Market Development Through Patient Seminars and Referring Physician Programs

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1 Hip Application Knee Application MAKOplasty Best Practice Marketing Market Development Through Patient Seminars and Referring Physician Programs

2 MAKOplasty Best Practice Marketing Hospitals and surgeons committed to delivering advanced clinical outcomes using MAKOplasty need a market development plan to create consumer awareness. This white paper provides an overview of proven best practice marketing strategies for implementing patient seminar programs and building physician referrals. Incorporating these best practices can strengthen the effectiveness of a MAKOplasty marketing program. MAKOplasty Center of Excellence Marketing Program MAKO Surgical Corp. offers hospitals and surgeons a host of resources, comprehensive strategies, and tools to develop a MAKOplasty Center of Excellence (COE) Marketing Program. The program offers support in a number of ways (Figure 1). Background The MAKOplasty COE Marketing Model is a comprehensive marketing approach encompassing five key areas: advertising, online strategy, public relations, events and promotions, and education of professionals and potential patients (Figure 2). With nearly five years of customer implementation, results demonstrate that patient seminars can drive patient interest and office visits. Educating physician referral networks is also important in attracting new patients. Figure 1. Marketing Collaboration for Maximum Results Figure 2. COE Strategic Partnership Strategic Consulting Lend marketing expertise and best practices that focus on your market dynamics, goals, and plans. 5 EDUCATION PROFESSIONAL AND PATIENT 1 ADVERTISING 2 ONLINE STRATEGY Planning and Development Offer planning and program management tools as well as support in crafting an effective marketing plan. 4 EVENTS AND PROMOTIONS Execution Advice Provide a marketing toolkit and resources to facilitate implementation. 3 PUBLIC RELATIONS 2

3 Patient Seminar Programs Strategic Overview Patient seminar programs are identified as a best practice for raising consumer awareness of MAKOplasty and generating patient appointments. MAKOplasty not only attracts potential MAKOplasty candidates, but also patients with indications for other treatment options (a halo effect). This can make a significant contribution to orthopedic service line growth, and offers opportunity to position the facility as a leader in orthopedics. It is challenging to create one consistent approach for delivering efficient and effective patient seminars that takes into account variability in target audiences and geographic areas. Assessment of approaches across the country culminated in a set of best practice tactics to accelerate the learning curve, and shorten the time to develop effective seminar programs and generate new patients. Best Practice Tactics Successful patient seminar programs have similarities in planning, logistics, and execution. Following is an outline of best practices and discussions for successful patient outreach events. 3

4 MAKOplasty Best Practice Marketing Best Practice Tactics for Successful Patient Seminars Pre-Event Planning Advertisement and Messaging Advertising is recommended at least two weeks in advance. Focus on MAKOplasty, with messages on hip/knee pain, restored lifestyle, the use of innovative or highly advanced surgeon-controlled robotic arm technology for more procedure accuracy, and potential patient benefits. Although other technologies may advertise as high tech or advanced solutions, MAKOplasty is powered by robotic arm technology for more accurate placement of implants a key differentiator. Audience Identification and Venue Consider current patient populations and expansion opportunities in underserved areas. Target patient populations may include: active Baby Boomers who are 55+, as well as younger demographics (age 42-60) who can shift the payer mix. Some sites target more specific populations such as athletic populations or fire and police professionals. Venues need to be accessible and offer convenient parking. They should not require extensive walking for people with knee or hip pain. Central Call-in Number for RSVP s A central call-in number, typically sponsored by the hospital, is key for ease in registering attendees and establishing measurements for campaign effectiveness. Seminar Topics Seminar topics should specifically feature the benefits of MAKOplasty compared with traditional or manual procedures. Promoting broader topics has not been as effective in generating interest and attendance. Tracking Protocol Establish scripts for RSVP calls that identify how consumers found out about MAKOplasty. This provides valuable information on marketing effectiveness and allows further tailoring of marketing efforts to maximize return on investment. Web and Social Media Campaign Advertise seminar program details on hospital and practice websites, Facebook event pages, and Twitter feeds. Submit events to local online news sites and to MAKO for posting on its internet properties and social media. 4

5 Day of Event and Post Event Appointment Capture Several strategies can be employed to capture appointments, depending upon hospital or practice policies and guidelines. An office or hospital staff member can be present to book appointments or request for appointment sheets can be provided. Minimally, a sign-in sheet should be used and thank you letters sent with instructions on how to obtain additional information or schedule an appointment. Educational Materials MAKOplasty educational brochures, office business cards, and other hospital or practice marketing materials should be available at the event. Live Patient Testimonials Invite happy MAKOplasty patients to speak with attendees about their procedure, the results, and the impact MAKOplasty has had on their daily lifestyle. Connecting patients with potential patients can help their decision process. RIO Demonstration At hospital events, a RIO demonstration can enhance learning and generate excitement about the technology. Streaming Video of Patient Testimonials Playing a video of satisfied patients for attendees to view before the seminar starts is a great attention grabbing strategy to spark initial patient interest in the MAKOplasty procedure. Post Event Tracking Seminar Attendees Seminar attendees should be tracked to examine the number that make office appointments and the procedures performed, i.e. MAKOplasty, TKA, arthroscopy, injection, or other treatment. 5

6 MAKOplasty Best Practice Marketing MAKOplasty Site Experience National Seminar Metrics Patient seminar programs successfully drive patients to learn more about MAKOplasty Attendance at MAKOplasty educational events average 56 attendees per seminar. 1 This data is based on customer experience at multiple sites across the United States who implemented MAKOplasty patient education events. National Conversion Metrics Patient seminars are typically attended by interested prospective patients and can directly result in office visits. A measure of some sites indicates that the national conversion rate of seminar attendees to office appointments averages between MAKOplasty 15%-25%, Procedure with some Volume markets realizing up to 48% conversion rates. 2 Of consumers who schedule an office visit, 10-15% may qualify for MAKOplasty as a treatment for their osteoarthritis knee or hip pain Low Medium High Discussion Targeted Patient Interest While a well-rounded MAKOplasty program incorporating other marketing channels is recommended, according to site experiences, conducting seminar events maximizes patient lead generation and is a leading best practice. Note that developing seminar advertisements with targeted messages are essential to successful events. For example, messages that emphasize key catch phrases such as Do you Suffer from Knee pain and/or Hip pain together with MAKOplasty Robotic Arm Technology can generate higher seminar attendance and leads than messages that omit the technology or focus on general orthopedics and site branding. Figure 3 shows a recommended implementation schedule for new MAKOplasty Centers of Excellence. Costs Patient seminar promotional costs vary widely based on differing market size, geography, and marketing plan. Figure 3. Timeline Patient Seminar Best Practices Pre-Launch Seminar Opportunity Identification and Strategy Development 30-Day Internal Meet the RIO Hospital Staff Event Public & Press 60-Day 2 Patient Seminars Held at Hospital 90-Day 2 Patient Seminars Held at Hospital or Off-site Location 120+ Days Ongoing Patient Seminars Held Once Per Month Minimum Pre-Launch Educate the Business Development/Physician Liaison Team on the Benefits of MAKOplasty Select Referral Targets 30-Day E-Blast and Direct Mail Campaign to Referral Sources Letter from Surgeons to PCPs Begin Referral Visits 60-Day Physician Referral Educational Dinner 90-Day Plan Grand Rounds Lecture Monitor Campaign Impact 1 All procedural and economic data provided by partner sites; not independently validated by MAKO Surgical Corp. 2 High conversion rate data provided by Sierra Medical Center; not independently validated by MAKO Surgical Corp. 6

7 Cost Range* Time Period Marketing Activity Typical Cost Range to Conduct and Promote Seminars Average Market $5,000- $ 20,000 Two-month run of multiple seminar advertisements promoting one to four seminars Low range: print, targeted direct mail, online, press High range: print, online, newsletter, magazine, radio, press Metropolitan Market $15,000- $ 20,000 One-month run promoting one or two seminars Print, radio, magazine, direct mail, online, blast, press Successful Site Examples Community Site: Southwestern rural with a population of 665,000 $3,000 (Seminar 1: hospitalbased, 90 attendees) $13,000 (Seminar 2: off-site, 58 attendees) Two-month run promoting two seminars Print ads (spanish and english), digital outdoor billboard, radio, press release, Facebook campaign, direct mail Seminar 2 included outer market off-site seminar location and longer advertisement Metropolitan Site: Large hospital system with over 2 million residents and a seasonal transient population $20,000 (Off-site, 104 attendees) One-month run promoting one seminar Print, commercial, online, press * Patient seminar conversion rates may not correlate with promotional costs some lower cost campaigns have been equally successful with effective seminar logistics and promotion targeting the demographic. 7

8 MAKOplasty Best Practice Marketing Number of Seminars Best Practice Data indicate that sites which conduct seminars regularly can generate a higher volume of MAKOplasty cases. Sites in launch phases typically schedule two seminars per month within the first 90 days of launch, and thereafter schedule at least one seminar per month. A review of MAKOplasty sites that conduct patient seminars shows that the mean number of seminars conducted in the previous two quarters is four seminars for highest procedure volume sites and less than one seminar for lowest procedure volume sites (Figure 4). Conclusion A review of MAKOplasty patient seminar site practices indicates that patient seminar programs are important market development opportunities for hospitals and practices to drive MAKOplasty awareness and overall orthopedic procedure and service line growth. Using proven marketing strategies and tactics can improve the success of patient seminar programs. Marketing costs of patient seminars vary based on individual sites and demographics, and ongoing marketing and communication programs are necessary to create sufficient consumer awareness to develop a target market. Finally, sites should establish tracking and data analysis methods to measure marketing program effectiveness. Figure 4. Mean Number of Seminars in Preceding 2 Quarters 4.03 Mean Low Medium High MAKOplasty Procedure Volume 8

9 Physician Referral Programs Strategic Overview Educating the referring physician base can be a key component of a successful MAKOplasty marketing program. 4.03The desired physician referral base includes family practice, general medicine, internal medicine, OB/GYN, rheumatologists, and gerontologists. These physician groups normally serve as the first, and in many cases, only point of contact for prospective MAKOplasty patients. A well informed referring physician with a clear understanding 1.56 of MAKOplasty patient benefits is more likely to inform prospective patients about MAKOplasty and refer to a MAKOplasty trained surgeon. MAKOplasty Site Experience Sierra Medical Center, a 334 bed facility in El Paso, Texas crafted a strong marketing and business development strategy yielding more than 105 MAKOplasty cases within the first six months of launch. The success of this program is attributed to a strong media campaign, bi-monthly consumer seminars, and a targeted physician referral marketing program. South County Hospital (SCH), a 100-bed acute care community hospital in Rhode Island, found direct peer-topeer encounters through arranged lunch and dinner events.62 most effective. SCH also found that authoring educational Analysis of current hospital and practice referral patterns, and articles in publications with both consumer and physician Low development of an aligned Medium strategy with impactful High tactics, readership was influential in capturing physician referrals. must be developed MAKOplasty to reach Procedure the Volume physician referral audience. It can be difficult to identify high volume physicians who Discussion are receptive to referring potential patients to MAKOplasty A defined physician referral strategy should be employed by surgeons or facilities. Current referral patterns may present MAKOplasty surgeons and/or hospitals. This strategy should challenges for some facilities or markets. Leveraging existing include frequent communications that provide clear referral referral patterns, and a concerted effort to engage high knowledge and guidelines. Additionally, materials should be volume referring physicians may be necessary to achieve the provided to referring physicians to share with their patients. desired referral engagement with a physician referral program. Best practice tactics utilized by successful MAKOplasty Conclusion sites are summarized on page 10. Figure 5 provides a timeline Sites demonstrate that when the best practice tactics are for implementing best practices for successful physician employed, referring physicians have developed a greater referral programs. level of understanding of MAKOplasty benefits for their Pre-Launch 30-Day 120+ Days prospective patients. As a result, they have Ongoing recommended Seminar Opportunity Internal Meet the RIO 60-Day 90-Day 2 Patient Seminars Patient Identification and Hospital Staff Event 2 Patient Seminars that their patients attend Held at MAKOplasty Hospital or educational Seminars Held Once Held at Hospital Strategy Development Public & Press Off-site Location Per Month Minimum seminars, and they have referred appropriate patients to MAKOplasty surgeons. Figure 5. Timeline Referring Physician Program Best Practices Pre-Launch Educate the Business Development/Physician Liaison Team on the Benefits of MAKOplasty Select Referral Targets 30-Day E-Blast and Direct Mail Campaign to Referral Sources Letter from Surgeons to PCPs Begin Referral Visits 60-Day Physician Referral Educational Dinner 90-Day Plan Grand Rounds Lecture Monitor Campaign Impact 9

10 MAKOplasty Best Practice Marketing Best Practice Tactics Planning for Successful Physician Referral Programs Physician Selection The most efficient place to start is with physicians who are currently referring patients to your practice. A collaborative effort is helpful to optimize target physician selection. Physician Liaisons and the hospital s Director of Marketing all have valuable input to help craft a target list of high volume referral sources. E-blast Campaign Educate referral sources about the benefits of MAKOplasty through an ongoing, planned e-blast strategy. Web Content Ensure practice and hospital websites are up to date with MAKOplasty content. Direct Mail Campaign Educate referral sources about the benefits of MAKOplasty via direct mail. This may include MAKOplasty brochures, MAKOplasty clinical research collaterals, patient testimonial pieces, and MAKOplasty surgeons letter of announcement to referring physicians. Newsletter Campaign Include a MAKOplasty article in any/all newsletters created by the facility and/or physician practice. Physician Visits Coordinate visits to each targeted referral source to introduce MAKOplasty to the medical staff. This effort can be a collaborative effort with the Physician Liaison Team and local MAKO support. Professional Education Seminar Invite target physicians to an educational event with a MAKOplasty trained surgeon. Targets include internists, family practitioners, general practitioners, internal medicine, OB/GYNs, rheumatologists, and gerontologists. Types of events may include new technology programs, monthly departmental meetings, Grand Rounds, hospital division meetings, and lunch and learn opportunities. Metrics Develop metrics or tactics to track referrals. Article Placement Reaching the clinical audience by placing MAKOplasty articles in clinically targeted publications will help to increase awareness.

11 Overall Conclusion MAKOplasty powered by the RIO Robotic Arm Interactive Orthopedic System offers hospitals and surgeons new treatment options for delivering accurate surgical results. MAKOplasty sites need a market development plan to create consumer awareness and establish market leadership in orthopedic robotic arm technology. Nearly five years of site marketing experiences and data demonstrate that patient seminars can successfully attract new patients, and educating physician referral networks is an important market development strategy. The MAKOplasty Center of Excellence Marketing Program includes the strategies provided in this white paper, with a host of other strategies and resources to help sites strengthen the effectiveness of a MAKOplasty marketing program and build brand awareness as an Orthopedic Center of Excellence delivering innovative treatment options. 11

12 MAKO Surgical Corp. is dedicated to advancing orthopedics through the discovery and development of quality innovative robotic arm and implantable surgical solutions that consistently, reproducibly, and accurately restore patient quality of life. The information provided herein assumes in every case an in-depth consultation between the healthcare practitioner and the patient considering MAKOplasty. Only a licensed physician can adequately diagnose and explain an underlying orthopedic condition, the natural progression of the condition without intervention, the potential clinical benefits of the MAKOplasty procedure, medically acceptable alternative procedures, and the potential complications and risks of any procedure and/or operation. MAKOplasty is not for everyone. The physician is at all times responsible for carefully selecting MAKOplasty patient candidates and guiding them on all aspects of surgery, including pre and post-operative care. Individual clinical results will vary. All claims of product performance and indications for use contained within this document relate only to data submitted to and reviewed by regulatory authorities in those jurisdictions in which clearance(s) and/or approval(s) have been obtained, including the United States. No product performance claims or indications for use are made for jurisdictions in which such clearance(s) and/or approval(s) have not been obtained. Follow us makoplasty.com Restoring Quality of Life Through Innovation 2555 Davie Road Fort Lauderdale, FL makosurgical.com MAKO Surgical Corp r00 12/12

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