October 17, 2005
COMMENTARY: Say ahhh | As patients get active in choosing providers, medical practices must stand out from the crowd
By Ted Darling
Founding partner, Ethos Marketing and Design, Portland
The concept of patient choice is emerging as one of the primary solutions to rising health care costs in Maine ˆ and along with it comes a host of marketing implications to medical practices across the state.
The idea behind patient choice is that an educated consumer will make intelligent decisions about which physicians and specialists to see based upon his or her particular medical needs. Gone are the days when a patient simply follows the advice of her primary physician. On the horizon, patients will shop for primary care and specialty medical practices based upon outcomes, convenience, price and, yes, brand differentiation.
Federal and state governments, insurers and employers are all encouraging this trend toward educated health care consumers. Flexible spending accounts allow employees to use pre-tax earnings to pay for various health and medical procedures. Newly established Health Savings Accounts and Health Reimbursement Accounts allow employees to invest pre-tax dollars for use when health care needs arise.
These popular plans, coupled with high deductible "choice" insurance products, allow patients to choose which primary care physician and specialty practice they use. In Maine, the Dirigo Health initiative is assisting choice-based consumers of medical services by requiring hospitals to publish prices for the most common procedures. Initial price surveys have already shown tremendous disparity in the prices paid for these procedures from one hospital to the next.
Employer associations and insurers also are making it easier for the consumer to understand which practices provide the best quality care at the lowest total cost. The Maine Health Management Coalition has rated primary care physicians throughout Maine, while health insurers have independently identified specialist practices in Maine that have demonstrated effectiveness in clinical performance and cost efficiency. Importantly, insurers are now encouraging patients to use those specialty practices by providing breaks on insurance co-payments.
The initial consumer information being provided about Maine medical practices relates to quality of care, procedural outcomes and price. But smart medical practices understand that the focus on quality and price will equalize over time under a more transparent market system. To be clear, no medical practice will survive based upon a poor-quality or high-cost market position. Medical practices will have to deliver on both the quality and cost issues or they may simply cease to exist.
If medical practices can produce similar results at comparable prices, then the choice for the consumer ultimately will be influenced by less tangible factors. Consequently, it is critical for proactive medical practices to differentiate themselves in the minds of the consumer. This is not to say that the choice between Specialty Practice A and Specialty Practice B will immediately become a choice between Coke and Pepsi. Over time, however, consumers will make choices based on intangible factors such as brand awareness, practice attributes and their emotional connection to the medical practice.
So, what can a savvy medical practice begin to do to differentiate itself from other medical practices? (While these suggestions are specific to medical practices, keep in mind that the principles behind them apply to most businesses.)
Be memorable. Many health care practices have names that are similar to one another, include too many words and are difficult to remember. Consider shortening the name or using abbreviations. Also, develop a logo that will serve as a memorable symbol in the mind of the consumer.
Understand what you do best. Identify your unique point of difference. Are you the first to do a certain medical procedure? Are you known for technical innovation or patient compassion? There are hosts of possible differentiating characteristics. The important thing is to choose the one attribute you can own in the marketplace and let that drive your entire practice, from operations to marketing.
Understand your target audience. To whom do you want to direct primary messages about your practice? What is their demographic profile? Determine the most desirable patients for your practice, understand what motivates them and communicate with them in an effective and compelling way.
Be strategic with your communications. Begin by understanding the overall goals and objectives of the practice from a business and marketing point of view. Then, develop four to six achievable marketing strategies that will help drive those goals over a three- to five-year period. Develop a marketing plan and stick with your strategies ˆ unless the market proves you wrong.
Develop key messages. Choose messages that reinforce your unique point of difference. Give consumers reasons to believe those messages, and be consistent with them over time. Make sure everyone in the practice understands and reinforces those messages in their daily interactions with patients and colleagues.
Choose appropriate marketing tactics. Select marketing tactics that support your market position and the strategies you have developed. Event sponsorships, public relations initiatives, speaking engagements, educational forums, Internet marketing and more conventional advertising mediums like print, radio and television all can play an important role in your marketing mix.
Measure your results. Some marketing tactics are easier to measure than others. Website traffic and response to a seminar invitation are easier to measure than quantifying brand awareness and practice attribute, but all are measurable. With limited initial funds available for investment in marketing, you want to be sure you are achieving an appropriate return on your investment.
The concept of patient choice is emerging as one of the primary solutions to rising health care costs in Maine ˆ and along with it comes a host of marketing implications to medical practices across the state.
The idea behind patient choice is that an educated consumer will make intelligent decisions about which physicians and specialists to see based upon his or her particular medical needs. Gone are the days when a patient simply follows the advice of her primary physician. On the horizon, patients will shop for primary care and specialty medical practices based upon outcomes, convenience, price and, yes, brand differentiation.
Federal and state governments, insurers and employers are all encouraging this trend toward educated health care consumers. Flexible spending accounts allow employees to use pre-tax earnings to pay for various health and medical procedures. Newly established Health Savings Accounts and Health Reimbursement Accounts allow employees to invest pre-tax dollars for use when health care needs arise.
These popular plans, coupled with high deductible "choice" insurance products, allow patients to choose which primary care physician and specialty practice they use. In Maine, the Dirigo Health initiative is assisting choice-based consumers of medical services by requiring hospitals to publish prices for the most common procedures. Initial price surveys have already shown tremendous disparity in the prices paid for these procedures from one hospital to the next.
Employer associations and insurers also are making it easier for the consumer to understand which practices provide the best quality care at the lowest total cost. The Maine Health Management Coalition has rated primary care physicians throughout Maine, while health insurers have independently identified specialist practices in Maine that have demonstrated effectiveness in clinical performance and cost efficiency. Importantly, insurers are now encouraging patients to use those specialty practices by providing breaks on insurance co-payments.
The initial consumer information being provided about Maine medical practices relates to quality of care, procedural outcomes and price. But smart medical practices understand that the focus on quality and price will equalize over time under a more transparent market system. To be clear, no medical practice will survive based upon a poor-quality or high-cost market position. Medical practices will have to deliver on both the quality and cost issues or they may simply cease to exist.
If medical practices can produce similar results at comparable prices, then the choice for the consumer ultimately will be influenced by less tangible factors. Consequently, it is critical for proactive medical practices to differentiate themselves in the minds of the consumer. This is not to say that the choice between Specialty Practice A and Specialty Practice B will immediately become a choice between Coke and Pepsi. Over time, however, consumers will make choices based on intangible factors such as brand awareness, practice attributes and their emotional connection to the medical practice.
So, what can a savvy medical practice begin to do to differentiate itself from other medical practices? (While these suggestions are specific to medical practices, keep in mind that the principles behind them apply to most businesses.)
Be memorable. Many health care practices have names that are similar to one another, include too many words and are difficult to remember. Consider shortening the name or using abbreviations. Also, develop a logo that will serve as a memorable symbol in the mind of the consumer.
Understand what you do best. Identify your unique point of difference. Are you the first to do a certain medical procedure? Are you known for technical innovation or patient compassion? There are hosts of possible differentiating characteristics. The important thing is to choose the one attribute you can own in the marketplace and let that drive your entire practice, from operations to marketing.
Understand your target audience. To whom do you want to direct primary messages about your practice? What is their demographic profile? Determine the most desirable patients for your practice, understand what motivates them and communicate with them in an effective and compelling way.
Be strategic with your communications. Begin by understanding the overall goals and objectives of the practice from a business and marketing point of view. Then, develop four to six achievable marketing strategies that will help drive those goals over a three- to five-year period. Develop a marketing plan and stick with your strategies ˆ unless the market proves you wrong.
Develop key messages. Choose messages that reinforce your unique point of difference. Give consumers reasons to believe those messages, and be consistent with them over time. Make sure everyone in the practice understands and reinforces those messages in their daily interactions with patients and colleagues.
Choose appropriate marketing tactics. Select marketing tactics that support your market position and the strategies you have developed. Event sponsorships, public relations initiatives, speaking engagements, educational forums, Internet marketing and more conventional advertising mediums like print, radio and television all can play an important role in your marketing mix.
Measure your results. Some marketing tactics are easier to measure than others. Website traffic and response to a seminar invitation are easier to measure than quantifying brand awareness and practice attribute, but all are measurable. With limited initial funds available for investment in marketing, you want to be sure you are achieving an appropriate return on your investment.
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