Summative Assessment- Financial and Ethical Impact Analysis Summary

Summative Assessment- Financial and Ethical Impact Analysis Summary

East Chestnut Regional Health System (ECRHS) was created after three organizations merged. These include East River Medical Center (ERMC), Northern Mountain Hospital Consortium (NMHC), and Archway Hospital. The merger took place more than ten years ago. 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 – Ethical and Financial Impact of ECRH’s Vision, Mission, Values, and Strategic Objectives on Health Care Marketing Strategies

ECHR’s mission is to improve people’s quality of life by delivering distinguished, excellent services.

ECRH’s vision is to become a leader in developing and distributing excellent human health services.

ECRH’s values are integrated care, collaboration with partners, communication, expansion and growth, innovation and quality, and employees and patients.

ECRH’s objectives include offering better women’s service through improved standards of women’s care, improving the service line across the entire system and the grand opening of their institution’s new Oncology Center, recruiting new physicians to reduce the average age of the physician staff, using lean management processes to correct service issues found in the ED, abandon the accountable care organization, re-establishing relationships with regional emergency medical services to raise the utilization of the medical air service, close regional burn unit, close the behavior services of ECRH and implement the decision of closing AH.

Their financial and ethical impact on the current healthcare marketing strategy is moderate, considering that most women who form the market for the organization feel there is a need for the company to enhance its services by adding more primary care doctors and children’s care. Notably, this is an ethically right suggestion that will increase financial costs for the organization.

Organizational Structure and Culture – Ethical and Financial Impact of ECRH’s Structure and Culture on Health Care Marketing Strategies

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 Financial Officer, Chief Operating Officer, Chief Medical Officer, Chief Nursing Officer, and the Senior Vice President for human resources. Essentially, this top leadership, combined with the chief officers from the technological department, employed physician group leadership, human resources, and marketing departments are responsible for decision-making in the organization. They oversee the working of 400 physicians who are employed throughout the organization system.

The organization’s culture impacts the current healthcare marketing strategy regarding its competitive edge. The organization’s culture has to ensure that patients are served in the best way 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 where air services are offered. 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 impact on the current healthcare marketing strategy is the increased financial costs of maintaining the marketing strategy. Notably, this is so because there are new requirements to be made to the current marketing strategy, such as developing an advertising campaign for the ED/Trauma services of ECRH and opening the new Oncology center.

Current Marketing Strategies – ECRH’s Products and Services, Pricing, Distribution, and Promotion

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 – What Makes ECRH Profitable, Profit Margin, Market Size, Market Share, and How Technological Resources Impact Profitability

Currently, ECRH derives its profits from ambulatory services, visits, and oncology services. The organization recently employed young physicians in the ambulatory 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, it is expected that more of these services will 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 of the total 1502 in the region. Notably, this is a significant market share to derive profits from. Employing technological human resources increases service delivery efficiency and cuts costs (Garg, 2021). Thus, it improves the profitability of ECRH.

Competitive Advantage – ECRH’s Competitive Advantage and How ECRH Differentiates Itself in the Market

ECRH has two major competitors. They include the medical school associated with Greenbreach University and the Bradford Medical Center (BMC). Based on Porter’s five forces analysis, the ECRH has a low threat from new entrants into the market. However, with the competitors being readily available, the company has to employ competitive strategies to avoid customers shifting to the competitor’s side. The company was initially formed as a merger of three organizations, creating a strong synergy against the competition. Further, the organization intends to maintain customer loyalty and 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.

Current Value Chain – Key Elements of ECRH’s Value Chain, How Each Helps the Organization Succeed, Factors to be Considered When Analyzing ECRH’s Value Chain, and How the Organization Builds Value in the Market

The value chain of ECRH is composed of the company itself, the marketing team, and the customers. Notably, this is a short chain to manage. The leadership only sets strategic objectives, and the marketing team communicates to the market, which, in turn, seeks the organization’s services (Eling & Lehmann, 2018). The company seeks customer feedback and integrates it into its strategic goals to maintain its value.

Target Market – ECRH’s Current Target Market, Consumer Demographics and Psychographics (Consumers’ Values, Attitudes, and Lifestyles)

The company’s target market comprises women, older people, and children. However, it serves other general patients across Chestnut, Walnut, Maple, Oak, and Butternut counties. Notably, these counties are characterized by 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.

External Environmental Factors – Impact of Political, Economic, Sociocultural, Technological, Competitive, and Legal/Regulatory Factors on ECRH

Various external forces influence ECRH. First, the organization faces competition from two main competitors and must struggle to cope with the competition. 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.

Conclusion

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.

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.

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.

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Throughout this course, you will analyze the Case Study: of East Chestnut Regional Health System (ECRHS).

Review the Case Study document.

Assume East Chestnut Regional Health’s upper management has asked you to analyze its current marketing strategies from both ethical and financial perspectives.

Summative Assessment- Financial and Ethical Impact Analysis Summary

Use the Case Study Review Guide as a tool to help you complete your analysis.

Using the below attached Template, Create a 1,050-word Financial and Ethical Impact Analysis for ECRHS’s current healthcare marketing strategy for upper management, based on the above factors.

Week 2 Summative Assignment Template.docx

Include a summary of each section in your analysis:

Mission and objectives
Organizational structure and culture
Current marketing strategies
Current financial analysis
Competitive advantage
Current value chain
Current target market
External environmental factors

Cite at least 3 reputable references to support your assignment (e.g., trade or industry publications, government or agency sites, scholarly works, or other sources of similar quality). NOTE: The Case Study is University class materials/readings; it is not published work; therefore is does not count toward the 3 required references.

Format your citations and references per 7th edition APA guidelines.

Submit your assignment as a Word document following APA guidelines.