Question

The Banning of Hospital Advertising Vermont’s New Idea Mary Bergin is the CEO of a community hospital in Putney, Vermont, that has grown significantly over the past few years in terms of the resources it has added. Mary came to the hospital after being the COO of larger facility in New York, but she wanted to live in a rural state as well as be in charge of her own facility. Putney County Hospital was in some financial difficulty when she first arrived. But the Board of Directors supported her initial cost cutting efforts. As a result, the hospital had returned to financial stability. Over the past 2 years, the hospital had begun to aggressively recruit primary care physicians and also to establish several satellite clinics. All of these strategies were done because of the significant regional competition that the hospital faced from major centers in Burlington and Hanover, New Hampshire. It was early March and spring was just beginning to come to Vermont. The snow was starting to melt and the ski season was coming to an end. Mary went to her porch to get the newspaper to skim it before an early meeting at the hospital. The headlines caught her off guard, “Vermont Legislature Considers Banning Hospital Marketing and Advertising.” As Mary quickly read the story she realized that this was as serious issue. Two important members of the legislature, State Rep. Steve Maier (D-Middlebury) and Sen. Kevin Mullin (R-Rutland), a member of the Senate Health and Welfare Committee, had proposed a ban on such activities. Mary texted her leadership team and scheduled a luncheon meeting, she also sent around an attachment of “The Healthcare Marketer” which referenced a story in the Burlington Free Press regarding the Vermont Lawmakers movement to ban hospital advertising. (https://thehealthcaremarketer.wordpress.com/2010/03/11/vermont-lawmakers-consider-ban-onhospital-advertising/) At the lunch meeting Mary began, “Did you all read the story? I am not sure this initiative will pass, but we all know Vermont. This idea will not die. Some form of a limiting proposal may go forward in another session of the legislature. We need to develop a strategy around this issue. There are many facets to this problem.” “I am really concerned,” said Bill Hayes, the Marketing Director, “We have Dartmouth Hitchcock in New Hampshire that will just increase their presence at our expense the minute we cannot advertise. As it is they are so much bigger than us. Then there are hospitals in New York. How do we protect our patient base?” “Well, maybe we could take those dollars and invest them in more doctors or some new technologies—that is the point of the proposal,” said Mike Dolan, the Chief Financial Officer, “Is it really so bad? I am not so sure.” “Wait,” said Mary, “Let’s not have a debate here on the merits of the bill, we need to think of a plan that is multifaceted in light of something that now is in consideration. What if it passes? What is the implication for our strategy? What do we do in light of the fact that there is now more examination of what we do in terms of our marketing efforts—even if the bill does not pass? This is not easy. What position should I take in the newspaper? I am being asked for an interview by the Putney Gazette later today In your analysis relate to the role of marketing and its appreciation or evolution from what was presented in Chapter 1 when advertising was banned among medical professionals and whether that “wheel is turning” back. In the same vein, it is useful to tie in the discussion to HIPAA regulations and restrictions that are presented in Chapter 3.

Answer 1

Marketing is a business function with profit-oriented responsibilities as distinct as those of any other corporate department. The marketing department's research helps determine the right time, place, price, product features and locations to use in order to sell more of the company's goods.Like in every departments, professions ,business etc marketing is used as a tool to sell its goods and services , healthcare also uses marketing to endorse , enhance and sell its products to the consumers . It attracts the consumers by displaying about the new technological advancements and facilities which they provide at their institute .

​​​​​Using everything in a limit is a very important requirement. When we exceed the limits it creates a mess and causes problems which leads to serious conclusions like banning etc . In this case also the same thing is discussed. Using marketing more than providing efficient services to its consumers lead to the initiative of banning the marketing and advertising system . HIPAA is Health Insurance Portability and Accountability Act . It should enforce rules and regulations regarding marketing and advertising to avoid the excess marketing and giving more stress to efficient services .