Showing posts with label Hospital Marketing. Show all posts
Showing posts with label Hospital Marketing. Show all posts

The Re-Emergence of Centers of Excellence- Part 2

An interesting discussion started on LinkedIn in the American College of Healthcare Executives Group regarding my original blog on the Re-Emergence of Centers of Excellence. The questions as asked by Howard Gershon, Principal, New Heights Group, LLC., was how would I define a Center of Excellence? A fair question since I had not done that in the original post. My thanks also to L. Elizabeth Mullikin, FACHE, Executive Director, Neurosciences Institute at John Muir Health, Leon Harris, Administrative Resident, Providence Hospital and Roy Orr, FACHE, Consultant, Firethorne Interim Hospital Consulting for their contributions to the discussion.

I have seen healthcare organizations all over the board on the topic of Centers of Excellence. Here are the attributes that I consider to make up a Center of Excellence for any disease-state. The ones added by Elizabeth, Leon and Roy are an asterisk. These attributes are not necessarily in order of importance.

Board certified specialist and subspecialties in the disease-state
Current diagnostic and treatment technology
Standardized (where applicable) care plans
If surgical services are involved standardized surgical and medical device packs
Unique or innovative service not found in the service area*(Elizabeth)
Long-term sustainable business plan* (Roy)
Dedicated full-time CoE director or manager
Defined quality program
Center of Excellence P&L
SG&A costs below 23% of revenue
Center defined capital budget for acquisition of new technology, devices etc
Outcomes better than the national average
Active satisfaction measurement of physicians, payers and patients
Patient referrals from what would be considered outside of the normal hospital or health system service area
Fully developed patient disease-state educational materials (and that doesn't mean a pamphlet from an association or pharma)
Outcome case studies
Transparency dashboard which reports surgical and treatment outcomes, case mix index, mortality and morbidity data, financial indicators, satisfaction rates for physician, payer and patient, quality measures, market share, etc
Joint Commission CoE certification*(Leon)
Other third party external accreditation's if available for the disease-state
The disease-state is a core competency of the organization
Centers brand name and brand architecture is consistent with and fully integrated into the hospital or other providers brand plan.

Excellence means excellence. There is no half-way. If the organization is not committed to do it right, then it's just another program of the healthcare provider all dressed up with no place to go.

Michael is a fellow, American College of Healthcare Executives and a Professional Certified Marketer, American Marketing Association and can be reached at 815-293-1471 or michael@themichaeljgroup.com

Are You Working in a HiPPO Marketing Environment?

The other day, I was attending an American Marketing Association webinar on “Your Customers Aren’t Hiding the Answers, You Just Need to Know Where to Look”, sponsored by Autonomy Multichannel Customer Interaction Solutions. The presenters were Andrew Joiner, CEO and Jeff Westover, VP Marketing. (Note, I am not receiving any payment in mentioning this, but you will see why in a short bit. It’s all about full attribution.)

In one slide they presented what really summed up for me what most healthcare marketing is like. And I wish I had thought of it; which bring us back to the original question. Are you working in a HiPPO marketing environment?

H Highest
P Paid
P Position
O Opinion


Yes HiPPO! It was a moment in time where it all fell together. No marketing science, no qualitative understanding of markets, just opinion, hearsay and flavor of the day from reading an article someplace or seeing an advertisement. No primary or secondary market research or understanding customer needs except in the most superficial level. One maybe two people say something and then it’s the whole universe acts that way. I am the highest paid person here…. so go do this. A competitor does this, so you do this. I have made up my mind because I believe this to be true and I am the insert title here- CEO - EVP - VP etc.

An interesting concept that’s easy for you to determine if you too work in a HiPPO marketing environment. Take a step back and look at your healthcare company. When you do that the choices become really clear if you want to succeed.

My read on this….

A HiPPO organization will never reach its full potential and is characterized by a lack of sustainable mission, vision and values, short attention span, constantly shifting plans and priorities, inability to execute operationally, constant crisis and chaos and lacks a formal integrated planning process. Communication is poor interdepartmentally and marketing is seen as doing “stuff”. Proposed marketing solutions are seen an “elegant” and not as the right way to build revenue and brand because they aren’t expedient. It’s all about the HiPPO and what they believe regardless of any lack of foundation in reality.

I do think my time for change has come.

Is there hope for hospital marketing leadership?

Is there hope for hospital marketing leadership?

A broad question which is really more than just a simple yes or no. And I for one, really don't know if an answer is possible due to the complexity of the question. Here's why......

A couple of weeks ago, I had an interesting conversation with the CEO of a hospital regarding a Vice President of Marketing position, or was it Director? They hadn't quit made up their minds and advertised it as Vice President while their web site indicated Vice President/Director, the HR person said Director while the CEO never committed. Just a few red flags.

Another red flag was that the hospital set-up the interview for a specific time and they would call. The day came and yes they called.... 10 minutes late. No apology, no explanation, no initial courtesy to extend any kind of acknowledgement that my time was as equally as valuable as theirs.

The CEO and the Director of HR on one end of the phone and me on the other. The HR person never said a word the entire time. The CEO did all the talking. Another red flag.

We covered the usual questions. He really had not read my resume or application like he stated he did. When referencing some of the resume, he was a surprised oh really.... another red flag.

Then came the clincher. What do you do best Michael? Is it research? Design ads? Write copy? What do you.. do best?

My answer was marketing strategy and leadership. Well, it sure became quite. A buzz kill if there ever was one. That was not what the CEO was looking for. I explained that tactics are easy, strategy is hard. Marketing strategy is a coming together of critical key organizational leadership - senior management; Board of Directors; and physicians. Marketing strategy is built upon the business plan, financial plan and strategic plan of the hospital. Marketing leadership motivates, inspires excellence, rewards individual accomplishment, builds teams, doesn't care who gets the credit and grows the entire organization, not just a department. Marketing sits at the leadership table.

The concepts were foreign. Marketing to this CEO was ads, copy and stuff. Not leadership, not direction, just him telling you what to do and when to do it. Marketing does not sit at his leadership table.

By this time, I had lost any interest in the position.

Unfortunately, this type of story is replayed day-in and day-out around the country. Marketing does not sit at the senior leadership table. Marketing is seen as stuff. Marketing is not integrated into the culture and values of the organization. Hospitals, even after the advent of DRGs in 1983, still don't get marketing.

And I have been on both sides- for-profit healthcare GPO, international, medical device and pharmaceuticals and not-for-profit hospitals, integrated multi-state, multi-hospital health systems and nursing homes with some very important learning's.

Being in the for-profit world now, marketing strategy, leadership and execution is everything, not just "stuff".

Marketing leadership and strategy in the hospital segment of the healthcare industry is in deep trouble. A lot of that is due to the ego driven persona's of senior management, insular cultures divorced from the real-world and organizational arrogance because they are a "not-for-profit" "doing good things" so that means they can do whatever they want, as well as blame everyone else for the state-of-the-industry. It is also complicated by a lack of marketing knowledge. As the old saying goes, "you don't know what you don't know".

And with healthcare reform on the horizon, marketing leadership, strategy and execution will be needed more than ever.

Look around, for-profit companies are already at the fringes of the hospital world and making headway all of the time. Walgreens, CVS, Walmart and others play for keeps. The recognize a need, build a program and execute. They are not going away like some of my colleagues have expressed. They have plans laid for areas and stand to benefit from them financially while improving care and customer service at you and your physician's expense. Retail clinics, infusion centers, home health care is just the beginning.

Your future is not as bright as you may think it is. Time to get your marketing strategy and leadership act together. Your future depends on it.

Battle Lines Are drawn

With the Senate yesterday introducing a HC reform bill, its clear that the battle lines are being drawn between a government insurance option vs big insurers. Expect the Obama PR team to hammer big insurers and enhance the public already aving a strong dislike of healthcare payors.

What does that mean healthcare providers?

Watch the battle closely, you will have to choose.

What to do.

LEVERAGE, LEVERAGE, LEVERAGE...

Marketing departments should be working with senior leadership and in their communities to get a pulse from all constituent groups, not just favorites on the topic of healthcare reform.

As issues develop create media statements for local press on why you do or do not support.

Consider offering your facility as a town hall meeting place.

Find out where your docs are at. Help them understand the issues and develop PR/Media kits for them to use.

Consider web site updates and links to various organizations.

Become the local expert source for commentary and opinion.

Get leadership up to speed and in an Executive Speaker's bureau on the topic.

Move fast. Be proactive . Define your usefulness in this process.

Billions and Billions and Billions......

$150 billion dollars for healthcare in the stimulus bill, $19 billion of which is for IT. Think everyone is trying to figure out how they get theirs? And I don't mean the hospitals and IDNs. I figure McKesson and Cerner are well on their way, including a host of other niche players (small and large) healthcare IT providers trying to figure out (as if they haven't already) what's in it for them.


With all the different systems and no common standards will this turn into a really more expensive version of the Betamax vs VHS video tape format wars from the mid 1980s with that ancient technology of VCR?


Now the budget contains another $600 billion plus for healthcare reform. All told, this totals in excess of $700 billion. Just the first down payment for fixing the system folks. I bet the AHA and AMA are busy figuring out how much they can get without having to change anything.


Like I said in previous blogs, its all about politics. Obama being a veteran of Chicago politics, knows that when he figured out how everybody gets theirs, reform happens. It has to happen. It is going to be expensive.


Now for all you CEOs out there who think they can hold on for a couple more years and things will go back to the way they were, hold on for the ride. If we can come up with a European style healthcare system- maybe. If we have the Great Britain Universal Healthcare System- here comes rationing and long waits.


To all those hospital marketing departments out there, here is a clue for future activity regardless of the system. Americans hate to wait in lines. So, your job is to figure out who can pay privately to not wait in queues for service. That's the nugget.

Why? Think about what happens when you suddenly increase demand and all those hospital beds that have been taken out of service. Combine that with a primary care physician shortage and lack of RNs, you get the idea.


Anything else and you have to hire me as a consultant.


Cheers........