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Pate Memorial Situational Analysis

In: Business and Management

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Situational Analysis

 To expand the hospital’s referral base

 To increase referrals of privately insured patients

 To establish a liaison with the business community by addressing

employers’ specific health needs

 To become self-supporting three years after opening

 South, Southwest, West of PHC

 Business workers

 Privately insured patients

Objective: Alternative to physician practices by providing convenient and

personalized ambulatory health care services

Strategy: Differentiation

Tactic: Preventive health care, minor-emergency care, referral for acute and

chronic health care problems, specialized employer services, primary health

care services, basic X-ray and laboratory tests.

Objective: Service convenience

Strategy: Direct channel strategy

Tactic: PHC: Open 260 days a year (Mon-Fri, 8 AM- 5 PM). Located in

Objective: To become self-supporting three years after opening

Strategy: Price Skimming

Tactic: Average: $67.90: Personal illness/exam: $50, Workers’ compensation

exam/treatment: $78, Employment/insurance physical examination: $94,

The Pate Health Clinic created a 12-month budget during construction in fall

of 1998. They had a total annual budget of $510,048. It would cost $137,280

to pay the physicians (260 days, 8hr/day at $66/hr). The lease would cost

$76,500. Supplies and utilities would cost $46,894 and $6,630 respectively.

Amortization would cost $30,648 and personnel (nurse, director, lab

assistant, X-ray technician and receptionist) would cost $168,376.

Financial Performance from May 1999-March 2000

PHC had a total of $236,970 in gross revenue and $185,224 in total

contribution. PHC has made 105 referrals to PMH and produced slightly over

$378,000 in revenue and $30,000 in profit. PHC had a total of $51,746 in


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