Getting Started (Read-Only) A doctor is smiling in the foreground while two nurs

Getting Started (Read-Only)
A doctor is smiling in the foreground while two nurses check on a patient in the background.
Marketing plays a strategic role in healthcare, albeit a largely behind-the-scenes function incorporated into the general management process. Healthcare is a highly regulated endeavor. For example, in many jurisdictions, a certificate of need is required before a new facility can be built or major (capital) equipment purchases can be made. Being able to secure this permission can rely on the ability to create a compelling rationale for the U.S. health services organization’s status.
This discussion uses the concept of community benefit, the demonstration of which is required to maintain tax-exempt status, as the foundation for discussing the role of marketing in supporting the health system mission. While marketing is often seen as focusing on advertising, it can deliver significant value in a rapidly changing market defined by new laws, unprecedented applications of technology, and increasing patient demands. Defining the product, price, placement, and promotion – the 4 P’s of marketing – defines the organization to patients, other customers, physicians, nurses, regulators, and the community. This strategic perspective fosters an approach that integrates marketing principles into emerging imperatives driven by healthcare reform and a changing marketplace.
Resources (Available Online)
* Article: “What are hospital community benefits?”
* Website: Fast Facts on US Hospitals
* Website: Nonprofit Hospitals and the Provision of Community Benefits, Introduction and Summary
* Article: “New Hospital Community Benefit Briefs: Reporting Requirements and Community Building”
* Article: “Illinois Supreme Court Upholds Revocation of Hospital’s State Property Tax Exemption”
* Article: “What’s Next for Illinois Non-Profit Hospitals and Their Tax-Exempt Statuses?”
* Webpage: Exemption Requirements – 501(c)(3) Organizations.
Background Information (Read-Only)
In the United States, three times as many hospitals operate as non-profit corporations than as for-profit corporations. This reflects the history of US hospitals as charitable institutions, the economics of healthcare in the United States, and the tradition of providing community benefit as part of the healthcare mission. The concept of community benefit embodies the ethical principle of beneficence. For healthcare organizations that operate as non-profits, demonstrated community benefit is a requirement of Section 501(c)(3) of the Internal Revenue Code and state statutes for maintaining a tax-exempt status.
A historic means of demonstrating community benefit has been providing charity and other uncompensated care. The 2010, Patient Protection and Affordable Care Act (PPACA) reduced the number of uninsured individuals in the United States and shifted the focus of healthcare toward prevention and population health management.
The ethical dimensions of beneficence, fidelity, autonomy, and justice are as applicable to health services organizations as they are to individuals. These traits are demonstrated via the creation of community benefit, a central characteristic of all healthcare activities, and a statutory requirement for non-profit institutions. Marketing provides strategic vision and innovation to the full spectrum of healthcare, helping create and demonstrate community benefit.
Instructions (Follow Carefully)
(1) Read the following resources:
(a) Article: “What are hospital community benefits?” (Available Online)
(b) Website: Fast Facts on US Hospitals (Available Online)
(c) Website: Nonprofit Hospitals and the Provision of Community Benefits, Introduction and Summary (Available Online)
(d) Article: “New Hospital Community Benefit Briefs: Reporting Requirements and Community Building” (Available Online)
(e) Article: “Illinois Supreme Court Upholds Revocation of Hospital’s State Property Tax Exemption” (Available Online)
(f) Article: “What’s Next for Illinois Non-Profit Hospitals and Their Tax-Exempt Statuses?” (Available Online)
(g) Webpage: Exemption Requirements – 501(c)(3) Organizations (Available Online)
(2) Write/Respond to the following discussion prompts below:
(a) What role can healthcare marketing play in developing and documenting community benefit?
(b) What balance can be achieved between the need to increase revenue and the requirement to provide community benefit?
(c) What biblical principles address the concept of community benefit?