The Healthcare Challenge—What Marketers Should What Marketers Should
Know
Dan MaloyThe Maloy Group, LLC
© 2009 The Maloy Group, LLC www.maloygroup.com
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AgendaAgenda
• The issue and landscape• Developing the Value PropositionDeveloping the Value Proposition• Connecting the Value Proposition• Translating the Value Proposition• Implementing the Value PropositionImplementing the Value Proposition• Additional resources
© 2009 The Maloy Group, LLC www.maloygroup.com
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We Have Heard the Stories
• Rhode Island Hospital Fined for Fifth Surgery Error in Two Yearsg y
W B b S h f P t• Wrong Baby, Search for Parents
• My Mother Went in for a New Hip, and Never Came HomeNever Came Home
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28 ‘Never’ Events128 Never EventsSurgical Events• Surgery on wrong body part
Care Management Events• Death/disability associated with medication • Surgery on wrong body part
• Surgery on wrong patient• Wrong surgery on a patient• Foreign object left in patient after surgery• Post-operative death in normal health patient• Implantation of wrong egg
• Death/disability associated with medication error
• Death/disability associated with incompatible blood
• Maternal death/disability with low risk delivery• Death/disability associated with hypoglycemia
h/di bili i d i hp g gg
Product or Device Events• Death/disability associated with use of
contaminated drugs• Death/disability associated with use of device
th th i t d d
• Death/disability associated with hyperbilirubinemia in neonates
• Stage 3 or 4 pressure ulcers after admission• Death/disability due to spinal manipulative
therapy
other than as intended• Death/disability associated with intravascular
air embolism
Patient Protection Events• Infant discharged to wrong person
Environment Events• Death/disability associated with electric shock• Incident due to wrong oxygen or other gas• Death/disability associated with a burn
incurred within facilityD th/di bilit i t d ith f ll ithi Infant discharged to wrong person
• Death/disability due to patient elopement• Patient suicide or attempted suicide resulting in
disability
• Death/disability associated with a fall within facility
• Death/disability associated with use of restraints within facility
Criminal Events• Impersonating a heath care provider (i.e.,
physician, nurse)• Abduction of a patient• Sexual assault of a patient within or on facility
grounds• Death/disability resulting from physical assault
NQF Serious Reportable Adverse Events
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• Death/disability resulting from physical assault within or on facility grounds1www.cms.hhs.gov
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Hospital CEO ConcernspPatient safety and quality ranks second behind financial
challenges2challenges
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2American College of Healthcare Executives, 2008 survey, www.ache.org
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Patient Safety and QualitySpecific Concerns2
• Redesigning care processes 66%• Redesigning work environment 66%• Compliance with accred orgs 60%• Compliance with accred. orgs. 60%• Medication errors 57%• Nosocomial infections 47%• Nonpayment for “never events” 43%• Pay for performance 41%• Leapfrog demands 40%• Leapfrog demands 40%• Public reporting of outcomes data 40%• Surgical mistakes 24%• Other 7%
© 2009 The Maloy Group, LLC www.maloygroup.com
2American College of Healthcare Executives, 2008 survey, www.ache.org
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Hospitals are fundingpatient safety initiatives3
3Quality and Patient Safety: A Sharper Focus; Amerinet Executive Briefing, May 2009; http://www.amerinet-gpo1.com/anetpub/uploads/2009_Executive_Briefing_QualityDrKaplan.pdf
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Where is the money going?3y g g
Documentation
Awareness
3Quality and Patient Safety: A Sharper Focus; Amerinet Executive Briefing, May 2009; http://www.amerinet-gpo1 com/anetpub/uploads/2009 Executive Briefing QualityDrKaplan pdf
© 2009 The Maloy Group, LLC www.maloygroup.com
gpo1.com/anetpub/uploads/2009_Executive_Briefing_QualityDrKaplan.pdf
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HOW DO YOU GAIN THEHOW DO YOU GAIN THECOMPETITIVE ADVANTAGE?
And your share of theAnd your share of thepatient safety expenditures?
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Multiple Stakeholdersp
• Clinical Buyers– Nursingg– Physicians
Infection Control– Infection Control• Gating Resources
– Risk Management– Facilities Managementg
• Economic Buyers
© 2009 The Maloy Group, LLC www.maloygroup.com
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Healthcare Provider Challengesg
Patient Safety is a major concern for
id h Financial Concernsproviders; however,
it is certainly not th i l h ll
Workforce LimitationsPatient Safety Concerns
their only challenge.
Product Expenditures
How do theirchallenges impact h d i fthe adoption of your
products?
© 2009 The Maloy Group, LLC www.maloygroup.com
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ASC Roles• Of the survey
participants, 37 14%16%
14% Accountingp p ,order supplies as a secondary role, ordering is the
59%41%
16%Surgical assist
Patient care
Administration
S h d liordering is the primary role for 6 participants
43%
Scheduling
Billing
• The majority of those ordering the 35%
7%
7%
2% 2%
Surg Tech
Noneordering the products have a clinical degree or certification
35%
23%
9%RN
BSN
LPN
CNOR
/certification26%
23% BA/BS
MBA
Maloy Group Survey of Product Perceptions in the ASC, October 2009
© 2009 The Maloy Group, LLC www.maloygroup.com
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Critical Points in yourProduct Lifecycle
Early AdoptersEarly Adopters•Champion•Budget•Infrastructure
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Product #1 – The Boppy® HCppy• Protecting the smallest patients• Feeding Success• Maternal BondingMaternal Bonding
Wh t i th i t?What is the impact?
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Find the ConnectionConnection
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Develop the Value PropositionDevelop the Value Proposition
• Define what your product • Define what your product accomplishes in terms of Patient SafetySafety– Our X protects patients by …
O Y t i f ti – Our Y prevents infections …• Target your messaging to the
provider, and their needs• Quantify the benefits – address the Q y
economic factors which point to the adoption of your solution
© 2009 The Maloy Group, LLC www.maloygroup.com
p y16
Two Very DifferentValue Propositions
Our product enhances patient safety by reducing the infection rates by X%reducing the infection rates by X%.
By reducing infection rates by X%, our product reduces nosocomial infections product reduces nosocomial infections
and saves the average hospital $Y annually for every 500 surgical annually for every 500 surgical
procedures.
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Moving Up the Value PyramidMoving Up the Value PyramidPatient Patient Safety
Total Cost i Uin Use
P iPrice
ServiceService
Product Quality
Product Requirements
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“E thi h b “Everything has become a spreadsheet sale.”spreadsheet sale.
- Field Representative, major healthcare supplierp , j pp
Y l ti t k Your solution must make sense financially
• Budget neutral, or• Savings in cost of use or• Savings in cost of use, or• Savings based on clinical outcomes
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Economic Model• Inputs should be standard measures
– Admissions procedures APDAdmissions, procedures, APD– Infection rates– Re-admission rates
O t t h ld i l d i d lit • Output should include savings and quality improvements– Total savings, Net savings (less cost of product)g , g ( p )– Savings per X (procedures, APD)– Reduction of Y%– Elimination of Z days of uncompensated care– Elimination of Z days of uncompensated care
• Model should have baseline data from other facilities– Validation– Standard factor
• Model should be user-friendly for all user levels
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Model should be user friendly for all user levels
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Connect the Value Proposition(seed the market)
Fi d h i i i• Find the appropriate organizations– Clinical (i.e. AORN, APIC, etc.)– Providers (i.e. AHA)– ‘Issue based’ (i.e. EpiNet)( p )– Group Purchasing Organizations
• Connect to their initiativesConnect to their initiatives• Support their organization
S h i i i i i• Support their initiatives• Connect to their leaders
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Translate the Value Proposition(engage locally)
• Market your product and solutions to the various stakeholders (clinical and the various stakeholders (clinical and administrative) at the provider level– Raise awareness– Raise awareness– Generate interest
Id tif h i– Identify your champions• Connect to organizations• Connect to individuals• Identify thought leaders
© 2009 The Maloy Group, LLC www.maloygroup.com
Identify thought leaders22
Critical Points in yourProduct Lifecycle
How is your teamprepared to supportthe next ‘round’ of
t ?customers?
Early Adopters•Champion•Budget•Budget•Infrastructure
© 2009 The Maloy Group, LLC www.maloygroup.com
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Implement the Value i iProposition
• Provide tools to support the internal sales efforts f th t h iof the customer champion– Economic models– Clear outline of implementation support and trainingp pp g– Customer success stories, clinical data, etc.
• Develop the tools to facilitate your customers’ implementation of your solutionsimplementation of your solutions– Training tools
• Pre-packaged implementation kitsO li t i i• Online training
– Reporting tools– Monitoring tools
• Align your resources to support the customer– Economic ‘seller’– Clinical support
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– Clinical support
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Support Tools4pp
4 http://www sandelmedical com/time-out-products asp 11/23/09
© 2009 The Maloy Group, LLC www.maloygroup.com
http://www.sandelmedical.com/time-out-products.asp, 11/23/09
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Are you ready to PARTNER?Are you ready to PARTNER?
Demonstrate ho the product satisfies Demonstrate how the product satisfies the customer’s patient safety goalsShare economic models to understand
the impact of the changeEngage in planning dialogueProvide resources to support Provide resources to support
implementation
? Share risk with customers
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Top 10 things every marketer d t k b t k ti needs to know about marketing
to medical practices:p1. Know the issues2. Understand that relationships matter3. Pay attention to declining service reimbursement4. Don’t be overwhelmed by technology solutions5 Reporting on quality initiatives can position the practice 5. Reporting on quality initiatives can position the practice to improve reimbursement6. Look for efficiencies to reduce operating costs7 M k t iti t d t / i 7. Make transitions to your products/services easy8. Understand that practices have multiple decision makers to sell to9. Reduce risk in decision making to close the sale10. Improve profitability and win the dealSource: MGMA, The Medical Practice of the Future: Competitively position your products and services
© 2009 The Maloy Group, LLC www.maloygroup.com
f p y p y p
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Product #2 PROTECTIV*Product #2 – PROTECTIV
I t d d i 1988• Introduced in 1988• First Safety IV Cathetery• Designed to protect
patient and caregiver patient and caregiver from accidental needle
i ksticks
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Clinical vs. CostRatio of Clinical to Cost Attribute mentions
1202.56 3.48 1.06 3.08
27 2150
60
80
100 Cost Attributes:•Price•Value
69 7353
37
12
20
40
60 •GPO Contract
Clinical Attributes:S P f37
0
20
Surgical Gloves Sutures Surgical Gowns IV Catheters
•Surgeon Preference•Quality•Clinical Preference
Clinical Attribute Frequency Cost Attribute Frequency
Maloy Group Survey of Product Perceptions in the ASC, October 2009
© 2009 The Maloy Group, LLC www.maloygroup.com
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Recognize the ChallengeRecognize the Challenge
• Seatbelt usage has grown as awareness gand penalties have grown.
• Despite this, approx. 20% of US drivers still do not buckle up.
© 2009 The Maloy Group, LLC www.maloygroup.com
5 http://www.nhtsa.dot.gov/people/injury/airbags/Archive-04/PresBelt/america_seatbelt.html
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Additional ResourcesAdditional Resources• Government:Government:
– CMS, HHS, etc.O i ti• Organizations:– JCAHO, APIC, SHEA, etc. – List of organizations:
http://www.firestone-ll h /i /P f i l O icallahan.com/image/Professional_Organiz
ation_Patient_Safety_Initiatives.pdf
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