Jefferson Station and the sad fact about Healthcare Reform

The acquisition has become quite commonplace in recent years, from sports stadiums and entertainment venues to infrastructure basics like roadways and railway stations. Naming rights, long reserved for notable philanthropists placing a family name on hospitals, university halls, museums and libraries, are now a convenient - though costly - method to promote brand recognition and consumer confidence.

Earlier this month SEPTA announced the naming of Market East Station to Jefferson Station in a deal between the regional transportation provider and the Jefferson Health System. Thomas Jefferson University Hospital is only two blocks south of Market East.

The naming deal follows an earlier arrangement to rename the Broad Street Subway station at Pattison Avenue “AT&T Station” and previews a future naming rights deal with their Verizon or Comcast for Suburban Station.

Facility naming deals are an easy way for cash-strapped or opportunistic entities to raise funding from wealthier, healthier corporations. In the overall scheme of things, it’s a no-brainer for a constantly short-funded regional utility, like SEPTA, to use its captive commuter audience as a way to raise needed capital.

SEPTA’s five-year deal with AT&T cost the communications company $5.4 million, although SEPTA only received $3.4 million. It’s advertising agent made out very nicely, pocketing $2 million in the deal.

But what of a hospital spending $4 million to buy branding rights all in the name of product recognition? To me, it speaks to several interesting questions and one Big Duh observation.

First off, the obvious question ... Is it prudent, necessary or progressive for a medical provider to seek publicity of this sort at what most would consider a sizable chunk of cash? Arguments could be made that such attempts at name recognition promote Jefferson as a top-class service provider, educational institution, and research facility.

Yet, I would think that’s a tough nut to crack since Jefferson is already a renown regional name. Once you get outside the Philadelphia region it’s hard to figure exactly what naming a railway station adds to the Jefferson brand. How many prospective medical students or established medical professionals would actually be swayed by a name on a subway marquee?

They might even look at such largesse as a needless and wasteful expenditure in a research-heavy profession where funding often determines how much a dedicated research professional can accomplish.

(For the rest of Cranky Man’s thoughts on the SEPTA -Jefferson deal and what it says about healthcare ”reform” click here!)