Children's Hospitals Marketing Budget
While information on the marketing budgets of children's hospitals was largely unavailable, an estimate can be made when considering the data that is publicly accessible. Children's Hospitals in the United States spend an estimated $10.24 million on marketing. This estimated figure is based on data on the average marketing budgets for the healthcare industry and the average revenues of the top 25 children's hospitals. Below you'll find calculation details and other useful information.
A 2017 survey conducted by Duke University and the American Marketing Association reported that the healthcare industry dedicates 6.2% of their revenue on average to marketing. Boston Children's Hospital, as of 2014, had an annual marketing budget for a few years of about $5 million. It is unclear whether this amount matches the hospitals current marketing figures. Typically, a Wonder request relies on data from within a 2-year time frame. However, due to the lack of direct information on this subject, this useful figure was included in order to provide data on one of the nation's top children's hospitals.
Becker's Hospital Review listed the revenues of 25 of the top children's hospitals in the country. These hospitals represent each region of the country and have a total revenue of $41.32 billion and an average revenue of $1.65 billion.
The report notes that these figures are "not exhaustive, as some health systems and/or children's hospitals do not have individual listings on" the American Hospital Directory. This fact should be taken into account when considering this estimate. Below is the complete list of the hospital revenue figures that were used to reach our conclusion along with calculation details.
1. University Hospitals Rainbow Babies & Children's Hospital (Cleveland) — $3.60 billion
2. Lucile Packard Children's Hospital at Stanford (Palo Alto, Calif.) — $2.86 billion
3. Texas Children's Hospital (Houston) — $2.35 billion
4. Children's Medical Center Dallas — $2.27 billion
5. Cincinnati Children's Hospital Medical Center — $2.15 billion
6. Saint Christopher's Hospital for Children (Philadelphia) — $1.91 billion
7. Nationwide Children's Hospital (Columbus, Ohio) — $1.65 billion
8. Miami Children's Hospital — $1.61 billion
9. Phoenix Children's Hospital — $1.55 billion
10. Rady Children's Hospital (San Diego) — $1.51 billion
11. Seattle Children's Hospital & Regional Medical Center — $1.50 billion
12. Boston Children's Hospital — $1.49 billion
13. Children's National Medical Center (Washington, D.C.) — $1.47 billion
14. Children's Mercy Hospital (Kansas City, Mo.) — $1.44 billion
15. Children's Hospital of Pittsburgh of University of Pittsburgh Medical Center — $1.42 billion
16. Children's Hospital Colorado (Aurora) — $1.41 billion
17. Children's Hospital Los Angeles — $1.37 billion
18. Children's Hospital of Orange County (Orange, Calif.) — $1.36 billion
19. Cook Children's Medical Center (Fort Worth, Texas) — $1.34 billion
20. Ann & Robert H. Lurie Children's Hospital of Chicago — $1.31 billion
21. Alfred I. DuPont Hospital for Children & Nemours Children's Clinic (Wilmington, Dela.) — $1.29 billion
22. Children's Hospital Central California (Madera) — $1.14 billion
23. Children's Hospitals and Clinics of Minnesota - Minneapolis — $1.12 billion
24. Children's Hospital (Birmingham, Ala.) — $1.12 billion
25. All Children's Hospital (Saint Petersburg, Fla.) — $1.08 billion
The Total Revenue of the Top 25 Children's Hospitals / The Number of Top Children's Hospitals = Average Revenue of Children's Hospitals
$41.32 billion / 25 = $1.65 billion is the average revenue of children's hospitals.
Average Revenue of Children's Hospitals x Average Percentage of Revenue Spent on Marketing in the Healthcare Industry = Average Marketing Budget.
$1.65 billion x 6.2% = $10.24 million average marketing budget.
Precise details on marketing channels were largely unavailable. This is likely due to the fact that marketing breakdowns are not regularly released to the public. Details that are available tend to present information related to hospitals or healthcare as a whole as opposed to strictly focusing on children's hospitals. This information is also usually focused on marketing in general and not necessarily on individual marketing channels.
Despite this some information on TV budgets was available. In terms of TV advertising, in April 2017, St. Jude's was the top ad spender. In that month, the hospital spent "$8.7 million, running 15 ads 2,212 times on national TV." The hospital also had 133.4 million TV ad impressions and an average view rate of 95.51%. St. Jude's also allocated $109,606,000 of their budget to informational activities and materials, $41,898,000 to fundraising, and $16,847,000 to administrative expenses.
Another hospital, Shriners Hospitals for Children, spent $1 million during April 2017 on TV marketing. They ran "18 ads 783 times on national TV" with 51.3 million TV ad impressions, and a 94.57% average view rate.