the healthcare challenge -- what marketers should know

The Healthcare Challenge—What Marketers Should What Marketers Should

Know

Dan MaloyThe Maloy Group, LLC

© 2009 The Maloy Group, LLC www.maloygroup.com

1

AgendaAgenda

• The issue and landscape• Developing the Value PropositionDeveloping the Value Proposition• Connecting the Value Proposition• Translating the Value Proposition• Implementing the Value PropositionImplementing the Value Proposition• Additional resources


2

We Have Heard the Stories

• Rhode Island Hospital Fined for Fifth Surgery Error in Two Yearsg y

W B b S h f P t• Wrong Baby, Search for Parents

• My Mother Went in for a New Hip, and Never Came HomeNever Came Home


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28 ‘Never’ Events128 Never EventsSurgical Events• Surgery on wrong body part

Care Management Events• Death/disability associated with medication • Surgery on wrong body part

• Surgery on wrong patient• Wrong surgery on a patient• Foreign object left in patient after surgery• Post-operative death in normal health patient• Implantation of wrong egg

• Death/disability associated with medication error

• Death/disability associated with incompatible blood

• Maternal death/disability with low risk delivery• Death/disability associated with hypoglycemia

h/di bili i d i hp g gg

Product or Device Events• Death/disability associated with use of

contaminated drugs• Death/disability associated with use of device

th th i t d d

• Death/disability associated with hyperbilirubinemia in neonates

• Stage 3 or 4 pressure ulcers after admission• Death/disability due to spinal manipulative

therapy

other than as intended• Death/disability associated with intravascular

air embolism

Patient Protection Events• Infant discharged to wrong person

Environment Events• Death/disability associated with electric shock• Incident due to wrong oxygen or other gas• Death/disability associated with a burn

incurred within facilityD th/di bilit i t d ith f ll ithi Infant discharged to wrong person

• Death/disability due to patient elopement• Patient suicide or attempted suicide resulting in

disability

• Death/disability associated with a fall within facility

• Death/disability associated with use of restraints within facility

Criminal Events• Impersonating a heath care provider (i.e.,

physician, nurse)• Abduction of a patient• Sexual assault of a patient within or on facility

grounds• Death/disability resulting from physical assault

NQF Serious Reportable Adverse Events


• Death/disability resulting from physical assault within or on facility grounds1www.cms.hhs.gov

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Hospital CEO ConcernspPatient safety and quality ranks second behind financial

challenges2challenges


2American College of Healthcare Executives, 2008 survey, www.ache.org

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Patient Safety and QualitySpecific Concerns2

• Redesigning care processes 66%• Redesigning work environment 66%• Compliance with accred orgs 60%• Compliance with accred. orgs. 60%• Medication errors 57%• Nosocomial infections 47%• Nonpayment for “never events” 43%• Pay for performance 41%• Leapfrog demands 40%• Leapfrog demands 40%• Public reporting of outcomes data 40%• Surgical mistakes 24%• Other 7%


2American College of Healthcare Executives, 2008 survey, www.ache.org

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Hospitals are fundingpatient safety initiatives3

3Quality and Patient Safety: A Sharper Focus; Amerinet Executive Briefing, May 2009; http://www.amerinet-gpo1.com/anetpub/uploads/2009_Executive_Briefing_QualityDrKaplan.pdf


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Where is the money going?3y g g

Documentation

Awareness

3Quality and Patient Safety: A Sharper Focus; Amerinet Executive Briefing, May 2009; http://www.amerinet-gpo1 com/anetpub/uploads/2009 Executive Briefing QualityDrKaplan pdf


gpo1.com/anetpub/uploads/2009_Executive_Briefing_QualityDrKaplan.pdf

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HOW DO YOU GAIN THEHOW DO YOU GAIN THECOMPETITIVE ADVANTAGE?

And your share of theAnd your share of thepatient safety expenditures?


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Multiple Stakeholdersp

• Clinical Buyers– Nursingg– Physicians

Infection Control– Infection Control• Gating Resources

– Risk Management– Facilities Managementg

• Economic Buyers


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Healthcare Provider Challengesg

Patient Safety is a major concern for

id h Financial Concernsproviders; however,

it is certainly not th i l h ll

Workforce LimitationsPatient Safety Concerns

their only challenge.

Product Expenditures

How do theirchallenges impact h d i fthe adoption of your

products?


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ASC Roles• Of the survey

participants, 37 14%16%

14% Accountingp p ,order supplies as a secondary role, ordering is the

59%41%

16%Surgical assist

Patient care

Administration

S h d liordering is the primary role for 6 participants

43%

Scheduling

Billing

• The majority of those ordering the 35%

7%

7%

2% 2%

Surg Tech

Noneordering the products have a clinical degree or certification

35%

23%

9%RN

BSN

LPN

CNOR

/certification26%

23% BA/BS

MBA

Maloy Group Survey of Product Perceptions in the ASC, October 2009


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Critical Points in yourProduct Lifecycle

Early AdoptersEarly Adopters•Champion•Budget•Infrastructure


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Product #1 – The Boppy® HCppy• Protecting the smallest patients• Feeding Success• Maternal BondingMaternal Bonding

Wh t i th i t?What is the impact?


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Find the ConnectionConnection


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Develop the Value PropositionDevelop the Value Proposition

• Define what your product • Define what your product accomplishes in terms of Patient SafetySafety– Our X protects patients by …

O Y t i f ti – Our Y prevents infections …• Target your messaging to the

provider, and their needs• Quantify the benefits – address the Q y

economic factors which point to the adoption of your solution


p y16

Two Very DifferentValue Propositions

Our product enhances patient safety by reducing the infection rates by X%reducing the infection rates by X%.

By reducing infection rates by X%, our product reduces nosocomial infections product reduces nosocomial infections

and saves the average hospital $Y annually for every 500 surgical annually for every 500 surgical

procedures.


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Moving Up the Value PyramidMoving Up the Value PyramidPatient Patient Safety

Total Cost i Uin Use

P iPrice

ServiceService

Product Quality

Product Requirements


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“E thi h b “Everything has become a spreadsheet sale.”spreadsheet sale.

- Field Representative, major healthcare supplierp , j pp

Y l ti t k Your solution must make sense financially

• Budget neutral, or• Savings in cost of use or• Savings in cost of use, or• Savings based on clinical outcomes


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Economic Model• Inputs should be standard measures

– Admissions procedures APDAdmissions, procedures, APD– Infection rates– Re-admission rates

O t t h ld i l d i d lit • Output should include savings and quality improvements– Total savings, Net savings (less cost of product)g , g ( p )– Savings per X (procedures, APD)– Reduction of Y%– Elimination of Z days of uncompensated care– Elimination of Z days of uncompensated care

• Model should have baseline data from other facilities– Validation– Standard factor

• Model should be user-friendly for all user levels


Model should be user friendly for all user levels

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Connect the Value Proposition(seed the market)

Fi d h i i i• Find the appropriate organizations– Clinical (i.e. AORN, APIC, etc.)– Providers (i.e. AHA)– ‘Issue based’ (i.e. EpiNet)( p )– Group Purchasing Organizations

• Connect to their initiativesConnect to their initiatives• Support their organization

S h i i i i i• Support their initiatives• Connect to their leaders


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Translate the Value Proposition(engage locally)

• Market your product and solutions to the various stakeholders (clinical and the various stakeholders (clinical and administrative) at the provider level– Raise awareness– Raise awareness– Generate interest

Id tif h i– Identify your champions• Connect to organizations• Connect to individuals• Identify thought leaders


Identify thought leaders22

Critical Points in yourProduct Lifecycle

How is your teamprepared to supportthe next ‘round’ of

t ?customers?

Early Adopters•Champion•Budget•Budget•Infrastructure


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Implement the Value i iProposition

• Provide tools to support the internal sales efforts f th t h iof the customer champion– Economic models– Clear outline of implementation support and trainingp pp g– Customer success stories, clinical data, etc.

• Develop the tools to facilitate your customers’ implementation of your solutionsimplementation of your solutions– Training tools

• Pre-packaged implementation kitsO li t i i• Online training

– Reporting tools– Monitoring tools

• Align your resources to support the customer– Economic ‘seller’– Clinical support


– Clinical support

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Support Tools4pp

4 http://www sandelmedical com/time-out-products asp 11/23/09


http://www.sandelmedical.com/time-out-products.asp, 11/23/09

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Are you ready to PARTNER?Are you ready to PARTNER?

Demonstrate ho the product satisfies Demonstrate how the product satisfies the customer’s patient safety goalsShare economic models to understand

the impact of the changeEngage in planning dialogueProvide resources to support Provide resources to support

implementation

? Share risk with customers


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Top 10 things every marketer d t k b t k ti needs to know about marketing

to medical practices:p1. Know the issues2. Understand that relationships matter3. Pay attention to declining service reimbursement4. Don’t be overwhelmed by technology solutions5 Reporting on quality initiatives can position the practice 5. Reporting on quality initiatives can position the practice to improve reimbursement6. Look for efficiencies to reduce operating costs7 M k t iti t d t / i 7. Make transitions to your products/services easy8. Understand that practices have multiple decision makers to sell to9. Reduce risk in decision making to close the sale10. Improve profitability and win the dealSource: MGMA, The Medical Practice of the Future: Competitively position your products and services


f p y p y p

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Product #2 PROTECTIV*Product #2 – PROTECTIV

I t d d i 1988• Introduced in 1988• First Safety IV Cathetery• Designed to protect

patient and caregiver patient and caregiver from accidental needle

i ksticks


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Clinical vs. CostRatio of Clinical to Cost Attribute mentions

1202.56 3.48 1.06 3.08

27 2150

60

80

100 Cost Attributes:•Price•Value

69 7353

37

12

20

40

60 •GPO Contract

Clinical Attributes:S P f37

0

20

Surgical Gloves Sutures Surgical Gowns IV Catheters

•Surgeon Preference•Quality•Clinical Preference

Clinical Attribute Frequency Cost Attribute Frequency

Maloy Group Survey of Product Perceptions in the ASC, October 2009


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Recognize the ChallengeRecognize the Challenge

• Seatbelt usage has grown as awareness gand penalties have grown.

• Despite this, approx. 20% of US drivers still do not buckle up.


5 http://www.nhtsa.dot.gov/people/injury/airbags/Archive-04/PresBelt/america_seatbelt.html

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Additional ResourcesAdditional Resources• Government:Government:

– CMS, HHS, etc.O i ti• Organizations:– JCAHO, APIC, SHEA, etc. – List of organizations:

http://www.firestone-ll h /i /P f i l O icallahan.com/image/Professional_Organiz

ation_Patient_Safety_Initiatives.pdf


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QUESTIONS?

[email protected]@maloygroup.com


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the healthcare challenge -- what marketers should know

Business

use of deathdisability

patient safety expenditures

hypoglycemia deathdisability

admission deathdisability

facility criminal events

value proposition def

wrong oxygen

medication surgery