Strategic Healthcare Public Affairs

The Rise of Hospital Government Relations

March 1, 2015

Industry Challenges: Changing Daily

Industry Challenges = GR Challenges

Industry Challenges = GR Challenges

Now Imagine Being General Counsel at This Hospital

Hospital At-a-Glance

• Region’s largest healthcare provider – $3 billion system with multiple hospitals, outpatient

care centers and clinics– One of the largest employers in the region – Provides more charity care and community

programs than any other provider in the region • Committed to and known for delivering high-quality,

affordable care

Hospital-At-a-Glance: A Sophisticated System

• Dynamic CEO • Embraces industry changes and proactively invests in

innovative ways to deliver care – Established networks with local providers – Partnership with CVS to bring care to their patients

where they live and shop – Fully implemented EHR system throughout the

health system • The list goes on…

Hospital Realities

• Repeatedly getting hit by reimbursement cuts (that others in the region are staving off)

• Losing significant managed care contracts • Unable to influence critical legislative and regulatory

issues• Unsuccessful in Certificate of Need attempts (their

own and opposing others’) • No significant external champions willing to speak up

on their behalf • Competitor is seen as the savior in the community

Meet Bob

Unsophisticated GR Program for Sophisticated System

• The system has crippled its GR program for years– Doesn’t have a leader dedicated to GR– Doesn’t invest in its GR team, its efforts or its

reputation– Overall leadership isn’t engaged in GR – Doesn’t tie GR goals to organization’s strategic goals – No proactive relationship cultivation with elected

officials, regulators, their staffs or key opinion leaders in the community

• GR and Communications aren’t working together • No focused way they talk about the organization or its

goals and accomplishments

Endangered Species

• Thankfully, Bob is an endangered species • Hospitals and health systems across the country are –

smartly – rethinking how they invest in, staff and structure their GR departments

• Up until last year, however, there were no tools to evaluate one’s program to see how it stacked up against its peers

• So, we embarked on a nationwide survey to compile data from hospital and health system GR leaders about their departments

The Rise of Hospital Government Relations

Benchmark Data from Hospitals and Health Systems Across the Nation

Structure

Structure

Structure

Structure

Structure

Budget

Lobbying

Lobbying

Lobbying

Determining Goals & Measuring Success

Determining Goals & Measuring Success

Worth Noting…

Insights

• GR efforts have never played a more critical role in the success of a hospital or health system than they do today

• GR leaders must figure out how to measure ROI for their departments

• Hospital and health system leadership must recognize the importance of GR, invest in it wisely and welcome the team to the leadership table

• The key to success will be having an established program before your organization needs anything

Using What We Know…

What Should Hospital X Do?

• Build a GR infrastructure that positions the organization for success– Establish a GR expert dedicated exclusively to GR;

this leader should report directly to the CEO – Establish clear roles for each team member – Retain appropriate lobbyists – Engage the board, leadership and other advocates

What Should Hospital X Do?

• Coordinate closely between GR, communications and other key internal departments

• Create a message platform that clearly differentiates the organization from competitors and establishes it as the vital community resource it is

• Develop a focused and sustained external outreach plan – Leverage existing relationships and forge new ones

• Cultivate a base of advocates willing to speak on its behalf

Success Would Look Like

• Influencing legislative or regulatory decisions• Inclusion in state-based exchange plans and demonstration

projects • Achieving goals in payment reform efforts

– Staving off cuts / fighting for increases – Move to value based care

• Completing growth strategies – Mergers, acquisitions, JVs, etc. – CINs, ACOs

• Successfully win or oppose Certificate of Need applications • Wining significant managed care contracts • Repairing the organization’s reputation

Using What You Now Know

5 Questions to Ask Upon Your Return

1. Are we achieving our strategic goals?

– See “What Success Would Look Like” to get your mind turning

2. Does our GR leader have a seat at our senior leadership table?

3. Are we investing enough resources into our GR efforts?

4. Do we know how our GR efforts stack up against those of our peers and competitors?

5. How will we know if our GR efforts are successful?

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