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The Health Management Academy

DISRUPTIVE INNOVATION

WHAT CAN HEALTHCARE LEARN FROM MEDIA?

Healthcare providers are undergoing seismic transformation. Whether it is payment, care delivery or clinical decision making,
no element or corner of the business can afford to maintain status quo. Preparation, decisions, and execution today will be of
significant consequence in the long run. Embracing transformation can be challenging, but avoiding it can be worse.
As health systems assess their willingness to change, they should look to the media industry for lessons on success and failure.
The media industry has undergone its own decade long transformation, and has seen digital upstarts break through with
revolutionary business models (e.g. Buzzfeed, Vox Media, Independent Journal Review) while others have faded to obscurity by
clinging to traditional practices. Those that were successful embraced the following five lessons:

1. Know Your Customer

According to Gallup, Americans trust in media today is at a historic low (32%). In order to combat this trend, successful media
companies have tailored specific messaging to their audiences. Many outlets send personally curated emails with suggestions
for their readers based on individual reading history. Furthermore, media outlets have leveraged social media platforms like
Facebook to target content to audiences based on data captured from viewing preferences.
With ostensibly limitless data available on customer preferences, providers should attempt to utilize as much available information
as possible to improve their understanding of consumers. New platforms, such as WebMD, Healthgrades, and Castlight allow
consumers to quickly search for medical information like never before. Data sets offered from companies like Axiom are
widely available (and widely utilized in other industries) and have the potential to provide unique insights on health behaviors.
Ultimately, those that know their customers best will be best positioned for success.

2. Move to DigitalYesterday
According to Pew Research, nearly four-in-ten Americans today most commonly receive their news online or from a mobile
device. Media organizations that were slow to embrace the shift to digital are now suffering dramatic drop-offs in news print
subscriptions resulting in unprecedented layoffs.
Similarly, healthcare providers must also fully embrace the digital shift. One of the nations most prestigious health systems,
NewYork-Presbyterian, recently rolled out an extensive digital platform. The leaders at NewYork-Presbyterian understand the
evolving environment for engaging consumers and that its no longer enough to deliver simply the best care. They recognize
reaching consumers in the manner which they want to be reached will be the difference between earning and losing their
business.

3. Recognize and Adapt to Changes in Distribution

In 1984 there were over 63 million daily newspapers circulated in the United States. By 2014, there were approximately 40
million, despite a population increase of more than 80 million Americans. Similarly, the number of Americans that watch nightly
network news has dropped by almost 24 million since 1985. The avenues for receiving news has transformed dramatically.
Providers must also embrace changes in how medical care is distributed. Virtual medicine and retail clinics are increasingly
popular among Americans, as more than 60% of Americans indicate willingness to receive a virtual exam and there are now more
than 2,000 functional retail medical clinics. As health systems move towards population health and risk models, investments
outside the four walls of the hospital will become increasingly important. Customers want to be reached on their time and in
their terms. While there will always be a need for hospitals, health systems must respond to changes in demand.
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4. Embrace the Disruptors

Last February, ABC News partnered with Independent Journal Review to co-host the third Republican Presidential Debate
of 2016. This event marked an enormous achievement, as no other digital news company has held a prominent role at a major
debate this election cycle. Recently, Comcast announced it will allow customers to receive Netflix on its set-top box - a move
that is widely considered a significant strategic accomplishment for both companies.
Healthcare providers stand to benefit from similar types of innovative partnerships. in 2015, Providence St. Joseph Health
formed a partnership with Walgreens where Providence runs clinics inside of Walgreens stores across its various markets. In
the Washington, D.C. metro area, MedStar Health developed a partnership with Uber to improve access to consumers in their
market. By embracing disruptors, health systems can improve their brand, their ability to access consumers, and their position
relative to their competitors for negotiating future strategic relationships.

5. Accept Changes to the Revenue Model

Over the last decade, the conventional print advertising revenue model for media companies has become difficult to sustain.
With disruptors like Independent Journal Review and Huffington Post, traditional media outlets have been forced to place heavier
emphasis on data informed newsrooms, digital subscriptions, and product offerings. As Fortune spun away from CNNMoney
in 2014, its editors recognized the need to increase traffic and tripled the amount of daily content they produced. Similarly, the
Washington Post recently announced it publishes a piece of digital content every minute a necessary strategy to keep pace with
competitors.
Market forces (the federal government, in particular) are driving healthcare through its own shift in revenue model. Health
systems must decide if the time is now to embrace new payment structures, or wait for others to move first. In media the results
were simple companies that moved first were rewarded in the long run while companies that waited suffered because of it.
Accepting a shift in revenue model requires cultural readiness. Health systems must be prepared to move.
Much like the media industry, the healthcare industry isnt going anywhere. However, like media, healthcare isnt immune to
dramatic transformation and disruptive change. In the media industry, we learned those that resist market changes generally
lose. Those that learn from customers, pick the right partners, invest in digital, and embrace disruption will be positioned for
immense success. Lets avoid being the next Blockbuster Video.
Alex Skatell is Founder and CEO of Independent Journal Review (IJR), a news website with more than 30 million unique visitors
a month and Co-Founder of the digital agency IMGE. IJR was the only digital only news company to be selected as a co-host for
a Presidential debate this election cycle. Alex has been profiled in the New York Times and is a recipient of the Forbes 30 under
30 and Fortune 40 under 40 awards.
Jarrett Lewis is the Executive Director of Consumer Research and Analytics at The Health Management Academy, which provides
educational and advisory services to C-Suite executives of the largest 100 hospital systems in the United States.

http://www.naa.org/Trends-and-Numbers/Circulation-Volume/NewspaperCirculation-Volume.aspx
http://www.cnsnews.com/news/article/barbara-boland/study-networknews-viewers-all-time-low-half-under-age-30-never-watch

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