The launch and campaigning for the CUHK Medical Centre in Hong Kong had indeed been intriguing. Based on digital marketing, it was an essential case to be studied by Dr. Ashwini Aveshetty. Here, the given case aims to discuss how such an entrance as CUMC encounters difficulties and opportunities against competition while viewing Hong Kong’s unique health demography that is at present passing a sensitive turn.
Introduction
The CUHK Medical Centre, which began its operation in January 2021, coincided with the most chaotic period of the COVID-19 pandemic. The hospital is wholly owned by CUHK, with the stated objective of providing quality health services at reasonable prices on a not-for-profit basis. The Executive Director and Chief Executive Officer of CUMC, Dr. Hong Fung, felt that this was an opportune time to get into strategic planning to achieve financial sustainability with the mission of the hospital.
Overview of Hong Kong’s Healthcare System
Hong Kong’s healthcare is essentially a dual system in which the public and private sectors coexist. The public sector, mainly provided by the Hospital Authority, covers about 90% of the inpatient service at a very low cost. Private providers, such as CUMC, may offer other options, often at much higher prices. In 2019, the government launched the Voluntary Health Insurance Scheme with hopes that it would take some of the pressure off the public services because it would encourage citizens to go private.
The ageing population in Hong Kong puts immense pressure on the health system. The number of elderly citizens is growing rapidly, and demand for medical services surged, leading to long wait times in public hospitals. VHIS was designed to enhance hospital insurance products by giving more choices to patients while relieving public hospital congestion.
CUMC Establishment and Operations
CUMC is a 516-bed private teaching hospital backed by all clinical services within the CUHK Faculty of Medicine, allowing it to draw on academic experience when developing its operating frameworks. This is clearly expressed by the hospital’s purpose of pioneering healthcare solutions aimed at improving health systems and patient experiences.
Target Market
The target audience for CUMC is the middle class in Hong Kong with average incomes above HK$55,000 (US$7,050) per month. This group of people can easily seek immediate medical consultations but may be uninformed about available specialists or healthcare pathways. The VHIS will act as a better avenue through which CUMC can receive these patients by ensuring transparency of pricing and high-quality care.
Marketing Strategies
To effectively infiltrate the market, CUMC planned to base its service marketing techniques on a customer-centric approach. The marketing approach is directed toward the building up of confidence among patients who may avail of these medical services, through policies related to pricing and transparency in these medical services. By showing a commitment to innovative healthcare solutions supported by academic research, patients would go to the centre because of the quality of healthcare care provided.
Pricing Structure
The pricing strategy of CUMC is very close to its competitors, allowing costs to be competitive yet indicative of the quality of the services offered. For example, the daily charge for a four-bedroom at CUMC is HK$900 (US$115), compared to Union Hospital’s rates of between HK$600 and HK$800 (US$77–US$103). This competitive pricing is necessary to attract patients who would seek other lower-cost options.
Service Offerings
Besides the standard medical services, CUMC also provides numerous specialty treatments led by professionals at CUHK. With this kind of integration with education and practice, not only is service quality enhanced but it positions CUMC to take the lead regarding innovation in medical services offered within Hong Kong’s healthcare setting.
Challenges Ahead
Despite its strategic advantages, CUMC still has to meet a series of challenges associated with market penetration and patient acquisition. The continuous updating of marketing strategies matching the changes in consumer behavior and preferences is a burden in a vibrant healthcare market like Hong Kong. Besides, ensuring sustainability while providing quality care is one of the main issues that Dr. Fung and his team have to weigh.
Conclusion
The case study of CUHK Medical Centre by Dr. Ashwini Aveshetty elaborately discusses the challenges related to the establishment of a new healthcare facility in an utterly competitive market like Hong Kong. A competitive price structure, customer-centric marketing, and the utilization of academic resources are some of the components that would enable CUMC to establish a solid reputation in the private health care industry and satisfy the demands of the aging population. CUMC’s performance will be based on how innovatively it responds to patient expectations and market demand, even as it continues to strike a balance amid these challenges.
