"Running head: SLP 4Health Care Organisation - MarketingName of the Student:Name of the University:Author’s Note: Module- SLP 4 1Pricing StrategiesThe aim of this essay is to describe the pricing strategy at Agency for Toxic Substancesand Disease Registry (ATSDR) which is a public health organization providing advisory andconsultancy services. The pricing strategy in the healthcare sector is different from that of othersectors such as retail, fashion or any other industry. This essay analyses the program and servicesoffered by ATSDR and describing the pricing strategy offered in the market. There are severalconstraints and factors associated with the pricing structure of healthcare organization. Hence,the essay describes the type of costs that would be taken into account while formulating thepricing strategy. Pricing strategy can be defined as a strategy for selling a product or service. As inindustries other than healthcare, there are gross charges and payments. It has been observed thatthe gap between these two have grown wide due to the government negotiation. ATSDR followsstrategic pricing. However, the pricing strategy has become complex but important in the recentyears. ATSDR is an advisory agency whose primary responsibility is to conduct public healthassessment and provide consultation regarding health. ATSDR does not collect data from its ownteams, but relies on other partner organizations for conducting tests and gathering data. One ofsuch examples is US Environmental Protection Agency. This essay shall describe one of theproducts offered by its Division of Community Health Investigations (DCHI). The DCHI aims toreduce the exposure of people to toxic substances in the environment. Health education andcommunity involvement are the two main components offered by the DCHI. ATSDR uses itsfunds to engage in several health assessments and health studies (Schoonveld, 2011).Module- SLP 4 2The Exposure Investigation product category involves biological testing andenvironmental contamination data. This service helps in characterizing and investigating thepast, existing and potential human exposure to toxic or hazardous substances for evaluatingcurrent and potential health effects, particularly due to exposure. It is difficult to estimate a pricefor the services provided by the healthcare agency. There are fundamental reasons that may notexposed until a complete diagnosis is made. The organization generates funds from severalorganizations, and ATSDR invests its time and manpower to provide with the best informationregarding exposure to hazardous materials (Atsdr.cdc.gov, 2016). There are several factors involved while determining the pricing strategy. In the pastyears, it is analysed that monetary pricing is not the only price that has to be sacrificed by theclients in order to obtain services. Time becomes a greater sacrifice than money as research forthe given product is time-consuming. There are search costs involved as there is significant effortrequired by the specialists for offering high quality services at ATSDR. In the healthcareservices, the clients such as public health agencies, state and national agencies initiate contactwith different agencies providing similar services. This helps in generating more information andallows the agencies to choose their service provider. The agency providing least cost shall bechosen by these public health bodies.The exposure dose reconstruction involves computer models as well as environmentalsampling for estimating the contamination level. This contamination level may be useful inmeasuring if the people have already been exposed to it in the past or would be exposed in theupcoming future. Not only the service program evaluates the exposure, but it also measures theeffect of exposure on individual’s health. The healthcare services are usually less price elastic. Itis difficult or impossible to make accurate cost estimates. Moreover, there is competition and Module- SLP 4 3price sensitivity as the services provided are critical for public health. However, in case ofemergency or a crisis, the services offered for exposure investigation changes as therepresentatives, researchers, medical officers and other staffs have to be available on site on anemergency basis. The healthcare industry is one where the products or services may even bepriced below its cost. But the sector is less price elastic than the categories of clothing, electronicappliances and others (Penson, 2013). The clients have different perceived values in case of healthcare services. Cost plays acritical role in framing the pricing strategy of healthcare services as a high cost structure shalllead to failure and ATSDR shall fail to match aggressive pricing which is followed in the market.ATSDR exposures investigations include environmental testing of water, air or soil, the testing isdone in locations where people live, play or spends time. Therefore, a target set of locations ischosen in which differentiating strategy shall help in faster breakeven. If ATSDR places itsprices at a higher level, they shall expose themselves at a risk of competition. There are chargesinvolved by the researchers and medical officers as there are risks involved in testing andexperimenting. There are travelling costs involved as the medical officers and others have to visitdifferent sites. These are added as travelling expenses while conducting exposure investigation(Emanuel et al., 2012). The cost of consumables and medical equipments also form a significant part of pricing.The medical officer salary and fees are understandably large in the investigation procedures. Itdepends on the skills required to conduct the investigation, location or site and the urgency forconducting exposure investigation. ATSDR is trying to keep the cost low by reducing theaverage length of study. Apart from these costs, there are laboratory costs involved as thesamples have to be tested in the laboratory. The chemicals used to validate the test and findings Module- SLP 4 4also form a part of the investigation. When the public health organization set charges for theirservices, they consider both fixed and variable costs. The fixed costs do not increase with valuebut the variable cost may vary by volume. ATSDR demonstrates unique capabilities andprovides specialty services which may also form a part of the cost (Schoonveld, 2011). Therefore, it is concluded that time and price is the two strategic levers of the healthcareorganization. Conducting investigation may be time consuming, and also there is no guarantee ofobtaining relevant results. Price sensitivity is necessary in healthcare services as the ultimateburden falls on the common people. The organization may be funding the money from otherinstitutions, but the burden is upon the customers."