This presentation gives an overview of the business of TIC. It highlights the exceptional service provided by TIC to distinguish itself from the competition.

1. TRANSITIONAL
INTENSIVE CARE

2. ABSTRACT
History of Transitional health care
Formation of TIC
Transitional care process

3. ABSTRACT CONTD..
TIC’s financial picture
TIC’s marketing efforts
Future plans

4. How does TIC add value?

5. Value creation through vision
Vision:
Hospital in
disguise
Long term
needs of
baby
Remove
parents’
dependency
Parent
teaching

6. Primary Activities:
Operational work
• Acute nursing care
• Minor surgical treatments
• Respiratory therapy
• Physical, occupational and
speech therapy
• Social and infant
development services
Marketing
• Referrals
• TIC video
• Tie-ups with private
physicians
• Brochure, media
coverage, conferences
• News letter- “Almost
home”
• Parents advisory dinner
• Increasing target audience
• Personal relationships
Follow-up services
• Beforehand discharge
parents were given
prescription
• Car seat practice
• Visiting nurses
• Outpatient clinics
• Medical equipment &
developmental services
• Ensuring parents having
enough oxygen and
diapers

7. Support activities
Infrastructure
Beds
Parking
Living rooms
Nursery
Pharmacy, lab
Parent library
Rainbow family center
Family living area
Individual rooms, sibling
playroom
Human resource
management
Flexible group of professionals
Multiple roles
Low attrition- job satisfaction
Parking
Empowered to take clinical
decisions
Relaxed, homelike and
intimate atmosphere
Technology
X-rays
Lab
Blood transfusion
Nutrition & ventilator
services
Procurement
25 registered nurses
5 physicians
70 additional physicians
Charitable revenues-
equipments
Patient care revenues-
operating costs

8. Differentiating factors:
• Family convenience- top priority
• “What’s special about me?”
• Non- emergency nature- permanent bedspace
• Chronobiology
• Long period of undisturbed sleep, holding, affection and social
interaction
• Interdisciplinary team meetings with parents

10. Customers
Parents
Foster Parents
Grandparents
HMO

12. TIC

14. • TIC relied on area hospitals with Neonatal Intensive Care Units for
transfers.
• Periodically, referrals dropped as new managers and physicians rotated
through the NICU departments.
• Referrals also dropped as the birth rate in the Pittsburgh area declined and
hospitals stopped transferring babies in an attempt to keep their own NICU
beds occupied to generate revenue.
• Average length of admission for TIC was 0-10 days. i.e. every 10 days they
had to look for new patient.

15. What were the underlying
problems at TIC?

16. Same level of services from several hospitals and most had internal referral sources
Post entering growth stage of the PLC, marketing strategies were not changed.
The hospital had no internal referral sources and failed to establish a strong referral relationship with
area hospital.
The hospital relied mostly on its front line staff to promote the service and gain referrals. Over time
however, this method became less effective as new staff members were hired at TIC .
TIC was not in a position to generate additional revenue by altering its pricing strategy.
The hospital also greatly relied on charitable contributions for capital investments and purchase of
equipment.

17. What Strategy Should TIC Pursue?

18. • Possible for families to perceive the service as not
the best: Higher quality service hence increase
prices.
• Once increased, services should be publicized to
ensure acceptance of high prices because of quality
service.
• Increase promotion strategies: Direct messages to
the community to educate customers.
• Expand services either by tying up with other
hospitals or increasing the service offerings.
Pricing
Strategy
Promotion
Strategy
Product
strategy

19. What are the ways that an organization can
focus? What are the benefits and
limitations of the focus ?

20. TIC could focus on expanding their
services to provide more than
transitional infant care and penetrate
new market
Acute paediatric care
Outpatient services
for infants
To increase their publicity-driven promotion
strategies.
Personal selling should be preferred over
referral sources.
Focus on maintaining the loyal consumer
and differentiate their services.
Nursing uniforms to change the consumer
perception.
BENEFITS
 They will be able to operate at 100% margin
instead of current 60% margin.
 Potential to reach exponential number of families
through new services.
 This will help marketing strategy plan to be
successful by reaching greater audience.
 Long term relationship building by expanding into
paediatric services.
BENEFITS
 These strategies will help in educating people about
TIC and its services.
 Personal selling will help to compensate the loss of
referrals through new staff of TIC.
 Differentiation will help in building trust and
increasing the customer base.
SERVICE EXPANSION MARKETING STRATEGY

21. SERVICE EXPANSION MARKETING STRATEGY
LIMITATIONS
There will be huge cost incurred in
expansion
They might lose focus on their expertise in
post NICU care
They might lose out on regular customers
who used to come only for their expert
service
LIMITATIONS
There will be increased cost
They might lose focus on personal selling and
thus turn out to become commercialized

22. What does a focused organization have to
do well in order to succeed?

24. Strengths
1. First of its kind infant care unit
2. Homely environment for the infant and parents
3. Providing education to the parents
4. Highest quality service at affordable price
5. Very low turnover of employees
6. Low readmission rate and recovery time
Weaknesses
1. Use of only Referral model to get customers
2. Lack of marketing activities to promote TIC
Opportunities
1. To convert themselves into a full service children hospital
2. Increase customer awareness by tying up with various
pediatricians, doctors, hospitals, to-be mothers etc.
Threats
1. Potential future losses due to changing business and demographic
environment
2. Takeover by other big full service hospital
SWOT

26. THANK YOU