Many hospitals demonstrate their willingness to advertise by purchasing time and/or space in major media and presenting their services to the public as commodities almost as purchasable as over-the-counter remedies. Others refrain from participation in paid advertising activities, yet demonstrate their own form of competitiveness by offering innovative and/or unique services to patients who need them. This paper compares the two approaches by examining four competing Midwestern hospitals;; willingness to advertise and their ;;competitiveness,” defined as the actual manipulation of their facilities and services to capture greater numbers of patient markets. The hypothesis that the two variables are positively related, and that the relationship would strengthen following a 1982 U.S. Supreme Court ruling that permitted advertising in the medical profession, was moderately supported by the findings, indicating that additional study is warranted.
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Hospital Competitiveness and Advertising: A Case Study