Description
This presentation is the case study of the cleveland clininc.
Ohio’s Cleveland clinic ranked with top healthcare providers
Pioneered coronary bypass & developed first Renal dialysis machine
90% business comes through seven Midwestern states Southeastern Florida dream market Resistance from local physicians in Florida Cleveland to extend geographically and set up clinics in other parts
Majorly Private, very few Govt. owned
Health Insurance-Mostly private except Medicaid & Medicare
Major Service provider categories(Not for profit/for profit/public systems): • Large Multispecialty clinics • Urgent care centers & Retail healthcare providers • Specialty clinics & surgicenters • Solo practitioners 84% citizens are insured
Government provides insurance to 27%
1% of the population with highest spending accounts for 27% of healthcare spending
Hospital Characteristics: Characteristics Bed Capacity Specialties offered Medical Staff Cleveland Clinic 500 Beds 20 950 Traditional Clinic 20 Beds 2 15
Employees
Annual Admissions Outpatients Visit Surgical Cases
2,339
22,119 338,495 19,909
60
1800 14400 648
Retail Mix Characteristics: Characteristics Cleveland Clinic Traditional Clinic
Services offered
Services offered across >20 Services offered across medical specialties limited number of specialties. Generally 1.
Standardized across all Prices vary across clinic. clinics. Higher as compared Lower as compared to to traditional clinics Cleveland Clinic Comprehensive 140,000 sq. feet High Limited 3,000 sq. feet No
Pricing
Layout Average Area Per Clinic Promotional Campaigns
Patient Assistance Density
Patient Services Rendered
High Low
High
Low High
Low
• Cleveland Clinic employs its own physicians, creating teams of specialists that collaborate in treating each patient. By contrast, at most traditional community hospitals, doctors remain independent, private practitioners. • The clinic model makes it easier to coordinate care, implement evidencebased treatments and reduce the red tape of referrals, proponents say. It results in doctors having less incentive to order unnecessary tests or procedures because they are paid fixed salaries, not on a fee-for-service basis like the majority of U.S. doctors. • Cutting edge technology, Innovation- Has maximum number of Healthcare patents • Large focus on research & development
Cleveland is a proprietary Hospital Group as analogue to Chain store retailing Geographic Expansion of Cleveland Clinic Franchising and Varied locations for clinic units Extra services lead to increased customer satisfaction
BROAD
CLEVELAND CLINIC
BREADTH
LOW COST CLINICS
SPECIALTY HOSPITALS
NARROW
SOLO DOCTOR’S PRACTICE
HIGH
VALUE
LOW
Position 3: Higher prices Higher margin Broad Service
Position 2: Increasing price Rising Margins Broad service
Position 4: New outlet Enters Market
Position 1: Low Price Low Margin Low Variety
Retail Mix of Cleveland Clinic
Product Line
Inpatient & Ambulatory Products
OPD
Medical Technology & Equipment
Insurance Services
Different Specialties Major focus on CVS & Renal Specialty
Inpatient Width Outpatient
Product Service Depth : No. of beds : No. of consultants In outpatient
Services Pricing • Premium Pricing of services • Cost oriented pricing of services • Standardized across all branches Communication: • • • • • Word of mouth Brochures Mails Health Information Lines Advertising
Layout: • Comprehensive Layout
Location of Clinics: • Primarily centered around Midwest USA • Patient population is not growing Distribution: • Complex medical care facility • Satellite clinic Customer Services offered • Insurance & third party payer
Mature market
• Limited Growth opportunities. • Niche segment for which only one prime CVS centre is required.
Risk
• More if Cleveland replicates its present model everywhere.
Alternatives
• Low cost treatment alternatives
Competition
• Local Markets, Local physicians & Hospitals.
Convenience
• Patients opting for more convenient treatment for minor ailments.
Waiting Time – Patient don’t like to wait as many options available. Insurance - Don’t want to pay a premium price for a treatment available elsewhere for very low price. Stricter Healthcare Norms – Which make the operations of big hospitals like Cleveland all the more difficult. 9/11 – After 9/11 it became difficult for foreign patients to come to Cleveland for treatment. All the above factors have lead to Retail Clinic boom in USA
Type Of Merchandise And Services Offered:
• Retail Clinic with outpatient services • Major hospitals with all round services and not just CVS.
Merchandise Pricing:
• Pricing is cost based.
Adv And Promotional Campaigns:
• Established brand name. • Word of mouth. • New clinic is advertised in local print media.
Store Location:
• Florida- Ageing population (Target segment) who have money to afford Cleveland treatment
Retail Clinics - Opening up of clinics in CVS(Consumer Value Stores), Pharmacies and Minute clinics in Northern Ohio. Advantages – low prices and short waiting time Satellite Clinics - Opening satellite outpatient clinics. Partnership - Partnering rather than competing with other hospitals. Similar Model - Opening big hospitals on same model as of Cleveland Hospital in limited locations all over the world. Franchising - Franchising the existing hospitals and clinics.
doc_421015794.pptx
This presentation is the case study of the cleveland clininc.
Ohio’s Cleveland clinic ranked with top healthcare providers
Pioneered coronary bypass & developed first Renal dialysis machine
90% business comes through seven Midwestern states Southeastern Florida dream market Resistance from local physicians in Florida Cleveland to extend geographically and set up clinics in other parts
Majorly Private, very few Govt. owned
Health Insurance-Mostly private except Medicaid & Medicare
Major Service provider categories(Not for profit/for profit/public systems): • Large Multispecialty clinics • Urgent care centers & Retail healthcare providers • Specialty clinics & surgicenters • Solo practitioners 84% citizens are insured
Government provides insurance to 27%
1% of the population with highest spending accounts for 27% of healthcare spending
Hospital Characteristics: Characteristics Bed Capacity Specialties offered Medical Staff Cleveland Clinic 500 Beds 20 950 Traditional Clinic 20 Beds 2 15
Employees
Annual Admissions Outpatients Visit Surgical Cases
2,339
22,119 338,495 19,909
60
1800 14400 648
Retail Mix Characteristics: Characteristics Cleveland Clinic Traditional Clinic
Services offered
Services offered across >20 Services offered across medical specialties limited number of specialties. Generally 1.
Standardized across all Prices vary across clinic. clinics. Higher as compared Lower as compared to to traditional clinics Cleveland Clinic Comprehensive 140,000 sq. feet High Limited 3,000 sq. feet No
Pricing
Layout Average Area Per Clinic Promotional Campaigns
Patient Assistance Density
Patient Services Rendered
High Low
High
Low High
Low
• Cleveland Clinic employs its own physicians, creating teams of specialists that collaborate in treating each patient. By contrast, at most traditional community hospitals, doctors remain independent, private practitioners. • The clinic model makes it easier to coordinate care, implement evidencebased treatments and reduce the red tape of referrals, proponents say. It results in doctors having less incentive to order unnecessary tests or procedures because they are paid fixed salaries, not on a fee-for-service basis like the majority of U.S. doctors. • Cutting edge technology, Innovation- Has maximum number of Healthcare patents • Large focus on research & development
Cleveland is a proprietary Hospital Group as analogue to Chain store retailing Geographic Expansion of Cleveland Clinic Franchising and Varied locations for clinic units Extra services lead to increased customer satisfaction
BROAD
CLEVELAND CLINIC
BREADTH
LOW COST CLINICS
SPECIALTY HOSPITALS
NARROW
SOLO DOCTOR’S PRACTICE
HIGH
VALUE
LOW
Position 3: Higher prices Higher margin Broad Service
Position 2: Increasing price Rising Margins Broad service
Position 4: New outlet Enters Market
Position 1: Low Price Low Margin Low Variety
Retail Mix of Cleveland Clinic
Product Line
Inpatient & Ambulatory Products
OPD
Medical Technology & Equipment
Insurance Services
Different Specialties Major focus on CVS & Renal Specialty
Inpatient Width Outpatient
Product Service Depth : No. of beds : No. of consultants In outpatient
Services Pricing • Premium Pricing of services • Cost oriented pricing of services • Standardized across all branches Communication: • • • • • Word of mouth Brochures Mails Health Information Lines Advertising
Layout: • Comprehensive Layout
Location of Clinics: • Primarily centered around Midwest USA • Patient population is not growing Distribution: • Complex medical care facility • Satellite clinic Customer Services offered • Insurance & third party payer
Mature market
• Limited Growth opportunities. • Niche segment for which only one prime CVS centre is required.
Risk
• More if Cleveland replicates its present model everywhere.
Alternatives
• Low cost treatment alternatives
Competition
• Local Markets, Local physicians & Hospitals.
Convenience
• Patients opting for more convenient treatment for minor ailments.
Waiting Time – Patient don’t like to wait as many options available. Insurance - Don’t want to pay a premium price for a treatment available elsewhere for very low price. Stricter Healthcare Norms – Which make the operations of big hospitals like Cleveland all the more difficult. 9/11 – After 9/11 it became difficult for foreign patients to come to Cleveland for treatment. All the above factors have lead to Retail Clinic boom in USA
Type Of Merchandise And Services Offered:
• Retail Clinic with outpatient services • Major hospitals with all round services and not just CVS.
Merchandise Pricing:
• Pricing is cost based.
Adv And Promotional Campaigns:
• Established brand name. • Word of mouth. • New clinic is advertised in local print media.
Store Location:
• Florida- Ageing population (Target segment) who have money to afford Cleveland treatment
Retail Clinics - Opening up of clinics in CVS(Consumer Value Stores), Pharmacies and Minute clinics in Northern Ohio. Advantages – low prices and short waiting time Satellite Clinics - Opening satellite outpatient clinics. Partnership - Partnering rather than competing with other hospitals. Similar Model - Opening big hospitals on same model as of Cleveland Hospital in limited locations all over the world. Franchising - Franchising the existing hospitals and clinics.
doc_421015794.pptx