I need some help with this scenario:
It is no secret that insurance companies have drastically reduce the reimbursement rate for physicians and hospitals. According to Sanders, "retail medicine" is a term for any health care related product or service that is not covered by insurance, from aromatherapy oils to acupuncture and massage. Hospitals and medical clinics in the Milwaukee area and throughout the country are expanding their offerings to include a variety of products, from wigs and scarves for cancer patients to specialty cosmetics". The article goes on to state " The average hospital makes $500,000 annually from retail such as gift and coffee shops, but has the potential of $5 million to $15 million annually with extended retail medicine" (2007).
As an operations manager how would you incorporate this strategy into a clinic setting? Can you help me identify the strengthens and weaknesses as well as an opportunities and threats (SWOT analysis)?
Sanders, E. (2007). A new source of revenue for hospitals, clinics. Retrieved from the World Wide Web: http://milwaukee.bizjournals.com/milwaukee/stories/2007/12/03/focus2.html
I will incorporate this strategy into a clinic setting by adding retail medicine products such as specialty cosmetics, to the products that are sold in the hospital gift shop. This will be a methodology by which to increase hospital profitability without the costly expense of building additional shops in order to sell retail medicine items.
A key strength of this strategy, is ...