Can Transparency on Outcomes and Quality, Increase Volume, Revenue and Market Share?

Tough economy and getting worse. Hospital volume, scripts and specialty drug orders, flat or down. Little differentiation among competitors in many healthcare verticals. New proposed cuts in Medicare and Medicaid spending. High unemployment with no end in sight. Political gridlock. Healthcare payment models evolving from production payment focused on care delivered, to pay-for-performance based on quality outcomes. Price competition. And finally, a growing empowered healthcare consumer, taking control and playing an active part in the healthcare decision-making process.

With all this transpiring, most are taking the same past course of marketing action. Advertise services by making claims of world-class service. "Me too" messaging, attempting to driving volume because we focus all of our efforts and resources around you. (Isn't that what you are supposed to do anyway?) Sales forces all focusing on the same a therapy or drug class in specialty pharmacy which, in most cases, is the same as the specialty pharmacy down the street.

But nearly everyone, is missing the most important piece of the puzzle to generate demand, revenue and market share.

Where is the outcomes and quality data?

One area that is greatly lacking in most healthcare marketing, is an intelligent dialogue on your outcomes with your audiences. Payors', pharma and medical device, have recognized this and are leading in the use of quality and outcomes data to drive decision-making. It is time for the rest of the healthcare industry to catch up.

And in my experience, it works. Driving demand, volume, revenue and market share.

I maintain that even in this economy, there are healthcare dollars out there. Healthcare consumers willing to spend those dollars, if only that had a compelling reason to do so. With all other marketing avenues exhausted, healthcare executives weary from being in "survival mode" and facing new revenue pressures, one would think healthcare marketing would be able to answer some of these challenges.

Maybe it's time to give the healthcare consumer be it employer, individual or family, or any other stakeholder you can identify, quality and outcomes data to make decisions?

That's really the only avenue left for healthcare providers, to start talking about quality and outcomes. Engaging in a meaningful dialogue, that goes beyond accreditation logos and quality awards from third parties, to an actual honest-to-goodness quality and outcomes disclosure and discussion.

Few healthcare providers are willing. Most are afraid of this direction. But, it's a strategy and tactic that can break the current cycle of avoidance and loss. Leadership. Courage. The ability to be visionary. Recognizing that your customers, are best served by the healthcare organization that places them first in a meaningful way.

You have some choices here. Stay the course and do what you have been doing. Get lost in an endless paralysis by analysis loop. Mimic your competitors. Talk about quality and outcomes in vague terms. Or, be the first in your market, to establish a clear strategic marketing plan, focused on your healthcare consumers, about your brand in terms of quality and outcomes.

Sooner or later, you are going to have to do this.

If you are not willing to change, then don't expect a different outcome from doing the same old healthcare marketing that you have been.

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.

Marketing to the Networked Patient

Healthcare is changing at a far more rapid pace that at any time in its history. I am not referring to the pharmaceutical or technological advances which have no doubt improved the quality of care and in most cases, the quality of life as well.

Since 1983 with the introduction of DRGs, we as an industry have been touting the benefits of wellness, individual responsibility in health and the patient taking an active role in their healthcare. Much has changed since that time and much has remained the same. But now, the game has really changed.

Welcome to the age of the networked patient.

The networked patient is someone who has an intense curiosity about their health condition, expects to have an active role in making healthcare decisions and this is most important, they want control of their health information. They use in internet, social media and seek out others. They read and study about their health condition. They ask questions and will seek out alternatives. The look at providers from a quality standpoint and make judgments based on that information. They want an answer to their own needs.

The patient is asking what is their ROI by using you?

The days are quickly passing by where we can assume that we are still in control of the overall care and treatment process and information without much questioning or interaction by a patient. And you know what, that is not a bad thing.

Marketing to the networked patient

There are some key to keep in mind when starting to market to the networked patient:.

Your brand, your brand promise and messaging is all important;

Quality data transparency, reporting and patient access to same is everything;

 Access to their own health information 24/7 is a deal breaker if not provided;

Talk about the patient experience and outcomes;

Don't insult this patient with messaging that is all fluff, about us or is just plain condescending;

All communication needs to be personalized talking to the patient not at them;

Use all available communication channels- Iphone apps, email, social media, web site blue button, direct mail, etc.

Be creative, this is uncharted territory so limits are nonexistent and don't place any on yourself. Stop saying, why we can't do something, start saying how we can. This is a major change in the way healthcare is administered and delivered in the U.S. Providers need to recognizing that the age of the healthcare consumer is upon us. Failure to do so will be at your own peril.

You can continue the conversation with me on:

LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter: http://www.twitter.com/mkrivich

Michael Krivich is Fellow, American College of Healthcare Executives and a Professional Certified Marketer, American Marketing Association and can be reached at michael@themichaeljgroup.com or 815-293-1471 for consulting services in strategic marketing, integration of sales and marketing, media relations and interim marketing executive leadership assignments. Huthwaite SPIN selling trained and a Miller Heiman Strategic Selling alumni, both highly respected and successful international sales training organizations , I can lead your organization though the challenge of integrating sales and marketing.

Consumer Satisfaction in Healthcare Marketing

The dynamic has changed.

With the advent of HCAPHS and the Affordable Care Act (ACA) consumer satisfaction is no longer a nice too have but a got to have in healthcare. Difficult to achieve and tough to beat once you have it, consumer satisfaction with your medical services, regardless of the monikers we place on them, will drive volume and revenue. Revenue for the standpoint of Pay-for-Performance (P4P) programs and volume from consumers selecting you in a very "commoditized" and provider undifferentiated healthcare market place. As you create your networks, Accountable Care Organizations (ACOs), Medical Homes (MHs) and other yet undefined organizations, you have the opportunity to "get it right" this time.

For the past 10 years, I have been writing and working within healthcare organizations to improve satisfaction. Ten years ago, I had the opportunity to coauthor a book with Ralph Bell, PhD., on satisfaction entitled- How to Use Patient Satisfaction Data to Improve Healthcare Quality, American Quality Society, Quality Press www.asq.org/quality-press . This past weekend I received a notice that the publication run worldwide is 843 copies to date and counting. The books relevancy today is even more so than it was when first written given the changes in healthcare in the U. S.

The healthcare consumer of today will view your services as: value= f(cost, quality, satisfaction) as compared to the near past where value= f(cost, quality). Value here is the defining moment and is a function of cost, quality and satisfaction with you.

Marketing Implications

With the ACA and HCAPHS Hospital survey in play by reporting provider satisfaction as a common basis for measurement and consumer comparison, all the more imperative the focus on patient satisfaction. Healthcare is not an easy business by any stretch of the imagination. We work with people who are patients and their families that are at various states of emotional distress, caring employees (for the most part), good physicians etc. So satisfaction for so many different groups becomes interrelated.

Why is it important?

High levels of satisfaction are a powerful differentiators on your market, negotiations with insurance companies and your physicians.

Done correctly, your satisfaction program becomes the Voice of the Customer (VoC) to drive real organizational change.

It is a strategic and tactical edge for your brand and your marketing communication efforts.

Think customer evangelization.

Where does satisfaction start?

No surprise here - right in the executive suite. The CEO and senior leadership sets the tone, tenor and actions by what they do or don't do. How they treat others. How they measure and hold themselves accountable in the performance evaluation process. It's either part of the culture or not. People clearly trained, as well as understand the organizational rationale, policies, procedures for satisfaction and are part of the program, or they see it as the flavor of the day because so and so said so.

Satisfaction is a Process

Patient satisfaction is a process that is controllable and understandable. It is the voice of your customer. By listening to that voice, I mean really listening to that voice, you would be surprised at the improvements that you can make in your healthcare setting. Patients, physicians and others view the hospital experience not as a set of unrelated departments where things are done to me, but as a coordinated whole in a continuous process.

Where do we go from here?

It starts with learning. It starts with an honest assessment of here is where you are. It starts in the C-suite. Commitment, compassion, understanding, listening, process control and improvement.

The choice is yours. The marketing implications, strategies and tactics are clear. Lead or be left behind.

You can continue the conversation with me on:

LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter: http://www.twitter.com/mkrivich

Michael Krivich is Fellow, American College of Healthcare Executives and a Professional Certified Marketer, American Marketing Association and can be reached at michael@themichaeljgroup.com or 815-293-1471 for consulting services in strategic marketing, integration of sales and marketing, media relations and interim marketing executive leadership assignments. Huthwaite SPIN selling trained and a Miller Heiman Strategic Selling alumni, both highly respected and successful international sales training organizations , I can lead your organization though the challenge of integrating sales and marketing.

Marketing Accountable Care Organizations

Entering the new world of healthcare where quality and accountability are drivers to reduce cost, how do you market an Accountable Care Organization (ACO)? Especially as healthcare providers, namely doctors and hospitals, must compete on outcome transparency, quality and cost. A triple threat and uncharted territory. Outcomes data will be the driver and available to the consumer to make an informed choice. A monumental shift in the market place of who controls the information.

Anybody seen the new United Health commercials? They are already touting call us, we can send you to the best doctors. Anywhere in the country. Organizations that control the data, control the market and control the price.

So for those doctors and hospitals looking at ACOs, better get your track shoes on. The big insurers are already moving forward with physician groups and pilot programs to test the concept.

In the end, I believe that insurers will control ACOs by the simple fact that they have the data. They already know which doctors practice the best quality and most efficient medicine. The insurers already know which hospitals provide the most cost-effective and quality-driven care. All because they control the claims data. Insurers analyze, predict and can move much faster than others can. Stockholders demand it. So, while tax-exempt organizations engage in their annual lets build consensus before we can move forward on the idea, you are already late to the market and at a decided disadvantage.

Besides, I wonder if ACOs really pass the smell test of what Clinton tried to do in the1990s? And that failed. Maybe what we really have is the same attempt re-branded for 2010?

Marketing Accountable Care Organizations

Brand. Quality. Data transparency. Service. Price.

Your message needs to be clear and concise, echoing the ACOs brand promise and the value that you bring though your ACO to the consumer or the insurer. Focus on outcomes not high-tech or "touchy-feelly". Consumers are too sophisticated for such a simple message.

How you position your ACO vies a vie others is critical and you get one shot. You need to do it right. Remember, you can only take one of three positions in the market, superior, equivalent or inferior. The initial positioning of your brand is one of the most critical tasks you face. With an informed consumer bearing more of the cost, you have one shot to get it right. No do overs anymore.

Co-brand you member materials with insurers for members to educate and inform abut your ACO. Same with self-funded employers. Go to employers work site to reach employees.

Create a separate web site and social media strategy for the ACO and co-brand where possible, have everything online for patient education materials to forms and payment mechanisms.

Need an easy to read and understand dashboard that reports on quality measures for consumers, insurers and employers.

Commit to excellence in customer service and create a Voice of the Customer program to establish and maintain a continuous feedback loop with your key customers. This is not lip service; this is real change. Failure to do so will label you as inferior. Poor customer service is no longer acceptable.

Keep in constant communication with your members. Email is best. Use video emails and always , always have a call-to-action message.

Create a loyalty program. This is not a taboo and except for government program beneficiaries in Medicare and Medicaid or other government funded programs. You can create a loyalty program. Fact is not all patients are the same so you might as well take advantage of it before others do. It can be a powerful differentiators. Step out and be creative.

There is more you can do, but know this should keep you pretty busy.

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Michael Krivich is Fellow, American College of Healthcare Executives and a Professional Certified Marketer, American Marketing Association and can be reached at michael@themichaeljgroup.com or 815-293-1471 for consulting services in strategic marketing, media relations and interim marketing executive leadership assignments. Huthwaite SPIN selling trained and a Miller Heiman Strategic Selling alumni, both highly respected and successful international sales training organizations , I can lead your organization though the challenge of integrating sales and marketing.

Question of the day- Mayo Clinic and marketing

Mayo Clinic has no marketing budget, only PR.

They have never done a direct mail campaign, print or electronic media advertisements or any other traditional types of marketing.

Yet everyone knows who they are and what to expect in the way of customer service and quality.

So Quality + Reputation + PR = Success. So on a local level, why do hospitals spend endless dollars on misleading ads and claims when the answer to market success lies before their very feet?

The more things change, the more they stay the same

Economy

With the economy nearing recession it is a safe bet all the talk about healthcare reform and national health insurance will slow down. People want jobs and economic security. That debate is beginning to overshadow everything. Politicians are like a 3 year old child's short attention span and they focus on the flavor of the day. Until someone comes up with that private government combo plan for reform, its dead in the water. Look for incremental change that tinkers around the edges but fails to address underlying systemic issue. If real change is going to come it will have to come from employers large and small. As the old saying goes....Money talks and ........, well you know the rest.

Hospital margins

We all know that hospital margins for the most part have been showing signs of improvement the last couple of years. With the growth in spending in Medicare and Medicaid, and CMS realizing its out of control faster than they even thought, reductions are in the works. That will pace more pressure on margins. Also, hospitals have done very well thank you very much, in the past few years with their investment strategies which has supported margin growth. With the current state of the financial markets, some will take a financial bath. Look for losses especially with the stand-alones going forward. Higher interest rates for bond issues as well because of the sub-prime market meltdown, lower margins etc. As layoffs become more prevalent in the general job market more uninsured will be seeking care further increasing bad debt and adding to margin compression. Oh wait, my bad, bad debt is really community benefit as they like to say.

Mergers and Acquisitions

One would predict that merger activity will increase this year and for the foreseeable future with the economy the way it is becoming. The Justice Department will be looking very closely at these transactions. I have yet to see one where healthcare costs were reduced, duplicate services eliminated and big time leverage was gained for increased reimbursement from payers. Doesn't mean that it doesn't happen, I just haven't seen it.

Error rates

Nearly 100,000 people die every year from preventable medical errors. That's like crashing a fully loaded 747-400 every 1.5 days. Now we all know its unacceptable so why do we continue to allow that that in healthcare? Some payers and the government are going to stop paying for never events. A good start in the right direction. The jury is still out on whether or not P4P programs work. Mess with the medical communities money and you will see how fast the error rate and deaths associated with it goes down. Cynical yes, but true never-the-less.

Have a good week everyone and thanks for reading. Have some news or ideas just send them to themichalejgroup@aol.com All will be treated confidently and anonymity assured.