1. Got patients?
Healthcare IT Strategy

2. 2
It’s called VRM, Vendor
Relationship Management

3. 3
“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
experience…8 % of their customers agree“
(Bain & Company)

4. 4
PRM – A Matter of Perspective
Is your hospital looking from the inside-out or from the outside-
in?

5. 5
Are your patients coming or going?

6. 6
Does Your Hospital Stand Out?
“We retail electronics”
“We’re in pharmaceuticals”
“We offer professional services”
“We manufacture dry goods”
“You are not in the healthcare business. You are in the
decommodification business.”

7. 7It’s not your father’s PRM…or is it?

8. 8
PRM Alone Won’t 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

9. 9It’s time to color outside the box
COLOR

10. 10
It’s time to break a few coconuts

11. 11
PRM
Logical Left
Brain
•Patient’s
Value to
Enterprise
•Systems and
Transactions
•Functional
Value
PEM
Emotional Right
Brain
•Enterprise’s
Value to
Patient
•People and
Interactions
•Emotional Value

12. 12
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

13. 13
PRM is technology employed for
user convenience…

14. 14
PRM is a shotgun approach

15. 15
PRM is Multiple channels,
patients in a box.
STORE
(FACE TO
FACE)
WEB
(COMPUTER
TO
COMPUTER)
PHONE
(PHONE
TO
PHONE)

16. 16
Is there a Better Way?

17. 17
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

18. 18
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)

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

20. 20
Patients have many channel
choices

21. 21
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.

22. 22
The patient is channel agnostic, and how the patient
is cared for must be infrastructure agnostic.
Patient Equity/Experience Management is the New
Marketing

23. 23
To decommodify, become the
patient…
…Reengineer

24. 24
From what to what?

25. 25
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
hospital’s patients.

26. 26
Patients vs. Hospitals– who is
winning?
How many hits does Google Reader display
for your hospital?
How many for FaceBook?
MySpace?
YouTube?

27. 27
How many of those interactions
are you managing?

28. 28
Managing patients is like herding
cats…not much bang for your buck.
(of course I’ve heard of cats)

29. 29
While you manage patients, they
are managing you
It’s not a fair fight…

30. 30
Still with me?

31. 31
Two worlds have collided, patients
and hospitals
Did either survive intact?

32. 32
It’s not easy…
but important ventures rarely are.

33. 33
Where do you need to go?
How do you get there?

34. 34
Need Help?

35. 35
(EASY button
not included}

36. 36
Healthcare IT Strategy can lead
the way

37. 37
It’s called VRM, Vendor
Relationship Management

38. 38
First, write the playbook…
PRM to PEM:
•Define goals/objectives
•Evaluate the situation
•Define expectations
•Develop a plan
•PRM
•PEM
•Social networking
•Implement

39. 39
Define Goals & Objectives

40. 40
Evaluate your situation

41. 41
Develop a plan

42. 42
Social Networking

43. 43
Contact: Paul Roemer, Partner, Clinton Rubin LLC
paul.roemer@clintonrubin.com
(484) 885-6942
Paul Roemer, Managing Partner
Healthcare IT Strategy, LLC
+1 (484) 885-6942
+1 (610) 384-1811
paulroemer@Healthcareitstrategy.com