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The Official Publication of the 2007 SHSMD Annual Conference




                                                                                     Annual Educational
                                                                                     Conference and Exhibits—
                                                                                     October 3-6, 2007
                                                                                     in Washington, D.C.



fedeX in the

Healthcare universe
c u s toMErs Who shIP PackagEs Won’t stand For a 1% Error r a t E




W
                        hy should those who enter a hospital for a proce-                                               Joe Flower is a
                                                                                                                        healthcare futurist,
                        dure? Altfedex is a loose cooperative of truck drivers. some
                                                                                                                        speaker and founder
                          of the drivers are both courteous and efficient. But some of
                                                                                                                        of the education firm
                          them think that getting it there by 10:30 a.m. isn’t all that
                                                                                                                        Imagine What If Inc.
                          important. some refuse to carry anything over 50 pounds,
and others won’t take packages going to Massachusetts, because they didn’t study
Massachusetts in driver’s school. Lose 1 percent of the packages? Hey, that’s a 99 percent
success rate. not bad. they insist that there is no way to measure their performance—
they all have a right to a job, and they should all be paid the same as the fedex drivers.
                                                                                                    Joe Flowers,
                                                                                                      founder,
   Who would you call? fedex or Altfedex? Would Altfedex serve the customer?                     Imagine What If Inc.
could such a business survive longer than a mayfly? sure it could, in a soviet-style
                                                                           continued on page 4




         Connections is brought to you in part through the generosity of Noblis and GLC Custom Publishing.
conne
                                                                                    Get


                                                                                EvEnts n o t t o M Is s

                                                                                Log on to the society website at
                                                                                www.shsmd.org, e-mail us at shsmd@aha.
                                                                                org or call us at 312.422.3888 for more
                                                                                information about these exciting neW
                                                                                events and complete meeting details!

                                                                                New SHSMD Senior Executive
                                                                                Symposium
                                                                                You asked and we delivered, with a
RD-023_SHSMD_4.125x8.5                7/9/07       4:49 PM        Page 1        specially designed meeting-within-a-
                                                                                meeting dedicated to issues that impact
                                                                                executive leadership. if you have 20 or
                                                                                more years of healthcare experience,
           Powering results through                                             here’s your opportunity to engage with
                                                                                your peers on everything from leadership
           Customer Relationship Management                                     to operations and more! (Limit 100
                                                                                participants)

                                                                                New Member and First-time
                                                    Strategic                   Attendee Reception
                                                    Marketing                   Tuesday, October 2
                                                                                take advantage of this opportunity to
                                                                                network with your colleagues and learn
                                                                                more about the Annual conference. if
                                                                                this is your first national conference or
                                                                                you’re a new sHsMD member, this event is
                                                                                especially for you!
        Database
                                                                                Speed Networking
        Development
                                                                                Wednesday, October 3
                                                                                start out this year’s meeting with
                                                                                an engaging, fast-paced networking
                                 Communications Design Tool                     experience. By participating in the kickoff
                                 and Digital Asset Library
                                                                                networking session, you will meet five
                                                                                individuals from the healthcare community
    For more information, contact Guy Miller, guy.miller@reach3.com.            who may have a long-lasting impact on
                    608.848.3476 www.reach3.com                                 your career. Just a few minutes of your



     connections The Official Publication of the 2007 SHSMD Annual Conference
2
cted                                                      reGiSter today! online at www. shsmd.org.
                                                                 to request a complete brochure, call us at 312.422.3888
                                                                 or e-mail us at shsmd@aha.org.



                                                                             As individuals, we make dozens of connections every day: verbal
                                                                             connections, intellectual connections, technological connections.
                                                                              But when was the last time you felt truly connected to—involved
time can provide exponential benefits—
                                                                              with, plugged into—a community of people with similar interests
don’t miss it.
                                                                               and goals?
SHSMD Knowledge Community                                                       It’s a challenge we all encounter, and one we ignore at our peril.
Kickoff
                                                                                NOW, SHSMD has the SOLUTION!
Wednesday, October 3
                                                                                 Get connected with a vibrant community of your peers at this
come to this orientation session and
                                                                                 year’s Annual Conference and Exhibits.
find out how sHsMD’s newest member
benefit, the knowledge community, gives
you ongoing opportunities to collaborate
and explore best practices and new ideas,


                                            Don’t miss this event!
share knowledge, and discover solutions
to the challenges you face every day.

Inside SHSMD Breakfast
                                             t a k e t I m e t o connect wIth your InDustry peers
Thursday, October 4
Join sHsMD President ruth colby and the
                                               Being pressed for time is a chronic condition of your job as a healthcare executive. Maybe
sHsMD Board for breakfast, and discover
                                            you think you can’t afford to spend three days out of the office. think again. At the sHsMD Annual
what’s new with the society. Hear
                                            conference, you will:
firsthand how you can become more
involved in sHsMD.
                                            1               Network with your peers and leaders from all segments of healthcare during interactive workshops and roundtables.
Potomac River Dinner Cruise
                                                2           Learn from leaders in the field. Sixty-six concurrent sessions in eight interdisciplinary tracks give you
Networking Event
                                                            invaluable access to the most distinguished faculty in healthcare strategy today.
Thursday, October 4

                                            3
the 2007 networking event offers you
                                                            Explore new and innovative solutions at the general sessions, with speakers and topics to intrigue, inspire, and
the opportunity to view our nation’s
                                                            entertain you.
most revered monuments, dine on first-

                                                4
class cuisine, and dance to live music as
                                                            Delve into healthcare’s hottest topics at any one of the 12 optional workshops designed for in-depth learning.
you drift by awe-inspiring tributes to

                                            5
Washington, Jefferson, and Lincoln. sign
                                                            Take an in-depth look at selected topics during the extended workshops on Saturday at no charge.
up today for the odyssey Potomac river

                                                6
networking cruise. tickets are $85.
                                                            Exchange ideas online in e-mail discussions with many conference speakers before the conference.
                                                            Tell them in advance what you need to know!

                                               if you want to confirm that your time will be well-spent, ask a colleague who has attended the
                                            meeting for an objective evaluation. thousands of healthcare professionals across the country agree
                                            that the sHsMD Annual conference is the best value for your educational dollar.

                                                                                                                                   october 3-6, 2007 www.shsmd.org             3
continued from cover

                           fedeX in the

                           Healthcare universe
                           economy, or in healthcare.                                                     individuals. You do it with tight teams—medi-
                                                                                                          cally integrated practice units, as Michael Porter
                          p r I c e , p r o D u c t , p e r f o r mance                                   and elizabeth olmsted teisberg call them in
                               transparency is spreading across healthcare, moving gradually              Redefining Health Care—who work together on the
                          from process, average price, and customer satisfaction measures,                same diagnosis over long periods of time, hon-
                          to outcomes and actual prices—this is what we charge for                        ing their processes to continually increase their
                          this procedure, and this is how good we are at this procedure.                  quality and lower their costs.
                          Moving toward setting real prices and publishing real outcomes                      clearly this means that every hospital and
                          will in time mean moving toward selling complete packages—                      health network must think long and hard about how to tie its
                          an uncomplicated birth, a cholecystectomy from diagnosis to                     physicians more tightly to its own goals. in the end, this may
                          rehab, a complete knee replacement, a diabetes management                       well mean simply putting them on staff, at least in those areas
                          program—soup to nuts, with one price tag and one set of out-                    in which the institution is putting together medically integrated
                          come numbers. call it “price, product, performance.”                            packages and building real brand recognition—such as an eye
                                                                    How do you compete                    clinic, a back program, or a cardiac unit.
                                                                 on price, product, and
       Flowers’ discussions of                                   performance? not, clearly,                    transparency anD effIcIency
potential changes                                                with a loose-legged con-                          Whatever the details of the mechanisms, it is clear that in a
                               in the healthcare
                                                                 geries of practitioners who                   world in which healthcare providers actually compete to pro-
          thought-provoking.
 arena are                                                       do everything the way they                    vide the customer the best value, physicians and hospitals need
                                                                 want to, the way they learned                 each other. Hospitals need doctors’ full involvement to set up
       Ed Colloff, MD, Stanford Medical Center
                                                                 years ago, the way that is                    practice units that can drive volume and quality while keeping
                                                                 comfortable for them as                       down cost. Physicians need hospitals because the same practice
                                                                                                                                       units can use their skills more efficiently,
                                                                                                                                       earning them more money while keeping
                           n o t e V e rY A L i G n M e n t                       M o D e L Wo r k s                                   quality high and the malpractice lawyer
triAL And error
                                                                                                                                       from the door.
                                                                                 in the meantime, and short of a paycheck, a
                                                                                                                                           Providers (both physicians and
                                                                                 number of major hospitals are trying a vari-
                                                                                                                                       institutions) continue to resist real
                                                                                 ety of models to build physician alignment,
                                                                                                                                       outcomes and price reporting through
                                                                                 including:
                                                                                                                                       their influence on such organizations as
                                                                                 n  contracts (at thedacare, for example)
                                                                                                                                       the Joint commission on Accreditation
                                                                                    that require goals and results measure-
                                                                                                                                       of Healthcare organizations and the
                                                                                    ment, using such tests as the sf-36 out-
                                                                                                                                       national Quality forum. Yet, despite
                                                                                    comes survey, and that pay more for top
                                                                                                                                       their demurs, there is nothing impos-
                                                                                    performance;
                                                                                                                                       sible about such measurement. there is
                                                                                 n  contracts (at intermountain Health care           a whole field of study—risk manage-
                                                                                    and others) that pay top physicians for one        ment—built on this problem of measur-
                                                                                    quarter of their time to help organize and
                                                                                                                                       ing the hard to measure. And, once the
                                                                                    manage integrated practice units; and
                                                                                                                                       industry starts to crack open, true trans-
                                                                                 n  agreeMents (as at beth israel Deaconess)          parency will spread rapidly.
                                                                                    that compensate referring physicians for               As soon as Gargantua Memorial
                                                                                    their help in quality efforts and in manag-        begins reporting actual prices and out-
                                                                                    ing practice units.                                comes for, say, brain transplants,




      connections The Official Publication of the 2007 SHSMD Annual Conference
 4
“They understood what they
                                                                                                        were passionate about, what
                                                                                                        they were best in the world
                                                                                                        at, and what drove their
                                                                                                        economic engine.”
                                                                                                                        Jim Collins on the
                                                                                                            ”Good to Great” organizations




                                                                    learn More! come see
                                                                    Joe flowers at the thursday,
All Angels, Megacorp Healthcare, and Golden Arches clinics          october 4, general session
                                                                    presentation. register online
are going to post theirs, and they are going to go to their state
                                                                    today at www.shsmd.org
associations and legislatures demanding standardization and
                                                                    or call 312.422.3888 for
standard audits of all such published information.                  more information.
    As soon as health plans begin using ranked co-pays and
information to favor providers that cough up real outcomes
and real prices, providers will scurry to get in line.
    As soon as some providers begin to demand that, say, the

                                                                         Yellow pages made easy!
surgeons in their new full hip unit participate in a program of
posting price and outcomes, competing surgeons and programs
across town (and across the country) will be eager to show that
their numbers are better—domino quality reporting.

measura B l e v a l u e
    Healthcare desperately needs to graduate from its “the
customer is always wrong” era into one in which real value
                                                                                             Your authorized SHSMD partner
to the customer—provable, measurable, publicly reported
value—comes before anything else. And to do that, it needs
tight integration between physicians and the organizations in
which they work.
    People [what people? People who defend the status quo?]
say that “this is medicine” and that it is somehow too precious
to submit to such careful, organized, public scrutiny. But for
some reason, our customers are failing to buy any logic that
attempts to explain why the business that deals in the lives,
deaths, and suffering of ourselves and our loved ones should
have lower quality and less accountability to its customers than
toyota, Marriott, or fedex.



                                                                            East Coast                 Midwest                           West Coast
                                                                         Dawn Sanderson              Steve Judkins                       Scott Solter
                                                                          888-214-1343               877-775-2600                       800-728-5121

                                                                                                                      october 3-6, 2007 www.shsmd.org
                                                                    bvk • connections shsmd yp ad • sand1233 • 4.125” x 4.5” • V4 • ir • 6/29/06 • 4C
                                                                                                                                                        5
StrateGic PlanninG 101


  noblis
                                                  Perspective?
  By Susanna Krentz, Senior Principal
  at Noblis Healthcare


  t E n n E c E s s ary Pr I ncIP l Es




a
                                                                                   4 f rame the future
                 systematic strategic planning process which
                 provides a forum for informed strategic debate                        strategic planning is about the organization’s future market
                 among hospital or health system leadership is                      position. An internal and external assessment primarily presents
                 critical for success in an environment where                       a historical/current picture. it is incredibly valuable to spend
                 there is little margin for error. noblis’ approach                 time in a planning process to articulate what the organization’s
  to strategic planning incorporates the ten principles described                   assumptions are about the future: demographics, physicians,
  below—learned through experience with numerous healthcare                         competitors, payment, and demand.
  organizations.
                                                                                   5 Determ I ne the hypotheses
1 Inv o l v e t h e r I g h t p e o p l e                                               At this point, the organization can meaningfully consider
      to be effective, the strategic planning process must involve                  alternatives to address its critical issues. then, with thoughtful
  organizational leadership—management, Board, and medical                          analysis and deliberation, sound strategic choices and decisions
  staff. involvement can take a variety of roles: from participating                can be made on future direction and priorities.
  on a strategic planning committee to providing input via inter-
  views, surveys, or discussion groups.

2 Dev o t e t h e n e c e s s a r y tIm e
      Meaningful strategic planning cannot be accomplished in a
  weekend retreat. A comprehensive plan usually requires five to
  six months to thoroughly address critical issues and financial
  implications.

3 ID e n tI f y t h e Is s u e s  s It u a tI o n s
      A key first step is to identify the organization’s
  critical strategic issues (versus operational challenges),
  as well as the information necessary to effectively
  understand these issues. thorough internal and
  market assessments help frame issues, including
  service area demographics, competitor profiles,
  market share analyses, medical staff assessment,
  consumer/patient surveys, utilization trends,
  and quality position.




        connections The Official Publication of the 2007 SHSMD Annual Conference
  6
for implementation are only dreams. At the same time, imple-
6 know thyself
                                                                         menting the strategic plan should result in an improved posi-
      A critical part of the strategic planning process is acknowl-      tion for the organization, which can be tested with a dynamic
  edging the organization’s strategic intent and risk tolerance. At      financial plan.
  one end of the spectrum are “market enactors” who seek to
                                                                       9 commun Icate the plan
  create fundamental changes. in the middle are “market adap-
  tors” who look for effective ways to create competitive advan-             Leaders need to explain the plan to all stakeholders, provid-
  tage. At the other end of the spectrum are “market survivors,”         ing the level of detail that is appropriate or needed by each
  whose focus is to optimize current performance.                        audience. this includes internal as well as external constituen-
                                                                         cies.
7 translate the plan Into actIon
                                                                       10 mon I tor, make a Djustments
      the final plan, and any planning support documentation,
  should present complex information in a way that is under-                strategic plans are not set in stone. they are dynamic in
  standable by all planning participants. once the “plan” is fin-        nature and should be re-visited at least semi-annually. strategic
  ished, the hard work begins. specifically operationalizing strate-     metrics should be employed by the Board to monitor progress
  gies in a tactical plan that identifies who will be responsible        towards the organization’s vision and strategic goals.
  for doing what, as well as the specific timeframes, required
  resources, and expected results.                                          Because the future is unknown, organizations must take
                                                                         prudent, disciplined steps to ensure their long-term success.
8 co n n e c t t h e p l a n s t o g e t h e r                           Use the battle-tested principles that noblis has developed over
    the strategic plan should be reflected in the organization’s         many years as you develop your organization’s strategic plan.
  multi-year financial plan. strategies that aren’t given resources




                                                                                                       october 3-6, 2007 www.shsmd.org       7
Lightning
                                                                                  has struck!




                                                                                      EchoAccess™ is
                                                                                    healthcare’s first and
                                                                                  only fully browser-based
                                                                                   contact center solution




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    connections The Official Publication of the 2007 SHSMD Annual Conference
8
the riSe of PhySician



“Super                                                                                     the p hysI cI an p ract Ice Bus Iness
                                                                                           m o Del I s chang I ng
                                                                                              As advances in science and technology have changed the
                                                                                           way in which healthcare is delivered, these market forces




Groups”
                                                                                           have also fundamentally changed the historic business
                                                                                           approach to medicine for physicians in many markets across
                                                                                           the country.


                                                                                                                            MArket forces
                                                                                                      consider the

                                                                                                                      n
                                                                                                                       Migration of services from the
                                                                                                                       inpatient to outpatient
By Trent Green, Director at Navigant Consulting and
Alexis Seeder Levy, Associate Director at Navigant Consulting                                                          setting
                                                                                                                      n
                                                                                                                       Decline in professional fees
t h E Ir IM P a c t on th E hEalthcar E Industry                                                                       driving physicians to seek income




                    P
                                                                                                                       from other sources (mainly
                                                                                                                       technical/facility revenue)
                                        hysicians are developing new ways to
                                        organize their practices and are no lon-                                      n
                                                                                                                       increase in private capital
                                        ger dependent on the hospital to create a                                      Dollars available to healthcare,
                                        workshop for them to practice medicine.                                        enabling physicians to invest in
                                                                                                                       equipment and facilities to access
                                        While these “super Groups” present a threat to
                                                                                                                       these fees
                        the traditional hospital business model, they also represent
                        an opportunity for hospitals to explore deeper partnerships
                                                                                                                      n
                                                                                                                       absence of regulatory
                        with physicians. in the best case scenario, rather than crafting                               restrictions (e.g. con) in some
                        a reactive response to a “super Group” threat, hospitals should                                markets
                        proactively seek out physicians that have the greatest impact on
                                                                                                                      n
                                                                                                                       eliMination ofMoratoriuM
                        hospital volume and financial viability and engage in dialogue
                                                                                                                       on specialty hospital formation
                        with these physicians on partnership opportunities.
                                                                                                                      n to maintain a controlla-
                                                                                                                       Desire
                                                                                                                       ble lifestyle (which often does
                                                                                                                       not include eD call coverage)
                                                                                                                      n
                                                                                                                       increase in sub-specialization
                                                                                                                                        continued on page 10




                                                                                                                                 Hospitals should
                                                                                                                                 proactively seek
                                                                                                                                 out physicians to
                                                                                                                                 explore partnership
                                                                                                                                 opportunities.




                                                                                                                  october 3-6, 2007 www.shsmd.org         9
next stePs
                                                                                                                                              the




continued from page 9


 s olut Io n s to m a r k e t f o r c e s
                                                                          in response to these market forces, many physician groups
      Market                    “SuPer GrouP”
      force                       Solution                            have begun a shift from single or small group practice to form
                                                                      “super Groups” as they begin to appreciate the benefits of
  outpatient shift        invest in technology and facilities         scale to address these forces.
                          to capture newly available
                          outpatient capabilities in the
                                                                      t h e h o s pItal BusIness m o Del u n Der sIege
                          physician office (or owned) facility
                                                                          for physicians, the advantages of remaining aligned with
  Decline in              use group size as leverage for              the hospital no longer outweigh the potential opportunities
  professional fees       better rates from managed care              available elsewhere, given the above market forces. As a result,
                                                                      these new market forces threaten to (or are already serving
                          pool resources and achieve access
                                                                      to) “disaggregate” care by fragmenting the patient care expe-
                          to capital to invest in technology
                          and facilities to access new                rience to multiple sites in the market (e.g., one location for
                          revenue streams                             imaging, one location for heart procedures, one location for
                                                                      spine procedures, etc.).
  increase in             new access to funding for facilities
                                                                          in nearly every instance, if a hospital service is at risk for
  private capital         and technology that may not have
                                                                      disaggregation, it can be assumed that it will have a negative
                          been previously available
                                                                      financial impact on the hospital. Physicians are seeking ways
  absence of market       investment in physician owned               to supplement their income and will only target services that
  regulation/             facilities (both specialty and              accomplish this goal. As a result, hospitals are left to carry the
  elimination of          general acute)
                                                                      burden of uncompensated care or poor payor mix.
  moratorium
                                                                          While clearly bad from a profitability standpoint for hos-
                                                                      pitals, there are also arguments that the disaggregation of care
  controllable            share call coverage burden across
  lifestyle               a larger group                              can have a negative impact on patient care. As the population
                                                                      ages and individuals have more co-morbidities that require
                          use group size as leverage to
                                                                      specialty consults, inpatient care will require the availability of
                          negotiate call coverage subsidies
                                                                      a full complement of medical and surgical specialty services.
                          from the hospital
                                                                                                                                             For hospitals and health systems
                                                                                                                                             that are facing competition from
  sub-                    Develop critical mass within a              w h a t c an hosp Itals Do?
                                                                                                                                             physician Super Groups, the first
  specialization          practice and use as a market                   Hospitals’ range of strategic responses to super Groups
                          differentiator                                                                                                     step is to size the magnitude
                                                                      generally falls into one of three categories.
                                                                                                                                             of the threat and evaluate the
                                                                                                                                             impact of disaggregation on a
 s trategIc re s p o n s e s
                                                                                                                                             specialty-by-specialty basis.
       “full                       “Join/                     “coMPete/
                                                                                         or                         “Shrink”
   inteGration”                   Partner”                    break-uP”

  faculty practice plan       Joint venture new            conflict of interest                            cede profitable outpatient
                              facilities                   policy                                          (and inpatient) services to
                                                                                    face the least
  clinic club
                                                                                                           physicians
                              Management                   select employment        desirable (and
                              agreements                   of specialists                                  focus on core hospital services
                                                                                    least financially      (ob, cancer surgery, trauma,
                                                                                    viable option)…
                              syndication of               leverage primary                                emergency services, general
                              existing facilities          care base                                                                          learn More by
                                                                                                           Medicine)
                                                                                                                                              attendinG! come
                                                           Managed care                                    lobby the state for increased      see The Rise of Physician
                                                                                                                                              “Super Groups” and
                                                                                                           “safety net” funding
                                                                                                                                              What Hospitals Can Do to
                                                                                                                                              Address Them session at
                                                                                                                                              sHsMD’s annual conference
  1                         2                          3                                                                                      friday, october 5.

                 connections The Official Publication of the 2007 SHSMD Annual Conference
          10
READY FOR NEW BLOOD?
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                                                                                                                                                     NO LIZARDS WERE HARMED WHILE CREATING THIS ADVERTISEMENT.
                                                                                                                                                                                      © 2007 Red Lizard Creative
                                                                                                   from the Lizards.
                                                                                                 When you work with Red Lizard Creative,
                                                                                                 we can revitalize your hospital brand,
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                                                                                                 The Lizards embrace change. We are
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                                                                                 Here’s one session you can’t afford to miss!


                                                                       are you ready for the boomer boom?
                                                                                       Thursday, October 4th, 3:45—5:15 p.m.
step 1: unDerstanD tHe pHysician lanDscape
n many physician groups exist for each specialty?
   How                                                                 boomers...they’re more involved in their health than any generation in
                                                                       history, and they’re about to enter their peak spending years. How do you reach
n is the size and complement (e.g., level of sub-specialization
 What
                                                                       and persuade them? Join us as we turn the spotlight on boomers’ messaging
 or existence of multiple specialties) within each group?
                                                                       and media preferences. Gain insider marketing knowledge from recent focus
n do these groups have medical staff privileges (both within the
 Where
                                                                       groups with boomers. Discover proven tactics and strategies from StayWell
 system and at competing hospitals)?
                                                                       Custom Communications and our client partner, Sutter Health System, to build
                                                                       positive, long-term bonds with this vital segment and drive boomers to you.
step 2: unDerstanD tHe iMpact tHat tHese pHysicians Have on tHe
        Hospital                                                       Results guaranteed.
n is the volume impact (inpatient and outpatient)?
   What
                                                                       Stop by Booth 416 to request a copy of our new executive report,
n is the financial impact (inpatient and outpatient)?
 What                                                                  “Boomer Boom,” and enter for a chance to win FRESH FLOWERS
                                                                       delivered monthly for a year!
n are the current costs expended in maintaining a working rela-
 What
 tionship with these physicians (call coverage subsidies, management
 contracts, etc.)?

                                                                                                                                                     r:
step 3: seek qualitative input froM pHysicians to unDerstanD                                                                                      ffe er
                                                                                                                                               e O oom
        tHeir key practice issues anD groWtH aspirations                                                                                      c
                                                                                         800.543.8854 / www.staywellcustom.com
                                                                                                                                            en b
                                                                                                                                          er or
                                                                                                                                        nf ng f ns!
With this detailed background, hospitals can begin to
                                                                                                                                      Co ici tio
                                                                                                                                  ial    ra
evaluate which one of the above options is the best
                                                                                                                               ec red p blic
                                                                                                                             Sp fer pu
strategic fit with the organization. It is also important to
                                                                                                                                e
                                                                                                                              pr
recognize that there is no “one-size-fits-all approach.”

                                                                                                                    october 3-6, 2007 www.shsmd.org                                             11
creativity
 a PhiloSoPhical PoSition on




     Marketing
  in
By Dan Greenberger, Chief Innovation
Officer at GreenHouse Communications


t h E I r I M P a ct on thE hEalthcarE Industry




                          I
                                 confess, for nearly 30 years I was a “Creative” in              unDerstanDIng anD emBracIng creatIvIty
                                 ad agency “Creative Departments.” As writers and                    the first step to engaging creativity within your “creative
                                 art directors, i assumed we were the only people on the         department” is to define it. i define creativity as the ability to stay
                                 marketing team who could think creatively. it sounds silly      out of the way of your originality and imagination. creativity flows once
                                 to me now, yet many agencies still operate that way. Until      you stop letting your habits, rules, and traditions inhibit new
                            recently, even i unwittingly referred to agency writers and          thinking. Without that significant mind-shift, you’ll continue to
                            art directors as the “creative Department.” But what about           get the same answers to the same questions.
                            designers, the interactive group, and public relations special-
                            ists? in fact, with the rapid changes to life as we know it,
                                                                                                 the power of posItIve feeDBack
                            research and media planning require more creativity than ever
                                                                                                     once you let go of all your preconceived notions, it’s like
                            before. everyday, client service professionals have to employ
                                                                                                 listening with a fresh set of ears. the tool to help you do this is
                            every ounce of their creativity to help clients get more for less.
                                                                                                 called positive feedback, and it starts with a simple response to
                                                                                                 any idea you hear: What I like about your idea is (insert something you
                           t h e w o r l D ’ s l a r g e s t c r eatIve
                                                                                                 genuinely like about it). then after i say what i like about an idea, i
                           Department
                                                                                                 voice my concerns by asking questions like, So how might we over-
                              As clients, you should put every person at your agency on
                                                                                                 come (insert concern here)?
                           notice that you expect everyone to be part of your “creative
                                                                                                     Positive feedback isn’t about being nice, or blindly following
                           department.” Your team should also consider itself part of the
                                                                                                 a process. it’s about better solutions, effecting change, and nur-
                           creative department, along with your doctors, nurses, patients,
                                                                                                 turing creativity. it’s also about building loyalty to one another.
                           and families. frankly, you should be boasting the largest creative
                                                                                                     Why does positive feedback build loyalty as well as good
                           department ever assembled working on your account. A good
                                                                                                 ideas? When you tell someone what you like about an idea,
                           idea can come from anywhere.




     connections The Official Publication of the 2007 SHSMD Annual Conference
12
NEW THINKING
                                                                                                 the MAniFesto For




                                                                    n big; dream big                                  n playful and have fun—look for the good
                                                                     think                                              be
                                                                                                                        ideas that come from “joking around”
                                                                    n sure you’re addressing the right questions
                                                                     
                                                                     Make
                                                                                                                       n to things totally unrelated for answers
                                                                                                                        
                                                                                                                        look
                                                                    n start debating the merit of any one idea
                                                                     
                                                                     Don’t
                                                                                                                       n diversity of experience, opinion,
                                                                                                                        
                                                                     until you’ve generated a lot of ideas              seek
                                                                                                                        and thought—even from those with little
                                                                    n
                                                                     
                                                                     challenge your assumptions                         knowledge of your subject matter
                                                                    n for incubation time
                                                                     
                                                                     allow                                             n
                                                                                                                        
                                                                                                                        evaluate with your head, your heart,
                                                                                                                        and your gut
you’re really saying i respect you enough to know there is some     n dismiss any idea too soon; first examine what
                                                                     
                                                                     Don’t
value in how you think. And lo and behold, there always is           you like about it and how you might improve it    n
                                                                                                                        
                                                                                                                        support your colleagues; value and
something of value—my faith in my colleague is always rein-                                                             acknowledge all contributions
                                                                    n like a kid (be curious, be naïve)
                                                                     
                                                                     think
forced.
     When using positive feedback, ideas become communal.
someone starts it and others build on it. everyone owns it. if
                                                                    learn More by
the idea is not chosen, it isn’t a personal affront, but rather a   attendinG! come
team decision. And ideas that are chosen belong to everyone.        see the What’s Keeping
                                                                    You Up at Night? Get
it’s called buy-in and feedback.
                                                                    Creative about Problem
     As a final offering, i give you the “Manifesto for new
                                                                    Solving session at sHsMD’s
thinking.” cut it out and hang it on your wall. see if your ideas   annual conference friday,
won’t become more creative and your job more fun.                   october 5.




                                                                                                                       october 3-6, 2007 www.shsmd.org         13
Increase
                  Volume and revenue
                   By Tina Gilson, Marketing Specialist at Providence Everett Medical Center and
                   Kellie Spellman, Strategic Marketing Manager at CMP Marketing Group, Inc.
                                                                                                   usIng Mult I -sErvI cE l InE
                                                                                                   Mark EtIng




                                                                                                   M                          ulti-service line marketing
                                                                                                                              is a non-traditional way to reach
                                                                                                                              patients and non-patients when
                                                                                                                              paired with an innovative Customer
                                                                                                                              Relationship Management (CRM)
                                                                                                   solution. When multiple service lines are marketed as one initia-
                                                                                                   tive, it allows an organization to capitalize on marketing dollars.
                                                                                                   it also offers a cost-effective way to cross-sell and grow overall
                                                                                                   service volume and revenue.
                                                                                                       A multi-service line campaign sends one mailing that pro-
                                                                                                   motes the services and offerings for more than one service line.
                                                                                                       two types of multi-service line campaigns are typically used.
                                                                                                   the first tactic involves sending messages to those most at risk
                                                                                                   for certain diseases. identifying those with high propensity
                                                                                                   and/or diagnoses for specific diseases is the most common
                                                                                                   type of multi-service line campaign. Using advanced predic-
                                                                                                   tive modeling, for example, you can identify the top 25% of
                                                                                                   patients and top 10% of non-patients who are most likely to
                                                                                                   need or use particular service offerings. identifying certain past
                                                                                                   diagnoses, that may be disease precursors for specific service
                                                                                                   lines, is another effective approach. the second type of cam-




 Don’t Miss these Opportunities to Meet with Thomson Healthcare at SHSMD!
                                                                                                                                     Visit the
                                                                                                                                Relaxation Station™,
 Join us for the Thomson Healthcare Sunrise Breakfast, Friday, October 5, 7:30 a.m.– 8:30 a.m.
                                                                                                                                        sponsored by
                                                                                                                                    Thomson Healthcare,
                                                                                                                                     to re-energize your
 quot;Assessing Community Need and Reporting Community Benefitquot;                                                                            mind and body




                                                                                                                 Medstat  Solucient are part of Thomson Healthcare.


                                                                                                                                                © 2007 Thomson Healthcare
                                                                                                                                                         All rights reserved.




     connections The Official Publication of the 2007 SHSMD Annual Conference
14
M U Lt i - s e rV i c e L i n e c A M PA i G n
                                     BeneFits oF A

                                                                                                               there are several benefits to conducting
                                                                                                               a multi-service line campaign. promoting
                                                                                                               high dollar services to target key patients
                                                                                                               throughout the hospital’s service area
                                                                                                               enables an organization to:
                                                                                                               n anD Maintain customer loyalty
                                                                                                                builD
                                                                                                               n anD Measure the results of
                                                                                                                track
                                                                                                                lifetime communications with customers
                                                                                                               n custoMers acHieve better health
                                                                                                                Help
                                                                                                                and wellness
                                                                                                               n
                                                                                                                reDuce costs anD increase
                                                                                                                effectiveness of marketing dollars by
                                                                                                                identifying needs and providing the
                                                                                                                correct services
                                                                                                               n
                                                                                                                preDict customer behavior (modeling)
                                                                                                               n
                                                                                                                Measure anD prove campaign roi
                                                                                                               n service-line managers Happy
                                                                                                                keep




paign involves trigger marketing, wherein a message is sent       attend thiS SeMinar!
                                                                                                              When multiple service lines are
                                                                  learn more by attending the
to someone after an event or encounter, such as an eD visit
                                                                  Using Multi-Service Line
or a diabetes diagnosis. cross-selling opportunities emerge
                                                                                                              marketed as one initiative, it
                                                                  Marketing to Increase
from one service line to another, depending on recent             Volume and Revenue session
                                                                                                             allows an organization to capitalize
encounters or diagnoses.                                          at sHsMD’s annual conference
                                                                  friday, october 5.
                                                                                                                  on marketing dollars.




                                          CPM Marketing Group, Inc.
                                     Your CRM Connection at SHSMD’s Annual Conference  Exhibits
                                            ‑ Join us at our Cyber Cafés to enjoy complimentary Internet access
                                                      ‑ Stop by our booth and talk with a CRM expert
                                                               ‑ Attend one of our sessions featuring innovative CPM solutions
                                                               Friday, October 5, 3:30 ‑5:00 p.m.
                                                                 ‑ Using Multi‑Service‑Line Marketing to Increase Volume and Revenue
                                                                 ‑ Healthcare Loyalty Index: Perceptive Outcomes Revealed
    Intelligent Healthcare Marketing
                                                                                                                                         www.cpm.com
             Intelligent Healthcare Marketing

                                                                                                                      october 3-6,2007 www.shsmd.org         15
The Official Publication of the 2007 SHSMD Annual Conference
            Annual Educational Conference and Exhibits—
               October 3-6, 2007 in Washington, D.C.


                                  1   fedex in the Health-
                  PRSRT. STD.

                                      care Universe
                 U.S. POSTAGE
                     PAID
               GENERAL LEARNING




                                      6
                COMMUNICATIONS
                                           strategic Planning 101—
                                           noblis Perspective?


                                  9   the rise of Physician
                                      super Groups


                                    12       creativity in
                                             Marketing


                                  14    increase Volume
                                        and revenue




         1/2 page
         fractional

      45p6 x 27p10
      (7.58” x 4.5”)

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Connections Mag.Creativitypg12

  • 1. The Official Publication of the 2007 SHSMD Annual Conference Annual Educational Conference and Exhibits— October 3-6, 2007 in Washington, D.C. fedeX in the Healthcare universe c u s toMErs Who shIP PackagEs Won’t stand For a 1% Error r a t E W hy should those who enter a hospital for a proce- Joe Flower is a healthcare futurist, dure? Altfedex is a loose cooperative of truck drivers. some speaker and founder of the drivers are both courteous and efficient. But some of of the education firm them think that getting it there by 10:30 a.m. isn’t all that Imagine What If Inc. important. some refuse to carry anything over 50 pounds, and others won’t take packages going to Massachusetts, because they didn’t study Massachusetts in driver’s school. Lose 1 percent of the packages? Hey, that’s a 99 percent success rate. not bad. they insist that there is no way to measure their performance— they all have a right to a job, and they should all be paid the same as the fedex drivers. Joe Flowers, founder, Who would you call? fedex or Altfedex? Would Altfedex serve the customer? Imagine What If Inc. could such a business survive longer than a mayfly? sure it could, in a soviet-style continued on page 4 Connections is brought to you in part through the generosity of Noblis and GLC Custom Publishing.
  • 2. conne Get EvEnts n o t t o M Is s Log on to the society website at www.shsmd.org, e-mail us at shsmd@aha. org or call us at 312.422.3888 for more information about these exciting neW events and complete meeting details! New SHSMD Senior Executive Symposium You asked and we delivered, with a RD-023_SHSMD_4.125x8.5 7/9/07 4:49 PM Page 1 specially designed meeting-within-a- meeting dedicated to issues that impact executive leadership. if you have 20 or more years of healthcare experience, Powering results through here’s your opportunity to engage with your peers on everything from leadership Customer Relationship Management to operations and more! (Limit 100 participants) New Member and First-time Strategic Attendee Reception Marketing Tuesday, October 2 take advantage of this opportunity to network with your colleagues and learn more about the Annual conference. if this is your first national conference or you’re a new sHsMD member, this event is especially for you! Database Speed Networking Development Wednesday, October 3 start out this year’s meeting with an engaging, fast-paced networking Communications Design Tool experience. By participating in the kickoff and Digital Asset Library networking session, you will meet five individuals from the healthcare community For more information, contact Guy Miller, guy.miller@reach3.com. who may have a long-lasting impact on 608.848.3476 www.reach3.com your career. Just a few minutes of your connections The Official Publication of the 2007 SHSMD Annual Conference 2
  • 3. cted reGiSter today! online at www. shsmd.org. to request a complete brochure, call us at 312.422.3888 or e-mail us at shsmd@aha.org. As individuals, we make dozens of connections every day: verbal connections, intellectual connections, technological connections. But when was the last time you felt truly connected to—involved time can provide exponential benefits— with, plugged into—a community of people with similar interests don’t miss it. and goals? SHSMD Knowledge Community It’s a challenge we all encounter, and one we ignore at our peril. Kickoff NOW, SHSMD has the SOLUTION! Wednesday, October 3 Get connected with a vibrant community of your peers at this come to this orientation session and year’s Annual Conference and Exhibits. find out how sHsMD’s newest member benefit, the knowledge community, gives you ongoing opportunities to collaborate and explore best practices and new ideas, Don’t miss this event! share knowledge, and discover solutions to the challenges you face every day. Inside SHSMD Breakfast t a k e t I m e t o connect wIth your InDustry peers Thursday, October 4 Join sHsMD President ruth colby and the Being pressed for time is a chronic condition of your job as a healthcare executive. Maybe sHsMD Board for breakfast, and discover you think you can’t afford to spend three days out of the office. think again. At the sHsMD Annual what’s new with the society. Hear conference, you will: firsthand how you can become more involved in sHsMD. 1 Network with your peers and leaders from all segments of healthcare during interactive workshops and roundtables. Potomac River Dinner Cruise 2 Learn from leaders in the field. Sixty-six concurrent sessions in eight interdisciplinary tracks give you Networking Event invaluable access to the most distinguished faculty in healthcare strategy today. Thursday, October 4 3 the 2007 networking event offers you Explore new and innovative solutions at the general sessions, with speakers and topics to intrigue, inspire, and the opportunity to view our nation’s entertain you. most revered monuments, dine on first- 4 class cuisine, and dance to live music as Delve into healthcare’s hottest topics at any one of the 12 optional workshops designed for in-depth learning. you drift by awe-inspiring tributes to 5 Washington, Jefferson, and Lincoln. sign Take an in-depth look at selected topics during the extended workshops on Saturday at no charge. up today for the odyssey Potomac river 6 networking cruise. tickets are $85. Exchange ideas online in e-mail discussions with many conference speakers before the conference. Tell them in advance what you need to know! if you want to confirm that your time will be well-spent, ask a colleague who has attended the meeting for an objective evaluation. thousands of healthcare professionals across the country agree that the sHsMD Annual conference is the best value for your educational dollar. october 3-6, 2007 www.shsmd.org 3
  • 4. continued from cover fedeX in the Healthcare universe economy, or in healthcare. individuals. You do it with tight teams—medi- cally integrated practice units, as Michael Porter p r I c e , p r o D u c t , p e r f o r mance and elizabeth olmsted teisberg call them in transparency is spreading across healthcare, moving gradually Redefining Health Care—who work together on the from process, average price, and customer satisfaction measures, same diagnosis over long periods of time, hon- to outcomes and actual prices—this is what we charge for ing their processes to continually increase their this procedure, and this is how good we are at this procedure. quality and lower their costs. Moving toward setting real prices and publishing real outcomes clearly this means that every hospital and will in time mean moving toward selling complete packages— health network must think long and hard about how to tie its an uncomplicated birth, a cholecystectomy from diagnosis to physicians more tightly to its own goals. in the end, this may rehab, a complete knee replacement, a diabetes management well mean simply putting them on staff, at least in those areas program—soup to nuts, with one price tag and one set of out- in which the institution is putting together medically integrated come numbers. call it “price, product, performance.” packages and building real brand recognition—such as an eye How do you compete clinic, a back program, or a cardiac unit. on price, product, and Flowers’ discussions of performance? not, clearly, transparency anD effIcIency potential changes with a loose-legged con- Whatever the details of the mechanisms, it is clear that in a in the healthcare geries of practitioners who world in which healthcare providers actually compete to pro- thought-provoking. arena are do everything the way they vide the customer the best value, physicians and hospitals need want to, the way they learned each other. Hospitals need doctors’ full involvement to set up Ed Colloff, MD, Stanford Medical Center years ago, the way that is practice units that can drive volume and quality while keeping comfortable for them as down cost. Physicians need hospitals because the same practice units can use their skills more efficiently, earning them more money while keeping n o t e V e rY A L i G n M e n t M o D e L Wo r k s quality high and the malpractice lawyer triAL And error from the door. in the meantime, and short of a paycheck, a Providers (both physicians and number of major hospitals are trying a vari- institutions) continue to resist real ety of models to build physician alignment, outcomes and price reporting through including: their influence on such organizations as n contracts (at thedacare, for example) the Joint commission on Accreditation that require goals and results measure- of Healthcare organizations and the ment, using such tests as the sf-36 out- national Quality forum. Yet, despite comes survey, and that pay more for top their demurs, there is nothing impos- performance; sible about such measurement. there is n contracts (at intermountain Health care a whole field of study—risk manage- and others) that pay top physicians for one ment—built on this problem of measur- quarter of their time to help organize and ing the hard to measure. And, once the manage integrated practice units; and industry starts to crack open, true trans- n agreeMents (as at beth israel Deaconess) parency will spread rapidly. that compensate referring physicians for As soon as Gargantua Memorial their help in quality efforts and in manag- begins reporting actual prices and out- ing practice units. comes for, say, brain transplants, connections The Official Publication of the 2007 SHSMD Annual Conference 4
  • 5. “They understood what they were passionate about, what they were best in the world at, and what drove their economic engine.” Jim Collins on the ”Good to Great” organizations learn More! come see Joe flowers at the thursday, All Angels, Megacorp Healthcare, and Golden Arches clinics october 4, general session presentation. register online are going to post theirs, and they are going to go to their state today at www.shsmd.org associations and legislatures demanding standardization and or call 312.422.3888 for standard audits of all such published information. more information. As soon as health plans begin using ranked co-pays and information to favor providers that cough up real outcomes and real prices, providers will scurry to get in line. As soon as some providers begin to demand that, say, the Yellow pages made easy! surgeons in their new full hip unit participate in a program of posting price and outcomes, competing surgeons and programs across town (and across the country) will be eager to show that their numbers are better—domino quality reporting. measura B l e v a l u e Healthcare desperately needs to graduate from its “the customer is always wrong” era into one in which real value Your authorized SHSMD partner to the customer—provable, measurable, publicly reported value—comes before anything else. And to do that, it needs tight integration between physicians and the organizations in which they work. People [what people? People who defend the status quo?] say that “this is medicine” and that it is somehow too precious to submit to such careful, organized, public scrutiny. But for some reason, our customers are failing to buy any logic that attempts to explain why the business that deals in the lives, deaths, and suffering of ourselves and our loved ones should have lower quality and less accountability to its customers than toyota, Marriott, or fedex. East Coast Midwest West Coast Dawn Sanderson Steve Judkins Scott Solter 888-214-1343 877-775-2600 800-728-5121 october 3-6, 2007 www.shsmd.org bvk • connections shsmd yp ad • sand1233 • 4.125” x 4.5” • V4 • ir • 6/29/06 • 4C 5
  • 6. StrateGic PlanninG 101 noblis Perspective? By Susanna Krentz, Senior Principal at Noblis Healthcare t E n n E c E s s ary Pr I ncIP l Es a 4 f rame the future systematic strategic planning process which provides a forum for informed strategic debate strategic planning is about the organization’s future market among hospital or health system leadership is position. An internal and external assessment primarily presents critical for success in an environment where a historical/current picture. it is incredibly valuable to spend there is little margin for error. noblis’ approach time in a planning process to articulate what the organization’s to strategic planning incorporates the ten principles described assumptions are about the future: demographics, physicians, below—learned through experience with numerous healthcare competitors, payment, and demand. organizations. 5 Determ I ne the hypotheses 1 Inv o l v e t h e r I g h t p e o p l e At this point, the organization can meaningfully consider to be effective, the strategic planning process must involve alternatives to address its critical issues. then, with thoughtful organizational leadership—management, Board, and medical analysis and deliberation, sound strategic choices and decisions staff. involvement can take a variety of roles: from participating can be made on future direction and priorities. on a strategic planning committee to providing input via inter- views, surveys, or discussion groups. 2 Dev o t e t h e n e c e s s a r y tIm e Meaningful strategic planning cannot be accomplished in a weekend retreat. A comprehensive plan usually requires five to six months to thoroughly address critical issues and financial implications. 3 ID e n tI f y t h e Is s u e s s It u a tI o n s A key first step is to identify the organization’s critical strategic issues (versus operational challenges), as well as the information necessary to effectively understand these issues. thorough internal and market assessments help frame issues, including service area demographics, competitor profiles, market share analyses, medical staff assessment, consumer/patient surveys, utilization trends, and quality position. connections The Official Publication of the 2007 SHSMD Annual Conference 6
  • 7. for implementation are only dreams. At the same time, imple- 6 know thyself menting the strategic plan should result in an improved posi- A critical part of the strategic planning process is acknowl- tion for the organization, which can be tested with a dynamic edging the organization’s strategic intent and risk tolerance. At financial plan. one end of the spectrum are “market enactors” who seek to 9 commun Icate the plan create fundamental changes. in the middle are “market adap- tors” who look for effective ways to create competitive advan- Leaders need to explain the plan to all stakeholders, provid- tage. At the other end of the spectrum are “market survivors,” ing the level of detail that is appropriate or needed by each whose focus is to optimize current performance. audience. this includes internal as well as external constituen- cies. 7 translate the plan Into actIon 10 mon I tor, make a Djustments the final plan, and any planning support documentation, should present complex information in a way that is under- strategic plans are not set in stone. they are dynamic in standable by all planning participants. once the “plan” is fin- nature and should be re-visited at least semi-annually. strategic ished, the hard work begins. specifically operationalizing strate- metrics should be employed by the Board to monitor progress gies in a tactical plan that identifies who will be responsible towards the organization’s vision and strategic goals. for doing what, as well as the specific timeframes, required resources, and expected results. Because the future is unknown, organizations must take prudent, disciplined steps to ensure their long-term success. 8 co n n e c t t h e p l a n s t o g e t h e r Use the battle-tested principles that noblis has developed over the strategic plan should be reflected in the organization’s many years as you develop your organization’s strategic plan. multi-year financial plan. strategies that aren’t given resources october 3-6, 2007 www.shsmd.org 7
  • 8. Lightning has struck! EchoAccess™ is healthcare’s first and only fully browser-based contact center solution NBIZ-129 CBM_4.125x4.5 7/11/07 9:48 AM Page 1 “I am most pleased with EchoAccess training and support. HealthLine’s support team made our transition easy! With a system I previously used, it could take months to IF YOU’RE GONNA accomplish what I can now do in minutes!” DO ONE THING... - Elizabeth Beasley, Assistant Director Access Center ...Put the power of the nation’s leading University of Mississippi hospital advertising agency to work for you. To learn more, call Kate Harken at 708.246.7700 or visit our booth at the SHSMD Annual Conference in October. www.healthlinesystems.com www.spmadvertising.com connections The Official Publication of the 2007 SHSMD Annual Conference 8
  • 9. the riSe of PhySician “Super the p hysI cI an p ract Ice Bus Iness m o Del I s chang I ng As advances in science and technology have changed the way in which healthcare is delivered, these market forces Groups” have also fundamentally changed the historic business approach to medicine for physicians in many markets across the country. MArket forces consider the n Migration of services from the inpatient to outpatient By Trent Green, Director at Navigant Consulting and Alexis Seeder Levy, Associate Director at Navigant Consulting setting n Decline in professional fees t h E Ir IM P a c t on th E hEalthcar E Industry driving physicians to seek income P from other sources (mainly technical/facility revenue) hysicians are developing new ways to organize their practices and are no lon- n increase in private capital ger dependent on the hospital to create a Dollars available to healthcare, workshop for them to practice medicine. enabling physicians to invest in equipment and facilities to access While these “super Groups” present a threat to these fees the traditional hospital business model, they also represent an opportunity for hospitals to explore deeper partnerships n absence of regulatory with physicians. in the best case scenario, rather than crafting restrictions (e.g. con) in some a reactive response to a “super Group” threat, hospitals should markets proactively seek out physicians that have the greatest impact on n eliMination ofMoratoriuM hospital volume and financial viability and engage in dialogue on specialty hospital formation with these physicians on partnership opportunities. n to maintain a controlla- Desire ble lifestyle (which often does not include eD call coverage) n increase in sub-specialization continued on page 10 Hospitals should proactively seek out physicians to explore partnership opportunities. october 3-6, 2007 www.shsmd.org 9
  • 10. next stePs the continued from page 9 s olut Io n s to m a r k e t f o r c e s in response to these market forces, many physician groups Market “SuPer GrouP” force Solution have begun a shift from single or small group practice to form “super Groups” as they begin to appreciate the benefits of outpatient shift invest in technology and facilities scale to address these forces. to capture newly available outpatient capabilities in the t h e h o s pItal BusIness m o Del u n Der sIege physician office (or owned) facility for physicians, the advantages of remaining aligned with Decline in use group size as leverage for the hospital no longer outweigh the potential opportunities professional fees better rates from managed care available elsewhere, given the above market forces. As a result, these new market forces threaten to (or are already serving pool resources and achieve access to) “disaggregate” care by fragmenting the patient care expe- to capital to invest in technology and facilities to access new rience to multiple sites in the market (e.g., one location for revenue streams imaging, one location for heart procedures, one location for spine procedures, etc.). increase in new access to funding for facilities in nearly every instance, if a hospital service is at risk for private capital and technology that may not have disaggregation, it can be assumed that it will have a negative been previously available financial impact on the hospital. Physicians are seeking ways absence of market investment in physician owned to supplement their income and will only target services that regulation/ facilities (both specialty and accomplish this goal. As a result, hospitals are left to carry the elimination of general acute) burden of uncompensated care or poor payor mix. moratorium While clearly bad from a profitability standpoint for hos- pitals, there are also arguments that the disaggregation of care controllable share call coverage burden across lifestyle a larger group can have a negative impact on patient care. As the population ages and individuals have more co-morbidities that require use group size as leverage to specialty consults, inpatient care will require the availability of negotiate call coverage subsidies a full complement of medical and surgical specialty services. from the hospital For hospitals and health systems that are facing competition from sub- Develop critical mass within a w h a t c an hosp Itals Do? physician Super Groups, the first specialization practice and use as a market Hospitals’ range of strategic responses to super Groups differentiator step is to size the magnitude generally falls into one of three categories. of the threat and evaluate the impact of disaggregation on a s trategIc re s p o n s e s specialty-by-specialty basis. “full “Join/ “coMPete/ or “Shrink” inteGration” Partner” break-uP” faculty practice plan Joint venture new conflict of interest cede profitable outpatient facilities policy (and inpatient) services to face the least clinic club physicians Management select employment desirable (and agreements of specialists focus on core hospital services least financially (ob, cancer surgery, trauma, viable option)… syndication of leverage primary emergency services, general existing facilities care base learn More by Medicine) attendinG! come Managed care lobby the state for increased see The Rise of Physician “Super Groups” and “safety net” funding What Hospitals Can Do to Address Them session at sHsMD’s annual conference 1 2 3 friday, october 5. connections The Official Publication of the 2007 SHSMD Annual Conference 10
  • 11. READY FOR NEW BLOOD? Get a brand transfusion NO LIZARDS WERE HARMED WHILE CREATING THIS ADVERTISEMENT. © 2007 Red Lizard Creative from the Lizards. When you work with Red Lizard Creative, we can revitalize your hospital brand, increase awareness of service lines and capture market share. The Lizards embrace change. We are experts in the study of why and how people change their minds about the brands and/or services they buy. Ready to inject some change? Visit the Lizard Lounge at SHSMD, Booth 610. E: komodo@redlizardcreative.com W: www.redlizardcreative.com T: 858-453-3761 Here’s one session you can’t afford to miss! are you ready for the boomer boom? Thursday, October 4th, 3:45—5:15 p.m. step 1: unDerstanD tHe pHysician lanDscape n many physician groups exist for each specialty? How boomers...they’re more involved in their health than any generation in history, and they’re about to enter their peak spending years. How do you reach n is the size and complement (e.g., level of sub-specialization What and persuade them? Join us as we turn the spotlight on boomers’ messaging or existence of multiple specialties) within each group? and media preferences. Gain insider marketing knowledge from recent focus n do these groups have medical staff privileges (both within the Where groups with boomers. Discover proven tactics and strategies from StayWell system and at competing hospitals)? Custom Communications and our client partner, Sutter Health System, to build positive, long-term bonds with this vital segment and drive boomers to you. step 2: unDerstanD tHe iMpact tHat tHese pHysicians Have on tHe Hospital Results guaranteed. n is the volume impact (inpatient and outpatient)? What Stop by Booth 416 to request a copy of our new executive report, n is the financial impact (inpatient and outpatient)? What “Boomer Boom,” and enter for a chance to win FRESH FLOWERS delivered monthly for a year! n are the current costs expended in maintaining a working rela- What tionship with these physicians (call coverage subsidies, management contracts, etc.)? r: step 3: seek qualitative input froM pHysicians to unDerstanD ffe er e O oom tHeir key practice issues anD groWtH aspirations c 800.543.8854 / www.staywellcustom.com en b er or nf ng f ns! With this detailed background, hospitals can begin to Co ici tio ial ra evaluate which one of the above options is the best ec red p blic Sp fer pu strategic fit with the organization. It is also important to e pr recognize that there is no “one-size-fits-all approach.” october 3-6, 2007 www.shsmd.org 11
  • 12. creativity a PhiloSoPhical PoSition on Marketing in By Dan Greenberger, Chief Innovation Officer at GreenHouse Communications t h E I r I M P a ct on thE hEalthcarE Industry I confess, for nearly 30 years I was a “Creative” in unDerstanDIng anD emBracIng creatIvIty ad agency “Creative Departments.” As writers and the first step to engaging creativity within your “creative art directors, i assumed we were the only people on the department” is to define it. i define creativity as the ability to stay marketing team who could think creatively. it sounds silly out of the way of your originality and imagination. creativity flows once to me now, yet many agencies still operate that way. Until you stop letting your habits, rules, and traditions inhibit new recently, even i unwittingly referred to agency writers and thinking. Without that significant mind-shift, you’ll continue to art directors as the “creative Department.” But what about get the same answers to the same questions. designers, the interactive group, and public relations special- ists? in fact, with the rapid changes to life as we know it, the power of posItIve feeDBack research and media planning require more creativity than ever once you let go of all your preconceived notions, it’s like before. everyday, client service professionals have to employ listening with a fresh set of ears. the tool to help you do this is every ounce of their creativity to help clients get more for less. called positive feedback, and it starts with a simple response to any idea you hear: What I like about your idea is (insert something you t h e w o r l D ’ s l a r g e s t c r eatIve genuinely like about it). then after i say what i like about an idea, i Department voice my concerns by asking questions like, So how might we over- As clients, you should put every person at your agency on come (insert concern here)? notice that you expect everyone to be part of your “creative Positive feedback isn’t about being nice, or blindly following department.” Your team should also consider itself part of the a process. it’s about better solutions, effecting change, and nur- creative department, along with your doctors, nurses, patients, turing creativity. it’s also about building loyalty to one another. and families. frankly, you should be boasting the largest creative Why does positive feedback build loyalty as well as good department ever assembled working on your account. A good ideas? When you tell someone what you like about an idea, idea can come from anywhere. connections The Official Publication of the 2007 SHSMD Annual Conference 12
  • 13. NEW THINKING the MAniFesto For n big; dream big n playful and have fun—look for the good think be ideas that come from “joking around” n sure you’re addressing the right questions Make n to things totally unrelated for answers look n start debating the merit of any one idea Don’t n diversity of experience, opinion, until you’ve generated a lot of ideas seek and thought—even from those with little n challenge your assumptions knowledge of your subject matter n for incubation time allow n evaluate with your head, your heart, and your gut you’re really saying i respect you enough to know there is some n dismiss any idea too soon; first examine what Don’t value in how you think. And lo and behold, there always is you like about it and how you might improve it n support your colleagues; value and something of value—my faith in my colleague is always rein- acknowledge all contributions n like a kid (be curious, be naïve) think forced. When using positive feedback, ideas become communal. someone starts it and others build on it. everyone owns it. if learn More by the idea is not chosen, it isn’t a personal affront, but rather a attendinG! come team decision. And ideas that are chosen belong to everyone. see the What’s Keeping You Up at Night? Get it’s called buy-in and feedback. Creative about Problem As a final offering, i give you the “Manifesto for new Solving session at sHsMD’s thinking.” cut it out and hang it on your wall. see if your ideas annual conference friday, won’t become more creative and your job more fun. october 5. october 3-6, 2007 www.shsmd.org 13
  • 14. Increase Volume and revenue By Tina Gilson, Marketing Specialist at Providence Everett Medical Center and Kellie Spellman, Strategic Marketing Manager at CMP Marketing Group, Inc. usIng Mult I -sErvI cE l InE Mark EtIng M ulti-service line marketing is a non-traditional way to reach patients and non-patients when paired with an innovative Customer Relationship Management (CRM) solution. When multiple service lines are marketed as one initia- tive, it allows an organization to capitalize on marketing dollars. it also offers a cost-effective way to cross-sell and grow overall service volume and revenue. A multi-service line campaign sends one mailing that pro- motes the services and offerings for more than one service line. two types of multi-service line campaigns are typically used. the first tactic involves sending messages to those most at risk for certain diseases. identifying those with high propensity and/or diagnoses for specific diseases is the most common type of multi-service line campaign. Using advanced predic- tive modeling, for example, you can identify the top 25% of patients and top 10% of non-patients who are most likely to need or use particular service offerings. identifying certain past diagnoses, that may be disease precursors for specific service lines, is another effective approach. the second type of cam- Don’t Miss these Opportunities to Meet with Thomson Healthcare at SHSMD! Visit the Relaxation Station™, Join us for the Thomson Healthcare Sunrise Breakfast, Friday, October 5, 7:30 a.m.– 8:30 a.m. sponsored by Thomson Healthcare, to re-energize your quot;Assessing Community Need and Reporting Community Benefitquot; mind and body Medstat Solucient are part of Thomson Healthcare. © 2007 Thomson Healthcare All rights reserved. connections The Official Publication of the 2007 SHSMD Annual Conference 14
  • 15. M U Lt i - s e rV i c e L i n e c A M PA i G n BeneFits oF A there are several benefits to conducting a multi-service line campaign. promoting high dollar services to target key patients throughout the hospital’s service area enables an organization to: n anD Maintain customer loyalty builD n anD Measure the results of track lifetime communications with customers n custoMers acHieve better health Help and wellness n reDuce costs anD increase effectiveness of marketing dollars by identifying needs and providing the correct services n preDict customer behavior (modeling) n Measure anD prove campaign roi n service-line managers Happy keep paign involves trigger marketing, wherein a message is sent attend thiS SeMinar! When multiple service lines are learn more by attending the to someone after an event or encounter, such as an eD visit Using Multi-Service Line or a diabetes diagnosis. cross-selling opportunities emerge marketed as one initiative, it Marketing to Increase from one service line to another, depending on recent Volume and Revenue session allows an organization to capitalize encounters or diagnoses. at sHsMD’s annual conference friday, october 5. on marketing dollars. CPM Marketing Group, Inc. Your CRM Connection at SHSMD’s Annual Conference Exhibits ‑ Join us at our Cyber Cafés to enjoy complimentary Internet access ‑ Stop by our booth and talk with a CRM expert ‑ Attend one of our sessions featuring innovative CPM solutions Friday, October 5, 3:30 ‑5:00 p.m. ‑ Using Multi‑Service‑Line Marketing to Increase Volume and Revenue ‑ Healthcare Loyalty Index: Perceptive Outcomes Revealed Intelligent Healthcare Marketing www.cpm.com Intelligent Healthcare Marketing october 3-6,2007 www.shsmd.org 15
  • 16. The Official Publication of the 2007 SHSMD Annual Conference Annual Educational Conference and Exhibits— October 3-6, 2007 in Washington, D.C. 1 fedex in the Health- PRSRT. STD. care Universe U.S. POSTAGE PAID GENERAL LEARNING 6 COMMUNICATIONS strategic Planning 101— noblis Perspective? 9 the rise of Physician super Groups 12 creativity in Marketing 14 increase Volume and revenue 1/2 page fractional 45p6 x 27p10 (7.58” x 4.5”)