Market demand is a central concept in health care economics. In addition, calculation of projected income is required to determine the impact of organization finances on the marketing plan. This week you will prepare a pro forma income statement for the new or revised existing product or service you recommended in your Marketing Mix Strategy in Week 5 for East Chestnut Regional Health System.
Review the Case Study document. (Attached)
Pro Forma Income Statement for East Chestnut Regional Health:
Complete the following prior to preparing the pro forma income statement and budget. You will need the following information in order to prepare it.
Part I: Market size calculation:
Determine the size of the market for the ECRHS product or service you are recommending. Assume East Chestnut Regional Health is located in the market in which you live or work.
Visit the University Library Consumer Demographics page. For Texas (https://data.census.gov/cedsci/all?q=texas)
From this page, visit the United States Census Bureau sites linked under the heading Demographic Data. A rough estimate of need for health care products or services can be made based on the population demographics, using age, gender, and in some cases, race. On these sites, you can gain information on the total U.S. market for health care, as well as the number of U.S. consumers who fit your target market segmentation.
Determine the local market for the product or service you recommend for East Chestnut Regional Health.
Next, multiply the percentage of people likely to purchase your recommended ECRHS product or service by the estimate of market share you believe ECRHS can achieve for the product or service. For example, if there are 6,000 women who might be interested in ECRHS obstetrical services, and ECRHS has a potential 40% market share, this results in 2,400 patients.
Prepare a 150- to 300-word summary of your market determination process.