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ILAGAN, JULIA REI PTR 102 Module 6 022-2023
ILAGAN, JULIA REI PTR 102 Module 6 022-2023
ILAGAN, JULIA REI PTR 102 Module 6 022-2023
MODULE 6
MARKETING RESPONSIBILITY AND FISCAL RESPONSIBILITY
Brief Description
This part will determine marketing and fiscal management in health care.
Learning Outcomes:
Page 1 of 12
PTR 102: PT ROLE 2
College of Physical Therapy
Prepared by: Janice N. Laluces
Pre-Activity - Before Reading Questions/This part may also contain motivational activities
Reading the book entitled:
Chapter 7 and 10 Page, C. G., (2015). Management in Physical Therapy
Practices, F.A. Davis Company
Page 2 of 12
PTR 102: PT ROLE 2
College of Physical Therapy
Prepared by: Janice N. Laluces
LESSON 1:
Read and understand the statement.
Traditional marketing approaches have been modified in health care because of the uniqueness of its
business. Customer satisfaction became patient satisfaction and new ways to measure satisfaction had to be
developed. Unlike other customers, patients are rarely the ultimate decision maker about “buying” health-care
services, and they usually do not have a choice when they need a service. They do not know the price of a
health-care service so patients do not base selecting a service on price, even when they have a choice.
Patients require the referral of professionals to services that they often know little about, making it difficult for
them to judge their quality.1 Consider the differences in the buying processes when a person needs a new
television and when a person needs a total joint arthroplasty, for example.
Thomas suggests that marketing should be viewed as processes that are both inbound to the organization and
outbound from the organization. He describes these processes as follows:
Inbound marketing includes marketing research to identify potential customers and their needs, the means to
meet those needs, analysis of the competition, and positioning and pricing a new service (finding a niche).
Outbound marketing is the promotion of a product or service through advertising, public relations, and sales
strategies.
Excerpt from the CHAPTER 7 of Page, C. G., (2015). Management in Physical Therapy Practices, F.A.
Davis Company
Page 3 of 12
PTR 102: PT ROLE 2
College of Physical Therapy
Prepared by: Janice N. Laluces
Activity - After Reading, research the following and cite the references: (as needed)
1. Give at least 4 examples of the Four P’s eat
Product: An example for hospitals are the services that they offer to the patients or
clients. For instance, in a rehabilitation center, they offer modalities for pain
management that cost a patient.
Price: The prices charge on the patient is expected to be reasonable and enefinicial also
for the company in the long run.
Place: It should be in a place where is more excessible for the “mamamayan” or clients
Promotion: It is the means where how doctors or physicians refer rehabilitation centers
or PT into their patients
Page 4 of 12
PTR 102: PT ROLE 2
College of Physical Therapy
Prepared by: Janice N. Laluces
LESSON 2:
Read and understand the statement.
Assets
Assets are property like goods, equipment, buildings, installations, land, and money in the bank. Ownership of
assets has both financial and psychological implications. People become more vested and committed when a
physical therapy practice is connected tightly to their personal funds. Pride in ownership may be a big drive in
accomplishing an organization’s goals.
Real property and equipment assets are the focus of this section. Managers may rely on financial consultants
to make decisions about cash, bonds, stocks, and other investments that affect an organization’s assets.
Costs
A top priority for managers is determining the cost of doing business, which is usually expressed as
cost/patient visit. Without knowing how much it costs to deliver services, managers are unable to determine
how much to charge for services to end
up with a profit. Negotiating with insurance companies for contracts to provide services may be disastrous if a
manager does not know whether the reimbursement rate offered will cover the costs of caring for patients.
Kinds of Costs
The two major categories of costs are:
Direct costs: Expenses for delivering services, which includes salaries, equipment, supplies.
Indirect (overhead) costs: Rent or mortgage payments, utilities, janitorial services, equipment
maintenance, office supplies, etc. that underlie the direct delivery of services. Overhead costs are the
things that are necessary regardless of the number of patients there are in a practice. For example,
even if there is only one patient, the practice needs electricity, temperature control, space, and medical
records, etc.
Both direct and indirect costs are either:
Fixed: The same cost regardless of the number of patients who are treated (e.g., rent, ultrasound
machine).
Variable: The cost increases as the number of patients increase (e.g., laundry services).
Semifixed: A fixed cost, such as wages and salaries that may vary because of need for overtime, or
when work hours are decreased as a patient census fluctuates.
Revenue (Income)
Revenue, or income, is the total of all money received for services provided or goods sold during a given
period. Managers, perhaps obviously, need to know where the money will be coming from.
Financial Obligations
Managers must ensure that expenses are paid in a timely manner and payroll is met to avoid the
embarrassment of debt collectors or the failure to sustain the services needed to support the practice. Having
emergency reserves must be part of the planning conducted with financial consultants. Recognizing the pattern
of reimbursement income (how often payments are received for claims submitted) in terms of payment due
dates every month is an important consideration. Submitting claims with no errors and no omissions that are
supported by detailed documentation helps avoid delays in payment because of denials of third-party payers
and the time required to appeal those decisions.
Funding
In addition to reimbursement and other payments for services performed, some larger practices also may
receive financial support through local government taxes or bonds. These public revenues may be specifically
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PTR 102: PT ROLE 2
College of Physical Therapy
Prepared by: Janice N. Laluces
dedicated to large health-care organizations with missions directed to the public service rather than those who
share their profits with stockholders. Endowments, gifts, and fundraising activities, such as annual balls and art
shows, may support special projects of the organization.
For the private practitioner, funding is usually derived from loans from banks and other financial institutions.
Family and friends may make monetary donations, or they are another source of loans— interest free or not.
Of course, with good planning, novice practitioners may have the discipline to begin saving for the start-up
funds needed to begin a practice early in their careers. Start-up grants also may be available from federal and
state sources particularly for women and people from minority groups.
Excerpt from the CHAPTER 10 of Page, C. G., (2015). Management in Physical Therapy Practices, F.A.
Davis Company
Page 6 of 12
PTR 102: PT ROLE 2
College of Physical Therapy
Prepared by: Janice N. Laluces
Direct costs: Expenses for delivering services which includes salaries, equipment,
supplies
Indirect (overhead) costs: Rent or mortgage payments, utilities, janitorial services,
equipment maintenance, office supplies etc. that underlie the direct delivery of services. Thinsg
that are necessary regardless of the number of patients there are in a practice
Reference: Page, C. G., (2015). Management in Physical Therapy Practices, F.A. Davis
Company
Page 7 of 12
PTR 102: PT ROLE 2
College of Physical Therapy
Prepared by: Janice N. Laluces
Research Activity:
What is the Manager’s responsibility with regards to Marketing and Fiscal responsibility?
On the Marketing responsibility aspect, a manager treats a patient in exchange for money from the
patient and/or from a third-party payer, a physician receives staff privileges at a hospital in exchange for
admitting patients there, or an employer pays insurance premiums in exchange for health-care coverage for its
employees. Marketing enhances all of these transactions and it is considered successful when the goals of
On the other hand, on the Fiscal Responsibility, All aspects of health-care finances and accounting are
scrutinized for compliance with a range of laws, regulations, contracts, and operation systems. Compliance
leads to a standardization of many financial systems in any type of health-care organization. The
responsibilities for these systems are either lead by professional financial experts in large organizations or
managed with the assistance of financial consultants in smaller organizations. All organizations have two
components to their finances. The first component is financial management, which is a factor in strategic
planning that includes funding of assets. The other component includes the controller functions for the day-to-
day operations of the business, such as recording all business transactions; setting and achieving costs
Reference: Page, C. G., (2015). Management in Physical Therapy Practices, F.A. Davis Company
Page 8 of 12
PTR 102: PT ROLE 2
College of Physical Therapy
Prepared by: Janice N. Laluces
Quiz 6
1. Product The goods, services, and ideas offered by an organization. A lasting, loyal relationship is often
considered the product of health care for marketing purposes.
2. Inbound Marketing marketing includes marketing research to identify potential customers and their
needs the means to meet those needs, analysis of the competition, and positioning and pricing a new
service (finding a niche).
3. Price the charge for the product including professional fees, insurance premiums, deductible and co-
payments, etc.
4. Outbound Marketing marketing is the promotion of a product or service through advertising, public
relations, and sales strategies.
5. Promotion the manner in which goods and services are distributed to consumers.
6. A tool for comparing competitors is ______.
7. Advertising is publicity and nonmedia efforts that is paid for and controlled by an organization.
8. Promotion is ongoing advertising and publicity that keeps the product or service in the minds of the
customer and helps stimulate demand.
9. Asset are property like goods, equipment, buildings, installations, land, and money in the bank.
10. Direct costs that are expenses for delivering services, which includes salaries, equipment, supplies.
No part of this material may be reproduced, stored in a retrieval system or transmitted in any form or by any
means – electronic, mechanical, photocopying, recording or otherwise, without permission in writing from the
author or lecturer.
Page 9 of 12
PTR 102: PT ROLE 2
College of Physical Therapy
Prepared by: Janice N. Laluces
Learning Tasks:
1. Offline Reading
2. Student Output Activity: Definition of Terms and answered questions.
3. Online/ Offline Quiz: Posted in SILID LMS or during Face to Face classes.
4. Online/ Face to face Graded Recitation or Reporting: Performance in the interactive discussion and
presentation of assignments/ assigned topic.
5. Offline Homework/ assignment: Reflective essay
6. Offline/ Online Research: Answering the given questions in Research Activity
Reference:
Scott, R.W., Petrosino C., L., (2008) Physical Therapy Management 1st Edition, Mosby
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PTR 102: PT ROLE 2
College of Physical Therapy
Prepared by: Janice N. Laluces
Assignment/ Essay
CRITERIA EXCELLENT GOOD (3) SATISFACTO INSUFFICIENT INCOMPLETE POINTS
(4) RY (2) (1) (0)
Assignment Intro, body, Intro, body, Intro, body, and Intro, body, and Assignment
Component and and conclusion conclusion was not
conclusion conclusion Paragraphs are Paragraphs are submitted.
Paragraphs Paragraphs present but not missing/ not
are clear and are clear, but well organized clear
well not well used
organized,
Topic is
introduced,
discussed/
analyzed,
and
summarized
Completene Addresses all Addresses Addresses only Does not Assignment
ss questions all questions, part of the address the was not
thoroughly but less question question or topic submitted
and weighted assigned in the
completely given to one assignment
or more
component
Neatness All Most Some Few homework/ No homework/
homework/as homework/ homework/ assignments assignment
signment assignment assignment were turned in was turned in
were turned were turned was turned in neat and orderly neat and
in neat and in neat and neat and orderly
orderly orderly orderly
Supporting The research The research The research The research is Assignment
Research provided from provided provided but misguided by was not
credible mostly from with low level of the assigned submitted
sources, credible evidence topic
Systematic sources,
review, RCT, Meta-
highest level Analysis
of evidence
TOTAL
POINTS
Comments:
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PTR 102: PT ROLE 2
College of Physical Therapy
Prepared by: Janice N. Laluces
Reporting/Presentations
Exceeds Satisfactory Needs Below Score
Expectations (4) (3) Improvement (2) Expectation (1)
Organization The presentation is The presentation There is some There is some
carefully organized has a focus and organization, but organization, but
and provides provides some the speaker the speaker
convincing evidence reasonable occasionally goes occasionally goes
to support evidence to off topic. Evidence off topic.
conclusions. support used to support Evidence used to
conclusions. conclusions is support
weak. conclusions is
weak.
Comments: Total
Score:
Adapted from: Allen, Mary J. Using Rubrics to Grade, Assess, and Improve Student Learning, 2014, Strengthening Our Roots: Quality,
Opportunity & Success Professional Development Day, Miami-Dade College
No part of this material may be reproduced, stored in a retrieval system or transmitted in any form or by any
means – electronic, mechanical, photocopying, recording or otherwise, without permission in writing from the
author or lecturer.
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