How one hospital used Customer
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1 How one hospital used Customer Relationship Management (CRM) to contribute to their bottom line Oct. 10, 2011
2 Agenda
3 Agenda» Presenter Introduction» Learning Objectives» What is CRM» How can you prove CRM s effectiveness» FRMC CRM Case Study» Results» Best Practices» Questions?
4 Your Presenters
5 » Healthcare Corporation of America (HCA) Hospital» 173 Licensed Beds» 660 Employees & 230 Medical Staff (95 Active; 135 Courtesy)» 50 miles from Louisville and 30 miles from Lexington» Joint Commission Accredited, Magnet Designated» Expansions» Surgery Center» Medical Pavilion» Wound Care Center» ED» Serving Franklin, Anderson, Owen, Woodford, Shelby and surrounding county residents since 1974
6 Brad Wands: Bio Director of Business Development Frankfort Regional Medical Center» Responsible for oversight of market strategy and development, brand building, media relations, product line marketing, Internet expansion, organizational communications, creative production, and community outreach for the medical center and its entities. Propose, develop, and execute plans designed to promote and improve its profile. Responsible for presenting a positive image to internal and external audiences. Prepare, develop and implement departmental budget. Responsible for identification of strong, qualified physician candidates for community needs. Serve as communication liaison with market (division) recruiters, employed physician services management, candidates and physicians. Oversee and direct all aspects of recruiting agreements.
7
8 Connie Lanter: Bio Senior Account Development Manager CPM Marketing Group» Connie Lanter is a Senior Account Development Manager at CPM Marketing Group. Connie leads a team of healthcare specialists focused on creating and executing marketing strategies to help hospitals increase return on investment and reach their goals. Leveraging an extensive background in account management, strategic planning and media consultation, Connie brings a background of creativity, campaign management and marketing expertise to CPM s hospital partners. Connie is a graduate of Southern Illinois University Carbondale and holds a degree in Journalism with an Advertising Specialization.» Connie works with teaching hospitals, academic medical centers, nonand for-profit hospitals and systems including Henry Ford Health System in Detroit, Northwestern Lake Forest Hospital on Chicago s North Shore, Wake Forest Baptist Medical Center in Winston-Salem, NC, and HCA Capital Division in Virginia, Kentucky, New Hampshire, and Indiana.
9 Presentation Learning Objectives
10 Learning Objectives» What is Customer Relationship Management (CRM)» How to evaluate whether CRM will help with your goals» How one hospital efficiently i used CRM to market» How / when CRM is effective» What you can learn from our experience / Best Practices
11 What is CRM
12 What is Customer Relationship Management (CRM)?» CRM involves:» Capturing customer data from across the organization» Consolidating internal and external customer-related data into a central database» Analyzing the data and distributing results to various customer touch points» Using the information when dealing with customers through any touch point.» - Adapted from Gartner
13 CRM Database
14 Creating The CRM Database
15 Measure Services Using a Control Group Target taudience CRM Database Control Group 2010 CPM Marketing Group, Inc. All rights reserved. 15
16 CPM s Predictive Models Consumer Health Utilization Index (CHUI) Patient Disease Index (PDI) Predicts Consumers and Patients Likelihood to need specific services within the next 12 months Based on data mining behavior identification algorithm based on actual de-identified patient, service, and visit data from over 167 million encounters across the U.S.
17 CPM s Predictive Models Increase Effectiveness of Approach 2010 CPM Marketing Group, Inc. All rights reserved CPM Marketing Group, Inc. All rights reserved. 17
18 Proving CRM s Effectiveness: Tracking Return on Investment
19 Calculating Marketing s Effect» In this example - we observed 705 individuals in the Mailed group use services» The Control group told us we should have Expected 597:» You only take credit for the difference = 108 Incremental Patients Excerpted from FRMC Women s Multi Service Campaign dashboard results to goal services
20 Moving from Incremental Patients to ROI» Dollars are then calculated for reimbursement and costs» Calculate contribution margins» Subtract marketing costs Equals true and measurable ROI Excerpted from FRMC Women s Multi Service Campaign dashboard results to goal services
21 Reporting Capabilities» Services Used» Payer Mix» Dollars Invoiced» Actual Dollars Received» Incremental Contribution Margin» Return on Investment» Above cost of doing business including marketing costs & cost of service» Only take credit for response rate ABOVE rate the control group responds at
22 FRMC Case Study
23 Evaluating whether / when to use CRM» FRMC Business Issues Considered» Small Amount of Owned Physicians» Concise Market Area to Draw from» Many Service Areas to Market» Limited Budget» CPM Recommendations» Market Niche Service with good margins» MILD Campaign» Wound Center» Multi Service Line Campaigns to maximize budget» Women s Health Campaign» Men s Health Campaign
24 Campaign and Results
25 MILD Campaign: Overview» Mail Dates: Aug. and Nov. 2010» Mailed Quantity: 9,825» Same individuals were sent both mailings» Control Group Quantity: 483» 10 months of data on first drop» 7 months of data on second ddrop
26 MILD Campaign Goals and Results» Introduce the MILD procedure for lumbar spinal stenosis (LSS)» Result: 9,825 mailings were sent out» Increase number of MILD procedures performed and volume of spine service line» Result: 373 individuals utilized spine services» Result: 50 incremental patients to spine services» Result: $1,718, total charges in goal service line (spine)» Result: $62, Incremental Contribution Margin» We received $3.78 dollars back for every dollar we spent» Drive downstream revenue to all service lines» Result: 99% confidence» Result: 354 incremental patients across all service lines» Result: $785, Incremental Contribution Margin» Result: $59.28 to 1 ROI Encounters updated through 6/2011
27 MILD Campaign: ROI to Goal $68, Incremental Contribution Margin after accounting for the cost of services and the cost of the direct mail piece (inclusive: service cost, plus mailing cost of creative, printing, and postage) 60 Incremental Patients above control group utilization rate
28 MILD Campaign: ROI across all service lines $851, Incremental Contribution Margin after accounting for the cost of services and the cost of the direct mail piece (inclusive: service cost, plus mailing cost of creative, printing, and postage) 387 Incremental Patients above control group utilization rate At 99% Confidence
29 MILD Campaign: Financial Performance to Goal 209 Patients 591 visits Commercial 144 Patients 418 visits Medicare
30 MILD Campaign: Top Procedures to Goal UPDATE BEGINNING AT THIS SLIDE on 9/26, Connie!!!!!!!! 2 New Patients with 3 Laminotomy visits and 27 Patients (in other service lines) with 31 Laminotomy visits
31 MILD Campaign Additional Findings» The top procedure performed in the goal (spine services) was laminotomy, which is a procedure performed to fix lumbar spinal stenosis.» Overall, recurring patients (those who come in on a regular basis) are responding at a statistically significant rate over the control group. Individuals with back pain tend to seek health care more frequently.
32 MILD Campaign Evaluation / Lessons Learned» Campaign is showing success at driving MILD and downstream revenue even with only two mailings» Initially, we saw control group utilization very low in goal (spine services) with only four individuals at the 4 months of data mark. At that point, we did not see any incremental utilization for spine services. With time, we expected the control group utilization should increase to give us a more confident picture of the results and it did» Recommendations CPM made after evaluation:» Utilize existing creative with minor changes for those who didn t receive 2010 Campaign» Consolidate the three versions by diagnosis (back/leg pain, LSS, previous back surgery) into one version for those diagnosed with back problems. New Creative» At Risk versions remain the same» Update copy to include version for 2010 Non-Responders, with two versions:» Patients diagnosed with back problems» Patients/non-patients at risk for back problems» Add Version for those CPM has determined will more likely respond to a fear message (vs the current feel good message)» Pull counts for Lexington and Louisville after market list update and consider whether to add those highest value patients in either or both areas
33 Men s Health -- mailing Women s Health -- mailing Wound Care creative development New Movers creative development Women s Dynamic Newsletter in consideration Campaigns on the horizon
34 Women s Health: One Version Example
35 Women s Health Campaign Overview» Mail Dates: Jan to present» Timeline: Mails Monthly» Execution: Multiple Version Self Mailer» Status: 7 months of data on first drop»goal: Maximize efficiencies with a multi-service line campaign with versions and calls to action to: Increase patients and revenue in the areas of Breast Cancer, Urology, Cardiology, Orthopedics, Gastroenterology, Obstetrics and Gynecology. Promote positive payer mix Encounters updated through 7/2011
36 Women s Health Campaign: Results to All Services» 7 months of data on 1 st drop» Analyzing all services because lack of owned physicians dictates goal to bring revenue in through any channel realize we re underreporting as a result of lack of data from independent physicians
37 Women s Health Campaign: Top Services Radiology, Gastro, Rehab, Cardio, Ortho services and procedures indicate women are coming in for services we marketed and helps us supplement for lack of owned physician data
38 Men s Health: One Version Example
39 Men s Health Campaign Overview» Mail Dates: Jan to present» Timeline: Mails Monthly» Execution: Multiple Version Self Mailer» Status: 7 months of data on first drop»goal: Maximize efficiencies with a multi-service line campaign with versions and calls to action to: Increase patients and revenue in the areas of Prostate Cancer, Urology, Cardiology, Gastroenterology, and Orthopedics. Promote positive payer mix Encounters updated through 5/2011
40 Men s Health Campaign: Preliminary Results to Goal Services» 7 months of data on 1 st drop
41 Give the campaign time to mature: 6-12 mos. of data Realize we are under-reporting because of independents Learn from results and improve from there Market strong Calls to Action and/or unique services Continue to evaluate and improve Best Practices / Lessons Learned
42 Discussion
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