The most common difference in healthcare organizations from others lies in the management and head of administrators’ decisions. In this case, they make almost all decisions that affect patients (clients) and clinicians. There is a unique dynamic in healthcare organizations connecting the business itself and the administrative leaders and healthcare providers. Therefore, there are several things to consider in working on healthcare marketing, as explained below.
Service Payment and The End-User
Unlike many companies in different businesses, healthcare organizations cannot receive the payment until the solutions are provided. Also, the client accepting services is NOT the one responsible for the cost. In this case, healthcare organizations often get reimbursements for the services given a month or longer by third-party payers, such as Medicare or insurance companies. More importantly, healthcare organizations have the products marketed directly to possible customers. Healthcare organizations’ most advertising efforts do not target end-users. In this case, healthcare facilities, especially those offering specialized care, depend on testimonials from various primary physicians to build their personal base. As a result, specialty practices will concentrate their advertising efforts on forming relationships with multiple providers.
In most organizations, potential clients who cannot afford a product or service are denied support. In healthcare, organizations (mostly nonprofits) are responsible for admitting patients, notwithstanding their ability to pay. Emergency departments must see patients seeking emergency care at least after they have stabilized. Medical practices may need that payment to be made before the visit. Still, the procedure must regard humane and liability concerns until it decides to be an asymptomatic patient based on their deficiency of payment approaches.
In most businesses, unprofitable services are usually not provided. It is not the case with healthcare. Healthcare facilities may need to make a profit to keep their doors open, but their facilities often offer unprofitable services. Like the circumstances explained above concerning emergency rooms, healthcare organizations have decent and legal concerns that do not apply to businesses in other industries. Health care providers offer themselves as part of patient care. When a service is critical to advancing a person’s care, it should continue to be given, even if it is unprofitable.
Supply and Demand
The specific laws of supply and demand usually do not come into play in health care since an expansion in supply does not inevitably lead to a decrease in price. Also, an increase in need does not surely lead to a rise in price. Although health care organizations set prices, reimbursement is often ordained by their respective regulated care contracts. In this situation, a provider receives a flat fee despite the costs they charge. Meanwhile, self-pay patients have to use prices set by the healthcare organization. The client’s need for health care providers is not usually dictated, as the client does not decide what solutions are needed to maintain their care. Physicians make these decisions. The need is indeed unpredictable in almost any business. Still, it is even more unusual in health care, as customers do not choose whether they need a service, and the condition is met suddenly.
Services and Goods
Healthcare primarily markets alternatives, not specific products. Thus, marketers usually do not sell a particular product, a service, the provider, and how they attract customers. A customer of tangible goodwill bases their satisfaction with the product on its function, effectiveness, and performance. A customer of service will establish their perspective on circumstances such as customer responses, wait times, the condition of facilities, the behavior of the service provider, and the processes applied to implement the service, among many other elements. Healthcare services and goods can be so complicated that they are infrequently known to the end-user. It is different from a retail business where a customer identifies a need for a good and satisfies that need by purchasing the product. In the healthcare industry, customers cannot choose the service as they wish. They only will get it from the physician responsible for the further needed service to treat the condition.