Monday, July 30, 2012

Is marketing healthcare Centers of Excellence valuable in shared-risk or value-based payment system?

Just about everyone has some kind of healthcare Center of Excellence and these programs are continually marketed by healthcare organizations. But does that marketing change in shared-risk or value-based payment environment? And if it does, then how do you market a Center of Excellence?

I believe that yes, the new healthcare payment models change the marketing and value of Centers of Excellence. And that is good at many different levels. In a shared-risk or value based payment environment, you will need qualitative and objective proof. That proof can come in many different forms, be it via outcomes, technology, accreditation, price, satisfaction etc.

Sure you can still say you have a Center of Excellence in an effort to obtain new payment agreements. But if that effort is not supported by pricing and outcomes transparency, then how do you prove to the newly minted healthcare insurance card carrying consumer in 2014, that yours is better than the one down the street?

The point here is that proud pronouncements on Centers of Excellence without transparency will become a thing of the past.

Marketing of a Center of Excellence in a value-based or risk-sharing environment takes on a very real purchaser focused approach. You will need to prove to all purchasers, be it government, insurance, consumer etc, of the value of your Center of Excellence along at least three dimensions, quality, outcomes and price.

So to market successfully you need to:

Define your value proposition and each value prop will be different based on the market segment.

Identify potential accrediting bodies for your Center of Excellence and achieve same.

Or, in the absence of accrediting bodies, do the research and set meaningful outcomes as benchmarks.

Decide what your marketing position is going to be. If it’s not superior, then what are you doing this? I mean really, who wants to go to a Center of Excellence that is perceived as market equivalent or inferior to your competitors?

Develop an outcome reporting mechanism tailored to your market segments.

Be price transparent as individuals are already shopping on price as it relates to out-of-pocket co-pays.

Communicate in terms people understand not about we do this, but in the value of the Center of Excellence to them, and how it meets their needs.

Develop and execute integrated marketing plans that are connected to the business and financial plan of the Center of Excellence covering traditional, social, and media.

Remain consistent with your brand architecture for the healthcare organization.

Use employer, insurance, physician and patient testimonials.

Constantly evaluate your marketing efforts, change when needed and do what I call fail fast.

Prove Return on Marketing Investment.

Marketing of Centers of Excellence in a shared-risk or value-based payment environment will be needed. But it will go beyond the current messaging so many utilizing that assumes build it and they will come. Now, build it incorrectly with same old marketing and they will not come.

I will be on vacation now till August 7, so, have a great week and thanks for reading.

Michael Krivich is an internationally followed healthcare marketing blogger with over 4,000 monthly pages views in over 52 countries worldwide. He is founder of the michael J group, a healthcare marketing consultancy dedicated to creating value through strategic marketing for hospitals and health system regardless of payment mechanism, either fee-for-service or value-based to increase market-share, revenue , brand and demonstrate actual return on marketing investment. Michael is a Fellow, American College of Healthcare Executives and a Professional Certified Marketer, American Marketing Association.

1 comment:

Quaintise said...

Along with increasing health care costs & the growing use of the Internet for marketing and social media solutions, the essentials of healthcare marketing are changing. Healthcare marketing Los Angeles