TO: CHIEF OPERATING OFFICERFROM: CHIEF EXECUTIVE OFFICERRE: BRANDING QUALITY SERVICESHealthcare providers of every ilk are struggling to brand themselves through their quality efforts. Some of the industry's most renowned organizations are adopting sophisticated methods to increase market share by trumpeting quality excellence. Clinical quality efforts are big-ticket investments that require serious marketing dollars to support them, says Corrine D. Everson, vice president of marketing and communications at Kansas City, Mo.-based St. Luke's Health System, which has 11 hospitals in Missouri and Kansas. But the payoff comes when you can answer questions about how you brand your quality services to stand out in a crowded field.
Are the right people getting our message?The healthcare industry spends millions on advertising nationwide-yet to a large degree, the effectiveness of these direct-to-consumer efforts remains unknown. In the past four years, Everson has directed the marketing investment at St. Luke's toward large employer communications and physician referral strategies. "Our marketing is budgeted this way: About 40 percent on direct-to-consumer, 30 percent on employer, 20 percent on physician referral, and 10 percent for internal communications," she says. St. Luke's reaches out to large employers through its managed care contracts. This allows the system to maximize its relationships with individuals who have health plan access to its services.
How do we distinguish between quality and value?Individual consumers want quality health services. But payors want demonstrated value. If quality initiatives don't show value, they could be perceived as unjustly increasing costs, says Everson. "We have to look at quality initiatives that increase efficiency and demonstrate better patient outcomes-whether they are improved quality of life or decreased length of stay."
How can targeted marketing improve our bottom line?Increasingly, marketing divisions are responsible for bringing in new business. "It's no longer about just making an attractive brochure or hosting a nice event," says Everson. For example, St. Luke's direct-to-employer marketing strategy allows Everson to better track the amount of referrals generated from an event at a large employer. "We can prove that employees at these targeted companies are connecting with our services and physicians," she says.
Does our brand enhance physician relations?Make sure you are fully aware of how your quality efforts influence physician relations. It stands to reason that the best hospitals will attract the most innovative doctors, but there are tactics that most hospitals can employ to attract physicians. "As a large system, it is very important that our marketing is aligned with physician needs," says Everson. "Physicians want to know that patients can access them easily. They really pay attention to how referrals come from our Web site and call center."
How else can quality drive our business strategy?St. Luke's Hospital is the hub of the St. Luke's Health System. In 2003, the hospital won the Malcolm Baldrige national quality award. "At a higher level the Baldrige award has helped us focus on the things that drive our business strategy and improve our bottom line," Everson says. "And that's taught us that we need to let some things go if we can't demonstrate value."
-Rick Johnson
Magazine
