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Case Study on Johnson City Medical Group
Case Study of Johnson City Medical Group
Requirements for the written assignment:
12 point font Times New Roman is a typeface that was created in the
Every margin must be one inch wide.
Instructions: Take a look at the case study below. Make recommendations for resolving the problem in a two-page summary [essay format]. Pay particular attention to the mission, approach, and variances in marketing value among the doctors.
Identifying the issues/actions in the situation that may be troublesome is a crucial aspect of your answer. The following questions may be useful in this regard:
In this scenario, what steps were taken?
Were they the most appropriate actions, and why?
Were there any ramifications from the actions taken?
Was anything overlooked or overlooked?
Were actions/procedures in accordance with established codes of practice, policies, or theories?
Do you perceive any obstacles?
What type of marketing strategy (niche/mass) is most appropriate? Why?
Case studies are exercises that will help you put what you’ve learned in class into practice. Don’t forget to read each chapter!
The Strategic Obstacle
Timothy and Robert Johnson, two brothers born in Johnson City, founded the Johnson City Medical Group in 1932 as a solitary speciality, two-person cardiology clinic. The firm had grown to be one of the larger group practices in the area throughout the years. A brief history of the practice is shown in Exhibit 1.
Johnson City Medical Group has a long history.
The Group was founded in 1932.
The group adds its first partner in 1938.
The group extends into a second city in 1948.
The group expands to fifteen cardiologists in 1956, and a professional administrator is hired.
Six satellite offices and 40 employees make up the 1965 Group.
Two cardiovascular surgeons and support staff are added to the 1977 Group.
The firm had grown to over 45 partners in 2012, making it one of the largest in the cardiology and cardiovascular surgery speciality. The firm had created a mission statement that stated, “Premier heart services for the tri-state region.” However, over the last five years, the organization has began to see referrals change or be curtailed as multi-specialty practices have grown in their secondary and tertiary services regions. These larger groups had started to keep their cardiology and cardiovascular surgery referrals in-house rather than sending them to Johnson City. As the partners began their yearly strategic planning retreat, the group faced a long-term difficulty.
Donna Harris was the medical group’s senior administrator. Donna was a well-liked individual who had spent the previous 15 years working for these doctors and helping them expand considerably. She was regarded not only as a capable operational and financial leader, but also as a strategic thinker. Donna recruited a Director of Marketing two years ago. Some of the group’s partners were not enthusiastic about the recruitment, saying it was unnecessary. Donna started the meeting by going over the financials of the group. Because of a drop in referrals and a modest adjustment in Medicare reimbursement, the end-of-year partnership distribution was 1% lower than the previous fiscal year. We need to deal with the referral issue, Donna added, but reimbursement adjustments are out of our hands. I’ve requested Michael, our marketing manager, to talk to you about strategic options.
Michael had been a member of the band for two years. Until this moment, he had mostly been calling physician offices in an attempt to generate recommendations. He was well aware that several of the group’s physicians questioned the importance of his work and the marketing function. The decrease in referrals is concerning, Michael remarked. The current trend indicates that the emergence of multi-specialty clinics on the outskirts is eroding our referral business and is likely to continue. Our plan must be drastically altered.
I disagree, remarked Dr. Vinod, a Mayo-trained cardiovascular surgeon who was well-liked in the group; it may just be a reflection of your ineffectiveness. There is no reason to change anything because we are good at what we do. We have always been, and will continue to be, the leading heart care organization.
Should we and can we? says the narrator. Dr. Carrolton stated. She was a young cardiologist who had recently been promoted to partner. She also obtained an MBA from a prestigious business school. Will continuing on the same path alter market trends?
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