new financial and performance metrics for healthcare industry from brian walker
DESCRIPTION
I examine what other industries are doing well from a marketing and financial perspective and how we can apply new thinking to the changing healthcare industryTRANSCRIPT
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“New Financial and Performance Metrics”
SRK Educational Webcast
November 4, 2010
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Today’s Agenda: Learn from Others Success
1. Metrics and Strategies that other industries have maximized to acquire and retain customers, integrate products or services and build revenue
2. Questions and Answers – Post in GoToWebinar Dashboard to the right
3. An optional commercial message from SRK
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We transition healthcare marketing and business development to the new requirements of reform and ACOs
Support academic medical centers, community hospitals and multi-hospital systems throughout the US
Collaborate with ACHE, SHSMD, HFMA & HealthLeaders to drive industry research and education
Meet SRK: Healthcare Industry Thought Leaders
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Creates data driven strategies to help clients find and maximize revenue opportunities
Chief advisor on tactical integration, target segmentation and key messaging
Urbanathlete, political junkie and geek dad
Email: [email protected] Twitter: @catalyst4growth
Meet Brian Walker: Senior Vice President
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Real Time Industry Perspective
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What do Other Industries and Companies do well that we can Adopt?
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• “Strategic Halo”• Churn Rate • Upstream Feeder• Intelligent Profile• Conversion Rate• Control Group Lift• Cross-Sell Value
• Total Customer Value• Promotable Product• Downstream
Utilization• Acquisition Costs• Lag Time• True Physician
Impact
Evolving Healthcare Market Demands New Metrics
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• Community benefit
• Marketing ROI
• Customer analysis
• Value
• Service line analysis
• Clinical opportunities
• Budget/ Revenue scenarios
• Geographic analysis
• Targeted physician referral strategies
• High-margin opportunities
• Payment segmentation
• Strategic tactics
• Campaign measurement
• Data-driven creative
• Growth opportunities
• Service line trending
How can we leverage these metrics to build enterprise consensus and strategy?
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Although healthcare is a considered purchase…many agree it’s becoming more retail like – How can we be more competitive?
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Identify Revenue Opportunities
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Promotable Products: What is it, Why Does it Matter?
Promotable Products is based upon the concept of a “lost leader” used in retail to drive a transaction with the hope of incremental sales
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Promotable Products: How can you leverage in healthcare?
Identify services within product lines that can be driven through consumer events such as screenings and educational programs
Strategic ConceptEvents should drive profitable services
Historical ConceptScreenings and seminars are a community benefit
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Promotable Products: Make the business case first, understand demographics, then develop tactics(Example: PVD screenings)
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Execute and Maximize Tactics
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Conversion Rate: What is It, Why Does It Matter?
Conversion Rate: Exactly what it means – How many prospects did we turn into patients? In other industries: “How many sales did we close?”
Commit To Convert: Hospitals do a great job helping identify symptoms, but do a poor job of helping them matriculate into their hospital or MD offices.
You need to understand all your touch points to maximize conversion
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FY2010 AKMC PVD Screening Program
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What you need to consider for conversion
• When creating a campaign your conversion strategy should consist of– Who should we target for conversion
• Example: Those at risk at a screening– What’s our time frame for conversion
• How soon after the event should people be contacted
– What’s the mechanism for reconnecting?– Who goes for the “close”?– When is a lead no longer viable?
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Measure the Effectiveness
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Lag Time: What is it, Why Does it Matter?
At last a metric that both marketing and the CFO can agree upon and benefit from!
Lag Time: Measures how long it takes a prospect to convert to a patient or how long it takes you to drive an existing customer back into your health system
Other industries use this metric to set expectations with management and integrate other strategies as well as future tactics CFOs can benefit from Lag Time to better predict financial impact and cash-flow from marketing and other tactics
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Lag Time can vary greatly based upon target and tactic
Campaign Summary 5/09: Adults 35-64, HHI of $50K+ from high revenue CV zips, not seen at hospital in 2 years
Patient / Prospect Prospect MailingTotal Mailings 12,257Mailing List Chest Pain PromotionMailing Year 2008Mailing Month AugustMailing Date 13-Aug-08Response Month All
Conversions to Hospital
Conversion Rate
Avg Visit Lag
(Mailing) Total VisitsVisits per
Conversion RevenueRevenue per Conversion
Revenue per Visit
481 3.9% 106 780 1.6 1,267,302$ 2,635 1,625
Source: SRK
Campaign Report 5/09 - Did Not Mail Adults 35-64, HHI of $50K+ from high revenue CV zips, not seen at hospital in 2 years
Patient / Prospect Control GroupTotal Mailings 490Mailing List Chest Pain PromotionMailing Year 2008Mailing Month AugustMailing Date 13-Aug-08Response Month All
Conversions to Hospital
Conversion Rate
Avg Visit Lag
(Mailing) Total VisitsVisits per
Conversion RevenueRevenue per Conversion Revenue per Visit
5 1.1% 158 9 1.8 10,345$ 2,069 1,149
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Conclusions and Takeaways
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Key Takeaways: Marketing in Transition:What SRK Thinks You Need to do Now…
• Build short term revenue and margin• Adopt new metrics• Sharpen data driven strategies and financial reporting• Understand product line interdependence
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Key Takeaways: Marketing in Transition:What SRK Thinks You Need to Prepare For…
• CRM sustainability• Maximize opportunities for retention• Integrate new metrics and data driven strategies through the
enterprise• Become an experience brand
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Interested in Learning More?
• See how “revenue ready” you are by taking our assessment at www.gatewaytorevenue.com
• Schedule a 1-1 hospital marketing assessment or executive workshop with SRK: [email protected]
• Participate in upcoming free educational webinar programs: http://www.srksolutions.com/Webinars.cfm
• American College of Health Care Executives Cluster Program:– Vail, Colorado, January 24-27,2011– Kiawah Island, South Carolina, April 4-7, 2011
http://www.ache.org/seminars/seminar.cfm?PC=KEYMA
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General Q & A Session
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How SRK is helping hospitals improve enterprise strategy to build revenue
• Balancing Acquisition and Retention Strategies
• Breaking Down Silos and Understanding the Interdependence of Product Lines and Services
• Better Insight on Customers and Physician Behaviors as well as their Total Financial Contributions
• Embracing the True Meaning of CRM Across the Organization
• Short-Term and Long Term Revenue Strategies
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The Search for Revenue
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Gateway provides enterprise-wide value
• Community benefit
• Marketing ROI
• Customer analysis
• Value
• Service line analysis
• Clinical opportunities
• Budget/ Revenue scenarios
• Geographic analysis
• Targeted physician referral strategies
• High-margin opportunities
• Payment segmentation
• Strategic tactics
• Campaign measurement
• Data-driven creative
• Growth opportunities
• Service line trending
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Gateway’s core strength: Integration of physician and consumer data
From Exam Room… …To Hospital Discharge
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Gateway’s core strength: Integration of physician and consumer data
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Downstream
Downstream Feeders
Feeders
The SRK Strategic Halo: Product lines are interdependent
Product Line
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DownstreamDownstream
Feeders
Feeders
The SRK Strategic Halo: Product lines are interdependent
Product Line
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Gastroenterology
Pulmonary
Orthopedics
Endocrinology
Alle-Kiski Medical Center Four services “feed” 35% of CV visits from existing patients upstream
CV Patients
Total Visits
CV Patients
35% Total Visits
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GastroenterologyPulmonaryOrthopedicsEndocrinology
Alle Kiski Medical Center CV entry patients provide 18% of the visitsto these four product lines downstream
CV Patients
18%Total Visits
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Bill EnglertVice President of OperationsAnd Business DevelopmentAlle-Kiski Medical Center
“Its so simple and makesso much sense.”
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Innovative metrics
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A full suite of CRM tactical tools for a turnkey solution
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Interested in Learning More?
• See how “revenue ready” you are by taking our assessment at www.gatewaytorevenue.com
• Schedule a 1-1 hospital marketing assessment or executive workshop with SRK: [email protected]
• Participate in upcoming free educational webinar programs: http://www.srksolutions.com/Webinars.cfm
• American College of Health Care Executives Cluster Program:– Vail, Colorado, January 24-27,2011– Kiawah Island, South Carolina, April 4-7, 2011
http://www.ache.org/seminars/seminar.cfm?PC=KEYMA