Marketing Case

Introduction:

Mahon must decide what it wants to do about service hours, services offered, and waiting time at the Downtown Health Clinic.

Background:

DHC has had some complaints about being crowded during lunch time from 11:00am to 2:00pm. Also, there has been talk about bringing in a gynecologist for female patients. There is a possibility of another clinic being built close to DHC.

Recommendation:

1) I recommend DHC add the option of gynecologist to their patients. 2) I do not recommend expanding the clinic’s hours to 12 hours per day and hiring another physician. 3) I do not recommend expanding DHC hours and adding a gynecologist.

I believe that if Medcenter was built it would not affect the number of visits to DHC to have a large influence on DHC decisions.

Basis for Recommendation:

1) Gynecologist could add an additional 2000 visits per year. DHC can charge $104 and subtract $70 for the cost of a physician making gross revenue of $34 per visit. There is no extra cost and this can lead to other visits by woman.

2) Expanding the open hours to 12 per day will bring in more patients. An addition 65 employment physicals per month would be added with a 12 hour day. The negative with expanding the day is added cost. There is a 33% additional personnel cost as well as the cost of another physician. According to my quantitative analysis the added 65 visits a month does not cover the added personnel cost.

3) Expanding open hours and adding a gynecologist will have the largest number of visits. This option offers the largest gross revenue available but has some draw backs. The added personnel costs at this time make this not a good financial option. In the future if there is a significant increase in visit it could be a financial option to add another physician.

Alternatives, Risks, and Assumptions:

This assumes that if Medcenter is built it does not attract more current and potential visits away from DHC. Also, this assumes...