no third solution

Blogging about liberty, anarchy, economics and politics

Product Differentiation Matters: Health Care

May 3rd, 2006

I’ve been hearing the Detroit Medical Center’s commercials on the radio for the last few weeks – first they were promoting their 29-minute or less guarantee for admission to the emergency room, well and good. For anyone who’s ever gone to a hospital, you’ll know that your wait is usually significantly longer than that, unless you’re sufferring from ebola or a gunshot wound. Fortunately, I’ve not been the victim of either – although I have received my share of stiches. Apparently, their promotion is working:

The DMC saw an uptick in emergency department visits when it promised patients they’d see a doctor within 29 minutes of entering its hospitals

In addition to the waiting-in-line guarantee, the DMC is touting itself as the only medical center in the nation offering a money-backed guarantee for customer service:

Applies to all overnight stays and all surgical services provided at DMC hospitals since April 28.
A refund is dependent upon the nature of dissatisfaction:
• Problems with physical facilities: $25
• Inadequate communication: $50
• Excessive waits: $75
• Poor service from employees: $100

Finding creative ways to give your customers exactly what they want – and ensuring that they let you know when they’re dissatisfied is a sure way to differentiate your product from competitors.

I’ll applaud the innovative individuals who committed themselves, and their capital in pursuit of such progress, within the constraints of the free market for health care.

When was the last time you got a refund at the DMV for poor service or long waits?

no third solution

Blogging about liberty, anarchy, economics and politics