With the acceleration of mergers and acquisitions across all healthcare verticals, the question is posed for your consideration, how do you communicate with your consumers, patients or plan members about a merger or acquisition? Do you communicate on a personal level what's going on at all, or do you rely on the news media to carry the story?
This is an important question.
After all, most organizations, if they are paying any attention to communications detail, are decent at communicating with physicians and employees about what's going on. Timing can sometimes be an issue internally, especially if a news reports hit the street before employees know.
But commonly, where most healthcare organizations fall down in the communications chain, is how they communicate the merger or acquisition with patients, consumers, and vendors.
They are important audiences and you need to control your message with them as you do internally and with the media. In the age of social media where everyone has the potential to become paparazzi, why would take a chance on publicly generated comments? Comments, that may or may not have your brand messages and information.
When you did your Q&A for internal audiences, did you consider who has daily interaction with consumers, vender and patients, creating and training them with a Q&A for their use? Probably not. That my friends, is a missed opportunity to point up the positives, strengthen your brand and create a better experience for your end-user.
But the communication does not end there. You also need a plan that provides all of your audiences with regular updates about how the merger or acquisition is progressing and what it means to them. You have an opportunity to engage in a meaningful dialogue with your patients during this period. Don't waste it. Just don't assume that because they are your patients, that they don't care, don't have concerns about how it effects them, or don't want information about what's occurring in your organization.
And if you are think about changing the name because two health systems merge, then you need to start planting that idea now.
Having been though more mergers and acquisitions that I care to remember, my communications plans have been extremely detailed and project management oriented. Most importantly, the plan also detailed how I has going to communicate with patient's message frequency and methods.
Never, ever, miss an opportunity to strengthen you brand messages and control the messaging with key audiences.
My best merger-acquisition marketing communication plan ever? Glad you asked- 5 brands, 17 legal size paper pages, containing over 250 steps, not only to inform and minimize patient, employee, physician and consumer defections, but to move four of the acquired brands to our existing brand and brand architecture at the same time.
Good luck. Be detailed. Take nothing for granted. Use all available communication means- direct mail, press, web site, social media etc.
And communicate, communicate and communicate.
You can continue the conversation with me on:
LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter: http://www.twitter.com/mkrivich
Web site: http://www.themichaeljgroup.com/
For more information, or to discuss your strategic healthcare marketing, customer experience management, marketing/sales integration or start-up needs, you can learn more at my web site the michael J group; email- michael@themichaeljgroup.com; or phone by calling me at 815-293-1471.
Showing posts with label Mergers. Show all posts
Showing posts with label Mergers. Show all posts
Wednesday, July 6, 2011
Wednesday, May 18, 2011
Do You Know the Value of Your Healthcare Brand?
Changes at the speed of light in the various healthcare marketplaces, impact brands in very significant ways. Mergers, acquisition, new companies and non-traditional models for delivering care, are creating a dizzying array of healthcare brands for the consumer. Some brands go way. Some remain as hybrids, dying a slow death. Some even stay in the market with just a tag-line identifying the parent company.
Your brand image, brand promise and brand architecture have a value that impacts you organization in two ways, revenue and image. Have you quantified that the value your brand has on your revenue stream? And have you created a rock solid brand architecture that accounts for mergers and acquisitions, to eliminate the "my company name Is better" arguments that go on internally post acquisition, when the issues are not addressed up front?
Your brand has a dollar value.
For example, the Walgreens brand has been valued at $1 billion. What this means is that if Wal-Mart, or Target had the same brand awareness and image as Walgreens, their revenues would be $1 billion higher than currently reported. And that value carries over as WAG moves into retail healthcare, out- branding, out-pricing and out-delivering you, the traditional healthcare provider.
Healthcare is changing from a dominated provider model in the U.S. to an employer and consumer-driven model. And that means that your healthcare brand is everything. As you view changes in your organization to talk more about outcomes, quality and price, so should you be talking internally about what the value of your brand is, how it relates to consumers and the steps you need to take in the marketplace to improve.
If you do not know what the dollar value of your brand is, then you are missing an important leverage point negotiations. I mean really, my brand name can't go away because I believe that it has more value than you, or the ever popular, "our brands are equal keep them both". Nonsense. Data talks, all else walks. Know your brand value and it may have a better chance of surviving.
Now, that being said, if you are being acquired by a multibillion dollar company with a strong brand architecture, give it up and count your money. You will survive longer if you go with the program instead of fighting it.
Brand is important in a rapidly consolidating industry.
Healthcare is at the beginning start of a massive consolation from small individual cottage-industry type organizations e.g., specialty pharmacies, home agencies, infusion centers and hospitals to become part of larger organizations to survive. It is more important than ever, that you have clear and unbiased understanding of your brand, its strengths and weaknesses, but most importantly, its dollar revenue value in the marketplace.
As employers and consumer takes more control of their healthcare, your brand will be more important than it is today. But if you don't understand the value of that brand, then you are missing a golden opportunity.
You can continue the conversation with me on:
LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter: http://www.twitter.com/mkrivich
Web site: http://www.themichaeljgroup.com/
For more information, or to discuss your strategic healthcare marketing, customer experience management, marketing/sales integration or start-up needs, you can learn more at my web site the michael J group; email- michael@themichaeljgroup.com ;or phone by calling me at 815-293-1471.
Your brand image, brand promise and brand architecture have a value that impacts you organization in two ways, revenue and image. Have you quantified that the value your brand has on your revenue stream? And have you created a rock solid brand architecture that accounts for mergers and acquisitions, to eliminate the "my company name Is better" arguments that go on internally post acquisition, when the issues are not addressed up front?
Your brand has a dollar value.
For example, the Walgreens brand has been valued at $1 billion. What this means is that if Wal-Mart, or Target had the same brand awareness and image as Walgreens, their revenues would be $1 billion higher than currently reported. And that value carries over as WAG moves into retail healthcare, out- branding, out-pricing and out-delivering you, the traditional healthcare provider.
Healthcare is changing from a dominated provider model in the U.S. to an employer and consumer-driven model. And that means that your healthcare brand is everything. As you view changes in your organization to talk more about outcomes, quality and price, so should you be talking internally about what the value of your brand is, how it relates to consumers and the steps you need to take in the marketplace to improve.
If you do not know what the dollar value of your brand is, then you are missing an important leverage point negotiations. I mean really, my brand name can't go away because I believe that it has more value than you, or the ever popular, "our brands are equal keep them both". Nonsense. Data talks, all else walks. Know your brand value and it may have a better chance of surviving.
Now, that being said, if you are being acquired by a multibillion dollar company with a strong brand architecture, give it up and count your money. You will survive longer if you go with the program instead of fighting it.
Brand is important in a rapidly consolidating industry.
Healthcare is at the beginning start of a massive consolation from small individual cottage-industry type organizations e.g., specialty pharmacies, home agencies, infusion centers and hospitals to become part of larger organizations to survive. It is more important than ever, that you have clear and unbiased understanding of your brand, its strengths and weaknesses, but most importantly, its dollar revenue value in the marketplace.
As employers and consumer takes more control of their healthcare, your brand will be more important than it is today. But if you don't understand the value of that brand, then you are missing a golden opportunity.
You can continue the conversation with me on:
LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter: http://www.twitter.com/mkrivich
Web site: http://www.themichaeljgroup.com/
For more information, or to discuss your strategic healthcare marketing, customer experience management, marketing/sales integration or start-up needs, you can learn more at my web site the michael J group; email- michael@themichaeljgroup.com ;or phone by calling me at 815-293-1471.
Sunday, November 16, 2008
Financial meltdown, recession, mergers, affiliations, uninsured and retail clinics
With the financial market meltdown, worldwide recession I say look for new mergers and closings in the hospital industry. Even though many are profitable, well at least slightly, that will go by the way side with investment income losses, higher numbers of uninsured, rising bad debt and lengthening delays in Medicaid payments from the states, the picture is bleak. Declining utilization and tighter reimbursement from managed care doesn’t help either. Oh yea, those pesky retail clinics won’t help either. I am surprised more hospitals don’t go that route, partner with their doctors and drive those babies out of their markets.
Insuring the 45 million and growing uninsured is not in the cards fore the foreseeable future, not till 2010 at the earliest. President-elect Obama has his hands full. First priority is fixing the financial system, second is the economy, and third is healthcare. Without the first two, the third never happens.
Hospitals are cutting back, but it is in marketing as always. CEOs never did understand the value of marketing and what it can do, but then why do we need to be customer focused? Part of that blame goes to marketers who are unable to prove value; focus on the fluff stuff; and not holding themselves accountable for a bottom-line result. Could be too many newsletters, ads touting services people don’t need or want and not positioning on a quality and service perspective.
Answer this…. if you can’t say in 25 words or less about how you are different from everyone else, then you are adrift in your marketplace and your key customers can’t either. But then your competitors are in the same boat and they just may be as clueless as you are. Define and differentiate before someone else does it for you...
The hospital industry is undifferentiated and it’s becoming a commodity. Focus on satisfaction- employee and patient. You won’t have satisfied patients without satisfied employees. More to follow latter on that one
By the way I am hearing some not so flattering reports about the quality of primary care in those retail clinic settings. Wrong diagnoses, medication errors and faulty in site quick tests make we wonder how soon before the government step in and regulates. More direct physician oversight, certification and training are needed to prevent someone from dying. Hasn’t happened yet but it will. It’s just a matter of time. If you have a good or bad story about the retail clinics post it up.
The company I work for is going through a major reengineering. Look for big and I mean big reductions at the coporate staff level first quarter 09. Lots of uncessary layers and they could really benefit from a dose of lean management. Probably means I will be out of a job. Oh well, here we go again, that will be the seventh time in eight years. I have the nack for finding those companies.
Insuring the 45 million and growing uninsured is not in the cards fore the foreseeable future, not till 2010 at the earliest. President-elect Obama has his hands full. First priority is fixing the financial system, second is the economy, and third is healthcare. Without the first two, the third never happens.
Hospitals are cutting back, but it is in marketing as always. CEOs never did understand the value of marketing and what it can do, but then why do we need to be customer focused? Part of that blame goes to marketers who are unable to prove value; focus on the fluff stuff; and not holding themselves accountable for a bottom-line result. Could be too many newsletters, ads touting services people don’t need or want and not positioning on a quality and service perspective.
Answer this…. if you can’t say in 25 words or less about how you are different from everyone else, then you are adrift in your marketplace and your key customers can’t either. But then your competitors are in the same boat and they just may be as clueless as you are. Define and differentiate before someone else does it for you...
The hospital industry is undifferentiated and it’s becoming a commodity. Focus on satisfaction- employee and patient. You won’t have satisfied patients without satisfied employees. More to follow latter on that one
By the way I am hearing some not so flattering reports about the quality of primary care in those retail clinic settings. Wrong diagnoses, medication errors and faulty in site quick tests make we wonder how soon before the government step in and regulates. More direct physician oversight, certification and training are needed to prevent someone from dying. Hasn’t happened yet but it will. It’s just a matter of time. If you have a good or bad story about the retail clinics post it up.
The company I work for is going through a major reengineering. Look for big and I mean big reductions at the coporate staff level first quarter 09. Lots of uncessary layers and they could really benefit from a dose of lean management. Probably means I will be out of a job. Oh well, here we go again, that will be the seventh time in eight years. I have the nack for finding those companies.
Sunday, April 13, 2008
Closings, Mergers and New Services
SSM Healthcare
SSM Healthcare in St. Louis, MO, announced that they will be closing St. Francis Hospital and Medical Center in Blue Island, Illinois after years of sustaining losses for that hospital in eight figure range annually. In the press reports SSM could not even give it way.
They have taken some hits in the media, but decision like this are never taken lightly. I know some of the senior leadership at SSM and I can assure you that they took this decision with the greatest of care and deliberation. Mission has always come first. And I do agree that SSM has to consider the viability of the system as a whole to carry out their mission of service and care to all. Sometimes one part must be sacrificed so that the mission can continue on for the greater good.
What is missed in all of this is question: where were the other Catholic systems in the Chicago area, Provena, Resurrection, Loyola, and St. James, Palos Community (yes they are Catholic but keep it a secret), Mercy and St. Joseph? They sure did not step up to the plate. Maybe the press should take some time to ask why and look a bit deeper. The Archdiocese of Chicago and Cardinal George kept painfully silent in this as well.
The timing was not good as SSM announced that it would build a replacement hospital in Janesville, WI. Now that could have been handled better, but that decision was not related to the St. Francis closing. Maybe some day hospitals and health system will finally figure out PR is important and that they generally are clueless about it.
Mergers
Condell to Advocate Healthcare, Oakbrook, Illinois, Gottlieb to Loyola Medical Center, Maywood, Illinois and Lake Forest in discussions with Evanston Northwestern, Evanston, Illinois. The Chicago market is heating up with the sub prime mess, tighter lending requirements and cheap capital going by the wayside. Poor at best payer contracts , the uninsured and bad debt are forcing these consolidations. This trend is not so different from what is happening around the country. Look for 08 and 09 to be big in the consolidation of hospitals. More to come stay tuned.
New Services
A brand new hospital not even opened six months gets approval from the State of Illinois to add a cardiac cath lab. In another one of the Illinois Health Facilities Planning Board huh decisions, with six existing cardiac cath labs within easy distance of the population that is already being served, Adventist Bolingbrook Hospital, Bolingbrook, Illinois adds another cath lab bringing to seven cardiac cath labs to the region. Here we go again with health planning at its best, another unneeded service in the region with all the hospitals competing for a limited patient base and driving up healthcare costs. Quality does not improve and may even be adversely effected by this decision. In the end we all suffer and pay higher prices.
Then the Planning Board denies Edwards Hospital, Naperville, Illinois third CON application for a new hospital in Plainfield, Illinois when additional beds are needed. Go figure.
Up next Silver Cross Hospital, Joliet, Illinois wanting to build a replacement hospital. The only small issue is that they want to build the hospital three miles east in a very affluent and growing south suburb of Chicago with a major expressway newly opened. The current hospital is located in section of Joliet with a high Medicaid, self- pay and indigent population. But the officials say that they are not abandoning those patients. Yea right, with a virtually non-existent public transportation system, how are those people going to get there?
Patient satisfaction
Coming soon, as an author and established expert on patient satisfaction soon to come will be a some comments on the whole patient satisfaction information just released and where we need to go from here.
Thanks for reading!
SSM Healthcare in St. Louis, MO, announced that they will be closing St. Francis Hospital and Medical Center in Blue Island, Illinois after years of sustaining losses for that hospital in eight figure range annually. In the press reports SSM could not even give it way.
They have taken some hits in the media, but decision like this are never taken lightly. I know some of the senior leadership at SSM and I can assure you that they took this decision with the greatest of care and deliberation. Mission has always come first. And I do agree that SSM has to consider the viability of the system as a whole to carry out their mission of service and care to all. Sometimes one part must be sacrificed so that the mission can continue on for the greater good.
What is missed in all of this is question: where were the other Catholic systems in the Chicago area, Provena, Resurrection, Loyola, and St. James, Palos Community (yes they are Catholic but keep it a secret), Mercy and St. Joseph? They sure did not step up to the plate. Maybe the press should take some time to ask why and look a bit deeper. The Archdiocese of Chicago and Cardinal George kept painfully silent in this as well.
The timing was not good as SSM announced that it would build a replacement hospital in Janesville, WI. Now that could have been handled better, but that decision was not related to the St. Francis closing. Maybe some day hospitals and health system will finally figure out PR is important and that they generally are clueless about it.
Mergers
Condell to Advocate Healthcare, Oakbrook, Illinois, Gottlieb to Loyola Medical Center, Maywood, Illinois and Lake Forest in discussions with Evanston Northwestern, Evanston, Illinois. The Chicago market is heating up with the sub prime mess, tighter lending requirements and cheap capital going by the wayside. Poor at best payer contracts , the uninsured and bad debt are forcing these consolidations. This trend is not so different from what is happening around the country. Look for 08 and 09 to be big in the consolidation of hospitals. More to come stay tuned.
New Services
A brand new hospital not even opened six months gets approval from the State of Illinois to add a cardiac cath lab. In another one of the Illinois Health Facilities Planning Board huh decisions, with six existing cardiac cath labs within easy distance of the population that is already being served, Adventist Bolingbrook Hospital, Bolingbrook, Illinois adds another cath lab bringing to seven cardiac cath labs to the region. Here we go again with health planning at its best, another unneeded service in the region with all the hospitals competing for a limited patient base and driving up healthcare costs. Quality does not improve and may even be adversely effected by this decision. In the end we all suffer and pay higher prices.
Then the Planning Board denies Edwards Hospital, Naperville, Illinois third CON application for a new hospital in Plainfield, Illinois when additional beds are needed. Go figure.
Up next Silver Cross Hospital, Joliet, Illinois wanting to build a replacement hospital. The only small issue is that they want to build the hospital three miles east in a very affluent and growing south suburb of Chicago with a major expressway newly opened. The current hospital is located in section of Joliet with a high Medicaid, self- pay and indigent population. But the officials say that they are not abandoning those patients. Yea right, with a virtually non-existent public transportation system, how are those people going to get there?
Patient satisfaction
Coming soon, as an author and established expert on patient satisfaction soon to come will be a some comments on the whole patient satisfaction information just released and where we need to go from here.
Thanks for reading!
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