Greenby faces a significant budget problem, and is starting to look at its Consultation and Education Department, which on the surface is not turning a profit. The first thing that the C&E Department needs to do is make sure that other departments are profitable, and that it is the problem. Otherwise, cutting C&E will not help Greenby, the exercise being moot.
The second issue at hand, the one in the case, is that the C&E Department has no evidence to support its claim that it acts as a feeder, or brand ambassador if you will, for the hospital. The claim is that the C&E projects, which are essentially community outreach, have provided exceptional visibility for the company. As such, they are bringing in new clients, in particular the third-party payers on whom the hospital presently relies to turn a profit. For its part, Greenby needs to find out how the valuable third-party payers and those who pay fees for service are finding their way to Greenby. Whatever is driving that demand, be it C&E or some other factor, is what Greenby need to focus its marketing energy on. So at this point, Greenby needs to determine of C&E is basically a marketing expense that is providing a positive ROI, as Cutler claims, or a deadweight expense, McDonald claims.
Evaluation Measures
A process evaluation is one that measures how something is done, as opposed to the output of that action (SAMHSA, 2014). One process evaluation measure is to determine the reach that the C&E programs have in the community. Cutler claims they are popular, but there should be a number attached to this. If the number can be broken down demographically that would be ideal. The idea here is that the process is outreach, and Greenby needs to understand just how well it performs this outreach.
The output measure is conversion, the number of people in the community who are third-party payers, who are seeking out Greenby...
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