The Caribbean Medical Center case: Marketing decision-making for hospitals facing customer attrition

Within today's cut throat business environment, hospitals, like any other business, must apply strategic managerial practices as well as modern marketing principles in order to remain competitive. Thanks to globalization, this perspective applies now for all private hospitals, from large high-end hospitals in developed countries, to low income small to medium sized hospitals in the developing world. This case study offers instructors and readers alike a chance to think critically about a real life dilemma in hospital management, in which the general manager of a private medical center in Panama must decide where to focus the center's limited resources after losing their biggest client. To solve this problem, the general manager must apply sound marketing strategies in order to determine the best course of action. Through the analysis of this case study, readers can conduct a segmentation exercise, establish the medical center's value proposition, conduct a competitive analysis, and define the hospital's strategic positioning. This case study uses information primarily acquired through in-depth interviews with the hospital's senior management, staff, members of their executive committee, and members of the medical community in Panama; an on-site visit was also performed.