Healthcare Management Report: Value Added Services Analysis

This report examines the critical role of value-added services in the modern healthcare industry, emphasizing their increasing importance amidst rising market competition. Focusing on Paradise Hospital Inc., the report analyzes the significance of these services and identifies key functional areas needing improvement to enhance overall service quality. The study highlights the importance of transparency in billing, efficient customer query management, and comprehensive staff training to reduce service errors. The report utilizes business reports, customer satisfaction surveys, and training reports to identify areas for improvement. Specific areas for development include refining the billing system for transparency, improving customer relationship management, and expanding the service chain to meet diverse patient needs. The conclusion stresses the necessity of value-added services for customer retention and provides recommendations for improvements in billing, training, and customer relations.

Running head: MANAGEMENT IN HEATHCARE
Management in Healthcare
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction:...............................................................................................................................3
Value added service and the significance of the same:..............................................................3
Identification of the systems and methods:................................................................................4
Specific Areas:...........................................................................................................................5
Conclusion:................................................................................................................................6
References:.................................................................................................................................7

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Introduction:
The importance of the value added services in the modern health care industry is
increasing in a substantial manner. With the increasing demands in the health care industry of
the nation, the industry is observed to expand in a noteworthy manner. Along with the
expansion of the market, the companies are facing the heat of market competition and that is
visible with the increasing entry of the new organizations in the healthcare industries (Rivera,
Sheffi & Knoppen, 2016). The study precisely elaborates the concept of the value added
services in the health care industry and along with that, the study portrays the significance of
the same in context of a chosen organization named as Paradise Hospital Inc. Along with
that, the study highlights the fundamental functional areas which require improvement for
enhancing the overall service quality of the organization. In addition to this, the study
highlights the sources of information for identifying the functional areas. Apart from this, the
study focuses on four different areas where the hospital administration is in need to focus for
enhancing their value proposition.
Value added service and the significance of the same:
Considering the concept of the value added services, Pianigiani and Vaidya (2016),
mentioned termed it to be a set of activities that the companies conduct for retaining their
customers in a professional manner. Tan et al. (2015) claimed that the definition of the value
added services is pretty unique as it effectively advocates for delivering something extra to
the customers which can influence the customers to return back to the company. The
capability of the companies in influencing the customers that the services that they provide,
are best suited for their demands through implementing relevant business activities, has
higher level of significance for the shareholders of the companies. Such business activities
that have the capability to influence the customers regarding the suitability of the companies,

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are regarded as value added services. Considering the patient care services, Bustinza et al.
(2015) mentioned that the value added services play an important role in reducing the level of
competition that the company is facing in the healthcare industry. In addition to this, the
value added services have the capability to influence the purchase intent of the customers in
an efficient manner. Other than this, Bosch et al. (2017) mentioned that the delivery of the
value added services from the part of the company is important in ensuring efficient customer
retention in the competitive business market of the health care services.
Identification of the systems and methods:
Considering the business activities of the hospital, it is evident that the organized
evaluation system is the best suited for the identification of the functional areas. The
functional areas that require a certain level of changes for delivering higher customer value
are the billing system, customer relationship management system, training and developmental
management system of the organization. In order to improve the service value of the
organization, the organization is in need to achieve a certain level of transparency with the
billing activities. Fadayomi et al. (2018) claimed that there are several for profit health care
organizations which are inclined towards superficially increasing the rates of their services
and charges the patients much higher than the actual prices. The organizations conduct such
superficial pricing amendment for increasing their own revenue and that increase the burden
on the family of the patients. Hence, it becomes important for the company to incorporate the
desired level of transparency in the formulation of the bills.
On the other hand, Johnson et al. (2015) mentioned that there are several companies
that follow an incompetent approach in handling the customer queries which in the context of
health care services, is a major concern as it effectively increases the anxiety and concern of
the family members of the patients. Hence, the selected organization is required to pay close

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attention to this aspect as well where the hospital is in need to improve their infrastructural
set up for ensuring better management of the customer queries and responses. Along with
that, the modern medical industry is observed to be largely affected with the challenge of the
service errors which are primarily occurring due to the inaccurate management of the training
and developmental requirements of the staffs. With a detailed consideration towards the fact,
the hospital is in need to ensure that they develop extensive training facilities to provide the
desired scope to the staffs for enhancing their skills and expertise which will place them in a
suitable position for achieving limited service errors.
The methods used for acquiring the necessary information required for the
identification of the functional areas, are evaluation of the business report of the organization,
customer satisfaction reports and the training reports of the hospital.
Specific Areas:
As mentioned earlier, the organization has the obligation of improving their billing
system, a mutually communicated tracking system of the service actions and the formation of
the bill in accordance to the same, will incorporate a certain level of transparency in the
services of the company. As this provides greater value to the customers through developing
a belief in them that the company follows ethical approach, the action is expected to influence
the purchase intent of the customers in a more professional manner (Runciman, Merry &
Walton, 2017). Other than this, the infrastructural development for ensuring the scope to the
staffs to improve their skills, will be crucial for the company in reducing the service errors
and in delivering errorless quality services to the customers. Such services are expected to be
crucial in retaining the customers for long period of time. Other two areas for developing
value, are betterment of customer relationship management system and expansion of the
service chain of the organization. The improvement in managing the customer queries will

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enhance the satisfaction of the customers. On the other hand, the expansion of the service
chain will be crucial in ensuring that the hospital is capable of meeting the diversified service
requirements of a larger number of customers.
Conclusion:
On an ending note, it is prominent that the company has the necessity to provide value
added services to their customers for retaining them in a professional manner. Along with
that, the company is in need to improve the billing system, training facilities of the employees
and the customer relationship management system for delivering the desired value added
services to the customers. In addition to this, the expansion of the service chain of the
company will be important for increasing the capability of it, in serving a larger number of
customers.

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References:
Bosch, H. G., Napper, J., Duminuco, A., La Roche, H. J., Mullender, S. J., Kumar, S. M., ...
& Martini, L. (2017). U.S. Patent Application No. 15/171,892.
Bustinza, O. F., Bigdeli, A. Z., Baines, T., & Elliot, C. (2015). Servitization and competitive
advantage: the importance of organizational structure and value chain position.
Research-Technology Management, 58(5), 53-60.
Fadayomi, A. B., Kasumova, G. G., Tabatabaie, O., de Geus, S. W., Kent, T. S., Ng, S. C., ...
& Tseng, J. F. (2018). Unique predictors and economic burden of superficial and
deep/organ space surgical site infections following pancreatectomy. HPB, 20(7), 658-
668.
Johnson, T. L., Rinehart, D. J., Durfee, J., Brewer, D., Batal, H., Blum, J., ... & Gabow, P.
(2015). For many patients who use large amounts of health care services, the need is
intense yet temporary. Health Affairs, 34(8), 1312-1319.
Pianigiani, J., & Vaidya, R. S. (2016). U.S. Patent No. 9,258,742. Washington, DC: U.S.
Patent and Trademark Office.
Rivera, L., Sheffi, Y., & Knoppen, D. (2016). Logistics clusters: The impact of further
agglomeration, training and firm size on collaboration and value added services.
International Journal of Production Economics, 179, 285-294.
Runciman, B., Merry, A., & Walton, M. (2017). Safety and ethics in healthcare: a guide to
getting it right. CRC Press.
Tan, C. L., Hassali, M. A., Saleem, F., Shafie, A. A., Aljadhey, H., & Gan, V. B. (2015).
Development, test-retest reliability and validity of the Pharmacy Value-Added
Services Questionnaire (PVASQ). Pharmacy practice, 13(3).