UTILIZING ACCURATE DATA FOR PHYSICIAN REFERRAL, ACQUISITION & TARGETING

UTILIZING ACCURATE DATA FOR PHYSICIAN REFERRAL, ACQUISITION & TARGETING

INTRODUCTION One of the most notable trends in the healthcare industry is the implementation of Physician Relationship Management (PRM) programs in hospitals and healthcare systems. As healthcare continues to evolve into a value-based model of care, hospitals and healthcare systems that strengthen Physician engagement and Hospital-Physician alignment are best poised to succeed in today s dynamic landscape. Implementing a best-in-class Physician Relationship Management program is a proven method for hospitals and healthcare systems to achieve demonstrable improvements in patient outcomes and physician referrals improvements that are essential due to changes in both the private sector and in the U.S. government. Physician Relationship Management systems are only as good as their data, however. As uncovered in the case study by MD Anderson, Physician Relationship Management an Operational Perspective, accurate data has a direct impact on the quantity of Patient-Physician links that can be validated for future referrals. MD Anderson Cancer Center s overall referral activity increased after key operational improvements were made and the PRM program was supported by complete, accurate and current Physician data. In 2014, Hospital-Physician alignment will continue progressing into advanced stages, including a movement towards fee-for-value pay structures and shared savings programs. Thus, utilizing a Physician Relationship Management program and precise data will be vital to strengthening engagement processes with Physicians and tightening integration between Physicians and hospitals. 2 For more information, email HDSinfo@HDSdata.com

In a 10-year period, from 1999-2008, Physician referrals grew nearly 10 percent. That number will rise significantly due to changes in healthcare. REFERRALS & ACQUISITIONS How Physician Relationship Management Fits As the number of patients with access to healthcare is expected to reach 32 million by 2019 and the shortage of Primary Care Physicians expected to reach 45,000 by 2020, hospitals and healthcare systems are facing unique challenges amid tremendous changes in healthcare. Government initiatives to reduce costs, implement new technologies, and improve patient outcomes are driving hospitals and health systems to aggressively pursue new strategies that enable them to meet these criteria. Achieving success in this era of accountable care requires referral alignment, economic alignment and strategic alignment. Two proven strategies have emerged as critical factors for success: strengthening Physician referrals and acquiring or aligning with other practices. Through Physician Relationship Management, a strategy supported by methodologies, software and data, hospitals and healthcare systems can capture and manage complex interactions with Physicians and improve patient outcomes. Physicians themselves are also seeking strategic partners for both clinical and financial purposes. For Physicians, alignment strategies such as comanagement agreements, affiliations and partnerships can offer added financial stability and security. Integration can also be beneficial for Physicians seeking new employment opportunities. Additionally, Physician referrals help doctors reduce their caseload and minimize their risk of malpractice liability. Effective Physician Relationship Management programs that are supported by precise data play an integral role in referral and acquisitions processes, enabling Hospitals and Health Systems to: Seamlessly manage complex Physician relationships Cost-effectively recruit new Physicians and practices Improve service line marketing with greater insights Support Physician liaisons to efficiently manage their work Communicate more effectively with constituents For more information, email HDSinfo@HDSdata.com 3

TARGETING 4 Steps to Building a World-Class Physician Relationship Management Program Building relationships between hospitals, healthcare systems and Physicians requires a constant focus on the following four steps. Note that these steps focus on hospitals and health systems, but with a few tweaks can be applied to most companies that target Physicians. STEP 1. ANALYZE YOUR MARKETPLACE This first critical step involves analyzing factors such as geographic market, Physician practice type and Physician specialty. Here, it s essential to look at the total number of Physicians in a particular market as well as the number of Physicians in the specialties most relevant to your hospital, and to see the distribution by county. A 3 rd -party database with complete, accurate and timely Physician data can give you an entire view of the overall market, as well as provide multiple views for different levels of analysis. 4 For more information, email HDSinfo@HDSdata.com

STEP 2. ANALYZE YOUR CURRENT REFERRAL BASE Next, it is essential to understand Physician referral penetration in your target markets. Which Physician specialties tend to have high referrals, and how much total penetration do they have? It s important to understand your Physicians in the context of the overall market. With a 3 rd -party database, you can look at the top 15 referring specialties and compare the number of referring Physicians that you have today versus the total universe of Physicians. Cook County DuPage County Specialty Referring Total Percent Penetration Penetration Index Adolescent Medicine 3 59 5% 102.71 Allergist 2 39 5% 103.59 Bariatrician 2 6 33% 673.31 Cardiologist 35 355 10% 199.15 Diagnostic Radiologist 12 296 4% 81.89 Family Practitioner 68 1491 5% 92.12 General Surgeon 26 318 8% 165.15 Internal Medicine 45 2270 2% 40.04 Otolaryngologist 15 142 11% 213.37 Pathologist 18 167 11% 217.72 Pediatrician 42 977 4% 86.83 Podiatrist 12 549 2% 44.15 Radiologist 5 34 15% 297.05 Reproductive Endocrinology 9 37 24% 491.34 Vascular Surgeon 12 47 26% 515.73 Adolescent Medicine 1 16 6% 164.76 Allergist 0 6 0% 0 Bariatrician 0 0 0% 0 Cardiologist 5 42 12% 313.83 Diagnostic Radiologist 1 80 1% 32.95 Family Practitioner 8 308 3% 68.47 General Surgeon 5 64 8% 205.95 Internal Medicine 12 340 4% 93.04 Otolaryngologist 2 41 5% 128.59 Pathologist 1 39 3% 67.59 Pediatrician 3 183 2% 43.22 Podiatrist 1 95 1% 27.75 Radiologist 0 5 0% 0.00 Reproductive Endocrinology 0 9 0% 0.00 Vascular Surgeon 1 11 9% 239.65 Total # of Physicians 306 6787 5% 100.00 For more information, email HDSinfo@HDSdata.com 5

STEP 3. RANK AND SEGMENT PHYSICIANS IN YOUR MARKET Next you ll want to segment the available market. In the first example below, you can rank your Physicians by referral potential and referral penetration. At high-referral/high-penetration, you know you are getting the majority of your referrals from these Physicians and you want a retention strategy for them. What would your treatment strategy be for each of these segments? Some will require more touches, some less, depending on where they fit in this chart. You could also focus on Physicians who fit the service lines that you offer, like in the second example below. 6 For more information, email HDSinfo@HDSdata.com

STEP 4. DEVELOP TARGETED STRATEGIES FOR EACH SEGMENT Different approaches will work with different audiences. Physicians with high referral potential and high volume may require one-on-one dinners or meetings, coupled with regular marketing communications pieces like newsletters. Patient satisfaction surveys may work well to build relationships with splitters who have high referral potential and low volume. Building a social media relationship can be effective in each segment. A 2013 survey by HDS of over 1 million Physicians revealed that a multi-channel approach is key when marketing to Physicians. Physicians comprise some of the most technologically advanced professionals across all industries, which means that online channels such as email, web content, mobile and social media should complement traditional marketing channels. To ensure that your execution strategies are targeted: 1. Analyze how Physicians behave across different channels As tablet and smartphone use continues to grow among Physicians an estimated 8 out of every 10 Physicians currently use tablets and smartphones at work it will be critical to analyze their responses to offers made via these channels. This doesn t mean giving up on traditional channels, however. The HDS study revealed that Physicians still respond favorably to direct mail. 2. Develop personas that reflect Physician characteristics. A persona is a detailed character sketch of specific target buyers. These character sketches should include insights about a Physician s decision-making process, including demographics, pain points, priorities, values and psychographic information such as attitudes, opinions and personality traits. 3. Test multiple strategies per segment. Regardless of how well you know your target market, one hypothesis isn t enough to gauge the effectiveness of a strategy. Test multiple options based on factors such as timeframe, channel and offer to find the right combinations. 4. Refine strategies to match the competitive environment. Remember that targeting is an ongoing process. A strategy that works today may prove less effective in the future; conversely, a strategy that did not test well the first time around might do well at a different time. For more information, email HDSinfo@HDSdata.com 7

WHY DATA QUALITY MATTERS High-quality master data is the foundation of any successful Physician Relationship Management program and integral to quality Physician referrals and acquisitions. The right data provides a 360-degree profile of Physicians, including current physical address, age, Physician specialty, hospital affiliations, sanction activity, professional designation, credentials, Board certification, educational background, email address and years in practice. Case Study: University of Texas, MD Anderson Cancer Center The operational study of the Physician referral process at the University of Texas MD Anderson Cancer Center found several operational and data gaps that prevented the Center from maximizing patient referrals, including the absence of standardized processes for collecting Physician data and validating Patient-Physician links. MD Anderson s staff used three methods to validate links: phone, a 3 rd -party database (HDS), and national databases such as the NPI registry. With over 7,000 link requests made each month and the processing limited to one office at the Center, MD Anderson was in need of standardized practices that enabled them to continuously collect and validate Physician information. After implementing a number of improvements initiated by the Physician Communication Initiative (PCI), the Center experienced a 35 percent increase in Patient-Physician links. Additionally, 80 percent of the Center s new patient referrals now have at least one Physician link associated with them. In the case of MD Anderson, four factors were critical to success: staff engagement, education and awareness, centralized processes and reliable, accurate data. With hospital and health system revenue heavily dependent on Physician referrals and patient outcomes, it is more critical than ever to employ best practices in Physician Relationship Management and to utilize highquality data. To learn more about HDS Physician and other healthcare provider databases and services, call 1-877-238-4949. 8 For more information, email HDSinfo@HDSdata.com