What Should Hospitals Advertise?

That question of course, assumes that you believe hospital advertising is appropriate. And you may well believe that it is also a waste of resources. Which I think is a most dangerous position, given the ongoing transformation of the healthcare market from a provider-directed to a consumer-directed or as some prefer a patient -directed model.

Arguments aside, what should hospitals be advertising to create an unassailable market position, a strong brand, as well as an enlightened and informed consumer? Remember, when you are marketing to consumers, they don't become a patient until they receive a service from you. So three-quarters of the time in their interactions with you, the "consumer" is only a "patient" during diagnosis and treatment.

Should it be being the best at all things or a category of service?

How about having the most current technology?

Maybe it could be who has the most quality awards and highest patient satisfaction?

Or, it could focus on the physicians with messaging about having the best specialists in the region?

Then, there is the here are the insurance plans we accept, followed by the, we have big screen TVs and private rooms.

I think, that pretty much for the most part, sums up the current state of hospital advertising. And when several hospitals are staying all of these things at the same time in a market, do you really believe that the consumer is paying any attention at all, when there is so little differentiation, it all looks like "me too" and just shouting for attention?

I am sure it makes the Board, senior management and physicians feel good. All the while your target audience receives absolutely no information that will help them make some of the most critical choices and decisions in their life.

And that can't go on any longer.

Time really to stop treating the healthcare consumer like they are some kind of idiot. People are coming to the realization that healthcare is not such the "black box that the consumer can't possibly understand the complexity of medical care".

It's time for meaningful information in the marketplace that will allow the healthcare consumer to become informed, educated and participatory in the care decision-making process. Time for marketing to begin to lead in hospitals instead of being order takers, and talking nonsense in their markets.

You should be transparent and talking about your outcomes. You need to engage in a meaningful dialogue that gives individuals the information that they want and need. The healthcare consumer is hungry for information and are searching the internet and other sources about you and how you perform. They are paying more of the cost. Demanding more say in what goes on. And don't like being treated like they are some small child who can't make a decision.

To use an often quoted metaphor, the wave of change is upon the hospital industry as we move from provider-dominated and controlled decision-making, to consumer and patient-directed, controlled healthcare. Your choice, change, be responsive and surf the wave to success, or be washed over and deposited on the ash heap of history.

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.

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Is earned media still a viable healthcare marketing strategy?

With everyone a buzz about social media, web sites, apps, channel specific publications, blogs, YouTube, twitter etc., and the supposed decline of print media, is chasing earned media still worth the effort? It does seem, except for pharmaceutical and medical device manufacturers, that earned media is on the decline for other types of healthcare organizations. And the reasons why puzzles me.

Is earned media to hard?

In any brand marketing campaign, its easy to focus on the "hot button" techniques to show the CEO and Board, that you are up-to-date and executing your marketing with the latest and greatest. Make no mistake about it, earned media is hard. You have to develop relationships with reporters. You have to plant and cultivate story ideas. You have to respond to reporters request for more information. It takes time. It takes patience. It takes resources, in a period of time where all we ask on a daily basis is, "What did you do for me today?"

And in the pressures of today's immediate gratification world, earned media seems so anachronistic.

That's a mistaken attitude.

Earned media has value.

All that content that goes online comes from somewhere. A reporter has to write it. A network broadcaster has to cover it. Columnists look for it. It goes out on facebook, web sites, YouTube, twitter and gasp, print editions of magazines, daily newspapers and specialty publications.

Since it comes under the byline of a reporter, there naturally flows some journalistic credibility that is conferred on the story. The more people say that they don't believe what they read, the more that they believe it. We are expected to advertise. We are expected to do direct mail. Communication of our brand messages and potential product experiences are expected by the consumer. Whether they believe it or not is another matter.

Earned media can become viral in nature because it has so many different outlets. When a news outlet or publication carries your brand messages, it makes what you are doing seem more believable. Once they story runs about a topic and you're the first, it's much harder for your competitors to get out there with the same message. A powerful way to differentiate yourself which also has a considerable number of aftermarket uses.

There is a payoff.

Besides the advertising equivalency return for earned media ratio and successful brand image awareness measurement, there is a compelling reason for developing earned media relationships.

Every organization will experience a communications crisis. Taking the time to develop positive relationships with reporters, blog writers, broadcast media and others has a big payoff in a media driven crisis. The development and cultivation of a relationship with media doesn't mean that the story won't run. But what it can mean, is the difference between a story that is balanced and fairly reported, versus a story that is one-sided against you. As we all know, negative news about travels farther and faster than positive news, which does more harm than good over the long haul.

So, maybe it's time to rethink that "old bygone era strategy" of actively planning for and pursuing earned media.

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.

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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.

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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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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.

More news:

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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.

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