Retail Medicine Models: Lessons Learned SHSMD September 4, 2003 Geoff Kaufmann V.P. Clinical Development Center for Diagnostic Imaging Janet Guptill President KM at Work Inc. Steve Pew, PhD Clinical Transformation Texas Health Resources
Sales Continuum Wholesale Discount Mainstream Retail Upscale Retail Boutique Warehouse Focus on Distribution Institutional HVAC Warehouse Arranged for convenience of handlers Little if any service except minimum required by law Large building strategically located in shopping area Customer Friendly Service is as important as product quality Brand Names Convenience Exceptional facility Spa-like atmosphere Privacy Custom Service Personal Service Amenities Upsells Single specialty service Focus on highest quality Highest personal service Personal relationship with customer Repeat business
Provide services for Medicare, Medicaid, HMO, PPO participants at discount prices
Mainstream Retail: Pharmacies, Urgent Care Centers
Offer standard services to customers at standard retail prices
i.e. Services for customers who do not need “larger volumes”
Upscale Retail: Specialty Clinics/Hospitals, Menningers, ATCs (Betty Ford), Mayo
Provide specialty services at premium prices
Possess a reputation for premium care, customer service, or experience
Boutique: Cosmetic/Plastics, Dermatology, Laser Eye, Weight Loss
Offers specialty services to the public within a particular category at premium prices
Location: Marketing Tactic Or Retail Strategy??
Changing the location of a hospital to suburbia without changing the delivery/business model is simply a marketing/location tactic.
Operating in a new location using institutional delivery methods, institutional pricing, and providing little service is really just the same snow but a different drift. It does not make retail medicine.
Retail medicine is a different business model and care delivery model than traditional hospital medicine.
To enter the retail medicine market, hospitals must think in a completely different way and conduct business in a completely different manner.
Retail Medicine-What it isn’t Retail Medicine-What it is
“ Customers and employees will be empowered in new ways..and essentially calling the shots”
“ Information is free, Insight is not.”
“ The biggest problem for senior executives will be facing the fact that they are no longer in charge…the customer is”
“ No competitive advantage is sustainable. We wil have to continually create new competitive advantages”
C.K. Prahalad, Professor of Business Administration, Michigan Business School,
It’s this desire to participate that drives the retail healthcare demand
Weighed against other purchase options e.g. a vacation in the tropics
A collaborative care model
Evolution Of Healthcare Models Traditional Model
Professionals Huddle to determine what’s best for the patient
Treatment is imposed by experts
Knowledge is closely held and protected by each professional
The patient and family are outside the circle of knowledge and decision making
Outcomes are a result of the best intentions/skill of caregivers.
Patient Family Caregivers Knowledge 20 th Centruy
Evolution Of Models Ctn. Patient Centered Model 1980’s
Professionals circle the patient to coordinate treatment options.
Professionals “steer” patient toward their own ideas about best options for treatment.
Limited knowledge is shared among professionals
Patient and family have very little information
Outcomes are judged on clinician proclamation and patient satisfaction
Patient Family Caregivers Knowledge
Evolution Of Models Ctn. Customer Service Model 2000’s
PProfessionals provide “services” to the patient and family
KKnowledge is shared to the extent needed to “satisfy/serve” the customer
IInformation sharing among professionals is limited. Each is focused on what they uniquely provide
OOutcomes are a combination of patient satisfaction and caregiver satisfaction with services rendered
Patient Family Caregivers Knowledge Flaw…Nobody bleeds at Bennigians
Evolution Of Models Ctn. Collaborative Model The FUTURE
PProfessionals include the patient and family as an integral and honored part of the healthcare team
PPatients personal “expertise” about their body/health is valued
KKnowledge is community property
FFinal decisions belong to the patient and family
OOutcomes are collaboratively evaluated by multi faceted criteria e.g. clinical results, patient/family satisfaction, caregiver satisfaction
BBest practices in the industry
Patient Family Caregivers Knowledge
“ Retail” Puts The Customer In The Driver’s Seat Patient Centered Model 1980’s Patient Family Caregivers Knowledge Collaborative Model of Healthcare The FUTURE Traditional Healthcare Model 1900’s Customer Service Model 2000’s Copyright: The Center for Collaborative Health and Patient Advocacy 2003
Market research is crucial to assuring success. You have to understand how the customer wants to receive services.
Need to be more aggressive in market promotion.
It has been very difficult to integrate these services with our campus based …services from many perspectives: integration/continuum of care, uniform Human Resources, Administrative and Billing practices, etc.
These things take time to grow. Also, market surveys don't always tell the whole story.
Market assessment is vital. Physicians play a strong impact and can't be ignored. Physician ownership/commitment critical.
Address operational and patient satisfaction issues continually.