How do You Change Healthcare Consumers From Ignorant/Uneducated to Informed?

The discussions on 30 plus LinkedIn groups across the wide healthcare industry spectrum has been revealing to the question "Is the Healthcare Consumer Ignorant?"

To summarize, there are many contributing factors, from healthcare diagnosis and treatment complexity, the inability of providers too communicate in an understandable way their process, to economic factors that cause the consumer to be disconnected. And some are just like arrogant parents who know all and see all.

And I thank everyone who contributed to the discussion no matter what side you are find yourself.

But it is time to move the discussion forward and start the dialogue on how to change the healthcare consumer from ignorant/uneducated to informed.

The task at hand is not insurmountable. It will require innovation, creativity, change, an attitude adjustment and perseverance.

Anything is possible.

This means a long-term commitment that most likely is generational in nature across all healthcare industry segments, to have an informed healthcare consumer. Think back to the 80s when DRGs were introduced. As an industry, healthcare went from we will do things to you, care for you and you have no real responsibility for your care and treatment, to now you have a personal responsibility to maintain good weight, stop smoking, wear a motorcycle helmet etc. We offered wellness programs, screenings, lectures and educational materials. Lots of stuff that more or less has had a positive impact on some diseases.

In spite of these efforts, we remained an industry that still does things to people and generally looked the other way when patients asked questions or wanted to be involved.

The economists, think-tanks, employers, physicians, health plans, hospitals, associations, Federal and State governments and special interest groups have spoken, created new models, programs and services in an attempt to bend the cost curve with limited success. This is not an attack, for we are better off today with these attempts at reform.

From the view in my world, one thing we have not done to a great extent is involve the end user in these discussions. How can we succeed, if the end-user is not informed and involved in all of these processes and plan creations?

The healthcare cost problem will not be solved until we have an educated, informed consumer, that is an active participant in the decision-making process regarding their care and understands the price.

Where do we go from here?

Here are some ideas, not all inclusive but just offered up for consideration.

1. Marketing needs to be far more involved than it has been so far. This isn't just about making things pretty. It's about delivering content that is informative, understandable, actionable and life-changing, delivered however the person wants it. It is multi-channel and uses all available methods like social media, web site, direct mail, webinars, apps etc. Whatever it takes. Not just the do an ad, have program. It needs to be interactive and fits into an individual's daily life seamlessly.

Senior management needs their marketing departments at the leadership table to understand the life and pulse of their communities.

HIPAA does not mean that you can't communicate and use all the tools available.

2. There needs to be price transparency. Time to move away from communicating what the charges are for healthcare to the price of the healthcare service. Consumers will understand price, they will never understand charges. Strive for clarity.

3. Increase outcome and data related transparency for the consumer. Quality awards are nice and all, but what does it really mean and how can the consumer use that type of information? Consumers can not make choices without real actionable information.

4. Stop talking at people; talk to them. Healthcare will not change and the cost curve will not be bent until we have an informed and educated consumer.

5. Create incentives for the physicians and consumers to be involved and choose lower cost options for treatment or diagnosis. For example, American Imaging Management, a WellPoint Subsidiary, has developed a creative incentive program that awards physicians and patients for choosing lower cost alternatives for some imaging. People respond to financial incentives positive and negative. Time to be creative.

6. Adjust your attitude. The healthcare consumer is not ignorant. They may be uneducated, but they are not ignorant. Given the right information, they can make reasonable decisions and be actively involved if you let them. That means changing attitude, organizational culture and approach.

7. Innovate. Healthcare lacks original innovation and an entrepreneurial spirit for the most part. Instead of saying why something won't work because it challenges established beliefs or process or ways of doing things, ask how it will work or how lessons from other industries can be adapted. Leave the comfort zone.

8. Lead the change in your organization.

These are just some ideas and opinions. I am sure that I have missed a lot, gorged some sacred cows and maybe angered a few people. We all know that this is a complicated challenge. We have tried just about everything else. And unless we begin to create an informed, involved and educated healthcare consumer, then we won't be able to bend the cost curve.

You can continue the conversation with me on:
LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter: http://www.twitter.com/mkrivich

Michael Krivich is an entrepreneurial healthcare marketing executive and internationally followed healthcare marketing blogger read daily in over 38 countries around the world. A Fellow, American College of Healthcare Executives as well as a Professional Certified Marketer, American Marketing Association, he can be reached at michael@themichaeljgroup.com or 815-293-1471. Areas of expertise include: brand management; strategic marketing; sales and marketing integration; medical device and specialty pharmacy marketing; physician marketing; product launch; start-up launch and revenue growth; tactical market planning; customer experience management; rebuilding and revitalizing marketing operations; media relations; and service line revitalizations. Mike is Huthwaite SPIN selling trained and a Miller Heiman Strategic Selling alumni.

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Is the Healthcare Consumer Ignorant?

It's the kind of question that pauses one for a minute or two. How this question came about was in response to a post of mine a few weeks ago, regarding pricing at Urgent Care Centers and the $500 Band- Aid. In comments on a couple of LinkedIn groups, a few healthcare executives called consumers ignorant.

Really.

From a marketing perspective, that is a most interesting characterization of a healthcare consumer. And a dangerous belief to hold about one segment of your audience.

Ignorant.

I don't think so. Informed. Connected. Questioning. Seeking. Paying. Shopping. These words describe the healthcare consumer of today. A consumer who is awakening and demanding a voice in diagnosis and treatment options. After all, isn't that one of the major premises for healthcare reform, and CMSs' one opening statement in the proposed ACO regulations?

In ignorance there is opportunity.

So if you really believe that the healthcare consumer is ignorant, then what are you doing to change that to create an informed consumer? How are you interacting and building you organizational brand to change the healthcare consumers from ignorant to informed? Or, are you just happy to keep them that way, so those "pesky " informed consumers don't question your pricing, decision- making and quality?

Healthcare is changing from a provider-directed and dominated model to a consumer-driven model. And that means people will be informed. They will be involved. They will make quality and pricing decisions. They will play a very strong part in utilization decisions. The healthcare consumer is far from ignorant.

With a little work, they could actually put together their own price-affordable healthcare delivery network and never set foot in a hospital, or hospital-owned setting for care. Obviously, there will be those situations requiring major surgery or trauma care, for which a hospital is the most appropriate setting. But for the rest of it, doubtful.

So, don't be surprised in the future if a healthcare consumer-driven web site shows up that points the healthcare consumers to lower-cost providers for care. Your opportunity is to become that low cost provider, taking advantage of consumer shopping behavior though innovative, cost-effective programs and services.

For health plans and insurance companies, your opportunity is to educate your plan members about providers who have lower prices for services you are paying for, and giving consumers the option to seek lower-cost providers. You could also create loyalty and incentive programs for consumers to avail themselves of lower cost setting for care.

Just because its low cost, doesn't always mean low quality.

After all, almost all diagnosis and treatment can be done in lower-cost settings than a hospital or hospital-owned facility. Get ready for a different future than what you think it will be.

You can continue the conversation with me on:
LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter: http://www.twitter.com/mkrivich

Michael Krivich is an entrepreneurial healthcare marketing executive and internationally followed healthcare marketing blogger read daily in over 38 countries around the world. A Fellow, American College of Healthcare Executives as well as a Professional Certified Marketer, American Marketing Association, he can be reached at michael@themichaeljgroup.com or 815-293-1471. Areas of expertise include: brand management; strategic marketing; sales and marketing integration; medical device and specialty pharmacy marketing; physician marketing; product launch; start-up launch and revenue growth; tactical market planning; customer experience management; rebuilding and revitalizing marketing operations; media relations; and service line revitalizations. Mike is Huthwaite SPIN selling trained and a Miller Heiman Strategic Selling alumni.

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How Do Your Marketing Efforts Counter Negative Quality Data From 3rd Parties?

On March 31, a new data release for consumers took place with CMS posting individual hospital performance on eight Hospital Acquired Conditions (HAC). Reaction has been highly critical to say the least by physician and hospital groups. There are legitimate question as to the methodology used in some of the data and that does need to be revised. So the question came to me after reading the various groups denial of the data, pointing out its flaws and generally trying to deep six any potential informational credibility for the public-  it's out there, so what is the brand opportunity if any?

How Does Your Marketing/PR Department Counter Negative Data Releases From 3rd Parties?

Hospitals and others are quick to bend over backwards and break their arms running ads and creating press releases when the data is in their favor or an award has been bestowed. This is not a criticism it is fact. Sometimes the information presented is misleading as well. When negative quality data is published, its everyone under the table time. If we howl with indignation at the outcome or just ignore it, then maybe it will go away. Well it's not. It is out there, so how are you going to respond?

Why not take a proactive approach with the same fervor that your Marketing and PR departments do when you have an award?

There is always opportunity to be leveraged in a potentially negative situation and that takes leadership, wisdom to see the opportunity and conviction to not follow the heard.

Can you be courageous?

Have your Marketing and PR departments follow these steps and you will find that you can strengthen build your brand, counter negative effects and be a force for change in the industry.

1. Acknowledge that this is another step in the transformation of healthcare from a provider-dominated to a consumer-driven transparent healthcare market.

2. Look at the CMS data for your organization and understand what is good and what is bad.

3. Create the documents and tools for internal and external audiences to learn how to use and understand the data. Be an educator. Frame the public's discussion.

4. Indicate the challenges with the data, how it was incorrectly calculated and how it can be simply fixed. Recalculate the data based on your hospitals performance against the true number of patients that received the service.

5. If you are a poor performer, then you have the opportunity to acknowledge that you can do better and inform your audiences what you are doing to improve.

6. Use the same techniques, and resources that you would use to tell the world what a great place you are because of a quality award.

7. Be proactive in a positive manner and not reactive with negativity. Be a solution the problem, not the problem. Hit the lecture circuit in your community.

Develop good Marketing and PR habits now. As change and time accelerates and the public becomes more involved in the choice of healthcare providers and treatment options, you need to control the discussion before others.

Define the discussion before they do. If you protest too much, or dive for under the tables, then the perception is there must be some truth to what's published. Maybe, maybe not, but it's there

The consumer is the new paparazzi, social media wiz and healthcare information seeker. Frame the discussion or be framed by it.

You can continue the conversation with me on:
LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter: http://www.twitter.com/mkrivich

Michael Krivich is an entrepreneurial healthcare marketing executive and internationally followed healthcare marketing blogger read daily in over 36 countries around the world. A Fellow, American College of Healthcare Executives as well as a Professional Certified Marketer, American Marketing Association, he can be reached at michael@themichaeljgroup.com or 815-293-1471. Areas of expertise include: brand management; strategic marketing; sales and marketing integration; medical device and specialty pharmacy marketing; physician marketing; product launch; start-up launch and revenue growth; tactical market planning; customer experience management; rebuilding and revitalizing marketing operations; media relations; and service line revitalizations. Mike is Huthwaite SPIN selling trained and a Miller Heiman Strategic Selling alumni.

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Welcome to Accountable Care Organizations- Marketing Does Matter

On March 31, 2011, the healthcare system in the U.S. began to change forever with these words:

"An ACO will put the beneficiary and family at the center of all its activities. It will honor individual preferences, values, backgrounds, resources, and skills, and it will thoroughly engage people in shared decision-making about diagnostic and therapeutic options."

With these words, CMS has taken the bold step of moving the healthcare system from a provider-directed healthcare enterprise to a consumer-directed healthcare system. And the implications are enormous. It is also apparent that this will require leadership skills and abilities at the integration of culture and care. No more spin of shifting here among reimbursement options, playing docs off of one another, or avoiding difficult decisions.

Welcome to consumer-directed healthcare.

Eagerly or not so eagerly awaited, these 429 pages of proposed regulations mark the beginning of a great national discussion that will fundamentally change the healthcare delivery system in the U. S. Much as been written already by such publications as Becker's Hospital Review and more to follow.

Most of the commentary is focusing on the organizational structure and what it will require to successfully develop an ACO. My focus though is in what are the marketing implications? And there are many for what in the regulations is really a very small and insignificant portion, but can get newly developing ACOs in some serious difficulty should they fail to strategically plan and execute marketing properly. So, from the proposed regulations we find as an example:

11. ACO Marketing Guidelines:

"We believe there is a potential for beneficiaries to be misled about Medicare services available from an ACO or about the providers and suppliers from whom they can receive those services. We realize that care coordination is an important component of the Shared Savings Program; however, the potential for shared savings may be an incentive for ACOs, ACO participants, or ACO providers/suppliers to engage in behavior that may confuse or mislead beneficiaries about the Shared Savings Program or their Medicare rights.

As a result, issuing beneficiary communications or engaging in marketing activities that may be confusing or misleading would not be patient-centered because these activities restrict the ability of beneficiaries and/or their caregivers to be informed about their health care choices and thus limit the opportunity for beneficiaries to be properly involved in the management of their own care. We are proposing that all ACO marketing materials, communications, and activities related the ACO and its participation in the Shared Savings Program, such as mailings, telephone calls or community events, that are used to educate, solicit, notify, or contact Medicare beneficiaries or providers/suppliers regarding the ACO and its participation in the Shared Savings Program, be approved by us before use to protect beneficiaries and to ensure that they are not confusing or misleading. This requirement
would also apply to any materials or activities used by ACO participants or ACO providers/suppliers on behalf of the ACO to communicate about the ACO's participation in the Shared Savings Program in any manner to Medicare beneficiaries. In addition, we would want to ensure that materials distributed to beneficiaries do not misrepresent Shared Savings Program policies or suggest that we endorse the ACO, its ACO participants, or its ACO providers/suppliers.

We are further proposing that before any changes can be made to any approved materials, the revised materials must be approved by us before use. Finally, because the failure to comply with these requirements would demonstrate that the ACO does not meet the patient-centeredness criteria and therefore may no longer be eligible to participate in the program, we propose that an ACO that fails to adhere to these requirements may be placed under a corrective action plan or terminated, at our discretion.

For purposes of the Shared Savings Program, we are proposing to define ACO marketing materials, communications, and activities as including, but not limited to general audience materials such as brochures, advertisements, outreach events, letters to beneficiaries, web pages, mailings, or other activities, conducted by or on behalf of the ACO, or by ACO participants, or ACO providers/suppliers participating in the ACO, or by other individuals on behalf of the ACO or its participating providers and suppliers. If these materials or activities are used to educate, solicit, notify, or contact Medicare beneficiaries or providers and suppliers regarding the ACO and its participation in the Shared Savings Program, they must be approved by us.”

Marketing Does Matter

For those who have worked in pharmaceutical, medical device and health plans, you all know full well what happens when marketing materials are misleading and have not been approved by the responsible regulatory agencies. This just isn't throwing some brochures or flyers together, this requires high-quality, professionally-produced materials.

So as you being to assess you organizational capability, several marketing considerations become apparent:

Marketing needs to be at the table in the ACO development and decision making process as a senior management contributing member.
Marketing resources and systems need to be planned for.
Seek out an agency that has pharmaceutical, medical device and or heath plan experience. They already know what it's like to deal with and how to deal with regulatory agencies. This isn't something you do in-house.
Develop a highly integrated strategic marketing plan. Clarify brand architecture, messaging, and outcomes. Tactical execution comes last, not first.
Honestly assess the marketing organization, talent and level of expertise existing within the organization and change it if necessary. Seek out individuals with pharma, medical device or health plan expertise.
Understand this is not about making things look pretty.
It's not about you but about the consumer.

And this is important, it is not just communication strategies.

The regulations will change over the next year as comments are taken and considered. Even with change, these are marketing steps your organization needs to be taking anyway. You will be a lot better off in the long run.

By the way, did I mention the 65 quality of care indicators for ACOs that you will need to report on as well?

2012 is almost here.

You can continue the conversation with me on:
LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter: http://www.twitter.com/mkrivich

Michael Krivich is an entrepreneurial healthcare marketing executive and internationally followed healthcare marketing blogger read daily in over 36 countries around the world. A Fellow, American College of Healthcare Executives as well as a Professional Certified Marketer, American Marketing Association, he can be reached at 815-293-1471 mailto:ormichael@themichaeljgroup.com . Areas of expertise include: brand management; strategic marketing; sales and marketing integration; medical device and specialty pharmacy marketing; physician marketing; product launch; start-up launch and revenue growth; tactical market planning; customer experience management; rebuilding and revitalizing marketing operations; media relations; and service line revitalizations. Mike is Huthwaite SPIN selling trained and a Miller Heiman Strategic Selling alumni.




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