Presentation delivered to Richmond chapter of American Marketing Association.

1. The Healthcare Challenge—
What Marketers Should
Know
Dan Maloy
The Maloy Group, LLC
© 2009 The Maloy Group, LLC 1
www.maloygroup.com

2. Agenda
• The issue and landscape
• Developing the Value Proposition
• Connecting the Value Proposition
• Translating the Value Proposition
• Implementing the Value Proposition
• Additional resources
© 2009 The Maloy Group, LLC 2
www.maloygroup.com

3. We Have Heard the Stories
• Rhode Island Hospital Fined for Fifth
Surgery Error in Two Years
g y
• W
Wrong Baby, Search for Parents
B b S hf P t
• My Mother Went in for a New Hip, and
Never Came Home
© 2009 The Maloy Group, LLC 3
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4. 28 ‘Never’
Never Events 1
Surgical Events Care Management Events
• Surgery on wrong body part • Death/disability associated with medication
• Surgery on wrong patient error
• Wrong surgery on a patient • Death/disability associated with incompatible
• Foreign object left in patient after surgery blood
• Post-operative death in normal health patient • Maternal death/disability with low risk delivery
• Implantation of wrong egg
p g gg • Death/disability associated with hypoglycemia
• Death/disability associated with
h/di bili i d ih
hyperbilirubinemia in neonates
Product or Device Events • Stage 3 or 4 pressure ulcers after admission
• Death/disability associated with use of • Death/disability due to spinal manipulative
contaminated drugs therapy
• Death/disability associated with use of device
other th
th than as intended
i t d d
• Death/disability associated with intravascular Environment Events
air embolism • Death/disability associated with electric shock
• Incident due to wrong oxygen or other gas
Patient Protection Events • Death/disability associated with a burn
incurred within facility
• Infant discharged to wrong person
• Death/disability
D th/di bilit associated with a fall within
i t d ith f ll ithi
• Death/disability due to patient elopement facility
• Patient suicide or attempted suicide resulting in • Death/disability associated with use of
disability restraints within facility
Criminal Events
• Impersonating a heath care provider (i.e.,
physician, nurse)
NQF Serious Reportable • Abduction of a patient
Sexual assault of a patient within or on facility
Adverse Events •
grounds
• Death/disability resulting from physical assault
1www.cms.hhs.gov
within or on facility grounds
© 2009 The Maloy Group, LLC 4
www.maloygroup.com

5. Hospital CEO Concerns
p
Patient safety and quality ranks second behind financial
challenges2
2American College of Healthcare Executives, 2008 survey, www.ache.org
© 2009 The Maloy Group, LLC 5
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6. Patient Safety and Quality
Specific Concerns2
• Redesigning care processes 66%
• Redesigning work environment 66%
• Compliance with accred orgs
accred. orgs. 60%
• Medication errors 57%
• Nosocomial infections 47%
• Nonpayment for “never events” 43%
• Pay for performance 41%
• Leapfrog demands 40%
• Public reporting of outcomes data 40%
• Surgical mistakes 24%
• Other 7%
2American College of Healthcare Executives, 2008 survey, www.ache.org
© 2009 The Maloy Group, LLC 6
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7. Hospitals are funding
patient safety initiatives3
3Qualityand Patient Safety: A Sharper Focus; Amerinet Executive Briefing, May 2009;
http://www.amerinet-
gpo1.com/anetpub/uploads/2009_Executive_Briefing_QualityDrKaplan.pdf
© 2009 The Maloy Group, LLC 7
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8. Where is the money g
y going?3
g
Documentation
Awareness
3Qualityand Patient Safety: A Sharper Focus; Amerinet Executive Briefing, May 2009; http://www.amerinet-
gpo1.com/anetpub/uploads/2009_Executive_Briefing_QualityDrKaplan.pdf
gpo1 com/anetpub/uploads/2009 Executive Briefing QualityDrKaplan pdf
© 2009 The Maloy Group, LLC 8
www.maloygroup.com

9. HOW DO YOU GAIN THE
COMPETITIVE ADVANTAGE?
And your share of the
patient safety expenditures?
© 2009 The Maloy Group, LLC 9
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10. Multiple Stakeholders
p
• Clinical Buyers
– Nursing g
– Physicians
– Infection Control
• Gating Resources
– Risk Management
– Facilities Management
g
• Economic Buyers
© 2009 The Maloy Group, LLC 10
www.maloygroup.com

11. Healthcare Provider Challenges
g
Patient Safety is a
major concern for
providers; however,
id h Financial
Concerns
it is certainly not
their
th i only challenge.
l h ll
Patient Safety Concerns Workforce Limitations
How do their
challenges impact Product
Expenditures
the adoption of your
h d i f
products?
© 2009 The Maloy Group, LLC 11
www.maloygroup.com

12. ASC Roles
• Of the survey
p
participants, 37
p , 16%
14% 14% Accounting
order supplies as a Surgical assist
secondary role, 59% Patient care
41% Administration
ordering is the Scheduling
S h d li
primary role for 6 43% Billing
participants
2%
2%
• The majority of those 7% Surg Tech
ordering the 7%
35%
None
products have a
RN
9%
BSN
clinical degree or LPN
CNOR
certification 23%
26%
BA/BS
/
MBA
Maloy Group Survey of Product Perceptions in the ASC, October 2009
© 2009 The Maloy Group, LLC 12
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13. Critical Points in your
Product Lifecycle
Early Adopters
•Champion
•Budget
•Infrastructure
© 2009 The Maloy Group, LLC 13
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14. Product #1 – The Boppy® HC
ppy
• Protecting the smallest patients
• Feeding Success
• Maternal Bonding
What i th i
Wh t is the impact?
t?
© 2009 The Maloy Group, LLC 14
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15. Find the
Connection
© 2009 The Maloy Group, LLC 15
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16. Develop the Value Proposition
• Define what your product
accomplishes in terms of Patient
Safety
– Our X protects patients by …
– O Y prevents infections …
Our t i f ti
• Target your messaging to the
provider, and their needs
• Quantify the benefits – address the
Q y
economic factors which point to
the adoption of y
p your solution
© 2009 The Maloy Group, LLC 16
www.maloygroup.com

17. Two Very Different
Value Propositions
Our product enhances patient safety by
reducing the infection rates by X%
X%.
By reducing infection rates by X%, our
product reduces nosocomial infections
and saves the average hospital $Y
annually for every 500 surgical
procedures.
© 2009 The Maloy Group, LLC 17
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18. Moving Up the Value Pyramid
Patient
Safety
Total Cost
in U
i Use
Price
P i
Service
Product Quality
Product Requirements
© 2009 The Maloy Group, LLC 18
www.maloygroup.com

19. “Everything has b
“E thi h become a
spreadsheet sale.
sale.”
- Field Representative, major healthcare supplier
p , j pp
Your solution must make sense
Y l ti t k
financially
• Budget neutral, or
• Savings in cost of use, or
use
• Savings based on clinical outcomes
© 2009 The Maloy Group, LLC 19
www.maloygroup.com

20. Economic Model
• Inputs should be standard measures
– Admissions procedures APD
Admissions, procedures,
– Infection rates
– Re-admission rates
• O t t should include savings and quality
Output h ld i l d i d lit
improvements
– Total savings, Net savings (less cost of product)
g , g ( p )
– Savings per X (procedures, APD)
– Reduction of Y%
– Elimination of Z days of uncompensated care
• Model should have baseline data from other
facilities
– Validation
– Standard factor
• Model should be user-friendly for all user levels
user friendly
© 2009 The Maloy Group, LLC 20
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21. Connect the Value Proposition
(seed the market)
• Fi d the appropriate organizations
Find h i i i
– Clinical (i.e. AORN, APIC, etc.)
– Providers (i.e. AHA)
– ‘Issue based’ (i.e. EpiNet)
( p )
– Group Purchasing Organizations
• Connect to their initiatives
• Support their organization
• Support their i i i i
S h i initiatives
• Connect to their leaders
© 2009 The Maloy Group, LLC 21
www.maloygroup.com

22. Translate the Value Proposition
(engage locally)
• Market your product and solutions to
the various stakeholders (clinical and
administrative) at the provider level
– Raise awareness
– Generate interest
– Id tif your champions
Identify h i
• Connect to organizations
• Connect to individuals
• Identify thought leaders
© 2009 The Maloy Group, LLC 22
www.maloygroup.com

23. Critical Points in your
Product Lifecycle
How is your team
prepared to support
the next ‘round’ of
customers?
t ?
Early Adopters
•Champion
•Budget
•Infrastructure
© 2009 The Maloy Group, LLC 23
www.maloygroup.com

24. Implement the Value
Proposition
ii
• Provide tools to support the internal sales efforts
of th customer champion
f the t h i
– Economic models
– Clear outline of implementation support and training
p pp g
– Customer success stories, clinical data, etc.
• Develop the tools to facilitate your customers’
implementation of your solutions
– Training tools
• Pre-packaged implementation kits
• O li training
Online t i i
– Reporting tools
– Monitoring tools
• Align your resources to support the customer
– Economic ‘seller’
– Clinical support
© 2009 The Maloy Group, LLC 24
www.maloygroup.com

25. Support
pp Tools 4
4 http://www.sandelmedical.com/time-out-products.asp,
http://www sandelmedical com/time-out-products asp 11/23/09
© 2009 The Maloy Group, LLC 25
www.maloygroup.com

26. Are you ready to PARTNER?
Demonstrate how the product satisfies
ho
the customer’s patient safety goals
 Share economic models to understand
the impact of the change
Engage in planning dialogue
Provide resources to support
implementation
? Share risk with customers
© 2009 The Maloy Group, LLC 26
www.maloygroup.com

27. Top 10 things every marketer
needs to know about marketing
d t k b t k ti
to medical practices:
p
1. Know the issues
2. Understand that relationships matter
3. Pay attention to declining service reimbursement
4. Don’t be overwhelmed by technology solutions
5.
5 Reporting on quality initiatives can position the practice
to improve reimbursement
6. Look for efficiencies to reduce operating costs
7. M k t
7 Make transitions to your products/services easy
iti t d t / i
8. Understand that practices have multiple decision makers
to sell to
9. Reduce risk in decision making to close the sale
10. Improve profitability and win the deal
Source: MGMA, The Medical Practice of the Future: Competitively position y
f p yp your p
products and services
© 2009 The Maloy Group, LLC 27
www.maloygroup.com

28. Product #2 – PROTECTIV*
PROTECTIV
• I t d
Introduced i 1988
d in
• First Safety IV Catheter
y
• Designed to protect
patient and caregiver
from accidental needle
sticks
i k
© 2009 The Maloy Group, LLC 28
www.maloygroup.com

29. Clinical vs. Cost
Ratio of Clinical to Cost Attribute mentions
120
2.56 3.48 1.06 3.08
100
Cost Attributes:
80 27 21 •Price
50
•Value
60
•GPO Contract
40 12
69 73
53 Clinical Attributes:
20 37
•Surgeon P f
S Preference
0 •Quality
Surgical Gloves Sutures Surgical Gowns IV Catheters •Clinical Preference
Clinical Attribute Frequency Cost Attribute Frequency
Maloy Group Survey of Product Perceptions in the ASC, October 2009
© 2009 The Maloy Group, LLC 29
www.maloygroup.com

30. Recognize the Challenge
• Seatbelt usage has
g
grown as awareness
and penalties have
grown.
• Despite this, approx.
20% of US drivers
still do not buckle
up.
5http://www.nhtsa.dot.gov/people/injury/airbags/Archive- Group, LLC
© 2009 The Maloy 30
www.maloygroup.com
04/PresBelt/america_seatbelt.html

31. Additional Resources
• Government:
– CMS, HHS, etc.
• O
Organizations:
i ti
– JCAHO, APIC, SHEA, etc.
– List of organizations:
http://www.firestone-
callahan.com/image/Professional_Organiz
ll h /i /P f i l O i
ation_Patient_Safety_Initiatives.pdf
© 2009 The Maloy Group, LLC 31
www.maloygroup.com

32. QUESTIONS?
dan.maloy@maloygroup.com
© 2009 The Maloy Group, LLC 32
www.maloygroup.com