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Marketing of Hospitals in the Modern Era and the Ethical Questions

Editorial, Volume 07 Issue 4 – October to December 2014

Authors

Dr. S Vasudevan, Associate Editor, KMJ; Additional Professor, Department of Urology, Medical College, Trivandrum, Kerala, India.


Abstract

Background: The hospital industry has transitioned from a service with little need for marketing to a corporate entity requiring significant investment and ensuring financial returns. This shift, coupled with increased transparency and customer empowerment through online information and patient satisfaction surveys, necessitates strategic marketing.

Problem Statement: While marketing is crucial for financial success and informing consumers, it often leads to ethical violations, raising questions about appropriate conduct in promoting healthcare services and professionals.

Key Discussion Points: Hospitals now operate in a competitive environment where patient satisfaction directly impacts reimbursements. Effective marketing requires market research, goal setting, and budgeting. However, practices such as excessive advertising (e.g., US hospitals spending over $1.5 billion annually), promotion of technologies, manufacturer-funded ads, and publicity stunts raise ethical concerns. The AMA Code of Ethics emphasizes “no harm,” “truth and trust,” and “consumer confidence,” particularly in online marketing. In India, unethical marketing involving false claims and unfair campaigns is prevalent, prompting intervention from the Medical Council. Certain situations, like new appointments or services, allow for doctor marketing.

Conclusion: The modern era presents challenging opportunities for hospitals to utilize new media for promotion. However, achieving an effective balance between market considerations and ethical advertising practices is paramount to ensure consumer benefit and maintain professional integrity.


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