What is your healthcare marketing ROI?

Healthcare marketing needs to keep up with the times and change as much as overall healthcare. It's time for healthcare marketing departments to step out of the show and tell marketing communications approach to tracking campaigns, making assumptions of its effects on revenue and produce real Return on Marketing Investment (ROMI) measures.

Work with your finance department.  With a high degree of collaboration and understanding between finance and marketing, you can lead and make a difference. By answering questions, concerns and opinions with solid data, you can move the discussion form marketing does “stuff’ to marketing is a financial contributor to the organization.

Below is an example of an actual ROMI computation that I completed for a multi-hospital organization. After this all was presented, all marketing campaigns going forward were tracked though the Physician Referral Call Center.

The method can be adapted to any campaign and provides you with the data fields and logical analysis you need. This has been edited to hide the organization.

An analysis was undertaken to look at the ROMI of the Physician Referral Call Center. The analysis matched a database of call center name records for the period to financial records which had already been downloaded. The analysis produced the following results:

• 9,102 call records were matched with utilization and financial data.
• 9,102 calls resulted in a total of 9,121 encounters in the ER, Inpatient and Outpatient categories of service.
• 751 encounters were ER
• 177 returning encounters
• 573 first time encounters
• 1,105 encounters were Inpatient
• 530 returning encounters
• 699 first time encounters
• 7,267 were Outpatient
• 2,014 returning encounters
• 5,253 first time encounters
• Total charges for all encounters equaled $22,522,649
• Charges for new encounters all services totaled $16,085,198 or 71 percent of the total charges
• Average charge per ER encounter $1,304
• Average charge per Inpatient encounter $13,581
• Average charge per Outpatient encounter $903
• Gallup measures loyalty at 68 percent (would return for service) which means that for every 100 patients 32 would not return for care- therefore:
• ED- 57 returning encounters captured that would not have returned
• Inpatient – 170 returning encounters captured that would not have returned
• Outpatient- 645 returning encounters captured that would not have returned
• Incremental charges counted returning encounters not loyal
•  ER - $74,337
• Inpatient- $2,308,851
• Outpatient- $582,505
• Subtotal charges counted: $2,965,693
• Overall market share in primary and secondary service area is 14.53 percent. The number of first time encounters have utilized us above market presence is therefore:
• ER 573 first time encounters, 83 not counted, 490 counted
• Inpatient – 699 first time encounters, 101 not counted, 598 counted
• Outpatient – 5,253 first time encounters, 763 encounters not counted, 4,490 counted
• Based on an overall market share of 14.5 percent the incremental charges counted for new encounters not because of market presence:
• ER - $638,960
• Inpatient – $8,121,438
• Outpatient – $4,054,470
• Total Charges counted: $12,814,868
• Discount from gross charges for Medicare, Medicaid, Managed Care, Bad Debt and Charity Care @ 65% is $8,326,644
• Net Revenue: $4,488,224
• PRCC program costs: $233,410
• Net contribution: $4,254,814
• ROI 18.22:1

So, do you still think you can't prove Return on Marketing Investment?

Marketing is a revenue department and will be more than ever as healthcare change continues unabated. Time for a lot of healthcare marketing departments and organizations to grow up and start proving their value.

Michael Krivich is an internationally followed healthcare marketing blogger with over 4,000 monthly pages views in over 52 countries worldwide. He is founder of the michael J group, a healthcare marketing consultancy dedicated to creating value through strategic marketing for hospitals and health system regardless of payment mechanism, either fee-for-service or value-based to increase market-share, revenue , brand and demonstrate actual return on marketing investment. Michael is a Fellow, American College of Healthcare Executives and a Professional Certified Marketer, American Marketing Association.

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Can hospitals use webinars drive volume and revenue?

In this day and age, with internet savvy audiences and patients who are networked to the web, social media, information and such, it seems silly that most healthcare providers would continue to offer only one way for individuals to access health and wellness programs. If you're not using webinars, then you're not meeting your patient/customer needs.

And it's pretty easy to do.

Using WebEx, Talk Ready, Go To Meeting for example, a 30-45 minute health and wellness seminar can be given on a day and tme more convenient for your audience. They can be recorded and archived on your web site for consumer play back at anytime of their choosing. You now begin to build up a library of self-generated health information that is branded to your organization, contains your key messages and promotes a specific service line or targeted capability.

Think about the possibilities for reaching out to employers this way as well. A webinar directed at Human Resource professionals in local companies.

For Accountable Care Organizations (ACOs), a way to keep in constant contact with your members providing targeted health information.

For physicians a way to hold a department meetings or offer CEU program that can be more convenient to them.

For the media and local press, a way to hold a press conference or announce a new service or technological application when they say there not coming on site.

The possibilities really are endless. Your imagination is your only limit here.

Okay, you can't do wellness screens this way, but it could be used to drive volume to the screens as a follow-up to the webinar.

Your Return on Marketing Investment

This strategy and tactic is designed to capture downstream volume and revenue. Let's face it, initially there is little return on a webinar. It's the post webinar relationship management and communication activities that bring the return. By capturing a webinars attendees information, you now have actionable data on which to design more effective marketing and communication programs. Mass marketing that is individualized. You can create a relationship that is more meaningful because it is based on their needs. You're improving customer experience.

So, its 2012 and change in healthcare, well it will be never ending. Time to expand your arsenal of strategy, tactics, tools and techniques to build relationships, loyalty , volume and revenue.

Michael Krivich is an internationally followed healthcare marketing blogger with over 4,000 monthly pages views in over 52 countries worldwide. He is founder of the michael J group, a healthcare marketing consultancy dedicated to creating value through strategic marketing for hospitals and health system regardless of payment mechanism either fee-for-service or value-based to increase market-share, revenue , brand and demonstrate actual return on marketing investment. Fellow, American College of Healthcare Executives and a Professional Certified Marketer, American Marketing Association.

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Can you see the 10 signs of an ineffective healthcare marketing operation?

The arguments are in. SCOTUS has already voted on healthcare reform. The majority and minority opinion writers are chosen. Regardless, healthcare will continue to change in very fundamental ways. And that means marketing has to change as well.

Marketing strategy and effective marketing operations is everything today in healthcare marketing. And if you have a bad strategy or no strategy, combined with marketing operational deficiencies, then no amount of tactical execution will overcome ineptitude. Some of the verticals in the healthcare industry are notorious for no strategy and just plain bad marketing operations, following the herd and just keeping the internal audience happy with what they want.

Here are the 10 signs spelling marketing doom in your hospital or other healthcare organization:

1. The marketing plan is not integrated with the organizations business and financial plan.

2. Your brand messages are not clear, and are not integrated across internal and external audiences.

3. The CEO sets the marketing priorities based on what others are doing , the loudest voice in the room or just because he or she likes it.

4. Departments are creating their own logos and communications. Only coming to marketing to "make it look pretty".

5. Marketing has little or no resources allocated for market research.

6. Marketing does not have an organizational voice or champion.

7. Your marketing department can't demonstrate an ROI.

8. The triangle of Public and media relations, social media and internet and traditional marketing is nonexistent or if it exists, lacks integration.

9. Little internal communication throughout the organization regarding marketing efforts.

10. Marketing is not at the senior management table.

Healthcare is transforming from a provider-dominated and directed model, where these types of behaviors and operational deficiencies really didn't make much of a difference. In the evolving consumer or patient-directed and dominated healthcare model, continuation of these marketing operational structures and behaviors need to be weeded out.

The healthcare consumer will become a harsh mistress, and will not tolerate an unresponsive healthcare organizations. Old ways of marketing must be replaced with a new understanding of marketing in healthcare and its power in the marketplace.

Michael Krivich is an internationally followed healthcare marketing blogger with over 4,000 monthly pages views in over 52 countries worldwide. He is founder of the michael J group, a healthcare marketing consultancy dedicated to creating value through strategic marketing for hospitals and health system regardless of payment mechanism either fee-for-service or value-based to increase market-share, revenue , brand and demonstrate actual return on marketing investment. Fellow, American College of Healthcare Executives and a Professional Certified Marketer, American Marketing Association.

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How do you market the employed physician?

With dynamic changes occurring in the healthcare industry as a result of the Patient Protections and Affordable Care Act (PPACA), leading to ACOs, medical homes and such, employment of physicians is making a big comeback to the hospital industry. Born of necessity, hospitals and physicians are being driven by reimbursement changes from production of care payment, to value-based care payment and opportunity.

With this new opportunity to reinvent, revitalize and recapture what previously before had been an adventure on the part of hospitals with mixed results, its time to discuss how one goes about marketing the employed physician.

What is needed is a new look at what you are doing and changing to meet the needs of your healthcare consumer, not you.

With great change comes great opportunity. That is if one is willing to embrace that change and find new ways of moving forward and creating value.

Your Brand. Your Value. The Healthcare Consumers Choice.

You need to communicate very strongly your brand and brand promise you are associating with the employed physician. Doesn't matter if he or she is in a Medical Office Building (MOB) you own, Accountable Care Organization (ACO) or Medical Home (MH). Bring your brand to the forefront and brand the doc to you. He or she is no longer an independent practitioner. They represent your brand at an individual level. Capitalize on that opportunity and leverage it.

Communicate the value that this physician brings to your community and the healthcare consumer. Communicate the value that the doctor brings to your brand. Leverage that opportunity. Stop talking at people, talk to them. Talk to them with a compelling value driven reasons why they should select that doctor, or even why they should even considering switching physicians.

Stop wasting your money putting ads in papers that expect people to take action simply because the doctor is on your medical staff, or in one of your buildings. That treats the healthcare consumer like they are idiots. They're not. They are demanding value and acknowledgement that they have a say in what's going on. If you won't meet their needs they will go somewhere else.

Consumers are and will be paying more of the medical bill as time goes along. If you're not communicating value and what's in it for them for selecting your physicians, then you can put it in the bank that the healthcare consumer is will pass on by, and go where they perceive the value to be greatest for them in line with the price they are paying.

Michael Krivich is an internationally followed healthcare marketing blogger with over 4,000 monthly pages views in over 52 countries worldwide. He is founder of the michael j group, a healthcare marketing consultancy dedicated to creating value through strategic marketing for hospitals and health system regardless of payment mechanism either fee-for-service or value-based to increase market-share, revenue , brand and demonstrate actual return on marketing investment. Fellow, American College of Healthcare Executives and a Professional Certified Marketer, American Marketing Association.

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Has the role of healthcare marketing changed?

Back in December of 2010, I wrote about the changing role of healthcare marketing in the context of PPACA. Earlier this week a reader asked if it had changed nearly two years later. Sadly, not much has changed in the current state and role of healthcare marketing.

Oh, we have added an expanded social media and online practice, but much of the changing role and strategic marketing leadership that I envisioned with the passage of PPACA hasn't taken place. It's pretty much standard operations as in the past. And that is disappointing.

Understand that I am not talking about pharma, medical device manufacturers, insurance companies, suppliers and retailers moving into the healthcare space. They get it. They understand the power and importance of marketing. This is for all the other healthcare providers that are still trying to operate like its 1990.

What I wrote about two years ago, still stands. Healthcare organizations are falling behind daily in their marketing, with little room for error or recovery. To recap that post:

Marketing Leadership

Marketing is strategy first, tactics second. The voice of marketing should reflect the voice of your customers and not be a second thought. Your future programs and services will be determined by the needs of the market, not your gut feeling. You cannot become a customer-driven or market-driven organization if the skills and experiences of marketing is not at the leadership table. Needs to be a Senior VP or VP of Marketing reporting to the CEO.

Managing the Patient Experience

If anyone is prepared to understand and mange the patient experience across the organization it's marketing. Hospitals in particular are making the mistake of putting operations in charge of patient experience. This is an oxymoron really. For the most part Ops can't get a discharge process together in less than 3 or 4 hours. How can you expect them to manage the patient experience? Patient experience means just that- understanding what that patient experiences is at all touch points. And then changing or managing that experience to its fullest potential for the benefit of the patient and the organization. Patient experience is an integrating process across the entire organization internally and externally. One organization to the patient, one patient to the organization. It is not simply another quality program or flavor of the day.

Understanding and Executing Demand Management

The hospital is no longer the center of the healthcare universe. The Patient Protection and Affordable Care Act (PPACA) is designed to keep people out of the hospital. You can actually see a hospital admission as a defect in the process of care. Marketing needs to understand what the demand for healthcare services will be, when they will be needed and manage that demand making sure that the hospital or health system has the right resources, in the right place, at the right time to meet demand. Gone are the days where marketing departments will be driving demand to fill hospital beds. They will drive demand to the appropriate place and location of service.

Becoming a Revenue Marketer and Having Revenue Accountability

Return on Marketing Investment (ROMI) is necessary for anything marketing accomplishes, traditionally, socially or online. Marketers in healthcare organizations need to become revenue producers, not resource consumers that show little value beyond, it looks nice. In fact, marketing should have P&L as well as an SG&A accountability for many of the products and services being offered by a healthcare organization.

Marketing the Manager of Change

Who better in an organization than for marketing to manage the healthcare organizations transformation from an inward-focused it's all about me, to an outward-focused market and consumer driven organization? Open to much debate, this is probably the most controversial look at the expanding role of marketing. Individual who have looked internally at their organizations all of their careers, do not necessarily have the skills, training or abilities to change an organization 180 degrees. And that is the type of change we are talking about here.

Clocks ticking and you're being left behind.

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Is your healthcare marketing department a sweatshop?

Though there are many great examples of healthcare marketing across the country, it seems that these are far and few between. This is a shame really because of all the talented marketers that are in the industry. More often than not, we let well meaning individuals who have no formal training or clear understanding of marketing hold sway over the direction.

I do understand the leverage that CEOs, docs, product managers and others hold over marketing. At the end of the day, he or she that signs the check or has the backing wins, right or wrong. And there is way too much of that in healthcare marketing.

With non-marketing trained people running the show causing chaos and confusing tactics with strategy, companies fall behind in markets and are either sold, became acquisition targets since they underperform, or die a slow and painful death.

So how do you exercise marketing leadership in that kind of environment? You need to understand the needs, politics and marketing understanding of the key decision makers.

Here are some questions for your consideration:

Have you let your marketing department become a sweatshop rued but others expecting you to do their bidding no matter how ridiculous the request?
Have you done everything possible to create an understanding of marketing?
Have you ensured that the marketing plan is in full alignment with the strategic and business plan of the organization?
When you suggest a strategy or tactic have I communicated what the return on investment is?
Do you in engage leadership in a discussion of the why of a strategy?
Have you been thinking strategically and not confusing tactics with strategy?
Have you reached out to key leaders and department heads when building the annual marketing plan for their input?
Have you been visible in the organization as the “go-to” marketing expert?
Have you allowed yourself to be an order taker producing lots of “stuff”?
Are you the organizational brand champion?
Are you willing to stop doing things the same old way with the same old result?
Does your organization respect what you do?
Are you willing to just say no, that's not marketing?

In a world of immediate gratification, lack of focus and favor of the day, a marketing executive’s tenure has dropped from 3 years to 12 to 18 months. With such a short time horizon, you might as well lead and know no matter what the outcome is, you gave it your best effort.

Time to stop working in a marketing sweatshop.

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Are you using social media and online brand presence to make the patient experience exceptional?

With healthcare moving to a place where price and quality are drivers impacting a consumer who is sharing a much greater burden of the cost, those same consumers will eventually demand online social media experiences commonly found with other companies and services.

Online represents a great opportunity for patient-centric healthcare organizations to break from the pack and create an online healthcare experience that is memorable, exceeding an individual or families experience and expectations.

Are you ready for the challenge?

Most healthcare sites today are static and contain the usual about us, our services location, etc,., etc., etc. Little use of video or other creative ways to engage the customer. Notice that I said customer and not patient. Not everyone that comes to your site is a patient or will be a patient. They are consumers looking for information. Could be a competitor too.

In any case, when you evaluate your social media and online presence, does it:

Delight your customer?
Create sustainable differentiation?
Is adaptable to new opportunities?
Leverages your investment?
Deliver in every situation?

This is the lens that you need to look through to objectively evaluate your social or online presence. If it's not doing these things, then chances are you are not delivering an exceptional experience. But for that matter, neither are your competitors. In the world of healthcare which is too much "me too", the online healthcare experience is pretty boring.

Don't take me wrong, healthcare sites are usually pretty good if people internally have been paying attention to them. They can be described as warm, comfortable, informative, friendly. They can be described as "good enough". Not exceptional. Not delivering anywhere to the capability inherent in an online presence.

I would suggest to hospitals, IDNs, nursing home, specialty pharmacies, home healthcare operations and many others, that you look outside of the your segment of healthcare to consumer facing retail organizations, as well as pharma and medical device, viewing the type of online presence they have.

Make your online presence not just "good enough" but exceptional.

The time is now. The opportunity to change is here.

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Can you have patient/customer evangelists in healthcare?

With the dynamic and changing healthcare environment, satisfaction with services is but one indicator, abet an important one, in qualifying for additional incentive payments in a value-based payment model. But satisfaction is really only a measure of future potential purchase or repurchase. It is not as commonly assumed, to be a predictor of loyalty. Just because someone says they are likely to return or recommend you to another, is only an indicator of potential purchase not loyalty.

The hospital CEO, medical business leader, managing partner, vice president, director, manger and employees need to be focusing on creating customer evangelists to not just survive, but grow and thrive in a value-based healthcare payment system.

A customer evangelist is an individual, who has such an outstanding experience that they freely become your brand spokesperson in the community. They are not paid. They have no financial sake in your survival, but have come to believe so completely in what you do, they drive business to you.

Notice I did not say patient or customer satisfaction. Anyone can have good and even high patient satisfaction scores. But, that my friend is the fix you are in. High satisfaction scores do not for one minute translate into customer evangelists. Don’t stop measuring satisfaction; you have to for a variety of reasons. I say focus on creating customer evangelists through outstanding patient-centered, or customer-centered experiences and the scores will be fine.

Ask yourself these questions.

Do you want an unassailable position in the market?

Do you want to be the market leader in healthcare?

Do you want to grow and not merely survive?

Do you want the area's best doctors on your medical staff?

If you answered yes to all the above, then you need to focus on creating patient/customer evangelists.

No better time then like the present to start.

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Do you put context and content around your healthcare awards for consumers?

It sure seems like it's the season to display all those healthcare award logos in advertisements, direct mail pieces, billboards, lobby displays and a myriad of other places. This becomes even more entertaining when two or more hospitals in the same market display the same award. Don't take me wrong. Tremendous organizational effort has taken place to achieve a quality ranking by an third party.

Is just putting the award logo out there without the contextual content about what it means, serving the healthcare consumer in a meaningful way?

This is an important question for you to consider. It's not easy putting context and meaningful content together for consumers around a quality or certification award. But just putting the logo out there as some "Good Housekeeping Seal of Approval" isn't working either.

And the evidence starting to appear anecdotally, that healthcare consumers aren't buying what you are selling. An award logo means nothing to them and has no influence on their decisions.

They don't believe you.

In an industry where meaningful differentiation is hard to come by, one would think that healthcare organizations would make an attempt to educate, explain and place context around the award. With healthcare changing so rapidly on a what seems to be a daily basis, how is a healthcare consumer to make any kind of informed utilization decision based on an award logo?

What does it mean to a consumer to be named best-in-class?

You have a responsibility to place contextual content around what that award means, so that in the minds and eyes of the healthcare consumer, they gain understanding what that award means and what it means for them.

Consumers are expecting you to put contextual content around the quality award.

This is your chance in a meaningful way, to differentiate you from your competition in the marketplace. You can achieve that differentiation with those quality and operational awards from third parties, provided that you wrap them in context and content.

It will enhance your brand.

It will enhance your reputation.

It will enhance your value proposition.

It can drive revenue.

The healthcare award will not make a difference, untless you stop displayong the award logo out there, without meaningful context and content that resonates with the healthcare consumer.

Educate. Explain. Inform. Differentiate.

You may have noticed that I haven't posted much in the last couple of weeks. I have accepted a full-time position in healthcare information technology marketing. Now that things have settled down somewhat, I am back to writing about my love and passion, strategic healthcare marketing. The schedule of postings will be different, but weekly they shall remain.

Thanks for reading.

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Where is your market research in patient/customer experience management?

Or, the dangers of viewing the customer-patient experience management process, thinking you know it all, it's easy to do, or only use patient satisfaction survey results.


And from the questions I get from healthcare professionals around the country, it became very clear that a key element is missing from most efforts at improving the patient experience.

Healthcare providers, aka hospitals for the most part, are not doing the required quantitative and qualitative market research on patient experience, attitudes, behaviors and expectations in their market place. They are assuming that because they read an article, go to a seminar that they know it all. They are only using patient satisfaction survey data, lean six sigma results and their previous quality improvement efforts. Few are actually talking to patients.

Had you been conducting market research on your customers-patients in the experience management process outside of  internal patient interactions, you would  be much better off. But unfortunately, most customer-patient experience management programs are focused on the 1/3rd of the encounter as a patient.

Where do you go from here?

It's important to view Customer-Patient Experience Management(CEM or PEM) in its totality, not as one service or clinical line experience. It may be for you, but to the healthcare customer-patient who experiences your organization across numerous touch-points, it's not. They aggregate all of it into one overall experience. You, as a healthcare provider, need to understand the expectations and experiences through quantitative and qualitative analysis. Then integrate that information and learning's into your efforts.

Part of the process of experience management, is actively managing customers-patients experiences to meet expectations and change their experiences, to drive revenue and market share. It's not all about the patient satisfaction numbers. CEM or PEM have definable and measurable financial outcomes. But you cannot achieve those revenue outcomes if you are not looking at experience management in its totality. And that means doing the necessary market research.

By not fully understanding your customer-patient in their totality, you are not successfully managing their experience or expectations.

The wave is here to use an oft quoted metaphor. Its consumer-directed not provider-directed healthcare. And the sooner you get it, that its not about you, but about the patient, and start looking at the customer experience in its totality, the better the chances of your survival in the coming years.

You don't have all the answers.

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Where is the patient experience and satisfaction in your healthcare marketing?

Patient experience and 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, experience and satisfaction with your medical products, clinical services and processes regardless of the vertical, be it specialty pharmacy, medical device, pharma, hospitals, doctors etc., will drive revenue. Revenue from the standpoint of Pay-for-Performance (P4P) programs and volume from consumers aka patients, 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.

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.

Why is it important?

High levels of experience and satisfaction are a powerful differentiator on your market.

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

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

Think customer evangelization.

Think of the power of a high-quality experience and exemplary satisfaction, and what that can do for your marketing campaigns. What it can do in your effort to differentiate.

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

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How are you marketing your healthcare services to retired Baby Boomer's?

Heard an interesting statistic the other day, on a commercial no less. So for the discussion lets assume it's true. (Remember those FTC Truth-in-Advertising regulations?) That there are 10,000 people retiring every day. Kind of makes you stop and wonder, how do you reach out to a group that has changed every aspect of life and products as they moved through time? And I think that means that they won't necessarily need healthcare services, until the later years of their retirement. Or at the very least, wanting the ones you offer and the way you offer them today.

So instead of future happy days the docs are busy, the ER is bustling and the beds are filled, it may be more of asking where is everyone?

This group is healthier. Expects product and services to conform to their will and in the way they want them delivered. Expects an exceptional level of service and experience. Expects to be involved in the decision-making process. Values freedom, choices and uses mobile technologies. Does its homework and asks questions.

Which means, your healthcare marketing strategy and tactics probably needs to change.

That means the way you approach markets, the marketing channels you use, the way you communicate, your brand message, your value proposition, the patient experience, reporting on quality that is transparent and useful, as well as being able to listen to what healthcare consumers are telling you and responding accordingly. May even mean changing what healthcare services you offer.

With all the new payment models, combined with diagnostic and treatment alternatives to traditional hospital-based services, in more convenient and experience friendly settings, talking at people isn't doing your healthcare brand any favors. Especially when an aging population is used to choice and having it their way.

So as you think about your healthcare marketing challenges in 2012 and the years ahead, just remember that your audience is changing, expecting more and may even be using you less than at any other time in history.

Which also may mean, that healthcare marketing could be a significant piece of the puzzle that is missing from your business strategy.

After all, both my 89 year old Aunt's are on facebook and LinkedIn.

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Is it time to tell consumers how they can afford your healthcare services?

Two reports came out this week. One about the slow growth of healthcare costs. The other, that people are delaying treatment, not filling prescriptions, nor taking meds etc., for a variety of reasons. Some reasons for this include the economy, loss of employment and health insurance, more high deductible plans, employers moving to defined contribution and so on.

Volume is down. Revenue is down. Marketing scaled back in some cases, or increased, attempting to drive selection and utilization from people who just may not be that interested because simply, they can't afford it.

Don't take me wrong. You have to run marketing campaigns. The economy is slowly turning around and there is a lot of pent up healthcare demand. You have to maintain brand image and awareness. You have to maintain your position in the marketplace.

But, is messaging all the shiny new equipment and facilities, "best docs", awards etc., the way to entice selection, leading to volume and revenue increases?

I don't think so.

If your audience has no interest in you because they can't afford it, then maybe you need to adjust your messaging. Become creative in communicating how people can afford your healthcare services.

That doesn't mean advertising and campaigning that you have all these charity care programs, (it may help you with your State's Attorney General and legislatures hot buttons regarding hospital charity care expenditures) but by being creative and developing alternatives so that individuals can become your healthcare consumer.

Take a look at Walgreens, CVSCaremark and Rite Aid on how they are tackling this issue. Let's get past shall we, the "well, they are drug stores pushing pills so it's different" argument. The point is, is that they have seen the challenges in the marketplace that healthcare consumers are having. They have responded with affordable healthcare solutions. And it's not only pills, it's physical exams, some tests and vaccinations. Specialty pharmacies have answered the bell. So have pharmaceutical manufacturers and others.

As healthcare providers, you need to start messaging solutions to the healthcare consumers health issues. You need to change your focus and attention from the here we are doing great things, to here we are and this is how you can afford these great things. That means new programs, new services, all focused around convenience, assistance with the cost and affordability issues, coupled with real demonstrated quality.

If you want to stop "surviving" and grow revenue and volume, you have to provide affordable healthcare solutions. It's like the old marketing lesson and question about railroads. Are you in the railroad business or the transportation business? Same for hospitals and others. Are you in the hospital business, or the healthcare business? You can't say you're in the healthcare business and only message about the hospital etc.

Today's healthcare market demands that you understand the needs of your consumers and develop those services and programs that allow them to afford you.

Do it now and you will have a customer for life.

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Where is the data to back up your ad claims?

This isn't hypothetical anymore. For better or for worse, we, as a healthcare marketing professionals, continue to use terminology in our campaigns like best doctors, centered around you, university level healthcare, world class, highest care, etc., all in an effort to differentiate us from the guy down the street. Attempting to create the brand impression that we somehow we are different, without every really saying anything. Except for making a lot of claims.

So now, a savvy healthcare consume, grabs the ad, and walks into your faculty and says, "Show me". "Show me the data that proves the claims that you are making." "Show me the patient satisfaction scores." "Show me the data that proves you provide University level healthcare." "Show me how your outcomes are different from the guy down the street."

Healthcare is entering a new phase in 2012. A phase with the actual implementation of ACOs, Medicare and private. The Supreme Court ruling on the PPACA. Budget reductions and sure to follow Medicare and Medicaid reimbursement reductions. And that is just to name a few.

This also means that as a starter to attract patients, aka the healthcare consumer, you will need more than trite slogans or messaging that make you feel good in your marketing campaigns. You are going to have to talk about outcomes whether you like it or not. And that means having the data available to prove your claims.

Besides, just because you're a Not-for-Profit, doesn't mean that you are not subject to the same Truth-in-Advertising laws and regulations under the Federal Trade Commission like everyone else. And for far too long, many NFP healthcare organizations have gotten away with it.

With the Justice Department taking a more aggressive stance by looking more closely at healthcare mergers and affiliations, your advertising becomes a focal point.

So really, it's time to clean it up. Time to stop viewing healthcare marketing as advertising and making things look pretty. Time to move marketing from the basement to the C-Suite. You're not a cottage industry anymore.

To not do so, is taking financial, brand and image risks that are avoidable.

What will be your reaction to a consumer walking in your doors and holding up that ad and saying, "Show me"?

Welcome to 2012, the year when things really change.

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