Category Drill-DownHealthcare

Terri Whitesel, DeKalb Medical

Key Questions Going In …• What are the top 5 trends influencing hospitals and the availability of

Marketing/Advertising dollars?

• What are the key things we need to know about a hospital before we go on a hospital sales call?

• What services or programs make the most sense for hospitals to sell via radio?

• Who is the buyer/influencer in the buy?

• Are physician practices a target for our radio sponsorships?

• What resources do you recommend to keep informed?

• Can you give us some background on your hospital system and how the facts we have just reviewed impact your planning?

• How are you using NPR to help drive patient business?

HOSPITAL MARKETING 2013

HOW TO SELL, GROW AND PROSPER IN THE SEA OF HEALTHCARE CHANGE

Critical Trends

Trend #1: Reimbursement & Utilization Declining For the past 40+ years we saw increases

in both inpatient and outpatient services and were paid ‘fee for service’

Beginning in 2009, in/outpatient utilization decreased and elective surgery began to be postponed as a result of the economy

At the same time, patients out-of-pocket costs for healthcare services increased (higher deductibles)

Reactions to the Change

Reduced utilization and reimbursement are forcing: Portfolio of Services reduction Redefining of core businesses/services Development of service distribution systems Taking on more unpaid debt for those unable to

pay for service

How could this impact your sales? Services that were once marketed may be cut Services that were not marketed may be

promoted

Trend #2: The New Business Model The Past – Fee for Service

More market share More patients More services

Equaled More Revenue – size and scale of healthcare systems not as important

New Model – Shared Risk – Value-Based Delivery Best possible quality At the lowest price Hospitals, doctors truly working together to care

for patient before, during and after hospitalization

Size matters

Old World New WorldMedicare/Medicaid Fee-for-Service model

Everything to everybody

Competing services among local hospitals in close proximity

Largely hospital-based delivery system

Focused on in/outpatient care

Every man for himself

Best Possible Care

Highest Possible Quality

Lowest Possible Cost

Shared Risk Between Physicians and Hospitals

Doctor/Hospitals Tasked with Pre- and Post-Care

How Could This Impact Your Sales? During this transition additional dollars may not

be as available for advertising As new ACOs (Accountable Care Organizations)

begin to form, the transition and learning curve may delay marketing of services

Once the continuum of care and its methods are established new opportunities for ongoing communication to the public about the benefits of these programs could open new doors for advertising

Trend #3: Consolidation

Consolidation will increase, taking advantage of size and scale

Regionalization of local markets - players are re-aligning, past enemies join for survival

How Could This Impact Your Sales? Less individual accounts, but larger single accounts Multiple service lines could collapse to one big

hospital/service single provider ‘owning the market’ Buys for media could be regionalized or centralized

requiring a more national account sales effort

10 Largest Health Systems by Hospital Ownership

Dept. of Veterans Affairs – Washington, DC 158 40.7Universal Health Services – King of Prussia, PA 157 20.4HCA – Nashville, TN 140 34.8Community Health Systems – Franklin, TN 110

17.9Select Medical Corp. – Mechanicsburg, PA 108 5.1Kindred Healthcare, Inc. – Louisville, KY 100

7.4HealthSouth Corp. – Birmingham, AL 76 5.1LifePoint Hospitals – Brentwood, TN 51 5.9Catholic Health Initiatives – Englewood, CO 45 6.8Tenet Healthcare Corporation – Dallas, TX 43 12.1

Source: Billians HealthData 10/2012

HOSPITAL SYSTEM # OF HOSPITALS #BEDS

1. Ascension Health (St. Louis, MO) – 81

2. Catholic Health Initiatives (Denver, CO) – 76

3. Trinity Health (Novi, MI) – 49

4. Adventist Health System (Winter Park, FL) – 41

5. Dignity Health (San Francisco, CA) – 40

6. Kaiser Foundation Hospitals (Oakland, CA) – 36

7. Catholic Health East (Newton Square, PA) – 35

8. Sanford Health (Sioux Falls, SD & Fargo, ND) – 34

9. Carolinas Healthcare System (Charlotte, NC) – 33

10. CHRISTUS Health (Irving, TX) – 32

11. Providence Health System (Seattle, WA) – 32

12. Mercy (Chesterfield, MO) – 31

13. Baylor Health Care System (Dallas, TX) – 30

25 Largest Non Profit Hospital Systems

14. Avera Health (Sioux Falls, SD) – 29

15. Iowa Health System (Des Moines, IA) – 26

16. Banner Health (Phoenix, AZ) – 25

17. Catholic Healthcare Partners (Cincinnati, OH) – 24

18. Sutter Health (Sacramento, CA) – 24

19. Mayo Clinic (Rochester, MN) – 23

20. Intermountain Healthcare (Salt Lake City, UT) – 22

21. NewYork-Presbyterian Healthcare System

(New York, NY) – 20

22. Adventist Health (Roseville, CA) – 19

23. Bon Secours Health System (Marriottsville, MD) –

19

24. IU Health (Indianapolis, IN) – 17

25. SSM Health Care (St. Louis, MO) – 17

Source: Hospital Review 7/24/2012

Trend #4: Electronic Medical Record (EMR) – Technology Technology will be a major disruptor Large percentage of hospital budgets required to

accomplish the needed integration both internally among their systems and externally among their new collaborative health partners

How Could This Impact Your Sales? Large outlays of cash needed for marketing are gone Underestimation of cost not uncommon, so budget cuts

mid- stream can occur An increase in digital offerings to supplement traditional

radio sales may be required as value add to support the hospitals’ need to reach the virtually monitored, treated and supported e-patient

Trend #5:Owning the Physician Supply Chain

Employ Primary Care Physician

Employ PhysicianSpecialist

Why Do This? Lab work, imaging, surgery centers, physical therapy all can be physician-owned, and dollars associated with each service ‘walk out the door’

How Could Employing Practices Impact Sales ?

Could provide new need to market physician practice network

Could eliminate a previously large, independent practice client making them now a hospital account

Marketing the practices requires both hyper-local and localized marketing…radio may be too broad or only serve

to support Brand marketing of the growing physician network

The employment trend may influence physicians to consolidate to larger practices to remain ‘independent’ – this could yield new large practice clients

Things You Need to Find Out About Your Target Hospital Is your target hospital private, public or a

community hospital? What is its fiscal year? What hospitals are the key players in your market? What is your target hospital’s key service line(s)? Does your target hospital have any Centers of

Excellence? What are the hospitals consumer-driven services? Is your target hospital selling Brand or a particular

procedure(s)?

Things You Need to Find Out About Your Target Hospital (continued)

Is your target hospital on a physician practice buying spree?

Was your target hospital just purchased; if so, why and what happened as a result?

Did your target hospital buy any large physician specialty groups? Did anyone buy a large group of their key physician specialists?

How much of your hospital’s patient base is uninsured/Medicaid?

Where is your target hospital in its adoption of electronic medical records (EMR) systems?

Matching Your Demos to the Hospital Key Service Line Demos Today’s money makers and

differentiators in healthcare… Cancer Orthopedics (hip, knee, spine) Surgical Weight Loss Cardiology/Interventional, Vascular Centers of Excellence (Surgical Weight

Loss…) Transplantation Neuro Sciences

Who Are the Buyers & Influencers ?

VP/SVP of Marketing VP/SVP of Planning Service/Product Line Managers Head of Foundation

Where Do You Find Out Who These People Are? Target hospital’s website (About Us, Management Team …) Hospital’s community newsletter and Annual Report Calling and inquiring about a service directly as if patient Donate $$ to the hospital (if allowed, target your donation to a

specific service line which will give you access to networkable events and information that will help you make more informed sales calls)

The Business Journals (bizjournal.com) and their Book of Lists

Targeting Large Physician Practices

• Universe is small – 3,000+

• Of the 3000+ groups, many are NOT consumer-driven services

SOURCE: http://www.skainfo.com/health_care_market_reports/largest_medical_groups.pdf

Targeting Large Physician Specialty Practices

Proliance Surgeons (Seattle, WA) – 100 orthopedic surgeons, 13 surgery centers

Resurgens Orthopaedics (Atlanta, GA) – 85 orthopedic surgeons, 18 offices, 6 surgery centers

Illinois Bone & Joint Institute (Morton Grove, IL) – 90 orthopedic surgeons, more than 20 locations

OrthoCarolina (Charlotte, NC) – 70 orthopedic surgeons, 13 locations

OrthoIndy (Indianapolis, IN) – 65 medical professionals, 11 office locations,and operate the Indiana Orthopedic Hospital in Indianapolis Midwest Orthopaedics at Rush (Westchester, IL) – 31 orthopedic surgeons, 5 locations

Steadman-Hawkins Clinic (Vail, CO) – 20 physicians, 4 locations throughout Colorado and at one location in Spartanburg, S.C

The Hughston Clinic (Columbus, GA) – 19 physicians, 8 locations

Kerlan-Jobe Orthopaedic Clinic (Los Angeles, CA) – 18 physicians

SOURCE: June 02, 2009 Data

Keeping You Informed Sign up for hospital’s community newsletter Set up Google alerts with all the hospitals’ names in your

market and READ the alerts Set up Google alerts about your target hospital’s key service

lines and READ the alerts Review your hospital’s YouTube channel

Getting Your Foot in the Door Join your local state hospital association Offer to present an INFORMATIVE presentation about radio

buying to new employees who may be gatekeepers and who need to learn about radio

Donate/volunteer at the hospital and/or its Foundation to make some contacts and NETWORKKKKKK

Keeping Informed About Service Lines

RSS Feeds – Direct To Your Inbox

Kaiser Family Foundation

http://kff.org/statedata/

The Agape Center

http://www.theagapecenter.com/Hospitals/

Pew Internet – Health Topics

Government-Driven Programs

ObamaCare Accountable Care Organizations (ACOs) Health Care Insurance Exchanges

No one knows the outcome; all states are involved at some level. Keep abreast of your state and your target hospital’s position and involvement in the above.

DeKalb Medical – NPR Partnership

Patient centricPatient ‘actors’Patient success stories

Microsites & Website

www.atlantacancerstories.com

www.atlantaorthostories.com

It’s All About Conversion… It’s All About Integration NPR Radio mentions

Community Doc Talk (physicians, patients present)

Attendance (targeted, paying customers)

Appointment setting via call center

Procedure conversion via physician

Additionally each talk supported by: Print, banner, PPC (pay per click) ads Direct Mail, Pushing Beyond community magazine

focused article Website promotion and Facebook event posting

Questions

Good Luck!!!!!

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