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Health Reform – Pressure’s On…Are You Ready? AMA Healthcare SIG

AMA Houston Healthcare SIG: Health Reform and Brand Management

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John McKeever recently spoke to the AMA Houston's Healthcare Special Interest Group (SIG) and shared how to effectively manage one's brand while navigating health reform.

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Page 1: AMA Houston Healthcare SIG: Health Reform and Brand Management

Health Reform – Pressure’s On…Are You Ready?

AMA Healthcare SIG

Page 2: AMA Houston Healthcare SIG: Health Reform and Brand Management

Major Financial Impacts

• Millions more low income people (patients) with insurance, both private and Medicaid

• Increased price competition among carriers for the newly insured; negative price pressure on hospitals

• Potential for more carriers and national for-profit ones that specialize in Medicaid

• Downward pressure on government program rates for providers

Page 3: AMA Houston Healthcare SIG: Health Reform and Brand Management

Major Service Delivery Impacts

• More population management

• More formal relationships with community outpatient providers – Accountable Care Organizations

• Emphasis on wellness and prevention

• Publicly reported quality measures and comparative shopping

Page 4: AMA Houston Healthcare SIG: Health Reform and Brand Management

Uncertainty Still an Issue

“We have not initiated a real dialogue about this yet, as the continuing uncertainty in the healthcare bill makes it difficult to do so.”

“Not at all yet, since it's very unclear how, if at all, reform will change our economic environment.”

“Increased importance to create consumer demand for our product so they will advocate with health plans. Important to continue to demonstrate to managed care what distinguishes us from community providers.”

“Don't know. The legislation is a moving target with huge implications every time any paragraph (out of thousands) is edited. It would be a hugely unproductive use of time to plan anything at this point. It is all changing daily/weekly.”

Source: 2009 Gelb study of academic medical center marketing executives

Page 5: AMA Houston Healthcare SIG: Health Reform and Brand Management

Recent Activity

Page 6: AMA Houston Healthcare SIG: Health Reform and Brand Management

Health Reform Isn’t a Marketing Issue?

Source: 2009 Gelb study of academic medical center marketing executives

Page 7: AMA Houston Healthcare SIG: Health Reform and Brand Management

Marketers Need to Take Charge

Source: 2009 Gelb study of academic medical center marketing executives

Page 8: AMA Houston Healthcare SIG: Health Reform and Brand Management

Opportunities for Marketers

• Direct patient advertising will increase– Newly insured– “Choosers”

• Segmentation even more important– Targeting– De-selection

• Referral channel critical– More PCPs (expected)– Patient education to avoid switching

Brand Building

Experience Management

ROMI

Page 9: AMA Houston Healthcare SIG: Health Reform and Brand Management

A Strong Health Brand…

• Is more than the product or service

• Adds dimensions that differentiate the organization in a meaningful way

• Is the promise made to employees, customers and other stakeholders

• Is a means for customers to reduce decision risk

• Is forged by perceptions in the marketplace, but can be effectively managed by the organization

• Is delivered through various interactions or touchpoints

• Is NOT just your name or a logo

• Is NOT only a “marketing activity,” but will have an impact on all aspects of the organization

Page 10: AMA Houston Healthcare SIG: Health Reform and Brand Management

Ensure Your Brand…

Satisfies needs and meets expectations of your constituencies

Demonstrates your advantages compared to competing organizations

Consistently communicates and delivers a resonant promise

Remains true to the organization’s capabilities, core values and heritage

Reminds audiences of the promise through affiliated organizations

Page 11: AMA Houston Healthcare SIG: Health Reform and Brand Management

Brand Building Checklist Target profiles

Targets’ awareness and understanding of services provided

Clarity about the benefits (and costs) associated with your services

Understanding of how one hospital is distinguished from another

Brand performance against local and national benchmarks

Strength of current position

Willingness of organization to change to deliver on new brand promise

Believability of new positioning

Source: Marketing Health Services, McKeever, DeVries (Barnes-Jewish Hospital)

Page 12: AMA Houston Healthcare SIG: Health Reform and Brand Management

Building Trusted Brands

A trusted brand consistently delivers superior value compared to

competing brands

Familiarity is required for consumers to recognize and choose brands

Brand Equity

= Familiarity X Trust

= Familiarity X (CV + CD + CE)

The quality of the experience delivered by the organization; how well the brand lives up to its promise

The criteria used by decision makers to establish the considered set

The attributes used to distinguish

product/services from one company to

another

Page 13: AMA Houston Healthcare SIG: Health Reform and Brand Management

Source: Marketing Health Services, McKeever, DeVries

To answer this… Do this…

What is the market’s awareness and understanding of our services?

Review familiarity results by audience of interest. This might include payer mix, geography and groups who share similar attitude about their healthcare.

How does the market distinguish one hospital brand from another?

The best insights come from qualitative interviews when asking respondents to rationalize their choices. The results are often a mix of physician and service line preference (e.g. Hospital ABC is best at heart surgery, but would go elsewhere for cancer care.)

Will audiences believe our new position?

Identify perceptual gaps among audiences. The greater the gaps, the more difficult to align brand perceptions.

How strong is our current market position?

Construct a perceptual map that illustrates how strongly each brand is differentiated. The more closely the attributes are to the brand, the stronger the association.

What are our strengths or weaknesses? Determine performance and relative importance of factors that drive satisfaction and preference.

How well does our brand perform relative to our local competition and national benchmarks?

In addition to side by side comparisons, use a brand equity scoring model to account for familiarity and favorability factors. This will establish an easy to understand metric for tracking over time.

How difficult will it be to get employees to embrace needed changes?

Review internal perception gaps and commitment to the organization. It is frequently the case that some areas of the healthcare system will be more difficult than others. Start from the tails: those with the strongest and weakest alignment and work your way to the center.

Page 14: AMA Houston Healthcare SIG: Health Reform and Brand Management

Experience Mapping

Page 15: AMA Houston Healthcare SIG: Health Reform and Brand Management

Executives Expect ROMI

Source: 2009 Gelb study of academic medical center marketing executives

Page 16: AMA Houston Healthcare SIG: Health Reform and Brand Management

Telling the Story

Page 17: AMA Houston Healthcare SIG: Health Reform and Brand Management

In the Era of Health Reform…

• Strategically build a stronger brand

• Play in role in service delivery

• Demonstrate ROI in context

Page 18: AMA Houston Healthcare SIG: Health Reform and Brand Management

John McKeever

[email protected] www.gelbconsulting.com

www.marketinginhealthcare.com