Will There be Brand Conflict Between Traditional Healthcare Organizations and an ACO?

Have you considered the question of your brand, or brands, the ACO brand you may create, or as an ACO participant? This is really a much more important question than you may think. For some healthcare organizations, it won't be, as they have a highly developed brand architecture and strategy. For others, that haven't been paying as much attention to their brand architecture and strategy, it will.

I would surmise that large healthcare systems and payers will be ahead of the branding game, and able to seamlessly create and launch an ACO under their current brand umbrella. I think the brand challenge for healthcare systems, will be when they have to contract for services outside of their traditional system.

In those organizations that have more brands under the sun than stars in the galaxy, it will be a challenge supreme. That is what happens when there is no clear marketing leadership in most of these healthcare organizations. If you did the brand market research as well, you would probably find in these organizations, no clear brand recognition and brand confusion in the marketplace.

Creating a brand for your ACO or participation isn't just throwing a name and logo up. Some items you need to consider:

How does the ACO fit into the brand architecture of the organizations?

What will be the ACO brand impact on the existing organization? If you are reducing cost, providing higher quality medical services and better outcomes, you need to consider that impact on other populations served not in the ACO. If they are not recipients of all these ACO benefits in their care, regardless of payment model, you are in for a world of hurt.

Does your brand promise for the ACO fit in with the brand promise for the traditional healthcare organization, outside of the ACO?

Are you a house of brands, needing to create and implement a brand architecture, fixing all those service and clinical program line brands?

What are the resources you have committed to creating the ACO brand, its brand promise, brand value and brand awareness?

Did you consider the need for market research to fully understand you current brand position and how the ACO will make an impact on existing brands? Did you budget for that expense?

Are you ready for the expense of fixing you multiple brands, creating a clear, definable brand architecture and strategy?

Will you create and implement organizationally, a brand manual that everyone is accountable to follow?

Will senior management support marketing in being the "brand police"?

This list isn't all inclusive. But, you have to start somewhere. Sooner rather than later.

On another note, Healthcare Marketing Matters is now read monthly in 49 countries. With some of the request for information and comments I receive, the U.S.A. doesn't have sole ownership of cost and quality issues. Others around the world are facing the same things more or less. And from what I can tell, have been far more successful than us.

Medepage (you can find a link in my notable sites), is an Australian- based international healthcare job search site, has added a blog feed from Healthcare Marketing Matters to its site. Thank you Tony!

With the upcoming Thanksgiving Holiday next week in the U.S., I am not sure if there will be another post. The kids are off high school and the wife took off a couple of days. So maybe it's time to step back and recharge for a few days.

Thanks for reading

>>> Will There be Brand Conflict Between Traditional Healthcare Organizations and an ACO? >>>

Welcome to Accountable Care Organizations- Marketing Does Matter

On March 31, 2011, the healthcare system in the U.S. began to change forever with these words:

"An ACO will put the beneficiary and family at the center of all its activities. It will honor individual preferences, values, backgrounds, resources, and skills, and it will thoroughly engage people in shared decision-making about diagnostic and therapeutic options."

With these words, CMS has taken the bold step of moving the healthcare system from a provider-directed healthcare enterprise to a consumer-directed healthcare system. And the implications are enormous. It is also apparent that this will require leadership skills and abilities at the integration of culture and care. No more spin of shifting here among reimbursement options, playing docs off of one another, or avoiding difficult decisions.

Welcome to consumer-directed healthcare.

Eagerly or not so eagerly awaited, these 429 pages of proposed regulations mark the beginning of a great national discussion that will fundamentally change the healthcare delivery system in the U. S. Much as been written already by such publications as Becker's Hospital Review and more to follow.

Most of the commentary is focusing on the organizational structure and what it will require to successfully develop an ACO. My focus though is in what are the marketing implications? And there are many for what in the regulations is really a very small and insignificant portion, but can get newly developing ACOs in some serious difficulty should they fail to strategically plan and execute marketing properly. So, from the proposed regulations we find as an example:

11. ACO Marketing Guidelines:

"We believe there is a potential for beneficiaries to be misled about Medicare services available from an ACO or about the providers and suppliers from whom they can receive those services. We realize that care coordination is an important component of the Shared Savings Program; however, the potential for shared savings may be an incentive for ACOs, ACO participants, or ACO providers/suppliers to engage in behavior that may confuse or mislead beneficiaries about the Shared Savings Program or their Medicare rights.

As a result, issuing beneficiary communications or engaging in marketing activities that may be confusing or misleading would not be patient-centered because these activities restrict the ability of beneficiaries and/or their caregivers to be informed about their health care choices and thus limit the opportunity for beneficiaries to be properly involved in the management of their own care. We are proposing that all ACO marketing materials, communications, and activities related the ACO and its participation in the Shared Savings Program, such as mailings, telephone calls or community events, that are used to educate, solicit, notify, or contact Medicare beneficiaries or providers/suppliers regarding the ACO and its participation in the Shared Savings Program, be approved by us before use to protect beneficiaries and to ensure that they are not confusing or misleading. This requirement
would also apply to any materials or activities used by ACO participants or ACO providers/suppliers on behalf of the ACO to communicate about the ACO's participation in the Shared Savings Program in any manner to Medicare beneficiaries. In addition, we would want to ensure that materials distributed to beneficiaries do not misrepresent Shared Savings Program policies or suggest that we endorse the ACO, its ACO participants, or its ACO providers/suppliers.

We are further proposing that before any changes can be made to any approved materials, the revised materials must be approved by us before use. Finally, because the failure to comply with these requirements would demonstrate that the ACO does not meet the patient-centeredness criteria and therefore may no longer be eligible to participate in the program, we propose that an ACO that fails to adhere to these requirements may be placed under a corrective action plan or terminated, at our discretion.

For purposes of the Shared Savings Program, we are proposing to define ACO marketing materials, communications, and activities as including, but not limited to general audience materials such as brochures, advertisements, outreach events, letters to beneficiaries, web pages, mailings, or other activities, conducted by or on behalf of the ACO, or by ACO participants, or ACO providers/suppliers participating in the ACO, or by other individuals on behalf of the ACO or its participating providers and suppliers. If these materials or activities are used to educate, solicit, notify, or contact Medicare beneficiaries or providers and suppliers regarding the ACO and its participation in the Shared Savings Program, they must be approved by us.”

Marketing Does Matter

For those who have worked in pharmaceutical, medical device and health plans, you all know full well what happens when marketing materials are misleading and have not been approved by the responsible regulatory agencies. This just isn't throwing some brochures or flyers together, this requires high-quality, professionally-produced materials.

So as you being to assess you organizational capability, several marketing considerations become apparent:

Marketing needs to be at the table in the ACO development and decision making process as a senior management contributing member.
Marketing resources and systems need to be planned for.
Seek out an agency that has pharmaceutical, medical device and or heath plan experience. They already know what it's like to deal with and how to deal with regulatory agencies. This isn't something you do in-house.
Develop a highly integrated strategic marketing plan. Clarify brand architecture, messaging, and outcomes. Tactical execution comes last, not first.
Honestly assess the marketing organization, talent and level of expertise existing within the organization and change it if necessary. Seek out individuals with pharma, medical device or health plan expertise.
Understand this is not about making things look pretty.
It's not about you but about the consumer.

And this is important, it is not just communication strategies.

The regulations will change over the next year as comments are taken and considered. Even with change, these are marketing steps your organization needs to be taking anyway. You will be a lot better off in the long run.

By the way, did I mention the 65 quality of care indicators for ACOs that you will need to report on as well?

2012 is almost here.

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 36 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 815-293-1471 mailto:ormichael@themichaeljgroup.com . 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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>>> Welcome to Accountable Care Organizations- Marketing Does Matter >>>

7 Keys to Marketing ACOs and Keeping Your Patients

With the Patient Protection and Affordable Care Act (PPACA), impetus was created to drive providers to create Accountable Care Organizations (ACOs). Interesting in that the ACO model was left open. That is, patients can move outside of their ACO home for service and care. Unlike Health Maintenance Organizations (HMOs) where care was restricted to in-network providers, planners were afraid of the backlash that would occur if they created a closed-model HMO style, ACO model for Medicare beneficiaries. Studies suggest that up to 1/4 of beneficiaries enrolled in ACOs would not stay within the ACO network and would need incentives to do so.

That is a big out-of-network churn rate and too expensive to the ACO.

So what is a healthcare provider to do?

1. Make sure that you have a Customer Experience Management Program place. You need to be close to your members by understanding their current needs and how their needs change over time. This is consumer-directed healthcare not provider-directed healthcare. If you don't meet the experience needs of your consumers, then they will go out-of-network or leave all together. This means listening too, instead of talking at, your customers. It means constantly monitoring that state of the experience.

2. Invest heavily in customer service training. "The Patient", aka customer, is not here to serve you, you are there to serve them. You can never have enough customer service training. A well developed, and implemented customer service program will contribute in significant ways to keeping patients in your ACO. Exacting customer service standards for employee behavior with measurable and reviewed individual performance goals and objectives, are the only way to ensure that exceptionally high levels of customer service are deliver across the entire organization. What gets measured gets done.

3. Brand is everything. A highly developed brand, brand promise and brand promise execution in the organization is essential. Promotional materials, patient education materials etc., need to be of high value, provide useful and usable information, as well as reflect the experience that you want patients, caregivers and customers to have when interacting with your ACO. Your key message must be consistent across all materials. Your employees need to be trained to be brand ambassadors.

4. Define and market the customer experience around quality and outcomes. People will be buying based on price and quality. Since more of a financial outlay will be coming from individuals, they will care about the price they are paying in the way of insurance, co-pays or deductibles. If the patient does not believe that they are receiving exceptional quality and service for the price paid, that will become a large motivator for going out-of-network or changing ACOs all together. You need to be the transparent organization in price, value and quality.

5. Create incentives to use you and not go out-of-network. That may mean lower copayments and premiums. It may mean loyalty programs with no wait services. Online registrations for care etc.

6. Communicate in a variety of ways the value and benefit to the consumer for using you. Educate them to understand why you are better than the next ACO down the street. Don't assume anything. Differentiate!

7. Make access seamless and easy to use. One ACO to the customer/patient, one customer/patient to the ACO.

You can continue the conversation with me on:
LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter: http://www.twitter.com/mkrivich


Michael Krivich is a senior healthcare marketing executive and internationally followed healthcare marketing blogger read daily in over 20 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 for hiring as your senior marketing executive , for interim assignments in all aspects of healthcare marketing whether it be strategic or tactical market planning, customer experience management, rebuilding and revitalizing your existing marketing operation, integration of sales and marketing teams, media relations or service line revitalizations. 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.

>>> 7 Keys to Marketing ACOs and Keeping Your Patients >>>

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:

Healthcare Marketing Matters is now read daily in over 20 countries around the world in excess of 550 page views a month. Welcome to the newest readers: Taiwan, Hong Kong, Singapore, South Africa and the Philippines.

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.

>>> Marketing Accountable Care Organizations >>>