and their bodies begin to break down, they look for the best care. Quality service is delivered
with the help of personalized care, geriatric specialists, and skilled nurses. The hospital is
compassionate about treating their patients with empathy, respect, and acting with utmost
integrity. In addition, the facility has therapeutic plans, individualized treatment plans, and
continuous monitoring of patients to ensure their well-being is well taken care of. Delivering
quality health care to seniors begins with assessment, diagnosis, and offering the best treatment
plan. Close monitoring is in place to ensures the patient’s well-being as they await successful
discharge. The facility also values inclusivity, where no patient faces discrimination based on
cognitive disorders, health condition, economic status, ethnicity, religious beliefs, or lifestyle.
Benefits of the new service
Supporting and educating the elderly on implementing healthy behaviors increases their
well-being and participation in society. If a patient swiftly recovers from a health condition, it
could reduce their risk of getting chronic diseases and even disability. Increasing physical
activity and reducing sedentary behavior in older adults reduces stress and improves quality of
life and physical functioning. Behavioral changes like eating healthy foods could as improve
their well-being. Knowledge obtained from health professionals helps the patient change their
lifestyle, which improves health. Attending the classes offered by the hospital could help patients
to identify behavioral causes of poor quality of life. In addition, learning healthy coping
strategies helps in combating emotional and physical stress, which may be caused by unhealthy
living.
Positioning of the new service compared to other services offered by competitors
Educating and supporting the patients about their ideal lifestyle to avoid future chronic
illness is vital in the facility. The knowledge the patients gain from their classes helps them
change their physical activities and lifestyle (Castle Hill Weight Loss & n.d.). The health
care professionals will have advanced training to counteract competition with other facilities.
Offering education increases customer satisfaction, which will attract residents, eliminating any
barriers that may block the delivery of quality care.
Different ways of performance from substitutable offering
The healthcare professionals in the facility comply with the evolving regulations that
ensure seamless behavioral health integration and primary care for elderly residents.
Additionally, the facility adopts and integrates new technologies, offering quality healthcare
delivery. Moreover, the facility is building a loyal community of patients, which eases the
support of well-being and health of the elderly. Emotional connection is a better way of ensuring
quality service.
Target market
The target market is the elderly population to address their healthcare needs. It aims to
cater to the challenges so that the patients get comprehensive care. They aim to support senior
citizens from cognitive disorders and physical ailments. The facility aims to improve the quality
of life by ensuring the Mount Vernon Healthcare Center personalizes their care through
emotional, physical, and cognitive disorders.
Since older adults face cognitive and physical, the hospital has units designed to address
the health conditions of their sickness. The target population is the elderly, aged fifty-five years
and above. The facility offers inclusive, inpatient care. Moreover, the patients’ health is our
priority, ensuring a supportive environment to all patients.
The rationale of the target market
Some elderly individuals are endangered and often face physical and cognitive
encounters. More often, the elderly are neglected by their family members, which inhibits
emotional and physical procedures. Often, most elderly fail to get a place where they can get
affordable and quality health care. The facility specifically trains its staff in geriatrics, ensuring
optimum outcomes for the elderly.
Segment strategies
The segment strategies used sociodemographic segmentation to develop the best way to
provide quality health to all patients. Mount Vernon Healthcare Center aims to target individuals
who are either retired or are near retirement. The elderly population is a group of importance, and
hence, the essence of modifying their services to ensure they meet the needs of these people as
they age. Psychographic segmentation is another way of segmenting the market for the facility. It
would understand the community’s interests, attitudes, and opinions, which ideally helps generate
lifestyle segments. The facility has insights on engaging and delivering messages to the
community near the facility. Conducting a survey of people living in that locality helps provide
quality services to the targeted population.
Sociodemographic variables
The hospital is in New York serving the Mount Vernon metropolitan area. Twenty-five
percent of the elderly individuals in the locality have various health issues such as cognitive
impairments, rehabilitation needs, and chronic illnesses. After realization, there was a need to
provide inclusive care regardless of lifestyle, economic status, ethnicity, or religious beliefs. The
population in Mount Vernon metropolitan area comprises individuals aged forty-five years and
above. People in those areas are living unhealthy lives, and several mental health and drug abuse
cases may hinder top health concerns.
Cohort segmentation
The cohort segmentation considered are individuals between 1950 and 1965 who are the
baby boomers. The group is vulnerable to physical and mental health issues, and in the coming
years, they require several healthcare services. Several baby boomers need preventative health
marketing as they ought to be aware of chronic illnesses that are prevalent as people age. It is
also essential for these individuals to be aware that chronic ailments are preventable if they
change their lifestyle behaviors.
Type of usage
The service offered at Mount Vernon Healthcare Center will be attributed to older adults.
Most users will be individuals over fifty-five years, generating many profits. Older people are
likely to use a support group for several reasons. Some patients would like to understand their
mental wellness better. Therefore, they will get more knowledge on physical exercise, nutrition,
and any other form of healthy living. People in their retirement age usually have spare time to
learn a course regarding their mental wellness. Older adults have difficulties losing weight, and if
the Mount Vernon Healthcare Center has a service that would help them, they are more likely to
develop an interest in ensuring they live an efficient and healthier life.
Benefit segmentation approach
Patient ranging from fifty years and above would value the quality care and services
offered to them as they visit a hospital. After working for many years, elderly individuals seek
the best care when their bodies start breaking down. Mount Vernon Healthcare Center is among
the best in the country in delivering quality service for older adults to ensure they live healthier.
Segmenting Business Market
Mount Vernon Healthcare Center will select a group of individuals so that the service
given to them will appeal to their interests. The facility uses psychographic segmentation for the
opinions, interests, and attitudes of older people who want a better lifestyle. Surveys help deliver
engaging messages to their patients; hence, they give a general overview of the well-being of the
retirement age population.
References
Castle Hill Weight Loss & Wellness Programs. Free Weight Loss & Wellness Programs
at Bronx YMCA. (n.d.)., https://ymcanyc.org/locations/castle-hillymca/programsclasses/health-fitness/weight-loss-wellness
Shen, A. (2019). Marketing Preventive Health to Baby Boomers: What if unhealthy lifestyles are
attributable to the counterculture? Journal of Macromarketing, 39(2), 151–165.
https://doi.org/10.1177/0276146719835290
1
Marketing Plan Part 3 Marketing Mix: Product/Service Strategy
CHP475: Healthcare Marketing
Name
2
Products and services by dimensions
a. Core product
The main product of the Mount Vernon Healthcare Center is addressing the health
and well-being of elderly patients. The facility offers inpatient care, providing treatment,
rehabilitation, and continuous monitoring for those individuals facing age-related health
challenges. Some health issues that will be addressed include physical ailments, cognitive
decline, and chronic conditions.
b. Actual product
The actual products the center delivers are specific medical services and treatments.
These services include diagnostic assessments, treatment plans, rehabilitation, nursing, and
specialized care services for cognitive and specific illnesses.
c. Augmented product
Besides the core and actual products, Mount Vernon Healthcare Center aims to
provide augmented services that enhance the overall patient experience and address other
health needs. Healthy lifestyle education on nutrition, exercise, and stress management will
be provided. There will be support groups to address the social needs of older people under
our care. Other resources, such as counseling, will be provided as part of emotional support to
the elderly patients and their families.
d. Nondurable good
Most of the services at Mount Vernon Healthcare Center are nondurable goods. They
are consumed immediately or within a relatively short period. For instance, nursing care
provided during a patient’s stay in the facility, medications administered, or an educational
session completed are all nondurable goods and services.
3
e. Durable good
Even though not quite prominent, there might be a durable good aspect within the
services offered in the center. For instance, the center may rent or provide durable medical
equipment such as wheelchairs and walkers to the patients. These goods will be used at home
after discharge.
Five I’s of services.
Intangibility
The primary services provided by the center are primarily intangible. For example, a
patient cannot physically hold or store the results of a medical assessment, the benefits of
treatment, or the knowledge gained in an educational session. This comes with a challenge in
marketing. Therefore, the center will find ways to communicate the value of its services in a
tangible manner. Some of the approaches that may be useful include testimonials of past
patients, statistics on success rates, and visualizations of the long-term benefits of healthy
lifestyle changes.
Inconsistency
Inconsistency is inevitable in the services provided at the Mount Vernon Healthcare
Center. Each patient presents with unique needs and responses to treatment. While the center
strives for standardized, high-quality care, there will be variability based on the individual
patient and the skills of individual healthcare providers. In the facility, the minimization of
inconsistency will be ensured through solid quality control, ongoing staff training, and the
establishment of clear protocols.
Inseparability
The services offered by Mount Vernon Healthcare Center are inseparable from their
production and consumption. For instance, a patient may receive a medical assessment when
a healthcare professional conducts it. The patient’s well-being is directly tied to the real-time
4
actions, care, and expertise offered by staff. Therefore, quality service delivery will be
ensured by recruiting highly skilled employees and engaging in ongoing professional
development.
Inventory
Unlike tangible goods, healthcare services may not be stored in inventory. What
might be considered perishable inventory in our service provision includes staff time,
available beds, and medical supplies. The center will carefully manage capacity against
demand since too few staff or beds lead to patients being turned away, whereas excessive
capacity creates financial strain. Efficient scheduling, data analysis on patient demand
patterns, and a plan for managing unexpected surges will be crucial for inventory
management.
Interaction
Mount Vernon Healthcare Center relies heavily on customer interaction. Patients and
staff interact continuously throughout the care process. The quality of these interactions has a
profound impact on patient experience. The care provision staff will be required to have
excellent communication and interpersonal skills, empathy, and understanding.
Classification of products and services
The products and services offered by Mount Vernon Healthcare Center fall under the
categories of experience goods and credence goods. According to Berger et al. (2020),
experience goods are those where the consumer directly interacts with the service to evaluate
its quality, such as inpatient care, rehabilitation services, and educational sessions. Credence
goods are more difficult to assess even after use due to the specialized medical knowledge
required. They include diagnostic assessments, treatment plans, and some medications. These
services have implications for building trust, reputation, pricing, and making informed
treatment choices.
5
Product/Service line and mix
Mount Vernon Healthcare Center’s products, service line, and mix focus on the
specialized needs of elderly patients. The core product line is inpatient care, including various
units tailored to specific health conditions, such as cognitive disorders and rehabilitation
needs. This line addresses the acute medical treatment and ongoing monitoring required by
the elderly population. The product mix will expand to include preventative and wellness
services. Specific services include healthy lifestyle education sessions and support groups.
Service line cycle
a. Introduction
The proposed healthy lifestyle education and support groups represent an introductory
phase of the service. This concept is relatively new in the context of inpatient elderly care,
with growing recognition of preventative measures for this population. Mount Vernon
Healthcare Center will invest in developing and marketing these programs to potential
patients and referral sources like physicians.
b. Growth
Inpatient care services such as treatment for chronic illnesses and rehabilitation are in
a growth stage. The aging population drives demand, and the center’s reputation for quality
care can accelerate this growth. Marketing efforts will focus on partnerships with community
organizations and targeted outreach to the families of elderly individuals.
c. Maturity
Basic diagnostic and assessment services would fall into the maturity stage. These
essential elements of care are well-established in the industry. The center focuses here on
maintaining efficiency and competitive pricing for these standard services while ensuring
continuous quality improvement.
d. Decline
6
Predicting a true decline stage for the center’s overall service mix is difficult, as
healthcare needs for the elderly will likely continue. However, certain specific treatments or
procedures could decline as medical technology evolves. The center will stay updated on the
new medical advances, potentially phasing out outdated services in favor of more effective
care modalities.
Branding strategies
Mount Vernon Healthcare Center will use several branding strategies to build a
strong, recognizable identity within the community. The center will showcase expertise by
highlighting specialized geriatric staff, advanced training, and any cutting-edge technology
used to convey a sense of medical authority and trustworthiness. The brand will be integrated
into the community to show its connection with the community. This will be done through
participation in community events and collaboration with local senior groups. There will also
be consistent visuals on platforms such as websites and printed media, as well as at the
facility. This strategy aims to demonstrate professionalism and build brand recognition (Liu
et al. 2021). Finally, with permission, while ensuring confidentiality, patients’ stories will be
used by sharing success stories (Drewniak et al. 2020). This undertaking will humanize the
brand and demonstrate positive outcomes for patients.
7
References
Berger, R., Bulmash, B., Drori, N., Ben-Assuli, O., & Herstein, R. (2020). The patientphysician relationship: An account of the physician’s perspective. Israel Journal of
Health Policy Research, 9. https://doi.org/10.1186/s13584-020-00375-4
Drewniak, D., Glässel, A., Hodel, M., & Biller-Andorno, N. (2020). Risks and Benefits of
Web-Based Patient Narratives: Systematic Review. Journal of Medical Internet
Research, 22(3). https://doi.org/10.2196/15772
Liu, Y., Liu, X., Wang, M., & Wen, D. (2021). How to Catch Customers’ Attention? A Study
on the Effectiveness of Brand Social Media Strategies in Digital Customer
Engagement. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.800766
1
Marketing Plan Part 4: Market Mix Pricing Strategy
CHP 475: Healthcare Marketing
Name
2
Define the term pricing as it pertains to your product/service
Pricing refers to the process of determining the monetary value assigned to a product or
service offered by an organization. In the context of Mount Vernon Healthcare Center’s case,
“pricing is determined by the cost analysis of the healthcare services for elderly patients, which
encompasses staffing, equipment, facilities, and performance expenses, paying thereof
determining the fees for the healthcare services” (Tanwar et al., 2020). The guidelines for
pricing must take into account such variables as the organization’s mission, targeted attitudes,
market structure, and the regulatory environment.
Discuss each type of transparency as it pertains to your product/service.
Price Transparency: Mount Vernon Healthcare Center aims to provide clear and
accessible information about the costs associated with its services to elderly patients and their
families. Price transparency provides patients with insight into the financial outlines of their
healthcare choices, which include payments for hospitalization, diagnostics, and other
supplementary services. According to Cooper (2019), the transparency of the cost habit assists
in the development of consumer trust and, thus, makes it easier to make healthcare-related
choices. Quality Transparency: The center places a prime emphasis on accountability for the
quality of services offered to patients. This implies putting out straightforwardly the skills and
qualifications of health care professionals, accreditation, patient satisfaction scores and
successful outcomes that a clinical institution has achieved ((Buttorff et al., 2021).
Transparency in healthcare metrics is a major factor in Mount Vernon Healthcare Center’s
quality of services for the elderly.
Identify which type or types of reimbursement will be considered when pricing the Product/Service.
Mount Vernon’s Healthcare Center is applying different reimbursement methods to
cover its everyday activities that serve people of elderly age. Firstly, Medicare, a national
3
health insurance program for people aged 65 and over, can cover services like inpatient,
diagnostic tests, and rehabilitation at this center, which is according to the Medicare payment
rules and regulations. Secondly, the Medicaid program, another government program, offers
health coverage for disadvantaged people above the age of 65, as well as for other groups
meeting certain requirements, and the center has Medicaid reimbursements for those qualifying
for its services, thus letting low-income elderly patients receive needed care for free. Thirdly,
elderly patients with private health insurance plans work out with different private insurance
carriers through the companies from which employees receive their healthcare benefits or
follow individual policies to bill their patients’ covered services and negotiate reimbursement
rates (Buttorff et al., 2021). Lastly, for the patients who have insurance and the ones who do
not have (deprived) insurance, Mount Vernon Healthcare Center offers flexible payment
options, including out-of-pocket payments, which let the patients afford and have (pause)
medical service regardless of their financial means.
Describe in detail each step of the multistep process of establishing the Price.
Cost Analysis: The first step involves conducting a comprehensive cost analysis to
determine the expenses associated with delivering healthcare services, including direct costs
(e.g., staffing, supply) and indirect ones (e.g., facility maintenance, administration). Market
Research: Next, the organization conducts market research to familiarize itself with the pricing
strategies of competitors, patients’ preferences and willingness to pay, and demand and supply
trends and patterns. Value Assessment: Mount Vernon Healthcare Center determines the
perceived value obtained from its services with the use of patients as the perspectives as well as
essentially quality of care, facility reputation, convenience, and patient outcomes. Pricing
Strategy Development: On the basis of cost analysis, MR, and value assessment, the company
comes up with a pricing strategy that generally aligns with the company’s objectives and target
4
market preferences. This may involve setting based on cost-plus pricing in consideration,
competitive pricing or value-based pricing strategies (Ginter et al., 2018). Price
Implementation: Subsequently, Mount Vernon Health Care Centre determines the price
structure in accordance with its monetary policy and applies it to all its services in order to
maintain consistency in pricing and transparency in the communication with patients, families,
and insurance companies.
Describe the impact of the five forces on pricing.
Threat of New Entrants: The emergence of new healthcare providers in the market may
lead to downward pressure on prices as competition intensifies. According to Buttorff et al.
(2021), pricing position and competition at Mount Vernon Healthcare Center have to consider a
strategic pricing approach in order to maintain its competitive position and be attractive to
patients in light of increasing competition. Bargaining Power of Buyers: Elderly patients and
their families may have significant bargaining power, particularly if they have multiple
healthcare options to choose from. Considering that Mount Vernon Healthcare Center is keen
on offering quality healthcare service to its patients, it has to consider a variety of factors such
as patient preferences, affordability gaps, and insurance covers to charge prices that keep its
patients. Bargaining Power of Suppliers: Vendors involved in selling medical gadgets, drugs,
and other essential healthcare products might be affecting the Price by negotiating or putting
the terms in the contracts. The array of factors influencing Mount Vernon Health Care Center’s
pricing decisions may include costs incurred from suppliers, quality, and relationships with
supply frameworks (Ginter et al., 2018). Threat of Substitutes: Substitutes of the healthcare
marketplace, such as alternative sources of treatment or another healthcare channel, will lead to
the pricing decision creation of the competitive market modes, and pressure to differentiate
services based on quality and value also add to the Price being charged. Intensity of Rivalry:
5
Healthcare providers’ competition in the Mount Vernon region will be a contributing factor to
pricing fluctuations where prolonged negotiations for market share and patient capacity are
common. Mount Vernon Healthcare Center would pursue competitive pricing strategies that
satisfy the financial objectives of maximizing profitability and also provide patients (clients)
with good value.
Identify and explain the pricing strategies.
Cost-Plus Pricing: This strategy involves calculating the total costs of delivering
healthcare services and adding a markup to determine the final Price. It uses a cost-plus
document pricing method to ensure that all costs and a reasonable profit margin are
covered. Value-Based Pricing: Value-based pricing focuses on setting prices based on the
perceived value of services to patients. Mt. Vernon Healthcare Centre takes patients’ experience
into the equation while accounting for quality care, patient outcomes, and values derived while
ensuring that pricing is aligned with the values that the patients derive. Competitive Pricing: It
involves setting prices based on the prices charged by competitors in the market (Buttorff et al.,
2021). Along with the prices of competitors, the Mount Vernon Health Center keeps a close
eye on them and adjusts its prices to maintain both profitability and a prestige-based value
embracing patients’ needs.
References
Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). The strategic management of health
care organizations. john wiley & sons.
https://books.google.com/books?hl=en&lr=&id=3qVFDwAAQBAJ&oi=fnd&pg=PR7
&dq=Navigating+Healthcare+Pricing+Strategies+in+a+Competitive+Market&ots=4V
BqvrqUDK&sig=PhsYws5603Eod9T-MXEhc-mJ968
6
Cooper, Z., Craig, S. V., Gaynor, M., & Van Reenen, J. (2019). The Price ain’t right?
Hospital prices and health spending on the privately insured. The quarterly journal of
economics, 134(1), 51-107. https://academic.oup.com/qje/articleabstract/134/1/51/5090426
Buttorff, C., White, C., Martineau, M., Case, S. R., & Damberg, C. L. (2021). Increasing
Price Transparency in Health Care.
https://www.rand.org/content/dam/rand/pubs/research_reports/RR2600/RR2645/RAN
D_RR2645.pdf
Tanwar, T., Kumar, U. D., & Mustafee, N. (2020). Optimal package pricing in healthcare
services. Journal of the Operational Research Society, 71(11), 1860-1872.
https://www.tandfonline.com/doi/abs/10.1080/01605682.2019.1654416