TRANSITIONAL INTENSIVE CARE

ABSTRACT

History of Transitional health care

Formation of TIC

Transitional care process

ABSTRACT CONTD..

TIC’s financial picture

TIC’s marketing efforts

Future plans

How does TIC add value?

Value creation through vision

Vision:Hospital in

disguise

Long term needs of

baby

Remove parents’

dependency

Parent teaching

Primary Activities:Operational work

• Acute nursing care• Minor surgical treatments• Respiratory therapy• Physical, occupational and

speech therapy• Social and infant

development services

Marketing

• Referrals• TIC video• Tie-ups with private

physicians• Brochure, media

coverage, conferences• News letter- “Almost

home”• Parents advisory dinner• Increasing target

audience• Personal relationships

Follow-up services

• Beforehand discharge parents were given prescription

• Car seat practice• Visiting nurses• Outpatient clinics• Medical equipment &

developmental services• Ensuring parents having

enough oxygen and diapers

Support activitiesInfrastructure

BedsParking

Living roomsNursery

Pharmacy, labParent library

Rainbow family centerFamily living area

Individual rooms, sibling playroom

Human resource management

Flexible group of professionalsMultiple roles

Low attrition- job satisfactionParking

Empowered to take clinical decisions

Relaxed, homelike and intimate atmosphere

TechnologyX-rays

LabBlood transfusion

Nutrition & ventilator services

Procurement25 registered nurses

5 physicians70 additional physicians

Charitable revenues-equipments

Patient care revenues- operating costs

Differentiating factors:• Family convenience- top priority• “What’s special about me?”• Non- emergency nature- permanent bedspace• Chronobiology• Long period of undisturbed sleep, holding, affection and social

interaction• Interdisciplinary team meetings with parents

Who are its customers ??

CustomersParents

Foster Parents

Grandparents

HMO

TIC in Healthcare Value Chain

TIC

Why TIC beds are not full ??

• TIC relied on area hospitals with Neonatal Intensive Care Units for transfers.

• Periodically, referrals dropped as new managers and physicians rotated through the NICU departments.

• Referrals also dropped as the birth rate in the Pittsburgh area declined and hospitals stopped transferring babies in an attempt to keep their own NICU beds occupied to generate revenue.

• Average length of admission for TIC was 0-10 days. i.e. every 10 days they had to look for new patient.

What were the underlying problems

at TIC?

Same level of services from several hospitals and most had internal referral sources

Post entering growth stage of the PLC, marketing strategies were not changed.

The hospital had no internal referral sources and failed to establish a strong referral relationship with

area hospital.

The hospital relied mostly on its front line staff to promote the service and gain referrals. Over time

however, this method became less effective as new staff members were hired at TIC .

TIC was not in a position to generate additional revenue by altering its pricing strategy.

The hospital also greatly relied on charitable contributions for capital investments and purchase of

equipment.

What Strategy Should TIC Pursue?

• Possible for families to perceive the service as not the best: Higher quality service hence increase prices.• Once increased, services should be publicized to

ensure acceptance of high prices because of quality service.

• Increase promotion strategies: Direct messages to the community to educate customers.

• Expand services either by tying up with other hospitals or increasing the service offerings.

Pricing Strategy

Promotion Strategy

Product strategy

What are the ways that an organization can focus? What are the benefits and

limitations of the focus ?

TIC could focus on expanding their services to provide more than transitional infant care and penetrate new market

Acute paediatric care Outpatient services for infants

To increase their publicity-driven promotion strategies.

Personal selling should be preferred over referral sources.

Focus on maintaining the loyal consumer and differentiate their services.

Nursing uniforms to change the consumer perception.

BENEFITS

They will be able to operate at 100% margin instead of current 60% margin.

Potential to reach exponential number of families through new services.

This will help marketing strategy plan to be successful by reaching greater audience.

Long term relationship building by expanding into paediatric services.

BENEFITS

These strategies will help in educating people about TIC and its services.

Personal selling will help to compensate the loss of referrals through new staff of TIC.

Differentiation will help in building trust and increasing the customer base.

SERVICE EXPANSION MARKETING STRATEGY

SERVICE EXPANSION MARKETING STRATEGY

LIMITATIONS

There will be huge cost incurred in expansion

They might lose focus on their expertise in post NICU care

They might lose out on regular customers who used to come only for their expert service

LIMITATIONS

There will be increased cost

They might lose focus on personal selling and thus turn out to become commercialized

What does a focused organization have to do well

in order to succeed?

Strengths1. First of its kind infant care unit

2. Homely environment for the infant and parents3. Providing education to the parents

4. Highest quality service at affordable price5. Very low turnover of employees

6. Low readmission rate and recovery time

Weaknesses1. Use of only Referral model to get customers2. Lack of marketing activities to promote TIC

Opportunities1. To convert themselves into a full service children hospital

2. Increase customer awareness by tying up with various pediatricians, doctors, hospitals, to-be mothers etc.

Threats1. Potential future losses due to changing business and demographic

environment 2. Takeover by other big full service hospital

SWOT

THANK YOU