Financial and Ethical Impact Analysis Summary
East Chestnut Regional Health System (ECRHS) was created by a merger of three institutions: Northern Mountain Hospital Consortium (NMHC), East River Medical Center (ERMC), and Archway Hospital. More than ten years have passed since the merger took place. Notably, the assessment undertaken in this report evaluates different aspects related to financial and ethical dimensions, as given in the following section.
Mission and Objectives
The vision of ECRH is to be a leading developed and distributor of exceptional services related to human health. The mission of ECRH focuses on improving the quality of people’s lives by offering differentiated, outstanding services. The values of ECRH include collaboration with partners, integrated care, expansion and growth, communication, patients’ and employees’ welfare, innovation, and quality. In contrast, its objectives include providing better service to women through enhanced values of women’s care and improving the amenity line throughout the health system. Also, it can be achieved through the new Oncology Center grand opening, employing new doctors to decrease the medium age of the doctor staff, closing the behavior services of ECRH, utilizing lean management procedures to correct issues in services contained in the ED, leaving the responsible care institution, close regional burn unit, re-create associations with local emergency medical services to increase the use of the medical air service and implement the AH closure decision.
ECRH’s financial and ethical effect on the existing strategy in healthcare marketing is modest, noting that most women forming the company’s primary market feel that the company should improve its services by including additional primary care medics and care for children. This honest recommendation will improve the organization’s financial gains.
Organizational Structure and Culture
The organization’s Chief Executive Officer heads ECRH’s current organizational structure. However, the organization’s leadership has other top five officials, including the Chief Operating Officer, Chief Financial Officer, Chief Nursing Officer, Chief Medical Officer, and the human resources Senior Vice President. Essentially, this top management, combined with the chief officers from the technical department, employed physician group leadership, human resources, and marketing departments are responsible for decision-making in the organization. They oversee the 400 physicians employed throughout the organization system.
The organization’s culture impacts the current healthcare marketing strategy in terms of its competitive edge. The organization’s culture has to ensure that patients are served best by getting the best products and services in the competitive healthcare space. One marketing strategy that ECRH adopts to maintain competitiveness includes advanced technology. Further, the organization has considered a level 1 Trauma Center with 550 beds for air services. Another marketing strategy that works toward this direction is acquiring a 100-acre land where the company intends to build a new Oncology Center and relieve the strain observed in some of its current departments, such as the imaging center and emergency services.
Their financial and ethical effect on the existing strategy for healthcare marketing is the increased economic costs of maintaining the marketing strategy. Notably, this is so because there are new requirements to be met for the current marketing strategy, such as developing a promotional drive for ECRH’s ED/Trauma services and opening the new Oncology center.
Current Marketing Strategies
ECRH’s services include women’s health, cardio-logical, orthopedic, emergency general health care, ambulatory, general surgery operations, oncology services, burn setting training, and level 1 Trauma Center services. Notably, these products and services are relatively affordable for most customers. However, more marketing is required for the products to reach a larger market with the services. The initiative to develop a communication plan that entails a detailed marketing plan to help the company advertise its services represents ECRH’s distribution and promotion plans.
Financial Analysis
Currently, ECRH profits from ambulatory services, visits, and oncology services. The organization recently employed young physicians in the mobile department, which has seen a 3% increase in the services. Additionally, the profits derived from the oncology department have increased. Thus, with the company’s objective of creating a new oncology center, more of these services are expected to be rendered to the market and generate significant profits for the organization. The company has a 73% market share, considering the bed capacity of 1102, which is a total of 1502 beds in the region. Notably, this is a significant market share from which to derive profits. Employing technological human resources increases service delivery efficiency and cuts costs (Garg, 2021). Thus, it improves ECRH’s profitability.
Competitive Advantage
ECRH has two major competitors. They include the medical school associated with Greenbreach University and the Bradford Medical Center (BMC). The company was initially formed as a merger of three organizations, creating a solid synergy against the competition. Based on Porter’s five forces analysis, the ECRH has a low threat of new entrants into the market. However, with the competitors being readily available, the company has to employ competitive strategies to keep customers from shifting to the competitor’s side.
Further, the organization intends to maintain customer loyalty to maintain a competitive edge. One way through which it has pursued this objective is by conducting market research to establish the interests of its customers and serve them to satisfaction (Grewal et al., 2020). Also, by expanding services, the company will have more capacity to offer better services than competitors. For instance, the company should take advantage of being the only institution with a level-one trauma center in the region with air ambulance to enhance its market position. Additionally, ECRH has 100 acres of land across the interstate that can be utilized through new developments to enhance competitive advantage.
Current Value Chain
The value chain of ECRH is composed of the company, the marketing team, and the customers. The company seeks customer feedback and integrates it into its strategic goals to maintain its value. Notably, this is a short chain to manage. The leadership only sets strategic objectives, and the marketing team communicates to the market, seeking the organization’s services (Eling & Lehmann, 2018).
Target Market
The company’s target market comprises women, older people, and children in the counties of operation. Specifically, it targets the 433,689 people in Chestnut, 42,537 people in Walnut, 27,816 people in Maple, 37,120 people in Oak, and 38,352 people in Butternut County. Notably, these counties have a high population with different demographic characteristics. For instance, Oak and Maple counties are composed of older people, while Chestnut County, which has the highest population, has a median age of 37.7 years. Its ethnic/racial groups entail 70.1% Caucasian, 18.5% Black American, and 6.5% Hispanic. The consumer values for Chestnut consumers entail substantial employer diversity, which ECRH should consider.
Additionally, most of the population comprises university students who embrace student lifestyles. Walnut County has a large Caucasian ethnic group. As a result, ECRH should consider handling the market as nuclear families since it is a highly held value within the group. Further, it informs their lifestyles.
Regarding Butternut and Oak Counties, ECRH should be concerned about their relatively low income. As a result, these target markets are characterized by cheap-spending values, which call for affordable prices. Also, they lead average lifestyles. Maple County has a more significant percentage of its population formed by the older population. Most people in this county live in poverty, and their consumer values entail going for cheaper products. Additionally, their cheap spending habits inform their poor, healthy lifestyles.
External Environmental Factors
Various external forces influence ECRH. First, the organization faces competition from two main competitors and must need help to cope. Also, the organization operates in an environment with high unemployment levels from an economic perspective. Thus, it has to employ members from the surrounding society even with the concern for the qualifications. Finally, the organization has a new CEO, and it should monitor the political forces to ensure the CEO is free from bringing political interests into the organization. Conclusively, ECRH has adopted a promising approach to mitigating financial and ethical requirements. The analysis conducted above indicates that the company remains competitive. Thus, adopting a strategy with a clear mission, vision, and values will help them stay competitive in the market.
References
Eling, M., & Lehmann, M. (2018). The impact of digitalization on the insurance value chain and
The insurability of risks. The Geneva Papers on Risk and Insurance Issues and Practice, 43(3), 359-396. https://doi.org/10.1057/s41288-017-0073-0
Garg, N. (2021). Technology in Healthcare: Vision of Smart Hospitals. In Handbook of Research on Engineering, Business, and Healthcare Applications of Data Science and Analytics (pp. 346–362). IGI Global. –https://www.igi-global.com/book/handbook-research-engineering-business healthcare/239914
Grewal, D., Hulland, J., Kopalle, P. K., & Karahanna, E. (2020). The future of technology and
marketing: A multidisciplinary perspective. Journal of the Academy of Marketing
Science, 48(1), 1-8. https://link.springer.com/article/10.1007/s11747-019-00711-4
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Question 
As part of your analysis of the East Chestnut Regional Health Case Study, you decide to review the following elements of the organization from the perspective of their ethical and financial impact on the organization’s healthcare marketing strategies:
Financial and Ethical Impact Analysis Summary
Mission and objectives:
What is the organization’s vision?
What is its mission?
What are its values?
What are its strategic objectives?
Organizational structure and culture:
How does the organization’s structure impact its success?
How would you characterize the organization’s culture?
Current marketing strategies:
What are the organization’s current products and services?
How are they priced?
How are they delivered to consumers?
How are they currently promoting their products and services?
Current financial analysis:
What currently makes the organization profitable? What is its current profit margin?
How large is the market for the organization’s current products and services? Is it expanding or contracting? What share of the market does the organization currently hold?
How do physical and technological resources impact its profitability?
Competitive Advantage:
What competitive advantage does the organization currently have?
How does it differentiate itself in the market?
Current value chain analysis:
What are the key elements of your organization’s value chain?
How does each element in the value chain help the organization succeed?
Which factors must be taken into consideration when analyzing the organization’s value chain?
How does the organization build value within the market?
Current target market:
Who is the organization’s current target market?
What are the demographics, such as age, income level, and ethnicity, of current consumers?
What are current consumers’ values, attitudes, and lifestyles?
External Environmental Factors:
Political
Economic
Sociocultural
Technological
Competitive
Legal/Regulatory