EXPLAIN THE VERTICAL INTEGRATION OPTIONS

1. Explain the vertical integration options and directions for the following providers: (a) a major academic medical center such as the University of Iowa, (b) a five-person general surgery group, and (c) a manufacturer of durable medical equipment.
2. In examining Figure 10-6 containing the retail positioning matrix, explain how the community hospital in its present position (quadrant 3) could reposition itself to quadrant 2, and to quadrant 1.
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3. At a local hospital, a decision was made recently to downsize the nursing staff. The local television station sent a reporter and camera crew to interview the administrator regarding the impact of this action on patient care. After 20 minutes filming the interview, the reporter left. That evening a 15-second segment of the interview was shown, that left an unfavorable impression regarding the impact on quality. The administrator wondered what went wrong. Explain how more control could have been used to send out the message about the downsizing.
4. In recognition of the post-purchase role of promotion, what strategies would you suggest for: (a) a busy hospital emergency room, (b) an executive fitness program that provides health screening and fitness evaluation, and (c) an occupational medicine program that contracts its services to companies?
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5. Recently, the physician marketing task force at State University Medical Center developed a physician referral directory and advertisement. The target was primary care physicians in the region who could refer patients to State University for tertiary care. A cardiologist who was an undergraduate English major chaired the committee and drafted the materials. Three months after distribution of the advertisement and directory, responses were disappointing. Explain how this process could have been improved to increase likely response.
6. The director of a cardiac rehabilitation program was approached recently by a sales representative from the community newspaper selling advertising space. The sales representative underscored the fact that the paper had the largest circulation of any of the three papers serving the area, and it had the lowest cost-per-thousand. Before deciding to use this medium, what other factors should the program director consider?