厚朴方舟:海外医疗一价全包?

Translated title of the contribution: Hope Noah: Is All-Inclusive Pricing an Effective Strategy for the Medical Tourism Industry?

周东生, 阮丽旸

Research output: Other contributionCase Studies

Abstract

Hope Noah Health Management (Beijing) Co., Ltd. (hereafter Hope Noah) was one of China's earliest providers of medical tourism services. The company built a sterling reputation among customers, and demand for its services grew quickly. However, CEO Wang Gang wanted to achieve more than just handsome sales figures and hoped to provide customers with more effective, efficient, and affordable medical tourism services. He believed that the industry’s prevailing pricing model, whereby customers were charged according to the amount, duration, and frequency of services ran counter to patients' interests, as less effective and longer treatments resulted in higher bills. To address this issue, Wang considered switching to an "all-inclusive" pricing model covering medical costs, service charges, and all other non-medical expenses arising from treatment. In addition to addressing patients' concerns about unpredictable expenses, this model would also force the company to increase efficiency, aligning the interest of patients with those of the company. However, Wang's proposal was unanimously opposed by other executives due to the financial risks associated with the inherent uncertainties of medical treatment. This case looks into a thought-provoking topic as it concerns China's inadequate medical resources, deficient healthcare system, rapidly aging society, and consumption upgrading trends. The case study will cover topics like basic pricing theories and innovative pricing methods while showing students how to formulate marketing strategies for companies by applying theoretical frameworks such as the marketing mix.
Translated title of the contributionHope Noah: Is All-Inclusive Pricing an Effective Strategy for the Medical Tourism Industry?
Original languageChinese (Simplified)
Number of pages15
Publication statusPublished - 30 Jun 2019

Case number

MKT-19-625

Case normative number

MKT-19-625-CC

Case type

Field Case

Update date

12/04/2024

Supplement

For more details, please visit www.chinacases.org

Published by

China Europe International Business School

Keywords

  • Pricing
  • consumption upgrade
  • overseas medical treatment
  • all-inclusive package
  • rules of the game

Case studies discipline

  • Marketing
  • Strategy

Case studies industry

  • Health Care Services

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