Introduction
The hospital employs services such as; strong brand name, quality aspects, use of technology, wide breadth of line, distribution of channels, competencies of the medics and contribution to the profit margins as noted by Langabeer & Napiewocki (2000). The initial step gives the foundation in which the given portfolio is based, whereas the second step gives the characteristics of the healthcare systems in the given hospital. Additionally, other of the services offered include the imaging systems, clinical care and parental care, customer services and healthcare solutions. The customer services offer the education, performance maintenance and the project management services. The innovation, enhances, ensures the traditional market are maintained. This is achieved in this hospital by ensuring the ways of imaging is renewed and expanding the patient’s geographies. Additionally, it is also achieved by ensuring that the global research is enhanced to ensure the most modern method of treatment are applied to achieve the maximum efficiency.
In its operation `Truman Medical Centre’ appraises the four BCG matrices that foster its growth. These are categorized as the cash cows, dogs, Question marks or problem children and the stars.
Cash Cow
This is manifested in investing in new products. For instance, this hospital has fostered ensuring that the services are improved by employing more nurses. His ensures that the patients are treated on time and promptly. The service delivery of the nurse is also efficient as the workload is equally distributed. This makes them to exhibit job satisfaction and less burnouts. Ensuring there is continuous flow leads to maximization of the revenue. Additionally, Sustainable cash flow leads high volumes of sales. Consequently, at `Truman Medical centre’ it focuses in offering insurances services, enhances high profits and tremendous growth. This is so as the insurance scheme would pay more than the normal medi-care scheme. This makes it to fall under the cash cow as there is more cash being generated.
These are the services that offer the high market value in the industry that is experiencing slow growth. This is exhibited in a scenario where the hospital is starting up or has been located in the new region. This is the stage that is admired by many organizations as they fully take control of the market share. There is little investment involved as l there is minimal growth.
Dogs
This is the stage in which breakeven stage occurs. This is exhibited in a slow growing industry that exhibits slow growth. The cash is generated in only sufficient to sustain the organization. This stage suffices well as a social benefit stage as it offers employment at such stage should see the organization to be sold off (Snook, 2007). The dogs are exhibited in this hospital where there are facilities that offer non-profit charities. This is exhibited where the services in this hospital tend to have a bias on the insured patients as opposed to the uninsured patients. This makes them to act as a monopoly while controlling the given specific markets.
Question Marks (Problem Children)
This is the stage in which there is rapid growth however, there is low cash being generated as there is low market share. There is more net cash consumption. In the long run, it ends up being a star, then a cash cow (Kastor, 2001).On the other hand, if it degenerates, it ends up being a dog. The segments involved may involve; the competitive focus. This would involve building strong relationship with the physicians who work in the hospital. This would ensure that they meet their objectives while their increase their contribution levels.
Stars
This is exhibited where here is high market share where there is high market growth.. This is done having in mind that the starts would grow to be the next cash cows. This requires more cash investments in ensuring that the organization still upholds the lead, it would become the cash cows. Services under the star cell require that, the business offers high cash flow. They are appealing to the markets and while they experience, low competition. This section is exhibited in this hospital where it has focused in ensuring that services such as cardiac and neuron are concentrated so as to offer high profit margins.
Enhancing quality services ensures that the performance of the hospital may be enhanced. This may enhance an increase in the market share. This is achieved by obtaining competent staff and be able to retain them. Hospitals would become profitable if they enhance high profits.
In the scenario where medicine is offered, there is need to create the strength in which the earnings is managed selectively. Aspects of transplant in the hospital have an average profit margin that gives room for expansion making it to fall under the star. This leads to a consideration in which it has to be harvested or divested. The services for cancer, cardiac and neuron tend to offer high profits (Snook, 2007). This requires the management to have a selective investment and ensuring that the target market has been selected so as to get the required niche markets. Additionally, there is need to expand the market area to avoid it being a dog. These services are considered under the star section. There is need to invest or grow.
The attractive growth service lines require that, these services have appealing markets that exhibit significant shares in the market. There is limited competition while the capital resources exhibit favorable returns. These are the most attractive services that a healthcare institution should focus on so as to ensure there is growth. The investments and growth cell have average business strength and this need to focus on the growth aspects.
In conclusion, the portfolio data offers the ranking in which the market appeals with respect to their strength. This gives the guidance in the manner in which the services would be prioritized so as to ensure there is efficient and progressive growth of the hospital. Absence of portfolio analysis, the healthcare organizations may easily fall into victims of crisis due to poor prioritization of their funds. This would also focus in identifying the investment decisions and ensuring there is long term financial growth.
