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					   Using Patient Acquisition
and Retention to Create Revenue
     Michiana Marketing Association
            January 22, 2009
       Likely Scenarios For 2009

– Revenue will be threatened via
   • Loss of jobs = loss of healthcare benefits
   • Postponement of elective procedures
   • Payments from the governments
– Opportunities will emerge
   • Untapped niches and markets
   • Focusing on prospects with highest margin/potential
   • Maximizing all opportunities to create transactions
        SRK: Healthcare Industry Leader


•   “Thought leaders” in acquiring and retaining key
    customers and integrating physicians into business plans

•   Authored numerous books and articles as well as serve
    on the faculty of ACHE advancing industry education

•   Experience includes large academic centers, major
    urban facilities and community hospitals
              Sample SRK Clients Across US




Source: SRK
Today’s Presentation: The Five (Basic) Steps to
          Acquisition and Retention

1.   Balance the Pie
2.   Ask your data the right questions
3.   Use actionable planning
4.   Commit to convert
5.   Understand your risk/reward tolerance
What’s The Right Balance For You?
Start By Asking Your Data The Right Questions
• What’s the value of a patient over time versus
  transactions?
• What’s our churn rate of patients?
• Which physicians are “drivers”?
• What are the hidden opportunities within a
  product line?
          Move Beyond Transactions to Understand the
               Value Of A Customer Over Time
•Product Line Transaction:
    • Revenue = $7,800                Downstream Utilization Volume
                                      Downstream Utilization Revenue
                                             (Non CV Services)
                                           (Non CV Services)
•Product Line Churn Rate:
    •Who’s worth more?
                                        Service Line
                                         – Orthopedics:
•Product Line Utilization:                            Patients    (%)
                                            Patient Revenue: $5,520
    •What’s Clinically Downstream?      – Orthopedics      732   13%
                                         – Digestive Disease:
 •Product Line Revenue:                 – Digestive Revenue: $4,895
                                            Patient        661   11%
     •How much money Downstream?


   True Value of a Customer $18,215
Source: SRK
              Essential to Look Beyond Initial Transactions


                      Hypertension          Chest Pain
                     35% CV Volume        21% CV Volume

                      Hypertension          Chest Pain
                    6.3% CV Revenue     17.6% CV Revenue




                    56% of Total CV Volume and 24% Revenue
Source: SRK
       Hypertension Downstream Revenue Is 13x the
                 Value of the Original Visit
                  and Direct Margin is 11x

              Transactional Value of    Total Value of Same
                 New CV Patients       Patients – All Services
                      (2006)                 (2006-2009)

              • 361 New Patients       • 2,084 visits
              • $54,506 Revenue        • $705,432 Revenue
              • $151 Rev Per Visit     • $338 Rev Per Visit
              • $31,178 Margin         • $338,914 Margin




Source: SRK
        Chest Pain Downstream Revenue Is 4x the
       Value of the Original Visit and Direct Margin is
                             3.6x

              Transactional Value of    Total Value of Same
                 New CV Patients       Patients – All Services
                      (2006)                 (2006-2009)

              • 194 New Patients       • 1,117 visits
              • $187,769 Revenue       • $780,024 Revenue
              • $968 Rev Per Visit     • $698 Rev Per Visit
              • $101,820 Margin        • $375,598 Margin




Source: SRK
                Drill Down To Identify Opportunities
                         Among Physicians
New Patient by Physician
Visit Channel                  Inpatient
New or Existing Patient        New Patient
Entry Visit Channel            (All)
PhysicianGroup                 (All)
Admitting Phys Employed mrkr   (All)
Pt Zip                         (All)
Pt Marital Status              (All)
Pt Gender                      F
Pt Age Cohort                  04: 45-64
PhysAdmitSpecialty_MedSurg     (All)
Product Line                   Cardiology
PhysAdmitSpecialty_Cat         (All)

                                                         Data         Year
                                                                        Visits                              Revenue                          R
PhysAdmittingName_fxd          PhysAdmitting_Specialty     2006         2007         2008          2006       2007      2008            2006
Groskopf, Lisa                 Internal Medicine                  9              1              $ 18,468    $ 1,819                 $    2,052
Kinn, Anne                     Internal Medicine                  5              4              $ 7,398     $ 16,971                $    1,480
Khawaja, Abbas                 Cardiovascular Disease             6              1          2   $ 123,257   $ 15,066 $ 105,808      $   20,543
Jaweed, Sayeed                 Cardiovascular Disease             5              3          1   $ 37,854    $ 80,549 $ 2,386        $    7,571
Mollohan, William              Internal Medicine                  5                         1   $ 18,509             $      85      $    3,702
Branshaw, Philip               Internal Medicine                  5                         1   $ 21,204             $ 6,148        $    4,241
Bosh, Ronald                   Internal Medicine                  4              2              $ 41,825    $ 1,920                 $   10,456
Kurian, Thomas                 (blank)                            5                             $ 31,923                            $    6,385
Gowhar, Khan                   Internal Medicine                  3              1          1   $ 8,779     $   3,379   $   3,332   $    2,926
Carpenter, Lowell              Internal Medicine                  3              2              $ 37,244    $   6,218               $   12,415
Schlesinger, Marc              (blank)                            4                             $ 22,905                            $    5,726
Bonilla, Juan                  Surgery, Cardiothoracic                                      4                           $ 116,311
Mante, David                   Internal Medicine                  3              1              $ 71,432    $   8,527               $ 23,811
Adil, Asaduddin                (blank)                            3              1              $ 2,246     $     320               $    749
William, Dagiantis             Internal Medicine                  2              1              $ 14,713    $   3,091               $ 7,356
3. Use Actionable Planning
                  Focus On Opportunity.
         Divide Plans Into User-driven Categories


  Promotable Products                                      Cross-Selling
Services that are driven                             Appropriate clinical
by events such seminars                              services in areas outside
and screenings promoted                              of initial admission
to consumers




                           Physician Focused Sales
                           Services that require a
                           physician referral to a
                           physician via physician
                           liaisons
          Example: 3 Promotable Product Opportunities
              that Represent 58% of CV volume

                             3 Promotable Products
                                58% of all CV visits
                                31% of CV revenue



              Chest Pain         Hypertension                PVD
              5,454 visits          8,652 visits           670 visits
        $2,772,709 revenue       $897,305 revenue      $1,161,865 revenue




Source: SRK
          Example: 3 Promotable Product Opportunities
              that Represent 58% of CV volume

                             3 Promotable Products
                                 58% of all CV visits
                                31% of CV revenue



              Chest Pain          Hypertension                   PVD
              5,454 visits           8,652 visits              670 visits
        $2,772,709 revenue       $897,305 revenue         $1,161,865 revenue

                Tactic                 Tactic                   Tactic
    Educate on symptoms;      Increase screenings and   Vascular Screenings
    promote ED                physician referral
Source: SRK
4. Commit to Convert
Commit to Convert: From Interest to Customer
• Hospitals do a good job in helping people identify
  needs and risks
• Poorer job converting individuals into patients
Conversion Requires Continually Moving the
       Person Through the System
•   Response rate
     – How many called/sent in
       Business Reply Card
•   Show rate
     – Of those who registered, how
       many showed
•   At risk rate
     – Of those who showed, how
       many were at risk
•   Conversion rate
     – How many attendees did we
       convert to patients
         • 6-12 months
           downstream or longer
               Conversion Tips
• Ask attendees of seminars and screenings to
  “opt-in” for follow-up
• Use outbound calling: Contact at-risk/high
  interest individuals within 48 hours of initial
  contact
• Move from passive interest to engaged consumer
• Always ask “What else are you interested in at
  our hospital?”….
Never, Ever
Let a Prospect
Self- Refer.
5. Understand your risk/reward
          tolerance
How Much Do You Want To Spend To Acquire
          Or Retain A Patient?
• Select an economic criteria
   – Revenue
   – Profitability
• Select a strategic consideration
   – Introducing a new product line
   – Protect market share
   – Build market share
• Identify product line appeal
   – Preference
   – Patient Satisfaction
     Start With The Basics and Build Your
                  Opportunity

1.   Balance the Pie
2.   Ask your data the right questions
3.   Use actionable planning
4.   Commit to convert
5.   Understand your risk/reward tolerance
     Now Targeted Campaigns Are Based On
        Specific Revenue Opportunities
•New Movers Program
Residents w/No Brand Loyalty

•Acquisition Programs
Key Clinical Areas of Focus

•Physician Integration
Promoting DRGs or Physicians

•Screening Programs
PVD, Cancer, Migraines, etc.

•Multi-Hospital Service Line
Regional Focus on ED, etc.
      If You Have Additional Questions

For more information, contact

                     Brian Walker
 Sr. Vice President, Strategy and Client Development
              bwalker@srksolutions.com
                     312.335.2788

				
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