Why are malls so successful, especially around Christmastime?
Because though they may be a pain to navigate if you have one specific item to
purchase, they are a blessing if you need several items and/or have only a
vague idea of what you want. Malls provide an assortment of variety and that
saves you both time and money instead of having to drive around town searching
for what you need. The same idea goes for giant superstores that carry
everything from diapers to digital cameras to dill weed.
Hospitals have caught on to the notion of providing
convenience to clientele through retail within the hospital itself. And, in
recent tight economic times, hospitals are faced with the challenge of
increasing revenue because the wells of health plan and government
reimbursements are drying up.
Though any woman would tell you “retail medicine” is the undeniable
feeling of bliss she experiences when engaged in a no-holds-bar spending spree,
the phrase “retail medicine” actually refers to the health care related
products and services provided by hospitals that are not covered by insurance.
In the Milwaukee Business Journal, Gary Paquin, executive
vice president of The Paquin Group – a health care retail consultant firm –
explains, “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 the extended retail medicine. The return on investment is higher
in retail than in reimbursed health care, with 15 percent to 20 percent returns
in retail, compared with 2 percent to 3 percent return in reimbursed health
care.”
Because of those staggering numbers several hospitals are
catching on. But forget the “cards and balloons” gift shops, hospitals around
the world are diving into a hodgepodge of retail opportunities. Here is a list
of some of the services and specialty stores that hospitals are either implementing
or renting space out to.
Retail Services in
Health Care Settings
-catering services
-event hall rental
-dining
-retail clinics
-optical stores
-contact lenses stores
-dental and orthodontic services
-hearing services
-pharmacy and supplement needs
-healthy food markets
-newborn photography services and photo purchasing options
-prosthetics services
-massage, acupuncture, chiropractic and aromatherapy
services
-exotic flower shops
-fitness clubs
-art and dance studios
-specialty coffee shops such as Starbucks
-specialty cancer shops (wigs, scarves, prosthetics, etc.)
-Convenience for patients and visitors (especially elderly
patients who have limited transportation)
-Enhancement of patient loyalty
-Ability to control the administering of trusted products
and services from trusted sources to patients
-Ability to educate consumers on products benefits and safe
usage of products
-Boost your brand
-Engage patients in wellness-related services
So what does the future hold for hospital retail? Though it is
unlikely hospitals will depend on Christmas shoppers to provide a bulk of the
year’s revenue or that teens will start loitering with their friends in hospital parking lots on Friday nights, health care retail is expected to grow. So, what should we be
asking as you put together a hospital retail strategy? The main thing marketing
departments should focus on is razor-sharp concentration on the consumer. Every
detail about how stores are designed, to convenient placement within the
hospital, right down to the employees’ knowledge about the product or service
adds value to your consumers.
For more information on retail in healthcare visit these
links:
Beyond the
Gift Shop: Boost Revenue, Your Brand, and Patient Satisfaction with
Strategic Hospital Retail (Ache Management Series) (Paperback) by
Mindy Thompson-Banko:
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Posted by: chiropractic internet marketing | March 15, 2010 at 01:41 PM
This is very informative. I like it. Hospitals or other establishment do this for endorsement, to get customers etc. and this is a good strategy, people buys it.
Posted by: Plastic surgery Beverly Hills | June 09, 2010 at 07:03 AM
Well don't know whats going on but its not a Good way to do this. in my opinion we have to look again about this issue
Posted by: SEO Company | July 02, 2010 at 01:35 PM
It's all about market share and profitability. With the struggles of insurance reimbursement and patient payments it's no wonder that Hospitals are looking for more revenue
Posted by: Chiropractic Marketing | September 08, 2010 at 09:45 AM
Merry Christmas! I wish you a lot of gifts and luck in the new year.
Posted by: Antivirus_man | December 05, 2010 at 06:32 AM