Product Development

Introduction

Over the past four decades, spending on healthcare in the United States grew more rapidly than the economy (Baker, Birnbaum, Geppert, Mishol, Moyneur, 2008, p. 541). Healthcare has nearly tripled its share of national income during this time (p. 543). All aspects of the nation's health system have been affected by this ongoing spending growth. Strategically marketing the development of products and services during this intense competition and uncertainty is vital for any healthcare organization to stay profitable and to ensure continued growth.

Justification of The Villages Regional Hospital Associate Life Cycle

The Villages Regional Hospital (TVRH) is part of the Central Florida Health Alliance (CFHA) which has been serving patients in its community for than 11 years (CFHA, 2013). The thought process behind CFHA’s reasoning and objectives of opening another hospital can be summarized through the use of Booz, Allen & Hamilton’s New Product Process. The use of the Booz, Allen & Hamilton’s New Product Process guided the board of directors and administration of CFHA through the product development activities from strategy development and idea generation through to commercialization of the new hospital.

The market entry for a new hospital is complicated by immense rules and regulations governing healthcare services and products. The data collected and reviewed through the Booz, Allen & Hamilton’s New Product Process depicted minimal risk of market entry in the geographical location of The Villages, Florida. Using the Booz, Allen & Hamilton’s New Product Process marketers laid the foundation for a new hospital by reviewing corporate objectives and identifying roles the new hospital might play in satisfying those objectives.

During the idea generation stage a self assessment was used to determine the categories that were of primary interest. The CFHA identified an area of growth opportunity that could be exploited. During the screening and evaluation...