ERAU Vermonts Limitation on Hospital Advertising Essay – Description
CASE STUDY ASSIGNMENT INSTRUCTIONS
INSTRUCTIONS
Using the Case Study “The Banning of Hospital Advertising-Vermont’s New Idea” found in the
assignment resources, provide answers to the following questions:
1. How far has the role of marketing come in its appreciation or evolution from what was
first presented when advertising was banned among medical professionals?
2. Is there a complete reversal in opinion?
3. How is this related to Federal Regulations for HIPAA?
THE BANNING OF HOSPITAL ADVERTISING – VERMONT’S NEW IDEA
Mary Bergin is the CEO of a community hospital in Putney, Vermont. The hospital has grown significantly over the past few years, adding many resources. Mary came to the hospital after being the COO of larger facility in New York, but she wanted to live in a rural state as well as be in charge of her own facility. Putney County Hospital was in some financial difficulty when she first arrived, but the Board of Directors supported her initial cost cutting efforts. As a result, the hospital had returned to financial stability. Over the past two years, the hospital had begun to aggressively recruit primary care physicians and also establish several satellite clinics.
All of these strategies had been done because of the significant regional competition that the hospital faced from major centers in Burlington, VT and Hanover, NH.
It was early March and spring was just beginning to come to Vermont. The snow was starting to melt, and the ski season was coming to an end. Mary went to her porch to get the newspaper to skim it before an early meeting at the hospital. The headlines caught her off guard:
“Vermont Legislature Considers Banning Hospital Marketing and Advertising.” As Mary read the story, she quickly realized this was a serious issue. Two important members of the legislature, State Rep. Steve Maier (D-Middlebury)—with support from a Republican, Sen. Kevin Mullin (R-Rutland), a member of the Senate Health and Welfare Committee—had proposed this ban.
Mary texted her leadership team and scheduled a luncheon meeting. She also asked them to make sure to pick up a copy of the Burlington Free Press. Error! Hyperlink reference not valid.
At the lunch meeting, Mary began, “Did you all read the story? I am not sure this
initiative will pass, but we all know Vermont. This idea will not die. Some form of a limiting proposal may go forward in another session of the legislature. We need to develop a strategy around this issue. There are many facets to this problem.”
“I am really concerned,” said Bill Hayes, the Marketing Director. “We have Dartmouth Hitchcock in New Hampshire that will just increase their presence at our expense the minute we cannot advertise. As it is, they are so much bigger than us, and then there are the hospitals in New York, too. How do we protect our patient base?” “Well, maybe we could take those dollars and invest it in more doctors or some newtechnologies. That is the point of the proposal,” said Mike Dolan, the Chief Financial Officer. “Is it really so bad? I am not so sure.”
“Wait,” said Mary, “let’s not have a Senate debate here on the merit of the bill. We need to think of a plan that is multi-faceted in light of something that now is in consideration. What if it passes? What is the implication for our strategy? What do we do in light of the fact that there is now more examination of what we do in terms of our marketing efforts, even if the bill does not pass? This is not easy. What position should I take in the newspaper? I am being asked for an
interview by the Putney Gazette later today.”
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