Tara Smith
HSA505 Prof. Harold Griffin
Stopping Outshopping
Tara Smith
HSA505 Prof. Harold Griffin
Stopping Outshopping

Marketing Strategies within the Health Care Industry Scarlet Hospital, a not-for-profit health care facility based in Walnut Grove, population 25,454. The purpose of this case study is to reveal the market competition and strategies required to compete and survive in the health care market. Because recent construction has given Walnut Grove residents access to nearby Salem 50 miles away, patients whose only option was locally based Scarlet Hospital, now have 4 major medical centers to choose from in the town of Salem.
President and CEO of Scarlet Hospital Timothy Rodgers, is well aware of the impending threats this highway expansion may bring to the businesses of Walnut Grove. Before construction of the highway, Walnut Grove would not have been able to compete with the medical centers of Salem for several reasons. The patient retention rate before the highway construction was only maintained because Scarlet Hospital stood as the only hospital within a 50 mile radius. According to Frontenberry’s text, though Scarlet Hospital had no competition from other major medical centers, its competitors were still able to function because Scarlet Hospital does not offer outpatient care. According to Mr. Frontenberry, “delivering medical services in a highly insulated market, softening its competitive prowess, but not its commitment to quality”, is the philosophy Rodgers believes will “deliver the highest quality of medical care possible”.
While dedication to quality is important in any company, the dedication to ensuring the company’s ability to compete with present and future markets is equally important. Before the highway construction was announced, Scarlet Hospitals focus was on quality service and patient