Marketing Management-Case of Northwell Health-Specialized Senior Care Services
Marketing Management-Case of Northwell Health-Specialized Senior Care Services
Although healthcare organizations are among the last groups to incorporate marketing practices into their systems, most institutions realize the significance of these practices in promoting their products and services. The previous section of this study indicated that marketing is an integral aspect of creating, communicating, and addressing the specific needs of target customers. In this regard, Northwell Health uses healthcare marketing to maintain a long-term relationship with the clients and establish a larger market share. While the previous report partially addressed some elements of Northwell’s marketing practices, further analysis is necessary to understand the organization’s marketing strategy and potential improvements. Therefore, this report will examine the institution’s geographical appeal, conduct a comprehensive SWOT (strengths, weaknesses, opportunities, threats) analysis, and examine its primary customers. The research will be informed by an interview conducted with a marketing expert at Northwell Health.
Geographical Appeal
Northwell Health is a large health organization with more than 66,000 workers, 23 hospitals, and 650 clinical practices (Balfour et al., 2016). The locations are based in New York, suggesting that the institution has a domestic appeal. A report on the organization’s performance indicates that the hospital primarily focuses on being the leading healthcare provider in the New York metropolitan area. Geographic-based market segmentation suggests the organization’s primary focus is on establishing a strong presence and market share in New York. The 23 hospitals spread across the state, from Upper East Side, Manhasset to Bay Shore (Gierlinger & Barden, 2020). The strategy of exclusively targeting this market suggests the organization’s business strategy focuses on the densely populated region with many people in need of medical services. Notably, Northwell treats over four million people annually (North Shore, n.d.).
While the primary focus is the New York market, the findings from the interview indicated that the organization also aims to penetrate the global market through innovative research which can be implemented in other regions. Nonetheless, Northwell Health’s overall geographical appeal is domestic. This strategy may have some benefits compared to an international, multi-national, or global system. A domestic market is more affordable in terms of marketing, training medical experts, and maintaining homogenous services. This approach also increases the brand’s relevance in the primary market due to its intense presence and connection with the underlying community.
SWOT Analysis
This tool is integral in making the future decision on factors Northwell Health can improve and some that it can eliminate. This analysis will inform possible recommendations on how the organization can improve its performance and remain ahead of the competition (Gurl, 2017).
Strengths
Various elements highlight Northwell Health’s strengths. The organization’s size represents a significant strength. Over the years, Northwell Health has grown substantially through mergers and acquisitions. The organization ranks as one of the most extensive healthcare systems in the US and globally (Balfour et al., 2016). Remarkably, the institution has over 6,400 hospital beds and three skilled nursing entities (North Shore, n.d.). Its size is a strength since it can handle major medical crises such as accidents in the state and COVID-19 patients while remaining consistent and offering quality healthcare services.
Additionally, Northwell Health has a robust cultural connection, which is a significant organizational asset. A strong foundation in New York and the constant growth suggest the organization has a deep understanding of the community’s needs and is committed to maintaining rapport. The relationship with the community is integral and will be advantageous whenever the company competes with a new entry.
Innovation is also a significant part of Northwell Health. The organization continuously works on scientific research, which allows it to introduce new products for patients (North Shore, n.d.). One of the innovations highlighting the institution’s strength is the Patient Safety Institute, which ranks among the leading healthcare simulation training centers countrywide (North Shore, n.d.). The organization also aims to automate its operations, with over $400 million investments in electronic systems (North Shore, n.d.). Finally, Northwell has well-trained and qualified personnel, which is integral to efficient service delivery. The organization has an arrangement with more than 15 training institutions aiming to guarantee quality education for medical experts (North Shore, n.d.).
Weaknesses
Northwell Health exhibits three weaknesses that may affect its performance. Firstly, the organization has a limited digital presence. The rise of technology over the past few decades has changed the way of communicating with potential customers. Although Northwell Health has an official website, it lacks a clear definition of its services and elements that differentiate it from its competitors. In this respect, the website provides limited information on the special senior services, such as forms of medical interventions or new developments that focus on improving healthcare for the elderly. Secondly, the locations of the hospitals and other facilities highlight a fundamental weakness for the organization. They are based in New York state, which suggests a radical change in the state’s policies may have detrimental effects on the hospital’s performance and survival. For instance, an increase in the cost of licensing will affect the entire organization. Additionally, a disaster affecting New York may lead to damage for Northwell Health. Finally, the recent firing of non-vaccinated medical experts may be destructive to the organization’s reputation (Hogan, 2021). However, this issue may be for a limited period as more people appreciate the need for vaccination to combat the COVID-19 pandemic (Hogan, 2021).
Opportunities
One of the significant opportunities in healthcare is the emergence of new technology. Innovations such as big data and virtual therapy for the elderly will substantially influence healthcare (Dias et al., 2020). Hospitals use big data to automate healthcare systems and enhance scientific research (Dias et al., 2020). The growing preference for home-based care among the elderly may also substantially affect healthcare systems. More people opt for home care rather than continuous visits to the hospitals (Pflanzer, 2019). Finally, hospitals adapt new marketing strategies to win over customers. A growing number of hospitals means institutions face steeper competition for patients. Contrary to the traditional limited marketing approaches in medical facilities, healthcare embraces aggressive marketing through platforms like social media.
Threats
The primary threat for Northwell Health is the growing use of Medicare, especially among older people. The program pays less than private companies and individuals, which means hospitals will have to redefine their business model to maintain quality services while lowering operational costs (Pflanzer, 2019). Michael Dowling, the current CEO of Northwell Health, indicates that hospitals will have to restructure their business model, physical structures such as bed capacity, and healthcare delivery model (Pflanzer, 2019). Competitors may present a substantial threat to the healthcare system as more companies will continue to enter the healthcare market due to the new trend of home-based care. Some of the current competitors in the New York market include Richmond University Medical Centre, Affinity Health Plan, and Hospital for Special Surgery. Northwell Health’s recent response to this threat is aiming towards a 100% vaccination for the medical experts to guarantee patients’ safety (Hogan, 2021). Additionally, the organization adjusts the hospitals to become intensive care spaces while making other services outpatient and home-based (Pflanzer, 2019). Finally, the COVID-19 uncertainty and other potential calamities offer a significant threat as the government is likely to change medical policies and implement new restrictions that may harm healthcare providers.
Target Consumers
Northwell Health provides services for all age groups, from children to the elderly. In 2009, its facilities delivered over 25,000 babies, over 605,000 emergency visits, 278,000 inpatients, and 605,000 emergency visits (North Shore, n.d.). These statistics indicate the organization does not have a defined demography. The specialized senior care services focus on the elderly population and are tailored towards their specific needs. Notably, Northwell Health is a leader in this market through innovation and constant research to enhance elderly healthcare (North Shore, n.d.). For instance, the company is the largest and was among the pioneers of home care plans for the elderly (North Shore, n.d.).
Conclusion
The study highlights various aspects that can inform Northwell Health’s current and future marketing strategies. The report shows the organization’s focus is on the New York market. Subsequent analysis suggests the organization should capitalize on its strengths, including its size, cultural connection, innovation, and human resource. Using these assets, the company needs to exploit its current opportunities. On the other hand, lack of a digital presence, limited diversification, the growing use of Medicare, major competitors, and healthcare uncertainty suggest Northwell Health needs to adjust its business strategy. Some of the opportunities include diversification into other markets, focusing on intensive care while moving other services to home care, strengthening a digital reputation, and adopting relentless innovation to remain competitive. The organization also needs to form strategic partnerships with non-medical training institutions to improve its business abilities and communication technology.
References
Balfour, E., Stallone, R., Castagnaro, J., Poczter, H., Schron, D., Martone, J., Breining, D., Simpkins, H., Neglia, T., Kalish, P., & Crawford, J. M. (2016). Strengths of the Northwell Health Laboratory Service Line: Maintaining performance during threatened interruptions in service. Academic Pathology, 3, 1-13.
Dias, C., Santos, M. F., & Portela, F. (2020). A SWOT analysis of big data in healthcare. In Proceedings of the 6th International Conference on Information and Communication Technologies for Ageing Well and e-Health (ICT4AWE) (pp. 256-263). SCITEPRESS. https://www.scitepress.org/Papers/2020/93902/93902.pdf
Gierlinger, S., & Barden, A. (2020). Focusing on positivity during the COVID-19 crisis: A New York health system strategy. Patient Experience Journal, 7(2), 31-32.
Gurl, E. (2017). SWOT analysis: A theoretical review. Procedia Computer Science, 159, 1145–1154. https://doi.org/10.1016/j.procs.2019.09.283
Hogan, G. (2021). Northwell Health lays off 1,400 employees who defied COVID-19 vaccine mandate. https://gothamist.com/news/northwell-health-lays-1400-employees-who-defied-covid-19-vaccine-mandate
North Shore-LIJ. (n.d.). North Shore-LIJ health system. https://support.northwell.edu/document.doc?id=59
Pflanzer, L. (2019). The biggest health system in New York used to make 80% of its revenue from hospitals. A decade later, that’s down to half. https://www.businessinsider.com/northwell-healths-michael-dowling-on-the-future-of-the-hospital-2019-5?r=US&IR=T
Appendix-Interview Question.
1. Do you think marketing is becoming an integral part of healthcare? Why?
2. Which approach among the four primary frameworks informs Northwell Health’s marketing decisions in terms of market segmentation?
3. Which aspects do you think define your organization and its services?
4. What differentiates you from other healthcare providers?
5. Dowling suggested medical providers may change their business model to fit the current change in Medicare and innovation. Do you share the same views?
6. What are some of the opportunities you feel the organization is yet to explore fully?
