price transparency: bringing providers to the table march ... · consumers to review use...
TRANSCRIPT
Price Transparency: Bringing Providers to the Table
March 3rd, 2016 Jonathan Kaplan, Founder/CEO, BuildMyBod Health
@BuildMyBod
Conflict of Interest
Jonathan Kaplan MD
Intellectual property rights/patent/trademark holder
Ownership interest, Founder/CEO, BuildMyBod Health
Todays Agenda
INTRODUCTION
AUDIENCE PARTICIPATION
BACKGROUND
BENEFITS
METHODS
OUTCOME MEASURES
ADDITIONAL BENEFITS OF PRICE TRANSPARENCY THROUGHOUT HEALTHCARE
Learning Objectives
Explain why providers have avoided the publication of pricing for
consumers to review
Use statistical evidence that shows how providing pricing information prior
to a clinic visit or consultation leads to a more efficient delivery of
healthcare
Analyze how the use of price transparency as a lead generation tool will
incentivize more providers to offer their pricing online
STEPS: Treatment/Clinical
Increased
conversion
rate for
price- aware
patients:
41%
$144,000
decrease in
potential
revenue with
price-
unaware
patients
AUDIENCE
PARTICIPATION
Does your organization provide pricing
on the company website?
Yes or No
AUDIENCE PARTICIPATION
If you don’t, which statement best explains
why not?
a) Worried consumers will price shop
b) Cost structures are too complicated
c) Worried competitors will check pricing
AUDIENCE PARTICIPATION
AUDIENCE PARTICIPATION
Why do we make such a
big deal about pricing?!
AUDIENCE PARTICIPATION
My story.
Does this video describe
your frustration?
AUDIENCE PARTICIPATION
AUDIENCE PARTICIPATION
Healthcare providers have traditionally hesitated
to provide pricing information online due to three
major concerns
BACKGROUND
Patients might price shop instead of
focusing on provider relationship
1
BACKGROUND
Patients might price shop instead of focusing on provider relationship
Patients might not understand
prices are estimates and subject
to negotiated rates
2
1
BACKGROUND
Patients might price shop instead of focusing on provider relationship
Competitors could be comparing
prices
3
1
Patients may not understand prices are estimates subject to negotiated rates 2
BACKGROUND
Patients might price shop instead of focusing on provider relationship 1
Patients may not understand prices are estimates subject to negotiated rates 2
Competitors could be comparing prices 3
BACKGROUND
Using online price transparency as a
tool for generating qualified leads
BENEFITS
Patients receive pricing
information they’re searching for
A
BENEFITS
Patients receive pricing information they’re searching for A
Healthcare providers receive
contact information for follow up,
patient capture
B
BENEFITS
Patients receive pricing information they’re searching for A
Providers receive contact information for follow up, patient capture B
Patients schedule appointments
only after having realistic price
expectations
C
BENEFITS
Patients receive pricing information they’re searching for A
Providers receive contact information for follow up, patient capture B
Patients schedule appointments only after having realistic price expectations C
D
Compliance with price transparency
legislation throughout the country
BENEFITS
Patients receive pricing information they’re searching for A
Providers receive contact information for follow up, patient capture B
Patients schedule appointments only after having realistic price expectations C
Compliance with price transparency legislation throughout the country D
BENEFITS
A procedure pricing ‘widget’ containing a list of
offered services was embedded in the author’s
private practice website
METHODS
METHODS
=
(What’s a widget?!)
=
METHODS
“ESTIMATED”
METHODS The Lead
This case study follows a private practice for one
year after it disclosed 104 procedure prices, over
the course of the physician’s 1st year in a new
practice in San Francisco
RESULTS
0
17
34
51
68
85
102
119
136
153
170
187
208
0
34
68
102
136
170
204
238
272
306
340
374
412
0 125 250 375 500
ONE YEAR
FEBRUARY
APRIL
JUNE
AUGUST
OCTOBER
DECEMBER
ONE YEAR Prospective
RESULTS
This shows that of the 208 prospects…
RESULTS: Figure 1
82.2%
17.8%
Submitted Contact Info
RESULTS FIGURE 1
82.2%
17.8%
Submitted Contact Info Scheduled Consultations
RESULTS FIGURE 1
82.2%
6.7%
11.1%
Submitted Contact Info Scheduled Consultations Untitled 1
23 (62.2%) booked procedures
RESULTS FIGURE 1
The average price per booked
procedure was
$4,018.16
RESULTS
$92,417.57
RESULTS
with a total gross of
The “Halo” Effect
RESULTS: Figure 2
79.4%
2.8% 6.7%
11.1%
Submitted Contact Info
Consultations in the Subsequent Year
2.8% of consumers that submitted a wishlist in the first
year of practice, came in after that first year
RESULTS FIGURE 2
79.4%
2.8%
6.7% 11.1%
Submitted Contact Info Untitled 2 Scheduled Consultations asdf
6 (100%) booked procedures
for a total value of
$26,702
RESULTS FIGURE 2
This compares ‘price-aware’ patients with
patients who were not aware of pricing
information prior to a consultation
RESULTS: Figure 3
0
44
100
0.0
62.2
100
0
25
50
75
100
125
RESULTS FIGURE 3
‘Price-aware’ patients were 41% more
likely to book a procedure than ‘non-
price-aware’ patients
*a revenue difference of $144,000 in a practice seeing at least 200 consults
per year!
RESULTS
I know what you’re thinking!
(This may work for plastic surgery, but not for the rest of healthcare)
From a financial perspective, there’s no difference between a
breast augmentation patient and a patient getting an expensive
diagnostic study!
They’re both paying up to $6000 out-of-pocket!
=
Radiology
Bariatric Surger
y
Hospital
Lab
Dermatology
MedSpa
Dentistry
Concierge/
Urgent Care
Gynecological
Surgery
Surgery
Center
ADDITIONAL
BENEFITS
1 • Capture contact info with incoming calls
• Sync leads with your email database
• build a database from 200 to over 4,100 email addresses in 2.5 years
• Monthly email newsletters with 23% open rate, 18% click rate
• Integrate financing options
ADDITIONAL BENEFITS
Improve your front office processes
Alphaeon
Credit CareCredit
ADDITIONAL BENEFITS Integrate financing options
1
2
3
• Capture contact info with incoming calls
• Sync leads with your email database
• Integrate financing options
• Do all of your website contact submission forms ask about price?!
ADDITIONAL BENEFITS
Improve your front office processes
Reduce “sticker shock” when receiving the bill
Educate the patient
1
2
Don’t just drive traffic to your website, give them a
reason to leave their contact info (patient capture)
“You can’t follow a click”
ADDITIONAL BENEFITS Capturing patient information
Mention that online pricing is available in all your
advertising
Better than buying an email list
3
Don’t just drive traffic to your website, give them a
reason to leave their contact info (patient capture)
“You can’t follow a click”
4 Improved metrics - Visitors from search engines who
arrive on the embedded Pricing Page vs the rest of the
doctor’s site:
• Are twice as likely to stay and browse the site (61% vs 36%)
• Browse the site twice as long (3.43 min vs 1.63 min)
• Browse 33% more pages across the site (3.18 pages vs 2.40 pages)
ADDITIONAL BENEFITS Capturing patient information
SEO “truth serum”
5 Improved patient capture by encouraging online
purchases
ADDITIONAL BENEFITS Capturing patient information
PROMOS & BuyNow
ADDITIONAL BENEFITS PROMOS & BuyNow
292 Online Purchases
TOTAL = $70,487
ADDITIONAL BENEFITS PROMOS & BuyNow
TOTAL = $13,600
ADDITIONAL BENEFITS PROMOS & BuyNow
Cyber Monday 2015
For 24 Hours, Various Specials Made
Available for Purchase Online
• Every piece of advertisement/marketing should mention
that pricing is available on your website
• Blog posts
• Social media
• TV
• Home page of website
Marketing Your Price Transparency
ADDITIONAL BENEFITS PROMOS & BuyNow
ADDITIONAL BENEFITS Marketing Your Price Transparency
Blog Posts
Social Media
ADDITIONAL BENEFITS Marketing Your Price Transparency
TV Advertising
ADDITIONAL BENEFITS Marketing Your Price Transparency
• Add a “Get a quote” button within your website
Home Page of Website
ADDITIONAL BENEFITS Marketing Your Price Transparency
• Add a “Get a quote” button within your website
Home Page of Website
ADDITIONAL BENEFITS Marketing Your Price Transparency
CONCLUSION
Interactive lead generation platform using price as the
“carrot” to collect complete contact info 1
2
3
Build your email database for future email marketing
(200 to over 4,100 in 2.5 years!)
The patient with a HDHP is really a cosmetic patient
purchasing medically necessary services
4
CONCLUSION
Don’t “give away the milk for free,” get something in
return and get more serious patients
Based on this presentation, are you more
likely to encourage your facility to offer
pricing online in exchange for consumer
contact info?
Yes or no
AUDIENCE PARTICIPATION
STEPS: Patient Engagement & Population Management
Reduce
consultations
that end in
sticker shock
by up to
82.2%
Increase
lead
generation
by 20x with
pricing as
the “carrot”
