Health Services Marketing Paper (HMGT 307)

Health Services Marketing Paper

Instructions:

Health Services Marketing Paper (HMGT 307)

Instructions

Timberline Health, an integrated delivery system that serves individuals in five counties in eastern Washington, is looking at innovative ways to raise community awareness of its outpatient health services. As the new business development manager for hearing health services, Jack Andrews is in charge of determining the viability of marketing initiatives for the hearing service line and allocating resources to promotional activities that are expected to generate a favorable return on investment. Sponsoring the health and wellness pavilion at the Spokane County Fair is one possibility being considered. Comparable market research has revealed

that wellness fairs are helpful not only in teaching communities about potential risk factors for health problems, such as hearing loss, but also in improving consumer knowledge of new or current health services offered by local health organizations. These activities are critical to Timberline Health’s community goal.

Jack enlists the expertise of his organization’s epidemiologist, Dr. Ruth Litchfield, to assess the possible return on investment for this marketing effort because little is known about the hearing status of inhabitants in the target area. Dr. Litchfield’s analysis takes into account a number of aspects. She looks at public health data on hearing loss, as well as occupational and age distribution data for local individuals and a search of Timberline Health’s patient databases. She estimates the prevalence of hearing loss in the five-county service region at 18 percent, somewhat higher than the national average, based on her research (NIH, 2010). To assist him in his calculations, Jack obtains data from the fair’s sales and marketing department. Sponsorship include a $50,000 investment in the design and production of promotional materials, as well as the rental of pavilion space for the duration of the twelve-day event. According to data from the previous three years, 250,000 people attend the fair on average, with 1% visiting the wellness pavilion and participating in health screening services.

Timberline Health will need to invest in new portable audiology equipment if it wants to offer mobile hearing screening. Jack obtains a quote from his supplier, and the entire cost of new audiometers and audiometric booths is estimated to be $16,000. Timberline Health will test those who fail the initial screening (i.e. test positive for hearing loss) with existing diagnostic equipment, eliminating the need for additional hearing center equipment. Table 1 shows the vendor requirements for screening and diagnostic equipment.

1st Table

Specifications for vendor equipment

Equipment Sensitivity Specificity
Portable audiology equipment for free screening 88% 95%
Clinic-based audiology equipment for follow-up diagnostic testing 99% 99%

In addition, Jack calculates that he has to cover three 6-hour shifts each day, with three audiologists on each shift to meet demand for screening tests. He plans to hire nine workers to cover the fair for the entire term. Audiologists are paid on an hourly basis.

$37.50.

Those who do not pass the fair’s initial screening are directed to an audiologist for a diagnostic test. In his calculations, Jack estimates that everyone who is referred for diagnostic testing sees an audiologist at one of Timberline Health’s hearing centers. Initial screenings are free at the fair, but Timberline Health charges $57.00 for a diagnostic hearing test, which costs the organization $24.00. Jack anticipates sales based on historical data and industry parameters.

Only 20% of persons who are diagnosed with hearing loss at hearing centers will purchase hearing aids (NIH, 2010). As shown in Table 2, he examines sales and margin data from the previous year to determine the product mix for his estimates.

2nd Table

Data on sales and profit margins

Hearing Aids Unit Price 2015 Sales Margin
Low-end $1,000 $400,000 24%
Mid-range $2,500 $1,250,000 46%
High-end $4,000 $400,000 60%

Reference

The National Institutes of Health (NIH) is a federally funded research organization (2010, October 1). Hearing aids fact sheet Obtained from

National Institutes of Health, U.S. Department of Health and Human Services:

https://www.nidcd.nih.gov/health/hearing-aids

Write a Memorandum to your teacher on the subject of Statistical Data Representation in the Timberline Health Case Study (no more than 2 pages).

1. Create a 2-by-2 contingency table to calculate the total number of people who fail the screening test and are sent to the hearing facilities for diagnostic testing.

2. Create a 2-by-2 contingency table to establish the total number of people who fail the diagnostic test, which reflects the hearing aid target market.

***For each table, make a list of the data (and computations) you utilized.

3. Describe the differences between portable audiology equipment and clinic-based audiology equipment in terms of sensitivity and specificity.

4. Describe why the sensitivity and specificity of clinic-based audiology equipment for follow-up diagnostic testing are higher than for home-based audiology equipment.

For a free hearing test, bring your own portable audiology equipment.

**When applicable, use APA format to cite trustworthy sources.

Note:

The screening and diagnostic tests are assumed to be independent in this scenario, with the first test having no effect on the results of the second, despite the fact that this is rarely the case with a sequence of tests. The target market, or total number of prospects for hearing aid sales from the proposed marketing campaign, is the group of people who test positive for hearing loss.

Table TN-1 is a 2-by-2 contingency table that can be used as a guide:
Contingency table construction
Test result Disease (D) No Disease (NoD) Total
Positive

Negative (a)
True Positive (b)
False Positive (a + b)

(c + d)
(c)
False Negative (d)
True Negative

RUBRIC
Excellent Quality 95-100%	Introduction 45-41 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.		Literature Support 91-84  points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.			Methodology 58-53 points Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score 50-85%	40-38 points More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.		83-76  points Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.			52-49  points Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality 0-45%	37-1 points The background and/or significance are missing. No search history information is provided.		75-1 points Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.			48-1 points There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
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