The Hospital and Emergency Medicine Iceberg
How we safely navigated a shipwrecking marketing plan
Marketing improvements don’t always produce a positive net change in revenue or operational effectiveness. Implementation of high powered marketing platforms, such as marketing automation and other fast-paced digital marketing activities can exacerbate the existing problems within your healthcare organization. According to Becker’s Hospital Review, many of the below operational threats continue to remain as the top concerns of CEOs year after year.
- The 6 Domains of Quality Healthcare
- HCAHPS, Accreditations, Trauma Center Designations
- Optimal Staffing & Resource Shortages
- Inventory, Supply Chain & Operational Inefficiencies
- Capital & Cost Structure
In this case, we examine the strategy of a healthcare organization heavily focused on expanding its market reach to include nearby rural areas. The effort to establish a larger footprint that extended to areas which were close to neighboring health systems resulted in a heavier influx of case volume. Wait times increased, Left Without Treatment instances became more frequent, physicians experienced burn-out effects, patients received substandard care, shortages of shared equipment delayed timely care, and many more difficulties of delivering care rippled through the organization. The organization’s approach to utilize highly effective marketing automation methods simply failed to address operational risks and factors such as, staffing, capacity, reputation, payer mix and margins.
Marketing and advertising activity was dialed down to give the hospital time to adjust. A new marketing plan that took into account operational inefficiencies was born, allowing a gentler increase in volume. Improving profitability, the key strategic business objective, became the backbone of the new plan. Since many important operational metrics had taken a dive, the plan was designed to build patient volumes at a rate so as not to exacerbate inefficiencies. The improved strategy for digital marketing efforts conservatively increased market penetration, generated optimal demand for targeted services and met important financial goals.
Digital marketing with large-scale tools can be quite risky if your marketing personnel have limited insight beyond their own function within the business. While the Marketing Department may be celebrating a big achievement of revenue growth or other indicators of success, the outcome doesn’t always translate into impressive profits. We offer strategic consulting and marketing services that fully encompass healthcare organizations’ needs. Whether you want to introduce marketing automation that integrates data-driven marketing solutions with critical internal data sources or you need smaller scale marketing solutions, we want to hear from you!