The Changing Role of Healthcare Marketing

Much has changed in 2010. One could say a titanic shift that has created a tsunami that is in its early stages of being felt. With that in mind, it begs the question of what is, or will be the role of healthcare marketing going forward?

Healthcare reform simply will not be repealed. Adjustments will be made and the legal challenges will continue to be filed for several years, but overall repeal is a distant dream of the far conservative right. Despite the public pronouncements, a significant amount of money in the billions of dollars in future revenue and earnings is at stake for all the players to allow for regression.

In a time where the majority of individuals and families have some form of health insurance, I believe that marketing will have a role to play that is much different and more important than today. In an age of healthcare consumerism with patients controlling their health information, (and yes individual health information is the property of the patient, not of the doctor, not of the hospital, not of any healthcare provider), marketing needs to take on a significant role in the life of the healthcare organization beyond the traditional communication activities.

Marketing healthcare organizations contrary to a popular myth, is not any different from what occurs in other industries. It is similar to the conceptual myth of not-for-profits. There is no such thing as a not-for-profit. There are legally defined tax-exempt organizations, but no not-for-profits. I digress, for that is a topic for another day.

Many of the traditional marketing activities will continue as well as the new social media and online marketing. Those won't go away, but will become more highly integrated, brand strengthening and value driven across service lines.

Understand that I am not talking about pharma, medical device manufacturers, insurance companies, suppliers and retailers moving into the healthcare space. They get it. They understand the power and importance of marketing. This is for all the other healthcare providers that are still trying to operate like its 1990.

The Expanded Healthcare Marketing Role:

Marketing Leadership

Moving from the manager or director level to the VP senior manger level. Marketing is strategy first, tactics second. The voice of marketing should reflect the voice of your customers and not be a second thought. Your future programs and services will be determined by the needs of the market, not your gut feeling. You cannot become a customer-driven or market-driven organization if the skills and experiences of marketing is not at the leadership table.

Managing the Patient Experience

Managing the patient experience. If anyone is prepared to understand and mange the patient experience across the organization it's marketing. Hospitals in particular are making the mistake of putting operations in charge of patient experience. This is an oxymoron really. For the most part Ops can't get a discharge process together in less than 3 or 4 hours. How can you expect them to manage the patient experience? Patient experience means just that- understanding what that patient experiences is at all touch points. And then changing or managing that experience to its fullest potential for the benefit of the patient and the organization. Patient experience is an integrating process across the entire organization internally and externally. One organization to the patient, one patient to the organization. It is not simply another quality program or flavor of the day.

Understanding and Executing Demand Management

The hospital is no longer the center of the healthcare universe. The Patient Protection and Affordable Care Act (PPACA) is designed to keep people out of the hospital. You can actually see a hospital admission as a defect in the process of care. Marketing needs to understand what the demand for healthcare services will be, when they will be needed and manage that demand making sure that the hospital or health system has the right resources, in the right place, at the right time to meet demand. Gone are the days where marketing departments will be driving demand to fill hospital beds. They will drive demand to the appropriate place and location of service.

Becoming a Revenue Marketer and Having Revenue Accountability

Return on Marketing Investment (ROMI) is necessary for anything marketing accomplishes, traditionally, socially or online. Marketers in healthcare organizations need to become revenue producers, not resource consumers that show little value beyond, it looks nice. In fact, marketing should have P&L as well as an SG&A accountability for many of the products and services being offered by a healthcare organization.

Marketing the Manager of Change

Who better in an organization than for marketing to manage the healthcare organizations transformation from an inward-focused it's all about me, to an outward-focused market and consumer driven organization? Open to much debate, this is probably the most controversial look at the expanding role of marketing. Individual who have looked internally at their organizations all of their careers, do not necessarily have the skills, training or abilities to change an organization 180 degrees. And that is the type of change we are talking about here.

The future of healthcare holds great challenges and opportunities. Time for proactive change instead of reactive change. Clocks ticking and you're being left behind.

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, 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.

>>> The Changing Role of Healthcare Marketing >>>

Tis the Season to Leverage Healthcare Quality Awards

Healthgrades, Malcolm Baldrige, Thompson Top 100, U S World & News Report and others are making their healthcare quality rankings for various diseases known. And if the hospital or health system is willing to pony up some cash, they too can use those rankings in their marketing and PR efforts.

But beyond the obvious campaigning, what I fail to see is how health systems or hospital awardees are communicating in any meaningful way what those quality awards means to the healthcare consumer. As I have written in the past, what is the value of that information to the healthcare consumer? A nice representation of the actual award and saying are in the top 5 percent nationally in (insert disease here) leaves it kind of lacking. Especially when other hospitals you compete against are making the same claim.

Wasted Opportunity

A shame really. The campaigning I am seeing in its current form treats the healthcare consumer like they are some kind of idiot. It also reinforces what the healthcare industry has been crying about that healthcare is more complicated than a 5 star rating. An inadvertent consequence nonetheless, you are creating the simplistic 5 star rating system yourself by how you are all campaigning the quality award. Be careful what you ask for because you just might get it. It's about the value not to you, but to the healthcare consumer. Instead of talking at the consumer, grab the opportunity to make the award meaningful in the eyes of the healthcare consumer, instead of taking the easy way out and puffing out our chest to say look at me.

Leveraging the Opportunity

The networked patient is one who is hungry for information. And patients are networked today more so than at any other time in the history of healthcare. The future will only make it more so. So why not get ahead of the curve and start making your ads and marketing communications pieces more value driven and providing healthcare solutions to the consumer?

Explain what that award means to the consumer. Define the value. Show how it separates you from all the others. Communicate how it reinforces your brand and brand promise. Use the award to create trust. Define the award experience in the patients terms. Just don't throw it out there and say we are in the top 5 percent or whatever. That is not meaningful to anyone. In an age of outcomes transparency, quality accountability and consumer choice, those ads sorely fail.

Maybe the opportunity is to create that 5 star web site based on those ads? Hmm......

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 internationally followed healthcare marketing blogger with over 1,000 monthly pages views reviewed in over 20 countries around the world. I am a Fellow, American College of Healthcare Executives as well as a Professional Certified Marketer, American Marketing Association. You can reach me 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, 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.

>>> Tis the Season to Leverage Healthcare Quality Awards >>>

Is Your Healthcare Brand Architecture Out of Alignment?

Question...

What has many product lines? A multitude of names? Differing marketing communications pieces describing service lines, technology etc? And wonders why they are in survival mode or losing market share?

Answer....
Hospitals, home healthcare agencies and specialty pharmacies to name a few of the offenders.

Okay, that is probably a little hard but I think you get my point.

Branding as a Misunderstood Concept

Too many times in healthcare, especially in hospitals, home healthcare agencies and specialty pharmacies, I have seen an absence of brand architecture. The logo and name of the hospital or other provider in multiple colors in different places in marketing communication materials. No standardization of key brand messaging. Field sales teams off and about saying whatever they want too, creating leave behinds that frankly, are amateurish at best.

That really comes from a lack of marketing sophistication characterized by little understanding of basic marketing principles, lack of internal communication, lack of strategic vision and failure to recognize that the world has changed. Old models of how you did things to be successful in other organizations before they were sold out from under you don't work anymore.

The Healthcare World is Changing

Today, nobody flies under the radar screen. Healthcare organizations that understand the importance of brand image, brand architecture and brand equity - its impact dollar wise to the bottom-line are growing organically and venturing into new healthcare services. Using the power of their brand to bring implied program or service credibility because of their brand reputation. They have it under control and guard it jealously.

It's all about the brand

Under the Patient Protections and Affordable Care Act (PPACA), your brand is becoming more important than ever.  In a dynamically evolving marketplace where the healthcare consumer is or will be making a majority of purchase decisions, they need a clear understanding of and representation of your brand. If you brand is out of alignment then you are losing revenue and credibility in the market. A downward spiral that does not end well.

Marketing Leadership

This is also about marketing leadership. I speak to your ability to influence and change the organization of your employment. Educate. Inform. Teach. Do whatever you have to as a marketer too influence and lead your organization. Too much is a stake. Become a leading revenue marketer by creating a strong and enduring central brand.

Generating Revenue

Marketing is about generating revenue. You can't generate the revenue you need to grow and prosper because your brand or in some cases, multitude of brands are out of alignment in the marketplace.

The clock is ticking. The choice is yours. Fix your brand architecture now, or follow similar organizations to 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

Michael Krivich is an internationally followed healthcare marketing blogger with over 1,000 monthly pages views seen daily in over 20 countries around the world. I am a Fellow, American College of Healthcare Executives as well as a Professional Certified Marketer, American Marketing Association. You can reach me 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, 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.

>>> Is Your Healthcare Brand Architecture Out of Alignment? >>>

Marketing the Employed Physician

With dynamic changes occurring in the healthcare industry as a result of the Patient Protections and Affordable Care Act (PPACA), employment of physicians is making a big comeback to the hospital industry. Born of necessity, hospitals and physicians are being driven by reimbursement concerns and opportunities. The drive to create Accountable Care Organizations (ACOs) demands a different type of physician relationship. One that is more centralized and controlled to "reap" the revenue benefits of the new healthcare market environment.


With this new opportunity to reinvent, revitalize and recapture what previously before had been an adventure on the part of hospitals with mixed results, its time to discuss how one goes about marketing the employed physician.

First break from the past......

It's easy to look at this and say we'll just do what we did in the past in promoting employed physicians and be done with it. That is a dangerous mistake in the age of healthcare consumerism. Consumers will have choice, are already networked and will be controlling many of the purchase decisions where previously, you drove many of those decisions. So if you're just going to throw some ads out there with a picture of the nice smiling doc with copy in the third person about how wonderful and compassionate he or she is, you can expect much disappointment. Even today there is still too much of that type of physician marketing occurring.

What is needed is a new look at what you are doing and changing to meet the needs of your healthcare consumer, not you.

A new day....

With great change comes great opportunity. That is if one is willing to embrace that change and find new ways of moving forward and creating value.

Your Brand. Your Value. The Healthcare Consumer's Choice.

You need to communicate very strongly your brand and brand promise you are associating with the employed physician. Doesn't matter if he or she is in a Medical Office Building (MOB) you own, Accountable Care Organization (ACO) or Medical Home (MH). Bring your brand to the forefront and brand the doc to you. He or she is no longer an independent practitioner. They represent your brand at an individual level. Capitalize on that opportunity and leverage it.

Communicate the value that this physician brings to your community and the healthcare consumer. Communicate the value that the doctor brings to your brand. Leverage that opportunity. Stop talking at people, talk to them. Talk to consumers with compelling value driven reasons why they should select that doctor, or even why they should even considering switching physicians.

Stop wasting your money putting ads in papers that expect people to take action simply because the doctor is on your medical staff or in one of your buildings. That treats the healthcare consumer like they are idiots. They're not. They are demanding value and acknowledgement that they have a say in what's going on. If you won't meet their needs they will go somewhere else.

Consumers now have more power than they have every had as a result of PPACA. They are and will be paying more of the medical bill as time goes along. If you're not communicating value and what's in it for them for selecting your physicians, then you can put it in the bank that the healthcare consumer is will pass on by and go where they perceive the value to be greatest for them in line with the price they are paying.

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 internationally followed healthcare marketing blogger with over 1,000 monthly pages views reviewed in over 20 countries around the world, and is a Fellow, American College of Healthcare Executives and a Professional Certified Marketer, American Marketing Association. I can be reached at michael@themichaeljgroup.com or 815-293-1471 for hiring as your senior marketing executive or for interim assignments in all aspects of healthcare marketing whether it be strategic or tactical market planning, 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.

>>> Marketing the Employed Physician >>>

Marketing the Re-emerging Center of Excellence

Previously, I authored a couple of blogs on the Re-emergence of Centers of Excellence (CoE) due to the Patient Protection and Affordable Care Act (PPACA), as well as starting a most interesting discussion on LinkedIn in the American College of Healthcare Executives Group. Those blogs and discussion really focused more on the operational and quality of care characteristics of a CoE than marketing. The point being that with the rise of healthcare consumerism driven by many factors outside the control of healthcare providers, that you could no longer look around and just say that you have a CoE in a particular service-line or disease -state.


So, if as a leader in your healthcare organization you have come to realize that the healthcare consumer deserves more than just the old ways of doing things, you have really looked at your self-described CoEs and beefed them up to true reflections of organizational and quality of care excellence, then just maybe you are ready to begin marketing a CoE. If not, it will come back to haunt you in the end, influenced by PPACA and demands of the healthcare consumer.

Marketing the CoE

This is really a reintroduction for most healthcare organizations. That being said, the opportunity immediately before you is to corrects some past mistakes. Mistakes I would like think were made with the best of intentions, but reflected a lack of understanding about the organizational brand, brand messages, and brand equity that was lost.

Probably the most important correction or for starting out with a new CoE is- scrap the new logo, color palette and messaging for the CoE. Too many organizations went down the path of we need a new logo, tagline, color palette, etc., from what is the already established brand of the organization. Shame on the marketing departments for not exercising the leadership to stop the madness.

I don't care that a CNO or director likes to "dabble in marketing". Except in some circumstances where the CNO or director has marketing training and education, CNOs, directors of Nursing etc., are clueless about brand, brand equity and marketing for that matter. How about I dabble in nursing?

In the Age of Healthcare Consumerism, your brand is everything.

The only logo that matters is your brand logo, color palette and messaging. Period. Change it at your own risk. Leverage what you have because it makes life a lot easier and more cost effective.

Do create a value proposition that shows the benefit to the healthcare consumer that your CoE brings to the market.

Do talk to the healthcare consumer not at them.

Do integrate the CoE campaign into the broader organizational marketing efforts.

Do use patient and physician testimonials if available.

If you have Joint Commission CoE certification or the Blue Cross Blue Shield CoE certifications or others, use them, but explain the value of what that means. Just don't throw it out there.

Talk about your outcomes and why they are important. Be transparent in your use of data.

Use all communication channels, print, direct mail, billboard, radio, email, social media, web site, call center, etc. Integrate those efforts.

Make your marketing efforts sustainable. Fund them accordingly to last a long period of time to be in front of the healthcare consumer for months at a time.

Be creative. Be interactive. Start and maintain a conversation with the healthcare consumer.

Evaluate constantly. Change on the fly. Show ROI.

Take a market position of superiority along either the product, price or service offering and dominate. Pick one, set meaningful benchmarks in the others.

Don't overpromise and under deliver.

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 internationally followed healthcare marketing blogger with over 1,000 monthly pages views reviewed in over 20 countries around the world, and is a Fellow, American College of Healthcare Executives and a Professional Certified Marketer, American Marketing Association. I can be reached at michael@themichaeljgroup.com or 815-293-1471 for hiring as your senior marketing executive or for interim assignments in all aspects of healthcare marketing whether it be strategic or tactical market planning, 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.

>>> Marketing the Re-emerging Center of Excellence >>>

Value Marketing in Healthcare

What really was the impetuous for today's blog was a two-page, full-page spread from a major healthcare system. It caught my attention for the fact that there was a lot of copy and it was all about us. I looked for the value proposition and the compelling reason why this is important to me, but could not find any. A very expensive way to talk at someone.

With healthcare changing so rapidly, is it time to move healthcare advertising beyond "all about us" to the value and benefit we bring to you, the healthcare consumer. I mean, unless you are a brand new provider in the market, you have been telling your audiences all about your features and benefits for years now. They get it.

In today's world, it's about value and benefit to the healthcare consumer.

In today's world, it's about the answering the healthcare consumers question of what is my ROI for using you?

In today's world, you need to have a compelling value proposition with messaging that provides clear and understandable benefits to the healthcare consumer.

Value Marketing

Value marketing really, is making the case to your healthcare consumer how you are solving a problem, offering a solution, giving results and even making them happy.

Value marketing is a creative exchange between people and organizations in the marketplace. It is a dynamic transaction that constantly changes based on the needs of the individual vies a vie what the healthcare organization has to offer.

So instead of talking about what you do every day, talk about what the value and benefit is of what you do.

Instead of talking about programs and services that everybody else has, talk about the value and benefits those same programs and services and what they bring to the healthcare consumer.

Instead of saying we have the latest high-tech gizmo, talk about the value and benefit of what that latest, greatest high-tech gizmo brings to the healthcare consumer.

Instead of just talking about Healthgrades or Thompson Reuters Top 100 awards for care, talk to your healthcare consumer about the value and benefit of that award.

Instead of talking at your audiences, talk to them. Talk to them about your value and how you can solve their health problem by offering a value based solution to their healthcare concerns.

It's time for healthcare CEOs, Boards and healthcare marketers to stop doing over and over again those things that are out-of-touch with the new reality that is healthcare. The healthcare consumer is awakening and demanding more. More proof. More value. More benefit for them, not for you.

Note:


Back in August, I wrote about revenue opportunities under the Patient Protection and Affordable Care Act. Well, starting on Januarys 1, 2011, preventive services must be covered for all health plan members. So better get that preventive screening solution in place. It's a loss leader but the downstream revenue opportunity is large. Please see that August 2010 blog on what to do.

You can continue the conversation with me on:

LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter: http://www.twitter.com/mkrivich

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, integration of sales and 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.

>>> Value Marketing in Healthcare >>>

Marketing to the Networked Patient

Healthcare is changing at a far more rapid pace that at any time in its history. I am not referring to the pharmaceutical or technological advances which have no doubt improved the quality of care and in most cases, the quality of life as well.

Since 1983 with the introduction of DRGs, we as an industry have been touting the benefits of wellness, individual responsibility in health and the patient taking an active role in their healthcare. Much has changed since that time and much has remained the same. But now, the game has really changed.

Welcome to the age of the networked patient.

The networked patient is someone who has an intense curiosity about their health condition, expects to have an active role in making healthcare decisions and this is most important, they want control of their health information. They use in internet, social media and seek out others. They read and study about their health condition. They ask questions and will seek out alternatives. The look at providers from a quality standpoint and make judgments based on that information. They want an answer to their own needs.

The patient is asking what is their ROI by using you?

The days are quickly passing by where we can assume that we are still in control of the overall care and treatment process and information without much questioning or interaction by a patient. And you know what, that is not a bad thing.

Marketing to the networked patient

There are some key to keep in mind when starting to market to the networked patient:.

Your brand, your brand promise and messaging is all important;

Quality data transparency, reporting and patient access to same is everything;

 Access to their own health information 24/7 is a deal breaker if not provided;

Talk about the patient experience and outcomes;

Don't insult this patient with messaging that is all fluff, about us or is just plain condescending;

All communication needs to be personalized talking to the patient not at them;

Use all available communication channels- Iphone apps, email, social media, web site blue button, direct mail, etc.

Be creative, this is uncharted territory so limits are nonexistent and don't place any on yourself. Stop saying, why we can't do something, start saying how we can. This is a major change in the way healthcare is administered and delivered in the U.S. Providers need to recognizing that the age of the healthcare consumer is upon us. Failure to do so will be at your own peril.

You can continue the conversation with me on:

LinkedIn: http://www.linkedin.com/in/krivich0707
Twitter: http://www.twitter.com/mkrivich

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, integration of sales and 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 to the Networked Patient >>>