How Marketing's Role Will
Change Post Reform
 


 


Who Moved My Dentures? Musings on Aging and Healthcare

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So here's a question - will health care marketing be relevant after reform? Or maybe the question is - will we call it marketing any longer? 

Here is my two cents.  I still in 20 years have not seen much change in how health care is so called marketed in this country. I still see billboards, newspaper and television advertising that is irrelevant to most and that is selling specific services. And they are selling 'sick' services as reform is trying to move us to 'wellness.'

When we all of a sudden have a huge access issue (read 50 million more people with insurance), we will also have a huge patient experience issue and a public relations issue at the end of the day.  Things will get worse before they get better.

The following recently caught my eye.

Middlesex Hospital in Connecticut has started putting ED waiting times online to direct patients to the facility with the shortest door-to-doctor wait, based on current patient volume. The idea behind the program is to ease overcrowding and to alleviate problems associated with a shortage of specialists. The Connecticut program is modeled after one in New Orleans. Studies there have found that a good number of patients would seek out the emergency department with the shortest reported wait.

OK, that doesn't address a systemic issue, the misuse of the ED, but at least it attempts to address access.  And this remember is in a state that mandated coverage for everyone.  So even after all people in theory were covered, they did not access the system any more intelligently.  

Marketers Must Be Educators

When I came into this profession in the Stone Age, healthcare marketing was just 'invented.' What we actually did was perform good old solid community relations and education.  And that is the role I see marketing moving back into in the future. We are going to have to educate people on how to access the system. As Middlesex did it may involve the use of online tools but could just as well mean the use of community liaisons that are active in your primary service area, just as we utilized way back in the 80's in inner city Philadelphia.

While I applaud any attempt at education around wellness and the marketer's role-be it through online assessments, preventive screenings, etc.-frankly until the reimbursement systems starts paying for wellness, this is more lip service than anything. Bundled payments, not reimbursing for never events, even looking at readmission rates and reimbursement-all of these are carved around episodes of sickness. Keeping people well and out of the hospital is not how hospitals are paid. That does not look like it will change after reform. Diverting inappropriate traffic from the ED, partly because of the PR and experience ramifications, might be the short-term goal of any wellness slant.

Marketers Can Influence Brand Extensions

Part of the access issue will be the ability to direct care to the most appropriate settings.  Hospitals missed the boat somewhat in getting in on the ground floor of the retail clinic movement.  Yet there are probably still opportunities.  True strategic marketers will help influence operational behaviors.  That may include opening retail clinics, partnering with others to do so or operating the clinics of major retailers.  Or it might mean looking at other delivery mechanisms.  Jay Parkinson, M.D., a Brooklyn physician, conceived what I call a blue-collar concierge approach to primary care medicine and it was initially aimed at the artist community in his neighborhood who could not afford health insurance. For a set fee he would visit patients in their home, then provide them with virtual access - emails, video chat - and cell phone access to assure ongoing care.  That model has evolved into
Hello Health.

Marketers Must Understand Medical Home and Medical Tourism

There has been a lot of talk about this concept of medical home. The idea is not that different from the managed care concept of gatekeepers except that the tone is different. Whereas managed care tried to control and mandate access, the medical home concept is about getting to know each person and their needs and assure that their care is coordinated. Through coordination come costs savings and fewer hospitalizations. Well hospitals would seem to not benefit on the surface. However as insurers see their claims drop the thinking goes that they will save a huge amount of money and actually be willing to relinquish some of that back to hospitals through more favorable rates.

For marketers fewer admissions should mean more intense scrutiny in holding the organization accountable. In short if something is not a center of excellence, by whatever internally and externally defined parameters you define, don't offer and market it.  Even more, make the center of excellence a destination center that people will travel to because of the quality and the experience. It has been shown that healthcare is not necessarily local any longer. It doesn't mean having to go overseas or just going around the U.S. to the name healthcare brands. It could mean jumping across counties or states to go to a destination joint camp that is known for its outcomes and its patient experience.

Some may argue that the sheer number of elderly and boomers will keep hospitals packed no matter what the scenario. That might be true to an extent. But a more educated consumer, a shopping consumer, a demanding consumer could mean that you have to think beyond primary, secondary and tertiary service areas to a brand new unlimited service area. And as you empower consumers add transparency of quality and price to your list of responsibilities. With that you can easily see online strategies and social media becoming more a part of the marketing mix. In terms of price, I hosted a roundtable on price at a national marketing conference earlier this year. No hospital marketers felt compelled to sit at the table (at least until there were no seats left at other topics and they wanted lunch!). So that should indicate we have some work ahead of us to embrace the issues that the public is already embracing.

So What About ROI and Budgets?

In healthcare, ROI will remain fuzzy as long as there is no direct selling process so I don't look for any real answer in showing ultimate value through numbers.

In terms of budgets, in the short term I see them increasing at least until the advertising wars stop. That is a hard sell but they really need to. The public is picking up on how all of the advertising (the most costly part of the marketing budget) is just adding to the healthcare costs. The Internet will continue to evolve into the great leveler of the playing field. Only until marketers understand how to better leverage word of mouth and feel safe letting go of their safety net (advertising) will budgets adjust accordingly.

The profession will remain strong from a head and body count, though budgets for non-salary expenses, such as ads and publications, will decrease. 

So given all that, will we call what we do marketing in the future? What do you think? And are you ready for the new world order?

 

 

 

@Copyright 2009, Fast Forward Consulting
cirillo@4wardfast.com