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Essay / Pate Memorial Clinic Case Study - 1129
MEMORANDUMFrom: 200096To: Steven ClintonDate: April 15, 2000Subject: Pate Memorial HospitalRecommendation: Pate Memorial Clinic should extend its hours of operation by one hour to 7:00 a.m. to a closing time of 7:00:00 a.m. in order to increase patient visits.Problem Statement: Should Pate Memorial Hospital (PMH) Administrator Dr. Roger Mahon take steps, if any, to compete with the newly established clinic, located five blocks north of the PMH clinic?Facts: Regional Market: During the 1960s, the hospital industry boomed with billions of dollars building hospitals and additional funds for the expansion and construction of medical schools. The government has sought to reduce health care costs by reducing subsidy programs and cost-control regulations. Innovations in health care delivery have significantly reduced the number of patients served by hospitals. Competitive Situation: PMH is a 600-bed, independent, not-for-profit general hospital located on the southern outskirts of a large Western city. PMH is financially stronger than most metropolitan hospitals and has no debt among the city's six general hospitals. There are currently demographic changes and the hospital's administration and board of directors have serious concerns about its patient mix. Population growth has occurred in suburban areas to the north, east and west in which PMH is located south of the city. This has caused PMH to become increasingly dependent on downtown residents, who have a higher median age and a higher incidence of medical coverage. In 1998, the board authorized a study to determine whether to open an outpatient facility (Pate Health Clinic, PHC) in the downtown area, approximately ten blocks north of PMH. .....urban locationKey marketing capabilities of competitorsDirect mail advertisingCompetitor response Have the same socio-economic profile and use and employment characteristicsWill competitors change in the future? Projected volume of employment and physical insurance may change APPENDIX 4 - SWOT ANALYSIS Strengths Weaknesses Opportunities Threats PMH is financially stronger than most metropolitan hospitals. It is debt-free and has the highest overall occupancy rate among the city's six general hospitals. Patients are always dissatisfied with service hours. Lack of gynecological services. The population of the area where PHC is located is expected to grow by 6% per year. 20% more visits for personal illness next year compared to last year. Downtown construction boosted workers' compensation activity.