West Hertfordshire Hospital Management

Question: Write an essay on A case of West Hertfordshire Hospital? Answer: Marketing concepts applied on West Hertfordshire Hospital: Product and market Focus: West Hertfordshire Hospital: ManagementTherefore the market focus is to cover whole country and to serve the people with the best service. The product objectives on the other hand are to offer variety of medical assistance for different parts of body including heart, lungs, ENT etc. SMART objectives: SMART objectives actually refer to assigning objectives that are specific, measurable, achievable, relevant and time bound. This way the objectives become realistic and easy to be achieved through the joint effort of the team members of an organization. In the case of West Hertfordshire Hospital the SMART objectives can be identified as follows. S-Specific To meet the requirements of people in the region and around. To offer variety of medical services and assistance to the patients. To offer high value service at competitive costs. To improve quality of service. M-Measurable To achieve the target of 550,000 clients served in the hospital. To achieve the target of meeting requirements of twenty percent more number of clients in coming three years. To add safety and quality in the maternity services. To achieve a target growth of 0.64%. Offering emergency care with ninety five percent delivery at four hour standard. To bring in new equipment and technology within the end of the year. To offer heavy discounts on surgery and other medical treatment to the people. A-Achievable To achieve satisfaction of clients. To enhance quality and offer varied emergency service. To enhance the facilities offered in the hospital.To add new doctors and surgeons as per the requirements. R-Relevant To meet customer satisfaction. To upgrade technology. To enhance abilities to foster needs of many other clients. T-Time bound The technological enhancement to be achieved till year end. To upgrade the system within next three months. To enhance the ability to meet customer requirement by twenty percent year on year basis. Target market segmentation: The Target market segmentation includes extending service to whole of the United Kingdom. This way with four thousand employees the hospital wants to cater the medical assistance for the patients from around the United Kingdom. Therefore the market segmentation is made in the following sense. Facilities for kids: This includes services for infant and young kids. The services include proper care and vaccination of the children from the disease that affect them in tender age. Facilities for maternity. The maternity facility includes pain less delivery and high qualified doctor assistance so that the patient can have a life time experience in having a baby. The food and other requirements are also offered to the patient in form of package. Facilities for old age. The old age are provided with the facility so that they can continue to live their rest of life in lesser pain and more of respect. Facilities for general requirements: The general requirements facility includes for all others who are not covered above. This facility includes services for young people who faces some health issues in the normal routine. Their conditions are properly diagnosed and offered the best service. (Kotler Gary, 2006) Differentiation: The differentiation stands for offering better than other in the industry. The differentiation that the West Hertfordshire Hospital offers includes the followings. Best medical service. Best medical equipment to support the medical procedure. Offering patients with heavy discounts and competitive pricing of the medical facilities. Ability to serve more patients through the professional approach followed in the hospital. These above stated facilities offer high end service to the patients coming to the facility. They are offered with professional environment and treatment from the best doctor and surgeon in the country. These features bring in differentiation in the facilities offered by the hospital than any other hospital in the region. (Rao Klein, 2004) Positioning: The positioning of the West Hertfordshire Hospital is done as the most efficient and effective hospital that provides highly cost effective and competitive service to its clients. This positing marketing activity has helped the hospital to gain recognition in the whole United Kingdom. The number of clients coming from various parts of the country has increased manifold in the last decade. This way positioning of the hospital as the best in class and service has helped in attracting clients from different places. Due to effective positioning the hospital has been able to achieve a target growth of 0.64% per annum and has been able to achieve satisfaction to more than half million people in the country. Marketing programme and financial data: Marketing mix: The marketing mix consists of analysis of the business operation using the seven key features including 7Ps that are Product, Price, Promotion, Physical environment, Place, People, and Process. In case of West Hertfordshire Hospital, the 7Ps can be applied as follows. Price The pricing of the services is kept low and competitive in the hospital without affecting the quality output. The package system is offered to the customer so that the maximum of the benefit can be availed at low price. New services and facilities are offered at comparatively low price than other hospital in the industry. Promotion The positioning of the hospital is done as the best hospital with most professional outlook has achieved high end gains in terms of attracting more clients. he advertisement of the hospital through hoardings, pamphlets, media and newspaper has helped in making it popular among the masses. Physical environment The physical environment of the hospital is clean and green. The hospital is situated near no factory area where the pollution of any kind does not affect the medical procedures. Place The hospital is located in UK where the economy since the past few years has been passing through an intense recession. The result is that West Hertfordshire Hospital has been in need of immense expansion which has submerged it into an immense level of debt. Therefore the maintenance cost of the different medical apparatus is increasing, resulting in immense economic deprivation for the organization. The hospital offers website support to reach out to its customers around the country. People 4000 employees in the hospital help in dealing with the population growth of the Hertfordshire in the recent years which has received an immense boost. West Hertfordshire Hospital emphasizes on the green trading and slashing down of the usage of carbon. Focus is mainly on the balance between the care of the patients and their family members in West Hertfordshire Hospital. Product Variety of services such as maternity, child, old age and general are offered in the hospital The hospital even offers high quality treatment and analysis using the high technological upgrades introduced from time to time. Process A purely professional process of dealing with the clients is followed in the hospital. The hospital offers target customers with the required facilities at competitive price. Research and development program on consistent level is followed in the hospital. Financial data and projections: The financial data consists of the facts and figures about the business including sales, purchases, expenditures, income etc. The projections on the other hand are the estimates that are actually expected to be achieved in the coming years for the similar data as sales, purchases, expenditures, income etc. The financial data and projection for the West Hertfordshire Hospital can be depicted as below. Past sales revenue and other information: 2012/13 plan 2012/13 FOT* Variance CurrentFeb 13 Income 000s 000s 000s Clinical income 240,989 244,353 3,364 Nonà ¢Ã¢â€š ¬Ã‚ clinical income 3,832 4,370 538 Other income 26,696 27,979 1,283 TOTAL INCOME 271,517 276,702 5,185 Expenses Pay costs 168,776 174,108 (5,332) Nonà ¢Ã¢â€š ¬Ã‚ pay costs 87,644 89,400 (1,756) Other costs TOTAL EXPENDITURE 256,420 263,508 (7,088) EBITDA 15,096 13,194 (1,903) Interest 1,098 1.087 11 PDC dividend 3,300 3,300 0 Depreciation 7,596 6,897 699 Impairments unfavourable 2,810 (2,810) Net (deficit) 3,100 (900) (4,000) The above data shows decline in profits. This is due to the fact the economy is facing heat of global slowdown and hence people are left lesser disposable income to support their normal living being. Current Sales revenue and other information (2013-2014): Finances Income 275.2m Operating Expenses 263.7m EBITDA 11.5m Non Operating Expenses 11.5m Net Surplus (forecast) Impairments (unfavourable) (0.9m) Net deficit after Impairments (0.9m) Demographics Population served Approx 550,000 Demographic Growth p.a. 0.64% Workforce Number of WTE 3,917 (includes bank and agency as at Jan 13) Staff turnover Current: 11% Staff sickness rates Current: 4.3% Volunteers Approx 400 regular volunteers equal to 60 WTE Activity Emergency 47,769 Admissions Elective Cases 39,445 Outpatient 412,814 Attendances AE Attendances 103,767 Births 5,748 From the above data we can conclude that the hospital is making considerable development in fostering needs of various clients that comes from around the country. The earnings are still facing a setback. Next 3 years forecast: For year 2014-2015: Proposed 2014/15 Budget 'm Income Contracts 252.0 Other 29.6 Total Income 281.6 Expenditure Acute Medical Care 81.7 Surgery 63.4 Women's and Children 31. 2 Clinical Support 32.3 Estates and Hotel Services 26.5 Corporate 33.4 Sub total for Divisions - Pay and non pay 268. Pay Prices 5.0 General contingency 2.6 Cost Pressures 7.0 Savings Target à ¢Ã¢â€š ¬Ã‚ 15.0 Total Expenditure 268.1 EBITDA 13.5 Depreciation à ¢Ã¢â€š ¬Ã‚ 8.2 Dividend à ¢Ã¢â€š ¬Ã‚ 3.4 Interest payable à ¢Ã¢â€š ¬Ã‚ 1.3 Surplus 0.6 For year 2015-2016: Proposed 2015/16 Budget 'm Income Contracts 352.0 Other 129.6 Total Income 481.6 Expenditure Acute Medical Care 81.7 Surgery 63.4 Women's and Children 31. 2 Clinical Support 32.3 Estates and Hotel Services 26.5 Corporate 33.4 Sub total for Divisions - Pay and non pay 268. Pay Prices 5.0 General contingency 2.6 Cost Pressures 7.0 Savings Target à ¢Ã¢â€š ¬Ã‚ 15.0 Total Expenditure 268.1 EBITDA 213.5 Depreciation à ¢Ã¢â€š ¬Ã‚ 8.2 Dividend à ¢Ã¢â€š ¬Ã‚ 3.4 Interest payable à ¢Ã¢â€š ¬Ã‚ 1.3 Surplus 200.6 The projected surplus will increase up to 200.6 as the contracts and medical procedure offered to more clients will help in earning more. However efforts will be made to stick to the present expenditures as neither they will be allowed to increase so that it affects profit, nor they will be decreased to affect quality. For year 2016-2017: Proposed 2016/17 Budget 'm Income Contracts 452.0 Other 229.6 Total Income 681.6 Expenditure Acute Medical Care 81.7 Surgery 63.4 Women's and Children 31. 2 Clinical Support 32.3 Estates and Hotel Services 26.5 Corporate 33.4 Sub total for Divisions - Pay and non pay 268. Pay Prices 5.0 General contingency 2.6 Cost Pressures 7.0 Savings Target à ¢Ã¢â€š ¬Ã‚ 15.0 Total Expenditure 268.1 EBITDA 413.5 Depreciation à ¢Ã¢â€š ¬Ã‚ 8.2 Dividend à ¢Ã¢â€š ¬Ã‚ 3.4 Interest payable à ¢Ã¢â€š ¬Ã‚ 1.3 Surplus 400.6 The above estimation shows that the surplus will increase to 400.6 million pounds as the hospital expects to increase its client coverage in next two years. The new equipment costs will come down but the efficiency and effectiveness of the business will rise many folds. Conclusion: In the end, the West Hertfordshire Hospital has taken every step to market themselves as the best service provider in the industry. The SMART objectives are set, the market focus, positioning and even the marketing mix has been done so well that it can expect consistent growth and development in the coming years. 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