You have been asked by the chief financial officer (CFO) to collaborate with the marketing director and discuss the importance of having advertising materials for both th

#3 Initial Question:

There are very few industries that have the unique economic factor in which the

majority of its revenue does not come directly from the customer, but from a third party. This

unique economic factor is usually referred to as a private health care insurance company. Third

party payers are the commercial, governmental, and health care maintenance insurance

companies that help providers manage its patient’s accounts. With the change in focus toward

the patient as consumer and increasing number of health plans that are high deductible,

patients are becoming more involved in deciding where they go for their healthcare needs.

To increase referrals, Krona is beginning to develop a new marketing campaign to target

a new patient mix and increase revenues, something that you discussed in your last Individual

Project. You have been asked by the chief financial officer (CFO) to collaborate with the

marketing director and discuss the importance of having advertising materials for both the

health insurance companies and the patients who receive the health care services.

• List 3 marketing approaches you would use to target potential patients and health care

insurance companies.

• Explain what factors you used in choosing your specific marketing strategies and the

purpose of each selection..

• How should the hospital market their commitment to patients while considering valued

based programs, accountable care organizations and bundled payments?

Some marketing strategies may include the following:

o Social Media

o Television/Radio

o Telemarketing

o Direct Marketing to customers and referrals

Primary Post HCM345DBR3

“List 3 marketing approaches you would use to target potential patients and healthcare

insurance companies.”

I would utilize three marketing strategies to target potential patients and healthcare

insurance companies: social media, digital, and email marketing. Social media marketing has

become a significant part of many companies' marketing plans since it is a compelling form of

driving traffic, building brand awareness, and capitalizing on the social selling revelation

currently taking over online marketing (Li et al., 2021). Many social media users today utilize

social platforms to research brands and products; hence patients who follow the company

would quickly seek healthcare services in the organization. Another crucial marketing approach

is email marketing, where a company captures its customers' emails and browsers. Email

marketing is considered a practical marketing approach since it enhances the continuation of

conversations with persons who have expressed interest in the company (Bala & Verma, 2018).

Digital marketing strategy encompasses all forms of online marketing, including social media

lead generation, performance marketing, and search engine optimization.

“Explain what factors you used in choosing your specific marketing strategies and the

purpose of each selection.”

The primary critical factors considered in selecting the above marketing strategies and

the purpose of every section are our marketing plan, promotional tactics, targeting and

positioning, segmentation, monitoring, and evaluation. Our existing and potential clients fall

into different groups, including children, adults, and older people; hence, segmentation is

essential to meet their health needs successfully. We all considered our promotional tactics

because we had to ensure that the marketing strategies had to align with our promotional

strategy. We limited our activities to those methods since they would work best with our target

market. We also chose our specific marketing strategies based on our marketing plan since our

plan had set out how we intended to implement that strategy and evaluate the success of those

strategies.

“How should the hospital market its commitment to patients while considering valued

based programs, accountable care organizations, and bundled payments?”

There are several ways through which the hospital can market its commitment to

patients. These strategies include social marketing, shared-decision making, and health literacy.

The hospital can market its commitment through social media, community organizing, quality

and cost data transparency, and electronic medical records. Shared decision-making is crucial

because it provides hope to patients, eventually creating a strong and trusted relationship

between medical professionals and patients (Lotfi et al., 2018). Social media marketing can help

the hospital engage its patient community, influence behavior, and promote preventive care.

3. Keyana Davis

There has been a large adoption of social media recently over the years. “Seventy-two percent of adults actively using social media in 2019 and 47% of internet users making health-related searches (King, 2022).” The pros of promoting social media in the healthcare industry are that it increases a

professional network and it increases awareness on a variety of health topics and issues. Utilizing social media is a great opportunity for providers. Social media can be used to engage patients and consumers through communication and marketing tactics. Consumers do rely on information that is used online to learn from other individuals in regard to similar conditions.

Healthcare marketing has changed the way that healthcare professionals deliver their services. Today’s consumers expect a healthy experience that is advanced. Healthcare marketing must include a planned marketing strategy that keeps the healthcare brand at the front of everyone’s minds. When healthcare is marketed, it is built to bring in the consumer and engage them in a healthcare system that is engaging. It is important to use consistent branding in one marketing strategy. A website is a company’s front door for consumers. It is crucial to make sure that your website is optimized to cater to the consumer.

Utilizing the radio is a good marketing strategy for healthcare. People listen to the radio on their way to work or on their way home. The radio can provide great health literacy on diet, anxiety, depression, and a variety of events. A healthcare facility can also market its business on this platform as well. This can attract more patients and also raise awareness in regard to certain conditions.

ACOS and bundled payment models are useful for healthcare providers to work together with payers so that patients can improve and manage costs. The incentives that are provided to providers and patients in value-based care can have a positive health outcome. Patients are rewarded if they complete their Wellness exams, vaccinations, and labs annually. Completing this with a reward of a lower insurance rate will increase the likely hood that individuals will comply with recommendations that are set by providers. Providers are also awarded incentives if patients come in to complete their annual exams as well. Patients that comply with their doctors will live healthier lives, and the effect of chronic disease will be lowered. Taking the time to understand patients and their lives will have a positive effect on their overall health.

4. Monica Enriquez

Health care marketing is a strategic approach targeting health care consumers, guiding them

through their decision journey and engaging with them. With so many choices to pick from,

offering an individualized and easily accessible approach will help reduce consumer stress and

help them make an educated decision. The goals of health care marketing are to improve the

patients experience, keep them informed and engaged throughout the process, educate them so

they make the right decision for themselves, increase patient counts, generate more revenue,

increase productivity, enhance an online reputation and build a brand.

One way to attract potential patients and health insurance companies is to build a

responsive and elevated online experience. The virtual care experience is increasing and so must

the online presence. A responsive website will auto adjust the website to the size of the user’s

screen. So, whether they are viewing it on a mobile device, tablet or computer the experience

and access will be the same. Think of the website as the business’s front door, it will be the first

thing consumers will see, if it is not an enhanced experience then that could be the last time that

person considers your facility for care. Included on the website should be easy access to all the

necessary information, specifically contact information or any forms to be submitted.

Another way to attract potential patients and health insurance companies is to

increase their social media presence. Social media offer various different platforms, Instagram,

Facebook, you tube and Twitter. Posting photos, events, and updated information is one way to

utilize social media by helping build your brand and get your name out there. But another

beneficial option with social media is to use paid advertising to reach a larger audience, or to

reach those who are searching your brand.

In today’s world health care consumers are searching for care and experience that is as

digitally and innovative. Because of this, health care professionals and insurance companies

must adapt their marketing strategies and delivery of services to meet the needs and demand of

this competitive market. Online accessibility and telehealth services is shortening the gap

between physician and patient communication. Patients are no longer believe it’s necessary to

choose the closet facility, but are much more focused on additional services offered and an over-

the-top experience.

It’s important to think of all of the reasons why patients might consider changing their

health care providers, reasons such as relocating, insurance is no longer being accepted at their

current provider, increasing costs, poor access to appointments, or more importantly poor

communication or service from their current provider. All of these, and many more, are frequent

occurrences and reasons why a patient will search for additional options. And this is why

strategic marketing is crucial to attracting potential patients. This is an opportunity to highlight

all of the services and level of care your facility can provide.

HCM410DBR4

#4 Initial Question

Using the budget information from Unit 1 and the financial plan and operational budget from

the Unit 4 Intellipath Assignment, discuss the need for the following:

• Increase in revenue reimbursement through inpatient length of stay and outpatient

vendor relationships

• Allocation for the proposed improvements and required partnerships

• Partnering with local skilled nursing facilities and home health organizations

• Increase in salaries

Be sure to discuss the following areas:

• Funding sources

• Your methodology in revenue forecasting

• How the new services will impact revenue?

• Fixed and variable costs

• Project inpatient and outpatient visits based on current trends

#4 Primary Post

Funding Sources

Organizations are constantly seeking financing sources to advance their business

operations. Therefore, funding is categorized into two modes for short-term and long-term

needs. Organizational funding can be obtained from retained earnings, debt financing, or

equity capital. In the case of Krona hospital, a significant source of financing for the business is

seen to arise from the inpatient category through increased revenue on inpatient stay duration

and outpatient vendor associations. For inpatients, improved services received lead to

customer demand for increased stay duration. On the other hand, outpatient clients (vendors)

increased outpatient revenue due to reduced patient waiting time and improved services

offered (Healthcare News, 2021).

Revenue Forecasting Methodology.

Forecasting revenue in a business gives management an upper hand in budgeting for

expenses using the anticipated aggregate income. With the help of a forecast, the business

rarely gets off track. Deviations are observed sooner than they occur, and management can

consider various modes to counteract the variation. Statisticians, therefore, apply four main

types of forecasting methods in forecasting. The methods include straight-line forecasting,

moving averages, and regression analysis of either simple or multiple linear (Rubin et al., 2019).

For the simplest of the methods, straight-line forecasting, an analyst applies historical data and

figures to foresee future revenue growth.

On the other hand, the moving average consists of a smoothing technique that applies

an underlying pattern in determining estimated future trend values. More common moving

average techniques applied are the three and 5-month moving averages. Regression analysis is

applied as a tool to analyze relationships occurring between variables. Known variables are

then used to find the unknown estimate variable. Through the application of forecasting of

revenues in the given model, Krona hospital can apportion the allocations of its expected

income improvement of services and make informed decisions on the type of partnerships to

engage.

Impact of New Services on Revenue.

Traditional sources of income in a healthcare facility cannot continually sustain it in

future days when healthcare breakthroughs are increasingly achieved. Also, as healthcare

adjustments are associated with plentiful complications and uncertainties in revenue

generation, it is imperative to understand matters arising and have control before their

occurrence (Thomas, 2017). Some of the new services offered in the model Krona hospital may

involve some aspects of outsourcing, such as affiliating with local skilled nursing entities and

home health establishments, which may be cheaper than hiring new full-time practitioners.

Fixed and Variable Costs

In the production of services, companies encounter different costs categorized as fixed

and variable. The fixed costs include interest payments, costs on the lease tenure, and other

rental payments or costs that the facility incurs regardless of production. Variable costs, on the

other hand, change based on the amount of output achieved or services delivered. Variable

costs may include labor costs, commissions, or the cost of material used. For the case of the

model, fixed cost increments arise from such insurance expense rise, while variable costs

amount from increased payroll expenses, expenses on benefits, and general services (Kavosi et

al., 2018).

Projection of Inpatient and Outpatient Visits Based on Trends

With the attempt of the healthcare industry to improve efficiency, affordability, and

access to medical services, the past few years have witnessed a tremendous change in inpatient

and outpatient clients. The number of outpatient clients saw an increasing trend resulting from

affordability and ease of access to medical services. On the other hand, inpatient trends have

seen a falling trend as emerging laws penalize facilities with high rates of re-admission to

ensure quality in the services offered. With the advancement of technology, the focus shifted

from treating illnesses to their prevention; thus, diseases are not as hard to fight as they used

to be, requiring much time in medical centers.

5. Rochelle Andrews

Increase in revenue reimbursement through inpatient length of stay and

outpatient vendor relationships

I find that the most effective way that will lead to a increase in revenue reimbursement

through inpatient length of stay and outpatient vendor relationships is to utilize the value-

based care model. To improve the quality of care and deliver patient satisfaction, the value-

based care model will increase profit. The reason I find this option to be more suitable as a way

to increase revenue is that inpatient care will more than likely include follow-up care after being

discharged from the hospital stay and this will cut cost in waste such as duplicating labs, test,

and medications. Outpatient vendor relationships is important because vendors are tide to

patient satisfaction and the hospital reputation. There are benefits to exchanging using

proprietary methods that are strengthened when the vendors are more concentrated (Castillo,

A.F., Sirbu, M. & Davis, A.L., 2018). Vendors could be used patients that are discharged from the

hospital and requires home health care. In building vendor relationships it is important to

manage a budget while increasing revenue of selective vendors.

Allocation for the proposed improvements and required partnerships

To order for proposed improvements and required partnerships to develop takes

strategic planning and implementation. One way is look into departments that are not

profitable and decrease budgeting within that are and increase budgeting in areas of profits. By

improving areas of profit can increase patient satisfaction and improve the quality of care

patients receive. Partnerships in other areas of care needed such as diagnostics, pharmacy, and

physical therapy just to name a few will increase revenue. Patients satisfaction is greater when

their healthcare team partners together and coordinate in the care they receive.

Partnering with local skilled nursing facilities and home health organizations

I find that it is important when hospitals partner with local skilled nursing facilities and

home health organizations. Patients that require care after being hospitalized should have

services needed after discharged set in place and not have to find them on their own. I feel that

this is another area that will increase revenue and can be implemented with the budget. Such a

partnership can help the SNF care for high-need patients who were denied care at other post-

acute levels. Such a partnership can help the SNF care for high-need patients who were denied

care at other post-acute levels (Young, M. 2021).By cutting the cost of inpatient stay, supplies,

medications given in the hospital, and staffing. Having a partnership with local skilled nursing

facilities and home health organizations can also improve the overall health of patients,

reimbursement payments, and decrease readmission rates for patients.

Increase in salaries

In order to increase salaries of employees is based on the financial health of the

organization. The delivery of patient care and services must match the salary given to

employees. Increase in revenue promotes patient satisfaction, reimbursement models used,

services, and productivity plays a huge factor in salaries. Ongoing training, less waste spending,

and performance promotes employees to fulfill their duties and when employees feel that they

are not being treated fairly or underpaid their performance decrease. If the revenue is

increasing salaries should increase because the employees are the main reason for its increase.

6. Lorita Smith

Increase in revenue reimbursement through inpatient length of stay an outpatient vendor relationships

Typically there are several ways to increase revenue within in a company. Inpatient and outpatient care are the main source for the company to receive revenue. Yearly companies look for ways to increase revenue to decrease debit and for future financial planning. Increasing patient stays will allow more revenue. This can be done with better patient scheduling and planning. For example if the facility could increase room for more beds this will allow for better revenue. Once the patient’s inpatient length has expired the next step is to utilize their outpatient vendor for follow up with their clients. This would not only increase the facilities revenue but their vendors as well. Providing ethical and client focused care will increase demand.

Allocation for the proposed improvements and required partnerships

Partnerships and improvements would be the glue to increasing revenue. Allocation has to be given for improvements in order for the company to grow and not lose money. It is important the company understands what improvements are needed and provide a proper forecast and timeline on when improvements are completed. Partnerships are needed to help in areas that the company is unable to keep up or complete. For example, the company would want to have a partnership with Medicare and Medicad to assist with billing and making the billing process simple for their clients.

Partnering with local skilled nursing facilities and home health organizations

Partnerships are important within any industry especially within the healthcare industry. There is only so much that can be done at an hospital level and partnering with long term care facilities such as nursing homes would bridge the gap. Once clients see that they have assistance post hospital visits or stay this will encourage them to get the care that they need. I also believe that this will attract referrals from different areas outside of the facilities clients.

Increase in salaries

Salary increases acknowledges an employees sacrifice and their accomplishments. In order to retain and attract talent; employees has to see a vision for them to earn more. Proper forecasting will allow a company to see how much increase they can provide and the time period. Once salaries are increased this will encourage employees to continue to stay at their current job and continue to have dedication to the companies vision. Although some might consider increase in salaries as an expense, salary increase is a long term investment. Having a revolving door with employees would actually be the expense because it cost more to hire new employees versus retaining employees.

How the new services will impact revenue?

Providing new services will also provide a better revenue, especially when it doesn’t involve hiring new employees. New services will increase more clients new and old which will encourage them to tell others. Since a lot of the cost will stay the same such as the business monthly rent or mortgage this will help that the company’s new revenue stay profit. Although the cost for materials such as medicine and the companies’ daily needs have increased the new services will help offset it.