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Hospitals should charge vendors for advertising


Posted: February 8, 2008 - 2:30 pm ET
Tags:

Evans
Evans
More than 30% of America’s hospitals are losing money. How can they bring in more revenue without pricing themselves out of payer networks? The answer is quite simple and can be implemented immediately. Simply charge the large firms for advertising that they already display inside of hospitals.

Walk inside any hospital and you see logos everywhere. Companies such as Hill-Rom Co., Gojo Industries (makers of Provon and Purell sanitizing products), Stryker Corp., Welch Allyn already place their logos prominently on products used in hospitals.

The above mentioned firms are marketing to nurses, doctors and the public, so there is monetary value to their name being placed in a hospital room. Not all limit their marketing to providers, however. Visit the Hill-Rom Web site and there is a question on the home page asking, “Want to buy a Hill-Rom product for your home?” Welch-Allyn’s Web site states they sell to doctors, medical students, etc. Gojo launched Purell as a consumer product back in 1997.

Why do hospital beds feature six logos with some larger than your hand and none are affixed to the one side that faces the wall? Wheelchairs feature manufacturers’ and distributors’ brand names on both side arms. If they were manufacturers’ tags they would appear much smaller and be found next to the serial/model number. These in fact are large logos, in color and provide a continual advertising presence in hospitals. It’s an incredible coup for the established sellers of hospital equipment to be so prominent in every hospital room without paying any fees.

If any of the manufacturers complain and refuse to pay a fee, then the hospital should sell the space to their competitor.

I’m not advocating more logos in hospital rooms. Charging the existing advertisers should suffice.

Hospitals allow advertising, they simply don’t charge for it.

Patrick Evans
President
EvanSales
Naperville, Ill.

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