Customer Segmentation
When it comes to market interaction, various activities are conducted in line with this
aspect of the business. One such aspect is market segmentation. Customer segmentation is the
division of an organizations overall target market into much smaller groups with the
consideration of various aspects to maximize a market venture. This can be done in accordance
with the age of the target group, their genders, the varying interests within that market and the
spending habits of the targeted market (Yang, Liu, Teng, Liao, & Xiong, 2016). Companies
approach the market in such a manner with the consideration that each customer has a unique
preference for goods and services. Individuals do not share similar taste in goods, and this is
sometimes influenced by some common factors which lead to the segmentation in line with age,
sex and other such factors that put similar individuals’ categories. For the case of Bethseda
Hospital and their establishment of an occupational medical program, they can segment their
market in line with a few methods of segmentation. The employers approached for the medical
program can be considered according to their organization's size, the operational processes of
their organizations and the employee gender composition of each employer's organization. This
form of categorization will better enhance the uptake of the medical services that they have to
offer to this community as it will be specialized in accordance with the specifics that these
groupings have to offer.
Alternatives for Customer Segmentation
The segmentation according to the size of an organization is considered since the
profitability of a venture is very important. One thing to take into consideration is the size of an
organization, this includes the number of employees within the organization which increases the
possibility of actually getting to interact with patients (Yang, Liu, Teng, Liao, & Xiong, 2016).
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This approach is however not very religiously acceptable as it relies on the suffering of another
individual. The consideration is made with the belief that an individual can most probably fall ill
and have to seek medical attention. A smaller organization will mean that there are meager
chances of getting to interact with the covered individuals due to the low probability.
Another method of segmentation is in line with the kind of processes that take place in an
organization. This will be looked at in various aspects. Organizations with demanding work
processes will most probably be the ones to seek stress management from the medical program.
The consideration along these lines will also choose according to factories or offices.
Organizations that have factory processes will be relevant for the treatment at factories as well as
the toxicology assessments which will be predetermined by the kind of chemicals individuals
deal with in the factory. In this case, individuals that are dealing with factories that deal with
chemicals will seek toxicological assessment and then result in the factory treatment. In offices,
the issue of back problems will be the most prevalent problem thus relevance for the hospital
(Yang, Liu, Teng, Liao, & Xiong, 2016).
The segmentation can also be done in accordance with the gender composition of the
particular organization for the employer they wish to approach (Öztayşi, Gokdere, Simsek, &
Oner, 2017). In this consideration, the hospital will consider organizations that have more
women in the labor force. This is because women have a higher probability of having an interest
in health education around various aspects of the organization such as stress management.
Women are more open to health education as compared to men (Öztayşi, Gokdere, Simsek, &
Oner, 2017). In this consideration, organizations with more women can be considered as they
will be more profitable. However, this is somewhat selfish of the organization as the organization
with higher numbers of men will not be able to enjoy these health services.
Conclusion
In general, the market approach is a very important aspect of any organization and
conducting customer segmentation is an assurance of higher profitability in a specific market
venture. For Baltimore Hospital, to effectively deliver their medical services with the highest
possible profit margins, they can segment their market in accordance with the size of an
organization, the operational processes of the organization and the gender constitution of the
organizations of the employers they wish to approach.
References
Öztayşi, B., Gokdere, U., Simsek, E. N., & Oner, C. S. (2017). A novel approach to
segmentation using customer locations data and intelligent techniques. In Handbook of
Research on Intelligent Techniques and Modeling Applications in Marketing Analytics
(pp. 21-39). IGI Global.
Yang, J., Liu, C., Teng, M., Liao, M., & Xiong, H. (2016, December). Buyer targeting
optimization: A unified customer segmentation perspective. In 2016 IEEE International
Conference on Big Data (Big Data) (pp. 1262-1271). IEEE.
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Comment Summary
Page 1
1. missing a cover page, page #'s and running head
2. Follow APA Table 6.1, p. 177 on the correct way to cite within the text for first and multiple citations. Et al.
cannot be used for less than 6 authors the first time a citation is introduced. Use et al. when repeating citations
of 3 or more authors.
Page 4
3. Periodicals, journals, magazines, newspapers, etc. (the source of the articles) should be in italics;
Behavioral Economics
Behavioral Economics
Miracle Cannon
Nurs 503
Liberty University- Online
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Behavioral Economics
Introduction
In day to day activities, people working in clinics have a lot of clinical experience. In
behavioral change, there is long-term, and short-term conditions. Changing in simple lifestyle can
prevent long-term conditions. And this clinical nurses can bring into existence some theories which
help the patients to change the behavior. The nurses act as mentors in helping the patient to change
the actions which they had more so for improvement of their health, change of bad behaviors like
smoking, taking alcohol. Nurses also are advised to improve their communication skills with the
patient so that they can open up to them (Källander et al., 2013). Many theories have been used
to explain the behavioral change; these include the learning theories which states that a particular
behavior will be continued if supported and if dealt with away it will be stopped. Another argument
is social cognition model which suggest that what we believe in is what we perceive, and that’s
how we behave. And lastly, we have stages of change model which states that people go through
various stages of life and in every scene a change must be evident (Garner et al., 2014).
, Behavioral change helps in supporting individuals’ actions to be achieved positively, but
we get to understand that it is difficult to change someone's behavior and attitude. In theoretical
research we see that over twenty-five theory experts were consulted in existing database numerous
theories were searched. In behavioral findings, a hundred behavioral met the requirements, and
one hundred and seventeen approaches were studied. The theoretical overview of behavioral
change can be maintained by focusing on habits, environmental and social influences. After the
findings on the theoretical explanations a clinical nurse to promote and sustain the health behaviors
of the patient (Källander et al., 2013). Also for a successful behavioral change, there should be a
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Behavioral Economics
continuous affirmative act on the action so that difference will be evident. For example, a nurse
should have excellent communication skills to the patient, so he /she should follow instructions
being given.
As a clinical nurse, there is a population you should have to gain clinical experience that
helps in solving environmental issues providing what you're supposed to do in real life. To achieve
a clinical experience, I worked with the large number of adults, children and dealt with almost all
problems. I obtained this through volunteering services in dispensaries, clinics, and hospitals, in
addition to these I obtained a lot of information from clinical professionals. To gain this clinical
experience I worked for more than one thousand two hundred hours in various health sectors and
was dealing with many patients. Moreover, I worked with millions of people and this was achieved
through taking part in treating both the outpatients and inpatients in clinics, working with the
students who are not qualified so that I can mentor them, taking my time to be with the physicians
and doing lots of observations and through this I had worked with large population of patients
(Källander et al., 2013).
In sustaining behavioral change in a population, we face a lot of challenges and these
include; on dealing with vulnerable people, nurses experience a lot of problems because these
people don’t give an ear to them they just do what they think is correct for them leading to poor
health. When it comes to such situations, the nurses lose hope on them and just leaves them to do
what they want. However, health promotion has relied on various health packages for health
education, and there has not brought any impact in the change of behavior to populations, yet it
has contributed to increase in the earlier response. For example, if the individual was smoking or
taking alcohol, he will continue with the reaction to grow in the previous answer. For example, if
the individual was smoking or taking alcohol, he will proceed with the action knowing that these
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Behavioral Economics
behaviors have side effects. When dealing with population a clinical practitioner can organize for
health programs to teach them on behavioral change but they may experience inadequate audience
to listen to them, sometimes they give irrelevant messages which the audience find it inappropriate
and also how they deliver the word matters a lot in that it’s a challenge because the people resist
being changed (Källander et al., 2013).
Their are many different approaches that can be used to motivate and educate people on
better health the key proposals include behavior change approach, this changes on how people
think or perceive. nurses use this approach to change the behavior of people in the surrounding
and makes discern on a good response by creating their own decisions. This approach exposes the
patient to health risks of the act he is practicing and allows him to gain health practices on how he
will avoid the risks. For example, in the case of a smoker, it will enable him to know all the side
effects of smoking like likelihood to have high blood pressure and all sorts of illness. Self-
empowerment approach helps people in society to be aware and understand they should act in their
ways to improve their health. A health practitioner can use self-empowerment techniques like team
building in group work, guidance and counseling sections, health training, educative drama, and
social health skills exercise (Age-Related Differences in Associative Memory: Empirical Evidence
and Theoretical Perspectives, 2018).
Moreover, the health education approach is used mostly in schools by teachers to teach
students on health issues; this is essential because awareness is created for students. This approach
includes drug education which a teacher is supposed to let the students know about the harm of
drugs in their bodies; it is supposed to be taught not less than 15hours in a term. Also, healthy
eating education should also be trained to help a student understand foods that are beneficial to
their health and also the lifestyle they're supposed to live. Mental health promotion is also a
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Behavioral Economics
program aimed at teaching a student to recognize his or her role in helping others and providing
appropriate support to the family and the society in this through reading materials helps the
students to be informed. Lastly, sexuality education is essential in this part of the population
because it helps them to be responsible when in school to avoid sexual diseases and early
pregnancies (Garner et al., 2014).
Behavioral economics addresses issues in such a way that people don’t know the economic
sense but assumes that they know what is best for them, it puts into notion how people behave in
real life without financial regard. In health care, behavioral economics plays a vital role in focusing
on ways that relate to decision making and consumer in health care. In section like organ donation
we see that most countries have a problem in supplying organs for transplant especially when an
accident has occurred but when a behavioral economics is applied in these countries we have a
program where people register themselves to be donors, and these willingness saves the life of
many and also reduces the cost of health care. Moreover, behavioral economics plays a role in
enrollment in government-sponsored health insurance programs where brings the understanding if
enrollment procedures and provides bonuses to encourage many to enroll. This was promoted by
using information from other state programs, dealing away with interviews and not including
renewal fee for enrollment. In this, it has played a role in improving insurance programs for public
health by cutting off the cost (Filimon, Nela, and Mario, 2014).
Prescription of drug insurance plan choice has been simplified through a role played by
behavioral economics, by enrolling in private health insurance these benefits have been achieved.
In this, the government covers seventy-five percent of the costs and hence it has offered an
excellent retirement medical care and an insurance policy which consist of drug prescription cover.
Moreover, it plays a role in the reduction of tobacco use in that it promoted the raising of cigarettes
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Behavioral Economics
prices, also the taxes were increased making the life of the smokers to be expensive and hence
most of the quote from the behavior. Also, many regulations have been introduced in that smoking
is restricted in working places, streets, and many buildings. Furthermore, behavioral economics
has played a role in obesity problems, this health issue has resulted due to a decrease in the price
of various foods which people can afford, we found in many countries that more than half of its
population that people are obese, hence prices of consumable foods have been increased and most
of the grains have been substituted with fruits, vegetables and dealing away with sweet ice cream
and snacks (Brouwer, n.d).
Conclusion
Change in behavior is inevitable, Christian point of view encourages good morals like
quitting behaviors like smoking and alcoholism, the bible also teaches us that our bodies are a
temple of holy spirit so we should also take good diet for God to be happy with us. We see that
religious leaders play a vital role in promoting well-being of the congregation whom they worship
together in that they encourage healthy behaviors by biblical teachings and in these people accept
readily. Religious leaders are believed to have excellent communication skills, easily persuade
people on matters of salvation as same as heathy care matters, have a cooperating audience and
also have mastery on biblical references concerning the healthy living. In addition to we realize
that God desires a healthy living in us. He wants us living in a healthy life so that we can serve
Him diligently in all ways because we realize when we are not healthy we can’t serve him.
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Behavioral Economics
References
"Age-Related Differences in Associative Memory: Empirical Evidence and Theoretical
Perspectives." Psyc EXTRA Dataset, 2018. doi:10.1037/e503832018-001.
Brouwer, Amanda M. "Self-as-Doer Identity and Health Behavior Change Within Clinical
Populations." A motivation for Sustaining Health Behavior Change (n.d.), 58-72.
doi:10.4324/9781315178653-5.
Filimon, Nela, and Mario Campaña. "The Role of Greco-Christianity in Preserving Ancient
Aristocratic Cultural Values." Procedia - Social and Behavioral Sciences 140 (2014), 517-
521. doi:10.1016/j.sbspro.2014.04.463.
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Behavioral Economics
Garner, A. S., Shonkoff, J. P., Siegel, B. S., Dobbins, M. I., Earls, M. F., McGuinn, L., ... &
Committee on Early Childhood, Adoption, and Dependent Care. (2014). Early childhood
adversity, toxic stress, and the role of the pediatrician: translating developmental science
into lifelong health. Pediatrics, 129(1), e224-e231.
Källander, K., Tibenderana, J. K., Akpogheneta, O. J., Strachan, D. L., Hill, Z., ten Asbroek, A.
H., ... & Meek, S. R. (2013). Mobile health (mHealth) approaches and lessons for increased
performance and retention of community health workers in low-and-middle-income
countries: a review. Journal of medical Internet research, 15(1).
Comment Summary
Page 1
1. formatting incorrect
2. formatting incorrect
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3. sentence doesn't make sense
4. give me more details about the theories
5. citation needed
Page 3
6. Doesn't really address the section. What did the studies do to get the patients to change their behavior using a
certain theory?
7. Again, sentence unclear
8. How can you have a citation for personal experience?
9. really?
10. But what population are you writing about? What behavior do you want them to change?
11. grammatical error
12. run-on sentence
13. unclear
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14. run-on sentence
15. run-on sentence
16. capital
17. area?
18. unclear
19. formatting incorrect
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20. More details needed
21. grammatical error
22. citation needed
23. sentence has multiple errors; citation needed
24. grammar
25. citation
26. citation
Page 6
27. grammar
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28. No references were formatted correctly.
Accountable Care Organization (ACO) has become the new norm in providing healthcare
by integrating alternative payment models other than the usual fee-for-service to patients and
third-party payers. According to Hacker and Walker (2013), the group of physicians and health
care providers who form the ACOs are accountable for the quality, healthcare cost, and the
general care of Medicare beneficiaries. On this note, the coordination of the clinicians and health
care providers has significantly boosted the provision of quality-based care. The benefit of this
value-based payment model has allowed ACOs to position themselves in new markets; however,
this has required consideration of various components in the marketing processes.
In the presented case study certain components should be used in an ACO’s initial
marketing copy when another ACO gets in the market. Components like product quality and
tailored messaging are significant. In this case, the quality of products has to meet customer's
expectations. Therefore, the ACO would be required to use a set of metrics to establish the
standards of service that customers would want. Hence, this would help in retaining and
acquiring new customers since such moves would help them feel there is an improvement in the
delivery of care in the promotion of population health. Further with the tailored messages or
communicability aspect, the health practitioners would manage to educate consumers the value
of ACOs they are likely to get once they become participants (Berkowitz, 2010). Even from a
biblical perspective, Proverbs 24:5 illustrates that wisdom increases strength and knowledge
enhances power; hence with the information offered, the consumers would make reasonable
decisions.
Still, the development of a reasonable price policy would attract consumers. If the initial
ACO adopts a price policy with reduced costs of health care and establishes quality population
health strategies for all targeted groups; this would strengthen its market positioning.
1
Additionally, consideration of another component like physician-led quality initiatives would
assist in retaining the physicians so that they are not enticed by the offerings of the second ACO
in the market. According to Berkowitz (2010), competitors are always on the outlook in
identifying the gaps in businesses offering similar services in their targeted locations. Therefore,
if the gap shows that there is a lack of promising incentives for the physicians, this is one aspect
that the new ACOs can take advantage of and poach doctors from the initially established ACO.
In conclusion, the concept of enhancing healthcare value has become prominent in the
healthcare sector. Therefore, ACOs will continue venturing into new markets even though there
could be existing ones in established regions since competition in the healthcare markets is
something that cannot be avoided. An ACO intending to develop a strategic marketing prototype
needs to know its market and identify uprising and existing competitors to evaluate risks. Also,
this allows the initial ACO to develop appropriate provider networks as well as oversee that the
access network agreements with all the stakeholders have highly competitive stipulations.
Overall, understanding dynamics in the changing markets helps ACOs to offer quality products
and services as well as reasonable prices in their value-based models.
References
Berkowitz, E. N. (2010). Essentials of health care marketing. Jones & Bartlett Publishers.
2
Hacker, K., & Walker, D. K. (2013). Achieving population health in accountable care
organizations. American journal of public health, 103(7), 1163-1167.
Comment Summary
Page 1
1. There is no attempt at the required APA format as there is no cover page, running heads or page #'s
Page 2
2. references require a separate page and at least tw opeer reviewed articles are required
Vertical integration refers to the business organization structure in which the different
units within the company serve as customers and suppliers of the services produced by other
groups and needed in other groups. This vertical integration often results in more efficient
utilization of the existing resources, as the different units operating in the company typically
charge a lower fee for the services provided (Thomas, 2017). Depending on the specific sense of
the integration it is possible to distinguish between forwarding integration in which the company
both produces and uses the service provided or backward integration where the company acts as
the supplier of the materials needed within the organization (Diana et al., 2015).
Taking the above differentiation into account, an educational institution like the
University of Iowa would use a backward integration strategy in which it establishes a series of
auxiliary clinics that will serve as an intermediary between the patients and the acute care
hospital. These ancillary clinics will treat most of the patients and derive only the patients
needing critical care to the hospital. The advantage of using this integration scheme is that the
auxiliary clinics alleviate the congestion in the acute care hospital. Thus, the hospital may
optimize its resources in treating the patients needing emergency medical treatment, while the
auxiliary clinics treat the patients that require standard assistance.
1
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A five-person general surgery group would enter into a forward integration strategy in
which it derives part of the services to other healthcare institutions. For instance, the group could
take care of performing the general surgeries in which it has specialized while forwarding the
post-surgery care of the patients to a healthcare institution with which it establishes a cooperation
agreement. The surgical group would benefit from this strategy in the sense that it may utilize the
services of the healthcare institution to provide for critical services they cannot offer. The
healthcare institution would also benefit from the agreement, as it will give it with an additional
flow of patients derived by the five-person general surgery group.
Lastly, a manufacturer of durable medical equipment may profit from both a forward and
a backward integration strategy. In this sense, the manufacturer of the medical equipment would
apply a forward vertical integration strategy by, e.g., training the sales employees that will assist
in the commercialization of the manufactured products. It may also benefit from a backward
integration scheme through which it produces the necessary raw materials employed in the
functioning of the medical equipment. For instance, this backward integration approach would
involve the programming of the software used in the control of the equipment within the
institution.
As observed from the above examples, vertical integration practices are likely to result in
a benefit for the company. As noted, the company benefits through vertical integration since it
gains access to services that would have otherwise not been able to provide. This principle is
easily understood if considering it from a Christian perspective. In this sense, a verse that comes
to my mind about how to explain how companies benefit from vertical integration is "I am the
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way and the truth and the life. No one comes to the Father except through me" (John 14:6). In
this case, the companies exerting vertical integration would, as in the case of Christ, represent the
way to obtaining something of value for the company that it would not have reached if it were
not for the vertical integration strategy.
References
Berkowitz, E. (2017). Essentials of health care marketing (4th ed.). Sudbury, MA: Jones &
Bartlett Learning.
Diana, M. L., Walker, D. M., Mora, A. M., & Zhang, Y. (2015). Vertical integration strategies in
healthcare organizations. Journal of Health Administration Education, 32(2), 223-244.
Thomas, P. (2017). Integrating Primary Healthcare: leading, managing, facilitating. CRC Press.
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Comment Summary
Page 1
1. missing a cover page, page #'s and a running head
2. Follow APA Table 6.1, p. 177 on the correct way to cite within the text for first and multiple citations. Et al.
cannot be used for less than 6 authors the first time a citation is introduced. Use et al. when repeating citations
of 3 or more authors.
Page 2
3. Follow APA section 8.03, p. 229 for double line spacing. Turn off your MS Word defaults for extra line spacing
between paragraphs.
4. there is no support except for the first paragrah
Page 4
5. double space and use a hanging indent
6. Follow APA section 7.01, p. 198 and use a doi number or journal home page URL if a doi is not available. Note
that most journals have doi numbers. Use crossref.org to find the doi or run a Google search with the article
name and the letters doi to find doi numbers and then verify that the doi when entered into Google takes you to
the correct article.
7. not peer reviewed or formatted correctly
Vertical integration refers to the business organization structure in which the different
units within the company serve as customers and suppliers of the services produced by other
groups and needed in other groups. This vertical integration often results in more efficient
utilization of the existing resources, as the different units operating in the company typically
charge a lower fee for the services provided (Thomas, 2017). Depending on the specific sense of
the integration it is possible to distinguish between forwarding integration in which the company
both produces and uses the service provided or backward integration where the company acts as
the supplier of the materials needed within the organization (Diana et al., 2015).
Taking the above differentiation into account, an educational institution like the
University of Iowa would use a backward integration strategy in which it establishes a series of
auxiliary clinics that will serve as an intermediary between the patients and the acute care
hospital. These ancillary clinics will treat most of the patients and derive only the patients
needing critical care to the hospital. The advantage of using this integration scheme is that the
auxiliary clinics alleviate the congestion in the acute care hospital. Thus, the hospital may
optimize its resources in treating the patients needing emergency medical treatment, while the
auxiliary clinics treat the patients that require standard assistance.
1
2
A five-person general surgery group would enter into a forward integration strategy in
which it derives part of the services to other healthcare institutions. For instance, the group could
take care of performing the general surgeries in which it has specialized while forwarding the
post-surgery care of the patients to a healthcare institution with which it establishes a cooperation
agreement. The surgical group would benefit from this strategy in the sense that it may utilize the
services of the healthcare institution to provide for critical services they cannot offer. The
healthcare institution would also benefit from the agreement, as it will give it with an additional
flow of patients derived by the five-person general surgery group.
Lastly, a manufacturer of durable medical equipment may profit from both a forward and
a backward integration strategy. In this sense, the manufacturer of the medical equipment would
apply a forward vertical integration strategy by, e.g., training the sales employees that will assist
in the commercialization of the manufactured products. It may also benefit from a backward
integration scheme through which it produces the necessary raw materials employed in the
functioning of the medical equipment. For instance, this backward integration approach would
involve the programming of the software used in the control of the equipment within the
institution.
As observed from the above examples, vertical integration practices are likely to result in
a benefit for the company. As noted, the company benefits through vertical integration since it
gains access to services that would have otherwise not been able to provide. This principle is
easily understood if considering it from a Christian perspective. In this sense, a verse that comes
to my mind about how to explain how companies benefit from vertical integration is "I am the
3
4
way and the truth and the life. No one comes to the Father except through me" (John 14:6). In
this case, the companies exerting vertical integration would, as in the case of Christ, represent the
way to obtaining something of value for the company that it would not have reached if it were
not for the vertical integration strategy.
References
Berkowitz, E. (2017). Essentials of health care marketing (4th ed.). Sudbury, MA: Jones &
Bartlett Learning.
Diana, M. L., Walker, D. M., Mora, A. M., & Zhang, Y. (2015). Vertical integration strategies in
healthcare organizations. Journal of Health Administration Education, 32(2), 223-244.
Thomas, P. (2017). Integrating Primary Healthcare: leading, managing, facilitating. CRC Press.
5
6
7
Comment Summary
Page 1
1. missing a cover page, page #'s and a running head
2. Follow APA Table 6.1, p. 177 on the correct way to cite within the text for first and multiple citations. Et al.
cannot be used for less than 6 authors the first time a citation is introduced. Use et al. when repeating citations
of 3 or more authors.
Page 2
3. Follow APA section 8.03, p. 229 for double line spacing. Turn off your MS Word defaults for extra line spacing
between paragraphs.
4. there is no support except for the first paragrah
Page 4
5. double space and use a hanging indent
6. Follow APA section 7.01, p. 198 and use a doi number or journal home page URL if a doi is not available. Note
that most journals have doi numbers. Use crossref.org to find the doi or run a Google search with the article
name and the letters doi to find doi numbers and then verify that the doi when entered into Google takes you to
the correct article.
7. not peer reviewed or formatted correctly
Running head: CUSTOMER SEGMENTATION 1
Customer Segmentation
Name
Professor
Course Title
Date
Institution
CUSTOMER SEGMENTATION 2
Customer Segmentation
Introduction
When it comes to market interaction, various activities are conducted in line with this
aspect of the business. One such aspect is market segmentation. Customer segmentation is the
division of an organizations overall target market into much smaller groups with the
consideration of various aspects to maximize a market venture. This can be done in accordance
with the age of the target group, their genders, the varying interests within that market and the
spending habits of the targeted market (Yang, Liu, Teng, Liao, & Xiong, 2016). Companies
approach the market in such a manner with the consideration that each customer has a unique
preference for goods and services. Individuals do not share similar taste in goods, and this is
sometimes influenced by some common factors which lead to the segmentation in line with age,
sex and other such factors that put similar individuals’ categories. For the case of Bethseda
Hospital and their establishment of an occupational medical program, they can segment their
market in line with a few methods of segmentation. The employers approached for the medical
program can be considered according to their organization's size, the operational processes of
their organizations and the employee gender composition of each employer's organization. This
form of categorization will better enhance the uptake of the medical services that they have to
offer to this community as it will be specialized in accordance with the specifics that these
groupings have to offer.
Alternatives for Customer Segmentation
The segmentation according to the size of an organization is considered since the
profitability of a venture is very important. One thing to take into consideration is the size of an
organization; this includes the number of employees within the organization which increases the
CUSTOMER SEGMENTATION 3
possibility of actually getting to interact with patients (Yang, Liu, Teng, Liao, & Xiong, 2016).
This approach is however not very religiously acceptable as it relies on the suffering of another
individual. The consideration is made with the belief that an individual can most probably fall ill
and have to seek medical attention. A smaller organization will mean that there are meager
chances of getting to interact with the covered individuals due to the low probability.
Another method of segmentation is in line with the kind of processes that take place in an
organization. This will be looked at in various aspects. Organizations with demanding work
processes will most probably be the ones to seek stress management from the medical program.
The consideration along these lines will also choose according to factories or offices.
Organizations that have factory processes will be relevant for the treatment at factories as well as
the toxicology assessments which will be predetermined by the kind of chemicals individuals
deal with in the factory. In this case, individuals that are dealing with factories that deal with
chemicals will seek toxicological assessment and then result in the factory treatment. In offices,
the issue of back problems will be the most prevalent problem thus relevance for the hospital
(Yang, Liu, Teng, Liao, & Xiong, 2016).
The segmentation can also be done in accordance with the gender composition of the
particular organization for the employer they wish to approach (Öztayşi, Gokdere, Simsek, &
Oner, 2017). In this consideration, the hospital will consider organizations that have more
women in the labor force. This is because women have a higher probability of having an interest
in health education around various aspects of the organization such as stress management.
Women are more open to health education as compared to men (Öztayşi, Gokdere, Simsek, &
Oner, 2017). In this consideration, organizations with more women can be considered as they
CUSTOMER SEGMENTATION 4
will be more profitable. However, this is somewhat selfish of the organization as the organization
with higher numbers of men will not be able to enjoy these health services.
Conclusion
In general, the market approach is a very important aspect of any organization and
conducting customer segmentation is an assurance of higher profitability in a specific market
venture. For Baltimore Hospital, to effectively deliver their medical services with the highest
possible profit margins, they can segment their market in accordance with the size of an
organization, the operational processes of the organization and the gender constitution of the
organizations of the employers they wish to approach.
CUSTOMER SEGMENTATION 5
References
Öztayşi, B., Gokdere, U., Simsek, E. N., & Oner, C. S. (2017). A novel approach to
segmentation using customer locations data and intelligent techniques. In Handbook of
Research on Intelligent Techniques and Modeling Applications in Marketing Analytics
(pp. 21-39). IGI Global.
Yang, J., Liu, C., Teng, M., Liao, M., & Xiong, H. (2016, December). Buyer targeting
optimization: A unified customer segmentation perspective. In 2016 IEEE International
Conference on Big Data (Big Data) (pp. 1262-1271). IEEE.
Running head: ACCOUNTABLE CARE ORGANIZATION 1
Accountable Care Organization (ACO)
Name
Professor
Course Title
Date
Institution
ACCOUNTABLE CARE ORGANIZATION 2
Accountable Care Organization
Accountable Care Organization (ACO) has become the new norm in providing healthcare
by integrating alternative payment models other than the usual fee-for-service to patients and
third-party payers. According to Hacker and Walker (2013), the group of physicians and health
care providers who form the ACOs are accountable for the quality, healthcare cost, and the
general care of Medicare beneficiaries. On this note, the coordination of the clinicians and health
care providers has significantly boosted the provision of quality-based care. The benefit of this
value-based payment model has allowed ACOs to position themselves in new markets; however,
this has required consideration of various components in the marketing processes.
In the presented case study certain components should be used in an ACO’s initial
marketing copy when another ACO gets in the market. Components like product quality and
tailored messaging are significant. In this case, the quality of products has to meet customer's
expectations. Therefore, the ACO would be required to use a set of metrics to establish the
standards of service that customers would want. Hence, this would help in retaining and
acquiring new customers since such moves would help them feel there is an improvement in the
delivery of care in the promotion of population health. Further with the tailored messages or
communicability aspect, the health practitioners would manage to educate consumers the value
of ACOs they are likely to get once they become participants (Berkowitz, 2010). Even from a
biblical perspective, Proverbs 24:5 illustrates that wisdom increases strength and knowledge
enhances power; hence with the information offered, the consumers would make reasonable
decisions.
Still, the development of a reasonable price policy would attract consumers. If the initial
ACO adopts a price policy with reduced costs of health care and establishes quality population
ACCOUNTABLE CARE ORGANIZATION 3
health strategies for all targeted groups; this would strengthen its market positioning. 1
Additionally, consideration of another component like physician-led quality initiatives would
assist in retaining the physicians so that they are not enticed by the offerings of the second ACO
in the market. According to Berkowitz (2010), competitors are always on the outlook in
identifying the gaps in businesses offering similar services in their targeted locations. Therefore,
if the gap shows that there is a lack of promising incentives for the physicians, this is one aspect
that the new ACOs can take advantage of and poach doctors from the initially established ACO.
In conclusion, the concept of enhancing healthcare value has become prominent in the
healthcare sector. Therefore, ACOs will continue venturing into new markets even though there
could be others operating in established regions since competition in the healthcare markets is
something that cannot be avoided. An ACO intending to develop a strategic marketing prototype
needs to know its market and identify uprising and existing competitors to evaluate risks. Also,
this allows the initial ACO to develop appropriate provider networks as well as oversee that the
access network agreements with all the stakeholders have highly competitive stipulations.
Overall, understanding dynamics in the changing markets helps ACOs to offer quality products
and services as well as reasonable prices in their value-based models.
ACCOUNTABLE CARE ORGANIZATION 4
References
References Berkowitz, E. N. (2010). Essentials of health care marketing. Jones & Bartlett
Publishers. 2 Hacker, K., & Walker, D. K. (2013). Achieving population health in
accountable care organizations. American journal of public health, 103(7), 1163-1167
Running head: BEHAVIORAL ECONOMICS 1
Behavioral Economics
Name
Professor
Course Title
Date
Institution
BEHAVIORAL ECONOMICS 2
Behavioral Economics
Introduction
In day to day activities, people working in clinics have a lot of clinical experience. In
behavioral change, there is a long-term and short-term condition. Changing in simple lifestyle
can prevent long-term conditions. Clinical nurses can bring into existence some theories which
help the patients to change the behavior. The nurses play a major role in helping the patients
recover from their unhealthy habits such as smoking and drinking alcohol. Nurses also are
advised to improve their communication skills with the patient so that they can open up to them
(Källander et al., 2013). Many theories have been used to explain the behavioral change; these
include the learning theories which states that a particular behavior will be continued if
supported and if dealt with away it will be stopped. Another argument is social cognition model
which suggest that what we believe in is what we perceive, and that’s how we behave. And
lastly, we have stages of change model which states that people go through various stages of life
and in every scene a change must be evident (Garner et al., 2014). Some of the stages include
self-observation, self-evaluation, self-reaction, and self-efficiency. All these components have an
effect on motivation and achievement of goals.
Behavioral change helps in supporting individuals’ actions to be achieved positively, but
we get to understand that it is difficult to change someone's behavior and attitude. In theoretical
research we see that over twenty-five theory experts were consulted in existing database
numerous theories were searched (Garner et al., 2014). In behavioral findings, a hundred
behavioral met the requirements, and one hundred and seventeen approaches were studied. The
theoretical overview of behavioral change can be maintained by focusing on habits,
environmental and social influences. After the findings on the theoretical explanations a clinical
BEHAVIORAL ECONOMICS 3
nurse to promote and sustain the health behaviors of the patient (Källander et al., 2013). Also for
a successful behavioral change, there should be a continuous affirmative act on the action so that
difference will be evident. For example, a nurse should have excellent communication skills to
the patient, so he /she should follow instructions being given. The studies promoted the
importance of clinical service and most importantly the role of nurses in motivating patients to
achieve positive outcomes in their quench to become better.
To effectively help different groups of patients, nurses are required to acquire clinical
experience. To achieve a clinical experience, I worked with the large number of adults, children
and dealt with almost all problems. I obtained this through volunteering services in dispensaries,
clinics, and hospitals, in addition to these I obtained a lot of information from clinical
professionals. To gain this clinical experience I worked for more than one thousand two hundred
hours in various health sectors and was dealing with many patients. Moreover, I worked with
different people who were alcohol and smoking addicts and this was achieved through taking
part in treating both the outpatients and inpatients in clinics, working with the students who are
not qualified so that I can mentor them, taking my time to be with the physicians and doing lots
of observations and through this I had worked with large population of patients.
In sustaining behavioral change in a population, we face a lot of challenges and these
include; on dealing with vulnerable people, nurses experience problems because the people they
take care of don’t take the advice given and it leads to more health complications. When it comes
to such situations, the nurses lose hope on them and just leave them to do what they want.
However, health promotion has relied on various health packages for health education and that
has not brought any impact in changing the behavior of populations but it has contributed to
increase in the earlier response. For example, if the individual was smoking or taking alcohol, he
BEHAVIORAL ECONOMICS 4
will continue with the reaction to grow in the previous answer. For example, if the individual
was smoking or taking alcohol, he will proceed with the action knowing that these behaviors
have side effects. When dealing with population a clinical practitioner can organize for health
programs to teach them on behavioral change but they may experience inadequate audience to
listen to them, sometimes they give irrelevant messages which the audience find it inappropriate
and also how they deliver the word matters a lot in that it’s a challenge because the people resist
being changed (Källander et al., 2013).
There are many different approaches that can be used to motivate and educate people on
better health. The key proposals include behavior change approach and this changes on how
people think or perceive. Nurses use this approach to change the behavior of people in the
surrounding and makes discern on a good response by creating their own decisions. This
approach exposes the patient to health risks of the act he is practicing and allows him to gain
health practices on how he will avoid the risks. For example, in the case of a smoker, it will
enable him to know all the side effects of smoking like likelihood to have high blood pressure
and all sorts of illness. Self-empowerment approach helps people in society to be aware and
understand they should act in their ways to improve their health. A health practitioner can use
self-empowerment techniques like team building in group work, guidance and counseling
sections, health training, educative drama, and social health skills exercise (Naveh-Benjamin, &
Mayr, 2018).
Moreover, the health education approach is used mostly in schools by teachers to teach
students on health issues; this is essential because awareness is created for students. This
approach includes drug education which a teacher is supposed to let the students know about the
harm of drugs in their bodies; it is supposed to be taught not less than 15hours in a term. Also,
BEHAVIORAL ECONOMICS 5
healthy eating education should also be trained to help a student understand foods that are
beneficial to their health and also the lifestyle they're supposed to live. Mental health promotion
is also a program aimed at teaching a student to recognize his or her role in helping others and
providing appropriate support to the family and the society in this through reading materials
helps the students to be informed. Lastly, sexuality education is essential in this part of the
population because it helps them to be responsible when in school to avoid sexual diseases and
early pregnancies (Garner et al., 2014). Sex education allows students to make informed choices
and not to engage in activities that would them to any danger especially related to their health.
Behavioral economics applies psychological insights into human behavior without
understanding the financial consequences of such behaviors. In health care, behavioral
economics plays a vital role in focusing on ways that relate to decision making and consumer in
health care (Naveh-Benjamin, & Mayr, 2018). In an area like organ donation we see that most
countries have a problem in supplying organs for transplant especially when an accident occurs.
However, when a behavioral economics is applied in these countries we have a program where
people register themselves to be donors, and their willingness to donate saves the life of many
and also reduces the cost of health care (Naveh-Benjamin, & Mayr, 2018). Moreover, behavioral
economics plays a role in enrollment in government-sponsored health insurance programs where
brings the understanding if enrollment procedures and provides bonuses to encourage many to
enroll. This was promoted by using information from other state programs, dealing away with
interviews and not including renewal fee for enrollment. In this, it has played a role in improving
insurance programs for public health by cutting off the cost (Filimon, Nela, and Mario, 2014).
Prescription of drug insurance plan choice has been simplified through a role played by
behavioral economics. Through enrollment in private health insurance its benefits have been
BEHAVIORAL ECONOMICS 6
achieved (Filimon, Nela, and Mario, 2014). In this, the government covers seventy-five percent
of the costs and hence it has offered an excellent retirement medical care and an insurance policy
which consist of drug prescription cover (Filimon, Nela, and Mario, 2014). Moreover, it plays a
role in the reduction of tobacco use in that it promoted the raising of cigarettes prices, also the
taxes were increased making the life of the smokers to be expensive and hence most of the quote
from the behavior. Also, many regulations have been introduced in that smoking is restricted in
working places, streets, and many buildings. Furthermore, behavioral economics has played a
role in obesity problems, this health issue has resulted due to a decrease in the price of various
foods which people can afford, we found in many countries that more than half of its population
that people are obese, hence prices of consumable foods have been increased and most of the
grains have been substituted with fruits, vegetables and dealing away with sweet ice cream and
snacks (Brouwer, n.d).
Conclusion
Change in behavior is inevitable, Christian point of view encourages good morals like
doing away with bad behaviors like smoking and alcoholism. The bible also teaches us that our
bodies are a temple of Holy Spirit so we should also take good diet for God to be happy with us.
We see that religious leaders play a vital role in promoting well-being of the congregation whom
they worship together in that they encourage healthy behaviors by biblical teachings and in these
people accept readily. Religious leaders are believed to have excellent communication skills,
easily persuade people on matters of salvation as same as health care matters, have a cooperating
audience and also have mastery on biblical references concerning the healthy living. In addition
to we realize that God desires a healthy living in us. He wants us living in a healthy life so that
BEHAVIORAL ECONOMICS 7
we can serve Him diligently in all ways because we realize when we are not healthy we can’t
serve him.
BEHAVIORAL ECONOMICS 8
References
Filimon, N., & Campaña, M. (2014). The Role of Greco-Christianity in Preserving Ancient
Aristocratic Cultural Values. Procedia-Social and Behavioral Sciences, 140, 517-521.
Retrieved from https://www.sciencedirect.com/science/article/pii/S1877042814033898
Garner, A. S., Shonkoff, J. P., Siegel, B. S., Dobbins, M. I., Earls, M. F., McGuinn, L., &
Committee on Early Childhood, Adoption, and Dependent Care. (2012). Early childhood
adversity, toxic stress, and the role of the pediatrician: translating developmental science
into lifelong health. Pediatrics, 129(1), e224-e231. Retrieved from
https://pediatrics.aappublications.org/content/129/1/e224.short
Källander, K., Tibenderana, J. K., Akpogheneta, O. J., Strachan, D. L., Hill, Z., ten Asbroek, A.
H., & Meek, S. R. (2013). Mobile health (mHealth) approaches and lessons for increased
performance and retention of community health workers in low-and middle-income
countries: a review. Journal of medical Internet research, 15(1), e17. Retrieved from
https://www.jmir.org/2013/1/e17/
Mosack, K. E., & Brouwer, A. M. (2017). Self-as-Doer Identity and Health Behavior Change
Within Clinical Populations. In Motivation for Sustaining Health Behavior Change (pp.
70-84). Abingdon-on-Thames. U.S: Routledge. Retrieved from
https://www.taylorfrancis.com/books/e/9781315178653/chapters/10.4324/978131517865
3-11
Naveh-Benjamin, M., & Mayr, U. (2018). Age-related differences in associative memory:
Empirical evidence and theoretical perspectives. Psychology and aging, 33(1), 1.
Retrieved from https://psycnet.apa.org/record/2018-08555-001
Running head: BEHAVIORAL ECONOMICS 1
Behavioral Economics
Name
Professor
Course Title
Date
Institution
BEHAVIORAL ECONOMICS 2
Behavioral Economics
Introduction
In day to day activities, people working in clinics have a lot of clinical experience. In
behavioral change, there is a long-term and short-term condition. Changing in simple lifestyle
can prevent long-term conditions. Clinical nurses can bring into existence some theories which
help the patients to change the behavior. The nurses play a major role in helping the patients
recover from their unhealthy habits such as smoking and drinking alcohol. Nurses also are
advised to improve their communication skills with the patient so that they can open up to them
(Källander et al., 2013). Many theories have been used to explain the behavioral change; these
include the learning theories which states that a particular behavior will be continued if
supported and if dealt with away it will be stopped. Another argument is social cognition model
which suggest that what we believe in is what we perceive, and that’s how we behave. And
lastly, we have stages of change model which states that people go through various stages of life
and in every scene a change must be evident (Garner et al., 2014). Some of the stages include
self-observation, self-evaluation, self-reaction, and self-efficiency. All these components have an
effect on motivation and achievement of goals.
Behavioral change helps in supporting individuals’ actions to be achieved positively, but
we get to understand that it is difficult to change someone's behavior and attitude. In theoretical
research we see that over twenty-five theory experts were consulted in existing database
numerous theories were searched (Garner et al., 2014). In behavioral findings, a hundred
behavioral met the requirements, and one hundred and seventeen approaches were studied. The
theoretical overview of behavioral change can be maintained by focusing on habits,
environmental and social influences. After the findings on the theoretical explanations a clinical
BEHAVIORAL ECONOMICS 3
nurse to promote and sustain the health behaviors of the patient (Källander et al., 2013). Also for
a successful behavioral change, there should be a continuous affirmative act on the action so that
difference will be evident. For example, a nurse should have excellent communication skills to
the patient, so he /she should follow instructions being given. The studies promoted the
importance of clinical service and most importantly the role of nurses in motivating patients to
achieve positive outcomes in their quench to become better.
To effectively help different groups of patients, nurses are required to acquire clinical
experience. To achieve a clinical experience, I worked with the large number of adults, children
and dealt with almost all problems. I obtained this through volunteering services in dispensaries,
clinics, and hospitals, in addition to these I obtained a lot of information from clinical
professionals. To gain this clinical experience I worked for more than one thousand two hundred
hours in various health sectors and was dealing with many patients. Moreover, I worked with
different people who were alcohol and smoking addicts and this was achieved through taking
part in treating both the outpatients and inpatients in clinics, working with the students who are
not qualified so that I can mentor them, taking my time to be with the physicians and doing lots
of observations and through this I had worked with large population of patients.
In sustaining behavioral change in a population, we face a lot of challenges and these
include; on dealing with vulnerable people, nurses experience problems because the people they
take care of don’t take the advice given and it leads to more health complications. When it comes
to such situations, the nurses lose hope on them and just leave them to do what they want.
However, health promotion has relied on various health packages for health education and that
has not brought any impact in changing the behavior of populations but it has contributed to
increase in the earlier response. For example, if the individual was smoking or taking alcohol, he
BEHAVIORAL ECONOMICS 4
will continue with the reaction to grow in the previous answer. For example, if the individual
was smoking or taking alcohol, he will proceed with the action knowing that these behaviors
have side effects. When dealing with population a clinical practitioner can organize for health
programs to teach them on behavioral change but they may experience inadequate audience to
listen to them, sometimes they give irrelevant messages which the audience find it inappropriate
and also how they deliver the word matters a lot in that it’s a challenge because the people resist
being changed (Källander et al., 2013).
There are many different approaches that can be used to motivate and educate people on
better health. The key proposals include behavior change approach and this changes on how
people think or perceive. Nurses use this approach to change the behavior of people in the
surrounding and makes discern on a good response by creating their own decisions. This
approach exposes the patient to health risks of the act he is practicing and allows him to gain
health practices on how he will avoid the risks. For example, in the case of a smoker, it will
enable him to know all the side effects of smoking like likelihood to have high blood pressure
and all sorts of illness. Self-empowerment approach helps people in society to be aware and
understand they should act in their ways to improve their health. A health practitioner can use
self-empowerment techniques like team building in group work, guidance and counseling
sections, health training, educative drama, and social health skills exercise (Naveh-Benjamin, &
Mayr, 2018).
Moreover, the health education approach is used mostly in schools by teachers to teach
students on health issues; this is essential because awareness is created for students. This
approach includes drug education which a teacher is supposed to let the students know about the
harm of drugs in their bodies; it is supposed to be taught not less than 15hours in a term. Also,
BEHAVIORAL ECONOMICS 5
healthy eating education should also be trained to help a student understand foods that are
beneficial to their health and also the lifestyle they're supposed to live. Mental health promotion
is also a program aimed at teaching a student to recognize his or her role in helping others and
providing appropriate support to the family and the society in this through reading materials
helps the students to be informed. Lastly, sexuality education is essential in this part of the
population because it helps them to be responsible when in school to avoid sexual diseases and
early pregnancies (Garner et al., 2014). Sex education allows students to make informed choices
and not to engage in activities that would them to any danger especially related to their health.
Behavioral economics applies psychological insights into human behavior without
understanding the financial consequences of such behaviors. In health care, behavioral
economics plays a vital role in focusing on ways that relate to decision making and consumer in
health care (Naveh-Benjamin, & Mayr, 2018). In an area like organ donation we see that most
countries have a problem in supplying organs for transplant especially when an accident occurs.
However, when a behavioral economics is applied in these countries we have a program where
people register themselves to be donors, and their willingness to donate saves the life of many
and also reduces the cost of health care (Naveh-Benjamin, & Mayr, 2018). Moreover, behavioral
economics plays a role in enrollment in government-sponsored health insurance programs where
brings the understanding if enrollment procedures and provides bonuses to encourage many to
enroll. This was promoted by using information from other state programs, dealing away with
interviews and not including renewal fee for enrollment. In this, it has played a role in improving
insurance programs for public health by cutting off the cost (Filimon, Nela, and Mario, 2014).
Prescription of drug insurance plan choice has been simplified through a role played by
behavioral economics. Through enrollment in private health insurance its benefits have been
BEHAVIORAL ECONOMICS 6
achieved (Filimon, Nela, and Mario, 2014). In this, the government covers seventy-five percent
of the costs and hence it has offered an excellent retirement medical care and an insurance policy
which consist of drug prescription cover (Filimon, Nela, and Mario, 2014). Moreover, it plays a
role in the reduction of tobacco use in that it promoted the raising of cigarettes prices, also the
taxes were increased making the life of the smokers to be expensive and hence most of the quote
from the behavior. Also, many regulations have been introduced in that smoking is restricted in
working places, streets, and many buildings. Furthermore, behavioral economics has played a
role in obesity problems, this health issue has resulted due to a decrease in the price of various
foods which people can afford, we found in many countries that more than half of its population
that people are obese, hence prices of consumable foods have been increased and most of the
grains have been substituted with fruits, vegetables and dealing away with sweet ice cream and
snacks (Brouwer, n.d).
Conclusion
Change in behavior is inevitable, Christian point of view encourages good morals like
doing away with bad behaviors like smoking and alcoholism. The bible also teaches us that our
bodies are a temple of Holy Spirit so we should also take good diet for God to be happy with us.
We see that religious leaders play a vital role in promoting well-being of the congregation whom
they worship together in that they encourage healthy behaviors by biblical teachings and in these
people accept readily. Religious leaders are believed to have excellent communication skills,
easily persuade people on matters of salvation as same as health care matters, have a cooperating
audience and also have mastery on biblical references concerning the healthy living. In addition
to we realize that God desires a healthy living in us. He wants us living in a healthy life so that
BEHAVIORAL ECONOMICS 7
we can serve Him diligently in all ways because we realize when we are not healthy we can’t
serve him.
BEHAVIORAL ECONOMICS 8
References
Filimon, N., & Campaña, M. (2014). The Role of Greco-Christianity in Preserving Ancient
Aristocratic Cultural Values. Procedia-Social and Behavioral Sciences, 140, 517-521.
Retrieved from https://www.sciencedirect.com/science/article/pii/S1877042814033898
Garner, A. S., Shonkoff, J. P., Siegel, B. S., Dobbins, M. I., Earls, M. F., McGuinn, L., &
Committee on Early Childhood, Adoption, and Dependent Care. (2012). Early childhood
adversity, toxic stress, and the role of the pediatrician: translating developmental science
into lifelong health. Pediatrics, 129(1), e224-e231. Retrieved from
https://pediatrics.aappublications.org/content/129/1/e224.short
Källander, K., Tibenderana, J. K., Akpogheneta, O. J., Strachan, D. L., Hill, Z., ten Asbroek, A.
H., & Meek, S. R. (2013). Mobile health (mHealth) approaches and lessons for increased
performance and retention of community health workers in low-and middle-income
countries: a review. Journal of medical Internet research, 15(1), e17. Retrieved from
https://www.jmir.org/2013/1/e17/
Mosack, K. E., & Brouwer, A. M. (2017). Self-as-Doer Identity and Health Behavior Change
Within Clinical Populations. In Motivation for Sustaining Health Behavior Change (pp.
70-84). Abingdon-on-Thames. U.S: Routledge. Retrieved from
https://www.taylorfrancis.com/books/e/9781315178653/chapters/10.4324/978131517865
3-11
Naveh-Benjamin, M., & Mayr, U. (2018). Age-related differences in associative memory:
Empirical evidence and theoretical perspectives. Psychology and aging, 33(1), 1.
Retrieved from https://psycnet.apa.org/record/2018-08555-001
Running head: VERTICAL INTEGRATION 1
Vertical Integration
Name
Professor
Course Title
Date
Institution
VERTICAL INTEGRATION 2
Vertical Integration
Vertical integration refers to the business organization structure in which the different
units within the company serve as customers and suppliers of the services produced by other
groups and needed in other groups. This vertical integration often results in more efficient
utilization of the existing resources, as the different units operating in the company typically
charge a lower fee for the services provided (Carlin, Dowd, & Feldman, 2015). Depending on
the specific sense of the integration it is possible to distinguish between forwarding integration in
which the company both produces and uses the service provided or backward integration where
the company acts as the supplier of the materials needed within the organization (Diana, Walker,
Mora, & Zhang, 2015).
Taking the above differentiation into account, an educational institution like the
University of Iowa would use a backward integration strategy in which it establishes a series of
auxiliary clinics that will serve as an intermediary between the patients and the acute care
hospitals. These ancillary clinics will treat most of the patients and derive only the patients
needing critical care to the hospital (Berkowitz, 2017). The advantage of using this integration
scheme is that the auxiliary clinics alleviate the congestion in the acute care hospital. Thus, the
hospital may optimize its resources in treating the patients needing emergency medical
treatment, while the auxiliary clinics treat the patients that require standard assistance (Carlin,
Dowd, & Feldman, 2015). A five-person general surgery group would enter into a forward
integration strategy in which it derives part of the services to other healthcare institutions. For
instance, the group could take care of performing the general surgeries in which it has
specialized while forwarding the post-surgery care of the patients to a healthcare institution with
which it establishes a cooperation agreement. The surgical group would benefit from this
VERTICAL INTEGRATION 3
strategy in the sense that it may utilize the services of the healthcare institution to provide for
critical services they cannot offer. The healthcare institution would also benefit from the
agreement, as it will give it with an additional flow of patients derived by the five-person general
surgery group.
Lastly, a manufacturer of durable medical equipment may profit from both a forward and
a backward integration strategy. In this sense, the manufacturer of the medical equipment would
apply a forward vertical integration strategy by, e.g., training the sales employees that will assist
in the commercialization of the manufactured products (Carlin, Dowd, & Feldman, 2015). It may
also benefit from a backward integration scheme through which it produces the necessary raw
materials employed in the functioning of the medical equipment. For instance, this backward
integration approach would involve the programming of the software used in the control of the
equipment within the institution. As observed from the above examples, vertical integration
practices are likely to result in a benefit for the company (Diana, Walker, Mora, & Zhang, 2015).
As noted, the company benefits through vertical integration since it gains access to services that
would have otherwise not been able to provide. This principle is easily understood if considering
it from a Christian perspective. In this sense, a verse that comes to my mind about how to explain
how companies benefit from vertical integration is "I am the 3 4 way and the truth and the life.
No one comes to the Father except through me" (John 14:6). In this case, the companies exerting
vertical integration would, as in the case of Christ, represent the way to obtaining something of
value for the company that it would not have reached if it were not for the vertical integration
strategy
VERTICAL INTEGRATION 4
References
Berkowitz, E. (2017). Essentials of health care marketing (4th ed.). Sudbury, MA: Jones &
Bartlett Learning.
Carlin, C. S., Dowd, B., & Feldman, R. (2015). Changes in quality of health care delivery after
vertical integration. Health services research, 50(4), 1043-1068. Retrieved from
https://onlinelibrary.wiley.com/doi/abs/10.1111/1475-6773.12274
Diana, M. L., Walker, D. M., Mora, A. M., & Zhang, Y. (2015). Vertical integration strategies in
healthcare organizations. Journal of Health Administration Education, 32(2), 223-244.
Retrieved from
https://www.ingentaconnect.com/content/aupha/jhae/2015/00000032/00000002/art00006
