Healthcare IT Strategy

Got patients?

Its called VRM, Vendor Relationship Management

Retention is for wimps. We measure the percentage of patients who have our name tattooed on their body.
(Harley Davidson Annual Report)

80% of CEOs believe their brand provides a superior patient experience8 % of their customers agree
(Bain & Company)

PRM A Matter of Perspective

Is your hospital looking from the inside-out or from the outsidein?

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Are your patients coming or going?

Does Your Hospital Stand Out?

We retail electronics Were in pharmaceuticals We offer professional services We manufacture dry goods You are not in the healthcare business. You are in the decommodification business.

Its not your fathers PRMor is it? 6

PRM Alone Wont Grow Revenues

98% of Coupons Get Thrown Away It is 10x More Expensive to Generate Revenue from a New Patient A 5% Increase in Retention Can Increase Profits by 60% 100% It is 6x More Expensive to Service Patients Through a Call Center than it is via the Internet and Website Patients Who Refer Another Patient Generate Revenue at No Cost Loyal and Referred Patients Stay Longer, and More Services
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COLOR

Its time to color outside the box

Its time to break a few coconuts

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PRM
Logical Left Brain Patients Value to Enterprise Systems and Transactions Functional Value

PEM
Emotional Right Brain Enterprises Value to Patient People and Interactions Emotional Value

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PRM is an inside-out view

Standard PRM involves heavy applications of technology:
PRM applications Enhanced IVR and ACD applications Outsourcing call center operations Off-shoring Sales force automation

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PRM is technology employed for user convenience

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PRM is a shotgun approach

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PRM is Multiple channels, patients in a box.

PHONE WEB STORE (FACE TO FACE) (COMPUTER TO COMPUTER)

(PHONE TO PHONE)

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Is there a Better Way?

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Fixing PRM
Patient Management should focus on value creation, not cost reduction, effectiveness, not efficiency. PRM should have revenue targets.
Value creation through PRM initiatives comes from: Growing the patient base Maintaining the patient base retention, cross-sell & up-sell Servicing patient segments Maximizing channel effectiveness
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Change of Focus
The focus is changing from enterprise to single patient, from technology to process, to Patient Acquisition (number of new "quality" patients) Patient Retention (percent of existing patient retained) Patient Satisfaction (question results from survey and/or focus groups) Patient Segmentation (percent of profit by patient demographics) Patient Profitability (average profit per patient/per household) Patient Servicing (average response time for patient complaint/inquiry resolution, first call resolution) Patient Referrals (Net)

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How are your patients connected to each other? To you?

Patients have many channel choices

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Patients Solicit Bids

I want to notify the whole market that I want to buy a SONY plasma TV. In effect, I want to issue a personal RFP that goes out to every retailer of SONY plasma TVs.

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The patient is channel agnostic, and how the patient is cared for must be infrastructure agnostic.

Patient Equity/Experience Management is the New Marketing

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To decommodify, become the patient

Reengineer

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From what to what?

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Patient Management Evolution

PRM evolves to PEM Patient Experience = Hospital Performance Patient Expectations The value add is transforming PEM to Patient Equity Management the total lifetime discounted value of all the hospitals patients.

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Patients vs. Hospitals who is winning?

How many hits does Google Reader display for your hospital? How many for FaceBook? MySpace? YouTube?
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How many of those interactions are you managing?

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Managing patients is like herding catsnot much bang for your buck.

(of course Ive heard of cats)

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Its not a fair fight

While you manage patients, they are managing you

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Still with me?

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Two worlds have collided, patients and hospitals

Did either survive intact?

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Its not easy

but important ventures rarely are.

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Where do you need to go?

How do you get there?

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Need Help?

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(EASY button not included}

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Healthcare IT Strategy can lead the way

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Its called VRM, Vendor Relationship Management

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First, write the playbook

PRM to PEM: Define goals/objectives Evaluate the situation Define expectations Develop a plan PRM PEM Social networking Implement

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Define Goals & Objectives

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Evaluate your situation

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Develop a plan

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Social Networking

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+1 (484) 885-6942 +1 (610) 384-1811

paulroemer@Healthcareitstrategy.com

Paul Roemer, Managing Partner Healthcare IT Strategy, LLC

Contact: Paul Roemer, Partner, Clinton Rubin LLC paul.roemer@clintonrubin.com (484) 885-6942
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