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Health Prog. 1988 Oct;69(8):36-9, 44.

Pros and cons of marketing technology.


For years, high technologies have provided hospitals with marketing advantages. Hospitals used them to recruit and keep physicians and to lure patients and purchasers. Having the latest technology in a given field provided hospitals with status and prestige and enabled smaller facilities to compete with major medical centers. From a marketing point of view, technologies can produce four distinct effects that benefit the hospital: halo, monopoly, opportunity, and momentum effects. The best technology, from a competitive marketing viewpoint, meets the following criteria: The hospital can operate it at acceptable and, hopefully, competitive quality levels. The hospital can offer it at acceptable and, hopefully, competitive cost. It is sufficiently accessible to patients who need it. It gives the hospital a distinct competence in its market that can be preserved for a long time. But technology can become a risky business if: The hospital cannot attract the volume of patients needed to maintain quality. The low-volume hospital prices itself out of the competitive market. The new technology has undisclosed or undiscovered side effects. The technology is recruited by a competitor. Hospitals place more value on it than do their customers.

[Indexed for MEDLINE]

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