Marketing Analysis:Pine Rest Mother-Baby PHP

MKTG 6130 Customer Driven Marketing Management

Heather Treib, Bota Kroondyk, John Straub, Olivia Lanctot,

Yi-Shan (Sandy) ChenInstructor: Dr. Keith Ferguson

Pine Rest Christian Mental Health Services

Grand Rapids, Michigan

Outline

• Introduction• Executive Summary & Strategic Planning• Internal and External Analysis• SWOT• Alternative Strategies• Tactical Marketing Mix Implementation• Marketing Budget• Questions

Pine Rest Today

• Largest free-standing provider of

behavioral health services in Michigan

• One of five largest free-standing

behavioral health providers in the United

States

• 1,900+ employees

• Served 44,013 individuals in FY2013

Healing Moments – Lives Touched

Pine Rest Divisions

• Outpatient

• Community and Residential Services

• Behavioral Health Solutions

• Hospital Based Services

Success Factors (1 of 2)

• Facilities- 280 acre campus, room to grow

     - Multiple facilities for flexible programming

• Continuum of Care- Referrals from 18 clinic outpatient

network, 250-bed residential program- Aftercare provided by the same,

reducing readmissions       - 24/7 admission center 

Success Factors (2 of 2)

• Pine Rest Relationships

- Contracts/relationships with 36

Community Mental Health

agencies

   - Behavioral health contracts with 40 other

managed care payers

- Referrals from all acute care systems

and most medical groups

       - Faith community trust

Success FactorDepth of Professional Staff

• Specialized Behavioral Health Staff

- 50 employed psychiatrists

- 50 psychologists, 180 social workers

- Activity/occupational therapists

- Pastoral care staff

  - Billing, coding, medical records

specialists

145(Census)

140

135

130

125

120

115

110

105

100

Number of Inpatient Psychiatric Units and Hospitals – USPine Rest Inpatient Census

Hospital Based ServicesInpatient Care & Partial Hospitalization Programs

Who We ServeFY2014

• Hospital Based Services

– 7368 Admissions

– 63,923 Patient Days

– Average LOS: 9 Days

Inpatient Care210 Beds Within the Joint Operating Agreement

• St Mary’s Licensed• General Adult – 66

Beds• Co-occurring Unit- 22

Beds• Psychiatric Medical

Unit – 28 Beds (downtown at general hospital)

• Pine Rest Licensed• Older adult –26 beds• Child and Adolescent

—36 beds• Psychiatric residency

—22 beds• Mother and Baby PHP• Child and Adolescent

PHP• Flex Beds – 10 beds

Demographics

Final Adult Service Area Definition

Why a Mother and Baby Program?

• 15-20% of women are affected• Suicide is the 2nd leading cause of death

postpartum• Most common complication of childbirth• Women get better more quickly when treated

with baby• Few treatment options• Untreated PMD=negative impacts for family

Video

• https://www.youtube.com/watch?v=boKDfk7kjSM&feature=youtu.be

Marketing Demand

• Mothers who are suffering from some form of depression

• Area hospitalization programs or inpatient adult programs that do not lend themselves well so they turned to Pine Rest

• Meets a stated community’s needs

Current Market ShareBirth　 Saint Mary's Spectrum Metro Mercy Total

FY 2013 2,024 7,443 1,936 2,059 11,403

FY 2014 1,967 7,461 1,929 1,977 11,357

Variance -57 18 -7 -82 -46

Change FY13-FY14 -2.8% 0.2% -0.4% -4.0% -0.4%

Births Admissions Rate

FY 2013 11,403 189 1.66%

FY 2014 11,357 284 2.50%

Marketing Strengths

• Pine Rest is the first healthcare center to run PHP program in Michigan

• Location of the center• Providing good quality service by specialists • Offering this service to West Michigan

Competitors, Funding and Awareness

• No direct competitors in MI• Similarly operated national programs with

clinical groups in MI• Programs are privately funded and supported• Growing national and international awareness

of a multitude of perinatal mood disorders

Mechanism of PHP's work

• The program employs clinical management, service science research and application components

• The program explores paths of identifying and implementing approaches for the proper management, clinical and marketing control.

Mechanism of PHP's work

• The program investigates and compares the availability, strategic developments and risk factors of other similarly operated treatment programs such as the Postpartum Support International’s Program of Prevention and Treatment of Childbearing Causes

• The program prioritizes the proper allocation of monetary and human resources involved in its strategic activities

Outside Activities/Trends:

• The Postpartum Support International and the Spectrum Health Postpartum Emotional Support Program continue to explore extensive market and industry ranking shares

• The treatment of Childbearing Causes operates in more than 36 countries

Outside Activities/Trends:

• The programs offer a number of comprehensive preventative diagnoses, education programs and treatments for women without children, women planning on having children, pregnant women and new mothers

• The programs focus on eliminating the risk factors and social stigma of women in need of such services

Marketing Strategies

• Exceptional Care Experience-keeps moms and babies together and removes barriers to treatment

• Superior Clinical Outcomes-measure clinical outcomes to assess if women in their care are exceeding established benchmarks and customer expectations

• Great Place to Work-patients who could be helped more successfully with new services

Alternative Marketing Strategies

• Expand the healthcare area• Referral Development• Payer Communications• Media relations• Marketing Communications and collateral• Promotions and Special Events• Internal Communications

Services

• 2 product lines- one is the typical program, the second is a condensed version

• Unique features compared to other Programs– Nursery– Environment– Location

Services (cont.)

• Service Development– Focus Groups

• Identified by care providers• Women that have participated in the program,

women who have shown interest in the program but did not participate, and women that may potentially ebenfit from this program

Services (cont.)

• Branding- Do not emphasize “Pine Rest”• Awareness- Bolster reputation through

educating care providers as they will be the ones referring patients to the program

• Benefits- – Choices for program type– Family involvement

Promotional Objectives

1. Full knowledge of program value, ideal patient match and referral procedures known by target referral sources.

2. General public awareness of new program by target patient and their families, who may aid in referring.

3. Current care alternatives to PHP are abandoned/lessened in use.

Key Targets

1. Insight capable, pregnant or postpartum women with moderate to severe nonpsychotic depression, PHP insurance reimbursement and adequate transportation.

2. Referral sources, including obstetricians, family practitioners, pediatricians, psychiatrists, outpatient therapists, birthing/OB hospital staff, emergency departments, community mental health and PMD support groups.

Reasons Contributing to Underperformance

50% of referrals do not follow through and initiate the call

Inadequate transportationPine Rest brand “mental health” stigmaLack of constant connection with referral

sourcesNot top of mind with all HCPs

Current Marketing Mixo TV Commercialo TV-Maranda Interviewo Direct Mailo Outdoor-Billboards + Buseso Radioo Interneto Sponsorships – Awareness groupso Phone Callso E-Mailso Site Visitso HOPEline 1-844-MOM-HOPE

Recommendations

1. Hire one full time Educational Sales Consultant

Face-to-face calls on high potential referral accounts; targeting 20% of providers likely to account for 80% of PMD referrals.

Greater Grand Rapids territory$50,000 base + commission based on # of qualified

referrals from targeted accounts.Problem Addressed: Lack of constant connection to referral sources and program top-of-mindedness

Recommendations

2. Increase prominence of distinctive Mother-Baby brand extension and decrease Pine Rest parent brand – all future marketing communications

Research highlighted mothers dissatisfaction with past programs that failed to cater to unique PMD needs and concerns and PR “mental health” stigma

Problem Addressed: Pine Rest “mental health” stigma perception and lack of PMD focus

Recommendations3. Diversify the women featured on the Pine Rest online site and future marketing pieces to better reflect the variety of “faces” impacted by PMD

Disproportionate a number of Medicaid mothers are diagnosed with PMD, yet most current “faces” marketed appear upscale, middle-class

Problem or Objective Addressed: Awareness of program by target patient and families

Recommendations

4. Create 1-844-MOM-HOPE referral cards for program graduates to distribute.

Problem or Objective Addressed: Awareness among ideal target patients.

5. Solicit volunteer drivers through church bulletins and ministry sites and dedicate one existing Pine Rest shuttle to pickup/drop clients from bus stop.

Problem or Objective Addressed: Inadequate transportation

Recommendations

Finally, MB PHP, must fully implement the Pine Rest Release of Information initiative in all key referral accounts to address the significant ‘50% of all referrals do not place the call’ barrier.

Volumes and Revenues Year 1 Year 2 Year 3

Admissions 189 284 378Patient Days 756 1134 1512Gross Revenue with lab $451,081 $671,294 $895,059Deductions $131,716 $196,018 $261,357Revenue (program) $319,365 $475,276 $633,702Revenue (psychiatry, gen med) $16,025 $24,038 $32,050Total Revenue $335,390 $499,314 $665,752ExpensesProgram Staff and Benefits $225,032 $236,581 $303,291 (Program, UM, Contact Center, Chaplain Non-physician)Program Supplies, Marketing, Etc. $56,736 $57,936 $49,136Total Program Expense $281,768 $294,517 $352,427Physician Expense $66,514 $99,771 $133,027Total Expense $348,282 $394,288 $485,454

Net Income -$12,892 $105,026 $180,298

Questions