In the simpler, boom days of healthcare in the late 1970s, hospitals and physicians could simply raise rates to cover expenses or purchase new equipment -- and pass along the increases to insurance companies.

The proliferation of managed care in the last decade has dramatically altered that landscape.

During the interim in the early to mid 1980s, healthcare marketing evolved. Initially, hospitals and hospital management companies became enamored with advertising more so than marketing. Unfortunately, millions of dollars were spent with ad agencies for essentially image advertising that did little to produce tangible returns. Additionally, before more stringent Stark regulations, other millions were invested by hospitals in individual doctor marketing to garner their referrals.

As the Houston marketing manager for American Medical International and later as a corporate and individual hospital marketing director, The Watson Group's president experienced this phenomenon first-hand.

Through strategic planning and marketing, he created several services that were successfully introduced to target consumer populations. He continued this trend as a consultant working directly with individual physician offices, hospitals and companies selling to health care providers.

Selective opportunities to market health care still exist. Today, elective fields such as LASIK surgery, cosmetic dentistry, plastic surgery, day spas and the like are no less dependent on direct marketing to consumers.

The Watson Group's knowledge of the health care industry -- and experiences in non-related retail and service industries -- position it to be a special player in future healthcare marketing.

In the hey day of health care marketing, numerous advertising and public relations companies attempted to sell themselves as healthcare marketers. In many instances, these companies capitalized on the euphoria to essentially sell costly design and creative services and media placements. As management began to appreciate return vs. investment, these companies faded, leaving the new millennium health care marketing to those with true marketing expertise.