Tiptastic Tuesday: 2 Approaches To Boost Market Relevance

As more and more non-traditional competitors enter the healthcare industry, providers must increase their market relevance by taking a look at what their organizations can do to increase customer satisfaction, according to an article in Becker’s Hospital Review. There are two ways providers can expand their market space and relevance in it; “the approach a hospital or organization chooses is telling with regard to its respective mission.”

  1. Increase scarcity of the service by reducing the availability. By reducing availability, providers can eliminate consumers’ choice which means providers can charge higher prices for their services. It also eliminates the need to put providers against each other for pricing or services by making it the only network available. Because most non-traditional competitors take up the most profitable segments of the population, providers should focus on the second option which is improving the value proposition.
  2. Increase value of the product of service to the customer by improving cost, quality or service. Providers must be low-cost, high-quality and best-service market leaders to succeed in the current healthcare marketplace. Bringing together healthcare components under an ACO or a population health reimbursement model allows systems to rationalize out high-cost elements. Providers must also improve quality and communicate it to the public.

Finally, the article states that providers “must reinvent themselves without losing their core strengths of care organization, long-term relationships and community trust.”

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