PHDs face a difficult economic environment as the financing and
delivery of health care services increasingly requires providers to adopt
commercial business practices. Advertising and other marketing techniques are
now viewed as tools to maintain or increase market share and remain
competitive. The result is that advertising by health care institutions has become
as sophisticated as that used by other industries and is increasingly subject
to laws regulating advertising. In order to maintain market share in the
face of competition from health maintenance organizations, physician
groups and specialty care providers, PHDs have been prompted to abandon
the strategy of simply advertising to enhance community image. Instead
PHDs are employing advertising and marketing to aggressively promote PHD
services within their communities. However, constraints on PHD
advertising and marketing do exist and this section explores some of them.
Association of Washington Public Hospital Districts
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