BUS FPX 4124 Assessment 1 History and Evolution of Health Care Marketing Report

Student Name

Capella University

BUS-FPX4124 Health Care Marketing and Strategic Planning

Prof. Name

Date

Healthcare Marketing in the United States

Health care marketing has become an essential business function within the United States healthcare delivery system. This report discusses the evolution of healthcare marketing, the influence of competition on this evolution, and its incorporation into a current management position at AxessPointe Community Health Center.

History & Evolution of Healthcare Marketing

Marketing, primarily an American concept, has undergone significant evolution with modern applications. Initially rooted in sales terminology in the 1910s, healthcare marketing began to take shape in the 1950s. Post-World War II America transitioned into a consumer-driven economy, marked by increased income and the introduction of consumer credit (Thomas, 2015). Consequently, consumers gained the ability to select goods and services based on personal preferences. The 1970s witnessed the demand for stable payment systems and healthcare services, leading to increased competition among hospitals.

This necessitated strategic communication to promote services and attract patients. With employers and consumers becoming purchasers of healthcare, health organizations adopted a business-oriented mindset, giving rise to managed care and capitated payments (Thomas, 2015). The late twentieth century ushered in a market-driven service economy, while the early 2000s saw the onset of the technology age, enabling patients to research, compare, and purchase health-related products online. The emergence of electronic health records (EHRs) further facilitated patient interaction with healthcare professionals, driving demand for healthcare services (Thomas, 2015).

BUS FPX 4124 Assessment 1 History and Evolution of Health Care Marketing Report

Factors Leading to Acceptance

One crucial influence contributing to the acceptance of marketing as an essential function in the healthcare industry is the advent of social media and its utilization for social marketing purposes. Social marketing employs marketing theory, skills, and practice to effect social change, promote general health, raise awareness, and induce behavior changes (Centers for Disease Control and Prevention [CDC], 2021). Leveraging social media enables organizations to reach target audiences effectively, disseminating information and interventions. Healthcare consumers, unlike consumers of other goods and services, are often insulated from pricing information due to the unique financing arrangements within the healthcare sector (Thomas, 2015).

Real-World Application

In my role as the billing manager at AxessPointe Community Health Centers, marketing plays a crucial role. As a not-for-profit Federally Qualified Health Center (FQHC), AxessPointe is dedicated to public health and offers reduced services, community outreach, and financial assistance. The organization, accredited as a patient-centered medical home (PCMH) through the National Committee for Quality Assurance (NCQA), utilizes various communication channels, including social media, to advertise additional services in medical, dental, and behavioral health. This outreach strategy aims to increase patient awareness and expand the patient population served by AxessPointe.

Conclusion

Healthcare marketing has evolved from a nearly nonexistent concept to an indispensable tool for delivering health services in the United States. The advent of social media platforms and the internet age has significantly influenced this evolution. Leveraging social marketing allows organizations to advertise services effectively and attract a broader patient base.

References

Axesspointe Community Health Centers. (2021, July 24). Community Health Care | About Us | AxessPointe Health Center. https://axesspointe.org/meet-axesspointe/

Centers for Disease Control and Prevention. (2021, March 5). Social Marketing | Respond | Effective Interventions | HIV/AIDS | CDC. https://www.cdc.gov/hiv/effectiveinterventions/respond/social-marketing/

Thomas, R. K. (2015). Marketing health services (3rd ed.). Health Administration Press.

BUS FPX 4124 Assessment 1 History and Evolution of Health Care Marketing Report