Analysis of Stanford Health Care's Operating Income

The assignment requires a comprehensive review of Stanford Health Care's financial performance, with a focus on understanding the relationship between customer acquisition and retention costs. Students are expected to analyze the benefits of strategic marketing and social media marketing in reducing business overheads. The assignment also touches upon patient-centered care and its significance in healthcare. A critical analysis of various sources, including academic journals and industry reports, is required to support the arguments presented. The ultimate goal is to provide a thorough understanding of Stanford Health Care's financial operations and identify areas for improvement.

Marketing
Management Plan for
a Hospital

TABLE OF CONTENTS
UNIT 1.............................................................................................................................................1
Introduction to Stanford Health Care Marketing Plan.....................................................................1
UNIT 2.............................................................................................................................................3
Market analysis using market segmentation, market potential and strategies for Stanford Hospital
and Clinics.......................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Stanford Hospital Market............................................................................................................3
Market segmentation for Stanford Hospital’s product................................................................3
Market potential...........................................................................................................................5
Market Strategies.........................................................................................................................5
Market Metrics.............................................................................................................................6
CONCLUSION................................................................................................................................6
UNIT 3.............................................................................................................................................7
Marketing Strategies the Customer and delivering a Positive Customer Experience AT Stanford
Hospital and Clinics.........................................................................................................................7
INTRODUCTION...........................................................................................................................7
MAIN BODY..................................................................................................................................7
Description of the Typical Customer at SHC..............................................................................7
Patient Experiences......................................................................................................................7
Recommendations to Enhance Patient Experience......................................................................8
CONCLUSION................................................................................................................................9
UNIT 4...........................................................................................................................................10
Marketing Mix Strategies at Stanford Hospital and Clinics..........................................................10
INTRODUCTION.........................................................................................................................10
MAIN BODY................................................................................................................................10
CONCLUSION..............................................................................................................................14
UNIT 5...........................................................................................................................................15
Apply Metrics to Measure Marketing Performance......................................................................15
INTRODUCTION.........................................................................................................................15

Marketing Metrics.....................................................................................................................15
Recommendation.......................................................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18

UNIT 1
Introduction to Stanford Health Care Marketing Plan
Stanford Health Care (SHC) is among one of the best hospitals in the United States. Its goal
is to heal humanity through science compassion, one patient at a time. Its mission is to care, to
educate and to discover. At Stanford Hospital and Clinics, medical staffs and physicians are
achieving the hospital’s goal by providing extraordinary care and customer services that are
tailored to each patient’s needs. Hospital employees are continuously educating themselves,
colleagues, students and the community on the most advanced technologies and discoveries.
Physicians, nurses, and clinical laboratory scientists are relentlessly working in conjunction with
researchers at Stanford School of Medicine and Silicon Valley companies to develop new tests to
uncover the world’s most challenging medical problems. Health care, in many respects, is very
similar to products and services in other types of businesses. In order to maintain its leading role,
leaders at Stanford Health Care are continuing to develop new strategic plans to achieve its
mission.
According to recently released bondholder documents by Becker’s Hospital CFO Report1,
Stanford health system reported revenue of $1.16 billion in the first quarter of the fiscal year
2018. Its revenue was increasing from 6 percent to 12 percent when comparing to the income in
the same period of the year prior. Stanford Health Care is a non-profit organization. Its revenue
is used to reinvest in its care delivery system to support the level of services Stanford Health
Care provides. At current, one of the significant use of the funds was invested to ongoing
construction of a new 820,000-square-foot Stanford Hospital. The new Stanford Hospital will be
opened at the end of 2018. This expansion will allow Stanford Health Care to extended patient’s
care. The addition of 368 single occupancy rooms will give patient more privacy, comfort, and
safety. In addition, the hospital Trauma Center and Emergency Department will be as twice as
the size of the current facilities. As many other industries, competition in health care is
unavoidable. Kaiser Permanente, UCSF, and Sutter Health are among some of Stanford
competitors. Below SHC’s are strength, weakness, opportunity, and threat: -
Strengths Weaknesses
*Highly-skill clinical staff *Inadequate number of providers and nurses
*Inadequate space for clinical laboratory and
1

*Advanced Technologies research development
* Heavy operation cost
Opportunities Threats
*Provide advanced technologies and
training to increase productivities
*Educate Patient to empower their health
condition.
* Patient’s confidentiality is at risk
Nowadays, patients have so many options to select healthcare providers and services. The
only way Stanford Health Care can truly stand out from others is to establish a well-detailed
strategy and marketing plan that should include reducing the operating cost and the debt-to-
capitalization.
2

UNIT 2
Market analysis using market segmentation, market potential and strategies
for Stanford Hospital and Clinics
INTRODUCTION
This section has carried out the analysis of Stanford’s market to further determine some
potent areas of marketing. It has mainly referred to certain vital aspects of segmentation to
eventually find out such effective strategies that will play a significant role in the progress of
Stanford hospital.
MAIN BODY
Stanford Hospital Market
Stanford market is all consumers within the state seeking patient care. Most consumers of
healthcare demand for ease of access, convenience and value-based care in healthcare settings.
This includes patients with all kinds of illnesses and diseases ranging from mental illnesses and
physical illnesses such as injuries, terminal illnesses, terminal illnesses, child care, maternal
health care, geriatrics, and nutrition.
Market segmentation for Stanford Hospital’s product
Research shows that in health care services, patients may be segmented in various ways
such as geographic, demographic, psychographic, and behavioral. These segmentations will
provide some forms of utility for Stanford Hospital Leaders to formulate their marketing
strategies. In this project, the market of segmentation is psychographic which is further divided
into five subgroups such as direction takers, balance seekers, willful endures, priority jugglers,
and self-achievers. Below is a classification of health care consumers at Stanford Hospital.
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Each group of the psychographic segment has unique communication preferences and
motivations. Therefore, it is essential for Stanford Hospital Leaders to understand these
differences to produce unique products that can maximize patient experiences.
Firstly, there are the direction takers. These patients prefer being told what they need to do
by healthcare professionals. Therefore, clinicians are considered experts in their eyes. These
patients often do not like being asked many questions. This particular group tends to reflect the
manner in which healthcare services have been delivered traditionally. Therefore, additional
services are not needed.
Secondly, there are the balance seekers. These individuals are also deemed wellness
oriented and proactive. However, they downplay the specific role of healthcare professionals
(Warner et al., 2013). Also, they prefer suggestive approaches and options. According to a
patient survey in 2017, the majority of patients in this group are the millenniums who are open to
alternative medicine instead of being given what is considered as an already mapped out route to
directive healthcare and wellness. Based on psychological behavior of this group, Stanford
Health Care providers must provide health care plan that will coordinate patient’s treatment with
varieties of innovative technologies and clinical research.
Thirdly, there are the willful endures. These patients are increasingly independent and also
the least proactive when it comes to matters of their health. They tend to live in that particular
moment. As a result, they do not focus on long-term consequences or benefits. Unfortunately, the
challenge is in finding ways of motivating them towards adopting healthy behaviors through
4

what is commonly referred to as immediate gratification. This group does not require more than
essential health care services that are currently available.
The next group of psychographic is known as priority jugglers. These patients are less
engaged with their healthcare and less proactive because they put other matters and
responsibilities ahead of their health. This group does not require additional services. Lastly,
there are the self-achievers. This is the most wellness-oriented and proactive group. The self-
achievers are in most cases ready to take the initiative although they do appreciate taking
directive guidance. Task and goal oriented, they often understand measures for gauging progress
in their efforts. This particular group and the second groups are willing to spend any amount of
money it gets the best treatment when they need it.
Market potential
The market potential for healthcare is quite high. Human beings are prone to various diseases
and complications on a daily basis. Therefore, Stanford Hospital Marketer should understand the
psychology of each group, especially the self-achiever and the balance seekers, to tailor hospital
services to patient expectation, then it will create the potential to maximize profitability.
Market Strategies
Different marketing strategies may be implemented to fit the need of an individual group
of patient. Firstly, Stanford Hospital Leader needs to develop the most comprehensive health
care plan that is unique about the hospital services. This will ensure that the hospital will get
additional referrals.
Secondly, Stanford Hospital must develop a data management system for tracking patient
experiences and generating a report for the improvement process. This can be done by using
results from patient’s experience survey.
Thirdly, Stanford Hospital Educator should implement multiple patient education
programs. This is because; patients need information to help them make choices that will impact
their lives both directly and indirectly. Therefore, it is essential to educate them on matters about
health. Thus, the hospital’s website should include videos, blogs and a host of other kinds of
information on various topics such as childcare and geriatric lifestyles. Another marketing
strategy is social media engagement. Hospitals should develop communications plans for the
younger generation. They do have the potential of becoming lifetime consumers when engaged
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early through appropriate channels. This group heavily relies on different social media sites to
drive its decisions.
Market Metrics
One of the marketing metrics is patient acquisition cost. The entire marketing budget for this
plan will be highly dependent on this number (Bruni et al., 2014). Therefore, it is crucial to
identify how much it will cost in acquiring a new patient. The different marketing sources such
as social media, referrals, and paid searches have different costs per lead. However, all these are
deemed as valuable ways of generating company’s new clients. It is critical to factor in a
patient’s lifetime value. For instance, a patient’s acquisition may be $400 but his or her lifetime
value may be over $15,000. This may be calculated by dividing all costs used for marketing
within a specific period by the particular number of new patients acquired in that period.
CONCLUSION
This section has summarised some important strategies for Stanford Hospital on the basis of
its undertaken marketing analysis. On considering the acquired market metrics, the cited firm is
apparent to attain successful outcomes after targeting its segmented set of customers. It is also on
referring to the market potential of hospitals like Stanford that depicts a higher scope of
achieving success, as per the planned approach.
6

UNIT 3
Marketing Strategies the Customer and delivering a Positive Customer
Experience AT Stanford Hospital and Clinics
INTRODUCTION
The vision of the Stanford Hospital and Clinics (SHC) is to be the best medical center in the
nation. It provides health care that ranges from everyday health needs to complex diagnoses. It
specializes in organ transplants, cancer diagnosis and treatment, cardiovascular medicine and
surgery, and neurosciences. Nowadays, great competition has emerged in the medical sector as
large numbers of hospitals are opening up in the bay area, and patients are becoming more aware
of their rights and getting conscious of health care. As competition is increasing, doctors, nurses,
and medical staffs at SHC are seeking ways to commit to providing excellent services to patients
with outstanding qualities and compassion. This project focuses on Stanford Hospital and
Clinics to assess the typical customer in the facility while recommending strategies to deliver
positive customer experience.
MAIN BODY
Description of the Typical Customer at SHC
A typical customer at Stanford Hospital is a patient who is seeking healthcare services for
primary and specialized care. The customer comes to the hospital with the hope that his or her
health problem will be resolved and his or her quality of life will be improved. A typical
customer of Stanford Hospital is also a patient seeking affordable medical services.
Patient Experiences
Before the rapid rise of competition in business, customers, most likely, relied on brand
reputation. However, with the increasing technological advancement and social media,
customers make purchase decisions based on value (Best, 2009). Therefore, it is essential to
focus on customer experience.
As a healthcare organization, Stanford Hospital is focused on a customer-centric culture where
the patients are put first in the delivery of care (Rivers & Glover, 2018). The customer, in this
case, the patient, has expectations and attitudes regarding the type of service and care offered in
the hospital based on previous experiences and reviews from other patients. As such, the
7

customer seeks medical care from Stanford with the hope and expectation that quality care and
attention will be accorded to them throughout the treatment process (Rivers & Glover, 2018).
Recommendations to Enhance Patient Experience
Customer satisfaction is an essential goal for the long-term success of a business. Although it
may be difficult to measure and quantify customer experience in healthcare organizations,
Stanford Hospital should consider particular strategies to ensure that a positive customer
experience is delivered. A few recommendations are discussed below:
First, Stanford Hospital's leadership can ensure that the health care providers attend to the
patients based on their medical conditions rather than a hospital’s schedule (Worlu, Kehinde, &
Borishade, 2016). A schedule that is convenient for the hospital may not be suitable for patient
care. Long wait times for a follow-up and referral appointment will negatively influence a
patient's experience and dissatisfaction with the hospital’s services. As such, developing a
schedule that is convenient for the patient is critical to improving customer experience.
Secondly, the hospital can embrace excellent customer service by implanting the best
systems to improve efficiency in patient care (Worlu, Kehinde & Borishade, 2016). The hospital
can also focus on ensuring that the healthcare providers are trained to always show a positive
attitude and smile to the patient for active creation of therapeutic relationships that enhance
patient care. As such, positive customer experience would be delivered through these
relationships. Based on The Joint Commission Journal on Quality and Patient Safety, most SHC
patients stated that medical staffs are not friendly. They suggested the medical teams be
sympathetic, courteous and be more aware of cultural diversity (Levin & Hopkin, 2014). At
current, SHC promotes C-I-CARE (Connect, Introduce, Communicate, Ask Permission, and
Response) practice. However, this approach is only provided at orientation training for new
employees. To improve patients' experiences, the C-I-CARE method should be incorporated into
every interaction with every patient and among co-workers every day. This practice must
become part of SHC culture.
Finally, all healthcare providers at Stanford Hospital should be trained on how to handle
different complaints and concerns from the patients (Worlu, Kehinde, & Borishade, 2016).
When customers have their problems addressed, they develop satisfaction, and this can help in
delivering a positive customer experience. As such, the hospital management can ensure that all
the staff members follow the right procedures regarding patient complaints and concerns. A
8

Service Recovery Tool Kit, including role-playing and coaching feedback, should be provided to
the medical teams. This training will help medical staff members feel far more comfortable when
handling a situation that has not gone well for the patient.
CONCLUSION
Providing positive customer experience is financially crucial to Stanford Hospital and
Clinics because it would cost seven times more to acquire a new patient than to keep an existing
one (Longo 2016). To enhance patient satisfaction, SHC leaders should work on reducing the
long waiting time to obtain an appointment or a referral and on providing excellent customer
service.
9

UNIT 4
Marketing Mix Strategies at Stanford Hospital and Clinics
INTRODUCTION
Stanford Health Care (SHC) is one of the largest healthcare services in California and the
United States. Its vision is to be the best medical center in the nation. Stanford Health Care
consists of Stanford Hospital and Clinics and Stanford Children Health. It serves adults and
children with a variety of healthcare services that are ranging from every day needs to complex
diagnosis and treatment.
In this project, the marketing mix of Stanford Health Care will be evaluated based on the 4
“Ps,” method: product, price, placement, and promotion. Recommendations will be provided to
Stanford Health Care leaders to increase business growth and profit while still maintaining
quality healthcare services.
MAIN BODY
PRODUCT-
The product is one of the essential elements in the marketing mix strategies. In healthcare
organizations, the product is defined as health care services that are provided to patients and their
families. At Stanford Health Care, medical staff and physicians are strived to achieve the
hospital’s goal by providing remarkable health care services that are tailored to each patient’s
needs. SHC is known best for cancer diagnosis and treatment, and for organ transplantation. Its
specialties include cancer care, cardiology, orthopedics, neurology, nephrology, and urology.
These services are provided as a combination of core services and ancillary services. Hospital
core service is the center of the total services. The core service is further divided into immediate
care or periodic care as follows. Immediate healthcare services offer treatment for various
illnesses in a variety of settings as listed below:
1. Casualty Services
2. Emergency Services
3. Diagnostic and Treatment Services
4. Consultation Services
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Periodic healthcare services are offered as a preventive maintenance program that
includes regular checkups for healthy individuals. In addition to the core services, SHC also
provides ancillary services that are comprised of:
1. Ambulance Services
2. Flight for Life Services
3. Pharmacy Services
4. Laboratory Services
5. Spiritual Care and Chaplain Services
6. Education and Training for Patients and Employees Services
Nowadays, patients are aware of their rights and choices more than ever before. They
have the power to drive healthcare products that meet their needs. Therefore, Stanford Health
Care leaders should focus on designing healthcare services that best meet the needs of each
market segment. In addition to extending its services to include dialysis, urgent care, and mobile
clinics for those in need, Stanford Health Care should also include a partnership with community
stakeholders such as schools, senior centers, and fairgrounds to promote community health care
programs that are associated with the Affordable Care Act. The following programs should be
implemented:
1. Childhood immunizations in public schools
2. Vision screening for seniors
3. Screening and follow-up counseling for problem drinking and smoking
4. Family planning education
Stanford Hospital leaders must ensure that the health care providers attend to the patients
based on their medical conditions rather than a hospital's schedule (Borishade, Kehinde &
Worlu, 2016). A plan that is convenient for the physician and the hospital may not be suitable for
patient care. Long wait times for a follow-up and referral appointment will negatively influence
a patient's experience and dissatisfaction with the hospital's services.
PRICE-
The price is the second element of the marketing mix strategies. Formulating and
implementing a pricing strategy is a difficult task for healthcare industries because of different
factors that should be considered such as demand and competition (Keller & Kotler, 2012).
There are different pricing strategies at Stanford Health Care. These pricing strategies based not
11

only on government assistant program, varying types of insurance but also on competition in the
SHC market and pricing discrimination according to the market segment that was defined by
SHC marketers.
Stanford Health Care has been known for its quality healthcare services. At SHC,
physicians and surgeons utilize the most advanced technologies to diagnose and treat patients.
As a result, Stanford Hospital rates are among California’s most expensive services, even for
routine procedures (Raul, 2010). Setting the right price is very important. The hospital should
focus on the value delivered to patients and be accounted for price discrimination, cost,
completion, and market leadership. This pricing strategy should be more than just updating the
previous price with an overall markup applied across the industry. The key policy options most
likely to achieve enormous cost savings will succeed in:
1. Ensuring the appropriate physicians and nurses with specialty mix.
2. Encouraging health care providers to evaluate clinically useful care based on research into the
comparative effectiveness and implementation of information technology.
3. Reducing ineffective and overuse of advanced technologies such as MRIs, CT scans, and
expensive surgical instruments in the operating room.
4. Reducing administrative costs.
5. Lowering costs from medical malpractice and defensive medicine.
6. Promoting wellness program to encourage patient being responsible for their health and cost-
consciousness.
PLACE OR DISTRIBUTION CHANNELS-
The place is a third element of the marketing mix strategies. It is defined as a mechanism
for how patients enter the healthcare services. According to The American College of Surgeons
report, Stanford Health Care was recognized as “the only Level-1 trauma center between San
Francisco and San Jose” (Sanford, 2013). Equipped "with 613 licensed beds, 49 operating
rooms, nearly 2,000 faculty physicians, and more than 1,200 residents and fellows", the hospital
staffs are committed to providing the highest level of care that can improve the well-being of
patients and their families at the right time and in the right setting (Facts About Stanford, 2018).
In addition to the main hospital that is located in the city of Palo Alto, CA, Stanford Health Care
also distributes its services to more than 60 satellite locations throughout the Bay Area, including
outpatient clinics in Redwood City, Palo Alto, San Jose, and Emeryville. At the present moment,
12

to improve access for patients and families, SHC is in the process of adding 824,000 square feet
and more than 300 beds that will create an environment to accommodate new technologies and
provide the best in personalized, family-centered health care.
One thing to remember is that expanding services seems promising. Integrating this kind of
marketplace into the hospital service could win more clients. However, the addition of operating
costs will add to the price, which could drive the patient away from the market. Thus, increasing
business overhead should be carefully monitored since it could take away company profits and
potentially lead to a net loss (Malcolm, 2012).
PROMOTION-
The other crucial part of marketing mix strategies is promotion, which can help enhance
brand recognition and sales revenue. Regardless of how good the product is and how well it is
distributed, the healthcare industry would not survive in the marketplace without effective
promotional strategies.
Stanford Health Care currently promotes its healthcare services through word -of -mouth
and its website. Word -of -mouth involves the sharing of information regarding the benefits of
the hospital's services by its satisfied and loyal consumers. Although these are reasonable means
of promoting its services, the hospital needs to comprehend how social media could benefit its
promotional strategy.
Several studies have found that "social media platforms such as Facebook, YouTube, and
Twitter can significantly boost the effectiveness of promotional strategies" (Pradiptarini. 2011).
For instance, a survey by Vinerean in 2017 reports that these platforms help empower consumers
and get them more involved in the hospital services. Therefore, the hospital should use these
platforms to advertise its brand and to encourage a more effective and efficient word-of-mouth
promotion (Vinerean 2017).
While utilizing the traditional approach by advertisement in media, Stanford Health Care
leaders should also incorporate advertisement and promotion in the hospital information system.
The new facility, new services, and the hospital's recognition, and awards can be mass mailed to
patients who in turn will gain the confidence to avail of the hospital's services.
Stanford Health Care leaders should learn from Mayo Clinic when creating an effective
promotional strategy. Amongst healthcare industries, Mayo was the first one to offer a YouTube
channel presenting physician interviews and video recordings about patient experience at its
13

facilities, from check-in to follow -up care services. It is one of the best ways to educate patients
about their health while positioning its services as a world leader in healthcare services.
CONCLUSION
Healthcare marketplace is one ripe with competition, advanced technology, and continual
change. Healthcare providers today are operating in a system that is in limbo and especially one
that is cost-driven, which can leave vulnerable parts of the population at significant risk for the
quality of care. Although no single suggestion is wholly unappealing to the healthcare industry,
accomplishing all of these quickly and simultaneously will be extremely challenging. It will take
tremendous leadership, budgets, and a bit of faith in the end goal. However, this is not an option
due to current health care spending threatens the American Dream. By using the 4” Ps”
marketing mix strategies, Stanford Health Care leaders can—and should—be at the forefront of
reducing price without compromising the quality of care, seeking out new locations, expanding
operating hours, offering urgent care or same-day appointments and reaching out to local
communities.
14

UNIT 5
Apply Metrics to Measure Marketing Performance
INTRODUCTION
The healthcare landscape has undergone various changes in the recent past as hospitals seek
ways of remaining competitive. Stanford Hospital and Clinics is one of the best run hospitals
judging from their patient numbers. A sound marketing plan has been crucial in its growth
process. As Ziqi (2015) points out, the healthcare sector has seen a sharp rise in competition for
patients, hence the hospital's decision to adopt marketing strategies. Below are a few essential
metrics and recommendations that Stanford hospital leaders and marketers should use.
MAIN BODY
Marketing Metrics
The patient's volume metrics is one way for the hospital to keep track of its marketing
plan effectiveness. Like any other type of businesses, the hospital's total profit margin is
dependent on the number of patients visiting the hospital and clinics. It is hence vital for the
hospital to quantify the number of appointments and inbound referrals by department and by
specialty (Fortenberry Jr, & McGoldrick, 2016). By carefully monitoring this metric, hospital
leaders will be able to evaluate current offerings and allocate resources accordingly. Without
monitoring patients' volume metric, the hospital will be either under or over staffed (Musau,
Nyongesa, Shikhule, Birech, Kirui, Njenga, Mbiti, Bett, Lagat, Kiilu, 2008). Adequately
scheduling physicians, nurses, and medical staff has been proven to be essential to the quality of
patient care and patient treatment-related outcomes. Thus, it provides a competitive advantage to
hospitals, which will lead to better financial performance (Everhart, 2013).
Besides the volume metric, patient acquisition cost is the second metric that hospital
leaders should consider. Acquisition cost per patient is defined as the amount of money and
resources the hospital invests in acquiring a new customer. Understanding how much it costs to
acquire new patients through the various marketing channels, such as bounce rate and conversion
rate, etc.), is a starting point for tracking the overall success of hospital marketing efforts. For
example, a hospital acquires 30 patients after spending $20,000 in 5 months on various digital
marketing campaigns such as paid search, pay per click, social media, and SEO. The patient
acquisition cost for digital marketing is $666.67 ($20,000 / 30 = $666.67). Let us assume that all
15

expenses for the treatment of 30 patients in 5 months are $120,000. Therefore, patients generate
$120,000 in revenue, and the hospital's revenue per patient is $4000 ($120,000 / 30 = $4000).
The hospital spent $666.67 to gain $4000.
By carefully examining patient acquisition cost, hospital leaders can decide the best
places to make marketing dollars work effectively and to reduce unnecessary expenses. A third
metric that should be considered is patient satisfaction. Patient satisfaction is an essential metric
because excellent patient experience can lead to increased revenue. Better quality and good
reputation will allow a hospital to charge higher prices, which equals higher probability. Word of
mouth is always most important to all businesses. On the one hand, positive word of mouth will
lead to more referrals and repeat purchases, while on the other hand, low patient satisfaction can
result in fewer new patients and lower revenue. According to a 2015 survey of patient
satisfaction conducted by SoftwareAdvice.com,
"84% of patients who responded use online reviews to evaluate physicians," (Loria).
"77% of patients use online reviews as their first step in finding a new doctor," (Loria) and
"47% would go out-of-network for a doctor who has similar qualifications to an in-network
doctor, but has more favorable reviews." (Loria).
Another study by Press Ganey in 2008 showed that there is an increase in patient volume
of about 1,300 patients per year when patient satisfaction is in the 90th percentile. However,
when the patient satisfaction fell to the bottom 10th percentile, the average volume was dropped
to as low as 17 percent.
Recommendation
Increasing capacity to handle new volume. Service standards, such as phone, parking,
wayfinding, and scheduling should be available 24/7. Reducing ineffective usage of advanced
technologies in patient treatment. Increasing customer satisfaction through improving the quality
of healthcare services to patient. This can be accomplished by providing training and
development courses for medical givers through an expert institution. Service recovery training
should be included to ensure staffs follow the right procedures regarding patient complaints and
concerns.
CONCLUSION
In conclusion, it is imperative for hospital leaders to focus on the above metrics and track
them. Similar to a business dashboard, healthcare dashboards will enable healthcare leaders to
16

manage and monitor patients' volume metrics, patient acquisition cost, and patient satisfaction.
Knowing how to analyze these data, Stanford Health Care marketers will able to develop an
effective healthcare marketing strategy.
17

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