JJ833) Final Exam Kaiser Permanente: Searching for a Better Way to Deliver Healt
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JJ833) Final Exam Kaiser Permanente: Searching for a Better Way to Deliver Healthcare Fall 2017 From the window of her office on the 27th floor of Kaiser Permanente's headquarters building Christine Paige looked out over a sweeping view of Lake Merritt in the heart of Oakland California. The lake's placid waters stood in stark contrast to the tumultuous healthcare industry that Paige had to contend with every day in her role as Kaiser Permanente's Senior Vice President of Marketing Founded in 1945 by industrialist Henry J. Kaiser and Dr. Sidney Garfield, Kaiser Permanente was originally established to meet the need for affordable healthcare for Kaiser's steelworkers and shipbuilders. Kaiser Permanente had grown to become one of the nation's largest not-for profit health plans, with approximately $50 billion in revenue, employing more than 180,000 staf and 17.000 physicians-and serving more than nine million members in California and eight other states and the District of Columbia. As the health insurance field grew more competitive, Kaiser Permanente management was becoming concerned that the organization was not fielding the most compelling marketing programs. They understood that the organization was viewed by many non-subscribers as a lower-quality/lower-value healthcare option. Specifically, in 2003, 75 percent of non-members would not even consider Kaiser Permanente for their healthcare coverage. This attitude stood in stark contrast to the fact that Kaiser Permanente members were far more satisfied with their care than those in competitive organizations It became clear that there was a need for a marketing communications eff negative perceptions of Kaiser Permanente. The organization's advert early 2000s touted its highly qualified, caring physicians; but such claims were very similar to competitor messaging and failed to convey the innovativeness inherent in the Kaiser Permanente healthcare model. Such earlier marketing and advertising also did nothing to counter the periodic negative publicity about Kaiser Permanente's medical services ort to reverse the sing in the 1990s and Although the marketing and advertising from that earlier era did not differentiate the Kaiser Permanente brand, it did help bolster internal morale among selected employees such as Kaiser Permanente physicians who were spotlighted in the ads. Given those challenges and the uncertainties, Paige needed to provide management with her and her team's recommendations about the optimal next moves for marketing Kaiser Permanente clearly supporting/ informing the decision that Christine Paige has to make Tasks: Problem Definition (30 points) Your goals is to generate a research proposal. The research has to be rnh uill heln management? Identify one market research problem and
Explanation / Answer
Focus group topic agenda (Research objective on Market position of Kaiser Permanente):
This research topic covers the following in detail:
The vertical integration of Kaiser Permanente strengthened its market position:
Kaiser Permanente is the largest vertically integrated health care delivery system in the US. The model of integration for delivery of care allows Kaiser Permanente in order to have multiple specialist physicians in order to coordinate care. Member care is mainly focused on the health, as per guidance by the physicians as well as by the care providers. It is an organization that combines a non-profit insurance scheme with its own hospitals and clinic is kind of holistic healthcare organization. It provides the insurance health care services to people.
Today's healthcare executive and leaders must have management talent enough to match the increased complexity of the healthcare environment. Executives are expected to demonstrate measurable outcomes and to practice evidence based on management. Heath care alliance used to posit five competency domains
Kaiser Permanente is the largest nonprofit health plan in the United States is renowned for the tight integration of its clinical service.It coordinates with primary and secondary hospitals cares. Kaiser Permanente supports the health of the community through Healthy Eating Active Living.(HEAL). Where people live, work and play in order to support them in making the healthy choice. They say that healthier corner stores, better food in schools, more physical activity in school and after school.
The value chain segments have Kaiser Permanente chose to perform internally:
Kaiser Permanente caters to 9.5 million members with 38 hospitals consisting of 17000 doctors and 48000 nurses. The inventory levels at individual storage locations were set by Kaiser Permanente through the decisions by committee derived by nursing. There was the implementation of Oracle’s PeopleSoft Applications which became its ERP system and was known as the OneLink system internally. This helped them understand the total purchases across the company.
There was also acceptance of product scanning so that they would be aware of the product being used and there was clarity regarding the combination of one item master and scanning. This gave permission for accurate inventory, recall management and replenishment along with analyzing inventory cost and roll the cost to know the actual costs of procedures.
There was also an implementation of the consensus demand management process. This allowed the use of technology to decrease the levels of inventory. The forecast inputs consisted of shipment history, operation room schedules and external factors like change in insurance plans. There was emphasis placed on improving care while focusing on a lower cost supply chain and provide affordable and effective care.
There was also maintenance of both centralized and regional warehouses in the inventory and distribution management system. The data management is improved by the use of Global Data Synchronization Network developed by Department of Defense.
The Kaiser Permanente competitive environment based on the US Health coverage includes the following:
When we look at the overall National Medical Rate, Health Insurance Premium continues to be in the declining trend since 2004 while the worker's earnings and the overall inflation didn't see much of fluctuation.
The actual competition for the next decade is to understand and get rid of unwanted expenditure. Kaiser Permanente's competitive strategy is they are largest non-profit, integrated health care delivery system in the United States which is a key competitive strategy for Kaiser.
Tools of the Marketing mix that would be effective for Kaiser Permanente:
Among the 8 P's of marketing mix viz., Place, Price, Promotion, People, Process, Physical Environment and Product, based on the competitive environment and its advantage, Place, Promotion, People, Process and the Physical Environment is the key marketing mix that would leverage Kaiser Permanente market. Price and Product may not have the greater advantage of being the right marketing mix as Kaiser is non-profit oriented. However, it still plays an integral role.
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