Medical Assisting: An Emerging Opportunity for Growth October 15, 2014
Liz Dye Director of Marketing Analytics, Sparkroom Uses performance analysis & data-based decisions to optimize campaigns Experience with top brands in higher education Bob Atkins CEO, Gray Associates, Inc. Specializes in the education industry Develops industry-leading data on demand, competition, placement, and trends Co-Author of Gray s Report on Medical Assisting
Transparent, Analytics-Based Enrollment Marketing Solutions Sparkroom Marketing Services PPI Vendor Management PPC Enrollment Marketing Email Marketing SEO Social Media Targeted Display Sparkroom Marketing Software Performance-Based Automation Data Integration Reporting & Analytics Transparency Marketing Analytics Multi-Platform Mindset Compliance 3
Clients: Education Institutions and Investors Mission Help clients do well by doing good GrayData Demographics U.S. Census Completions IPEDS Employment BLS/O*NET Job Postings WANTED Analytics Placement Rates Gray Research Industry Inquiries GrayReports Students Locations Programs Strategy Demographic priorities Geo-priorities Market share City selection Location selection Relocation analysis Consolidation Advanced Analytics Predictive Models Geo-Analytics Program ideation and selection Feasibility studies R&D Market reports Business strategy and implementation Acquisition analysis Pricing Outcome improvement
What will you learn today? How health care trends will affect the demand for Medical Assistants How MA employment and completion trends are creating a growth opportunity How changes in MA competition will increase the opportunity What it will take for you to get a fair share of this opportunity Marketing requirements Placement practices
Healthcare Spending Healthcare spending is projected to grow 5.8% annually to $5.0 trillion in 2022. $6,000 National Health Expenditures Actual and Projected (Billions $) $5,000 $4,000 $3,000 $2,163 $2,298 $2,407 $2,501 $2,600 $2,701 $2,807 $2,915 $3,093 $3,273 $3,458 $3,660 $3,889 $4,142 $4,416 $4,702 $5,009 $2,000 $1,000 $0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: CMS Research and Statistics, http://www.cms.gov/research-statistics-data- and-systems/statistics-trends-and- Reports/NationalHealthExpendData/downloads/proj2012.pdf
Summary of Healthcare Industry Trends Healthcare growth will increase demand for well-trained MAs. Increased Need for Health Care Changes in Health Care Delivery More and Increasingly Complex Medical Assisting Jobs Increased Access to Heath Care (ACA)
Implications for Medical Assisting Healthcare trends favor Medical Assistants. General increase in demand will require more MA work. Work is shifting to venues where MAs are prevalent. Work is moving to lower-level, lowercost practitioners, including MAs. Many wellness programs can use lower-skilled workers, including MAs. EPRs will increase demand for MAs with strong informatics skills. Regulation of MA work is relatively loose Opportunities are emerging for MA specialization
MA Employment Since 2011, MA employment has been rising. BLS employment increased over 2.5% annually. WANTED Analytics jobs postings rose over 10% annually. BLS Employment for MAs The Emerging Opportunity for Medical Assisting Education 650,000 250,000 600,000 225,000 550,000 500,000 BLS Employment 200,000 450,000 175,000 400,000 Job Postings 150,000 350,000 125,000 300,000 250,000 100,000 200,000 75,000 150,000 100,000 50,000 50,000 25,000 - - 2011 2012 2013 2014 (est) Job Postings Sources: Bureau of Labor Statistics, WANTED Analytics, Gray Analysis
MA Completions: Declining Fast MA completions declined 25% in two years. Completions Index (2011=100) 110 Completion Trends (Associate s Degrees and Below) 100 90 80 70 All Programs: -1% For-Profit Programs: -14% Medical Assisting: -25% 60 50 40 2010 2011 2012 2013
Market Size Despite declines, the MA market is still over $2.2 billion. $3.5 Estimated Market Size $ Billions $3.0 $2.90 $2.73 $2.5 $2.0 $1.79 $2.48 $0.53 $0.68 $0.86 $2.24 $0.67 Total $1.5 $0.39 Associate's Non-Degree $1.0 $0.5 $1.40 $1.96 $2.22 $1.88 $1.56 $0.0 2009 2010 2011 2012 2013 Source: Gray Associates, GrayData from IPEDS for CIP 51.0801 for all award levels and MA program website disclosures of tuition and other data.
The Opportunity Completions are dropping, while jobs are increasing creating an opportunity to fill an emerging employment gap. BLS Employment for MAs 650,000 600,000 550,000 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 - The Emerging Opportunity for Medical Assisting Education BLS Employment Job Postings Completions Placed Completions Growing Employment Opportunity - 2011 2012 2013 2014 (est) 250,000 225,000 200,000 175,000 150,000 125,000 100,000 75,000 50,000 25,000 Job Postings, Completions, Placements for MAs Source: BLS, IPEDS, WANTED Analytics, Gray research and analysis
Jobs Per Completion There are an increasing number of jobs for MA grads. Employment and Job Postings Per Completion 8.0 Job Postings Per Completion BLS Employment Per Completion 7.0 6.0 5.0 4.0 3.8 4.3 5.4 6.4 3.0 2.0 1.0 1.1 1.3 1.8 2.3 0.0 2011 2012 2013 2014 (Est) Source: BLS, WANTED Analytics, IPEDS and Gray analysis
Competition and Capacity Two of the top 10 MA providers are closing campuses. Institution A 2013 Medical Assisting Completions Top 10 Providers 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Institution B Institution C Institution D Institution E Institution F Institution G Institution H Institution I Institution J 1-Year Certificate 2-Year Diploma Associate's Degree Source: Gray Associates, GrayData from IPEDS for CIP 51.0801 for all award levels.
Quarterly Inquiry Volume, Q1 2011-Q2 2014 2011 - Q1 2011 - Q2 2011 - Q3 2011 - Q4 2012 - Q1 2012 - Q2 2012 - Q3 2012 - Q4 2013 - Q1 2013 - Q2 2013 - Q3 2013 - Q4 2014 - Q1 2014 - Q2
Google search query volume for MA-related terms, Aug 2012 Jul 2014 1000000 900000 800000 700000 600000 500000 400000 300000 200000 100000 0
Sparkroom Campuses Offering MA and Average Inquiries/Campus 900 450 800 415 385 400 700 600 500 400 300 290 269 321 229 216 192 203 192 204 206 213 210 178 350 300 250 200 150 200 100 100 50 0 Q1 2011Q2 2011Q3 2011Q4 2011Q1 2012Q2 2012Q3 2012Q4 2012Q1 2013Q2 2013Q3 2013Q4 2013Q1 2014Q2 2014Q3 2014 0 Campuses Active Avg. Leads/Campus
Quarterly inquiry-to-application conversion rate, Q1 2011-Q2 2014 7.00% 6.00% 5.00% 4.00% 3.79% 4.01% 4.71% 4.53% 5.53% 5.55% 5.83% 4.98% 5.54% 5.12% 5.46% 4.61% 5.09% 4.99% 3.00% 2.00% 1.00% 0.00% 2011-2011 - Q1 Q2 2011 - Q3 2011 - Q4 2012 - Q1 2012 - Q2 2012 - Q3 2012 - Q4 2013-2013 - Q1 Q2 2013 - Q3 2013 - Q4 2014-2014 - Q1 Q2
Third- vs first-party inquiry volume share 120.00% 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% % Q1 2011 % Q2 2011 % Q3 2011 % Q4 2011 % Q1 2012 % Q2 2012 % Q3 2012 % Q4 2012 % Q1 2013 % Q2 2013 % Q3 2013 % Q4 2013 % Q1 2014 % Q2 2014 Third-Party First-Party
Branded school traffic by inquiry channel 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% % Q1 11 0.94% 8.72% 1.80% 6.18% 1.37% 0.24% % Q2 11 0.87% 8.00% 1.56% 6.47% 1.26% 0.05% % Q3 11 % Q4 11 0.97% 0.62% 7.67% 6.05% 2.98% 4.88% 4.57% 3.33% 2.82% 6.35% 0.01% 0.11% % Q1 12 0.67% 6.20% 4.60% 3.59% 6.28% 0.32% % Q2 12 0.60% 6.75% 3.91% 3.27% 5.59% 0.34% % Q3 12 0.62% 9.32% 3.52% 2.64% 5.21% 0.35% % Q4 12 0.26% 12.47% 3.17% 2.37% 4.96% 0.60% % Q1 13 0.16% 12.33% 2.59% 2.92% 4.07% 0.22% % Q2 13 0.14% 11.98% 1.50% 2.84% 1.15% 0.27% % Q3 13 0.05% 11.46% 1.39% 3.23% 0.92% 0.33% % Q4 13 0.02% 9.91% 1.09% 3.38% 0.87% 0.20% % Q1 14 0.03% 10.78% 1.01% 3.72% 0.72% 0.00% % Q2 14 0.04% 10.46% 0.95% 3.76% 0.74% 0.02% Inbound Phone Internal Website Offline Media PPC Referral All Other Internal channels
Top Affiliate CPI/Performance Trends Average Quarterly CPI $- $10.00 $20.00 $30.00 $40.00 $50.00 Average Quarterly Conversion Rate 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 2011 - Q1 2011 - Q2 2011 - Q3 2011 - Q4 2012 - Q1 2012 - Q2 2012 - Q3 2012 - Q4 2013 - Q1 2013 - Q2 2013 - Q3 2013 - Q4 2014 - Q1 2014 - Q2 2011 - Q1 2011 - Q2 2011 - Q3 2011 - Q4 2012 - Q1 2012 - Q2 2012 - Q3 2012 - Q4 2013 - Q1 2013 - Q2 2013 - Q3 2013 - Q4 2014 - Q1 2014 - Q2 Top 10 Volume Affiliate CPI Top 10 Performing Affiliate CPI Top 10 Volume Affiliate Conversion Rate Top 10 Performing Affiliate Conversion Rate
Distribution of MA inquiries by state
Conversion rates by state, 2011-2014
Key Marketing Takeaways Medical Assisting program inquiry generation is curiously flat Healthy interest amongst prospective students Declining number of campuses offering MA programs Relatively stable inquiry-to-application conversion rates Strong job outlook
Placement: Current Results Median placement rates are dangerously low. 85% Medical Assisting Placement Rates 80% 75% 70% 65% 60% 75 th Percentile Median 25 th Percentile 55% 50% 25-49 50-74 75-99 100-149 150-199 200-299 300+ Campus Size: MA Completions Source: Gray Associates analysis of GrayData placement database based on institutional website disclosures of 2013 placement rates for 870 Medical Assisting programs.
Top-Performing MA Programs Top-performing schools achieve and sustain high MA placement rates They use best-practices to achieve these results Campus Location 2013 MA Completions New Orleans, LA 102 Milpitas, CA 155 Wyomissing, PA 104 93% 93% 92% 92% 89% 89% 2013 2012 Tulsa, OK 102 Brooklyn, NY 383 81% 88% 86% 90% Levittown, NY 294 Long Island City, NY 146 86% 82% 85% 82% Anchorage, AK 517 Jackson, MI 138 Sanford, FL 195 82% 81% 85% 80% 80% 89% 50% 60% 70% 80% 90% 100% Placement Rate for Medical Assisting Source: Campus disclosures, Gray Research
Benefits of audience segmentation and profiling Understand larger demographic trends Identify common behavioral traits Locate pockets of target audience
Key Medical Assisting student segment profile attributes Average HH age: 25-34 Strong index for female HH Average HH income: $36,000 Average % HH with children: 66% HH often has 2+ children Children are typically young (under 6) Average % HH homeowners: 19% Most HH are rented apartments or homes HH may have moved in past 12M % HH in low cost of living area: 76% Typically large/mid-sized suburban residents
Key segment education and employment attributes Education Current or previous part-time student May be firstgeneration college student Has at least some high school education Employment Employed part-time or temporarily unemployed No healthcare employment experience Household likely supported by multiple incomes
Sending the right message Support Change School will support student in achieving degree and attaining jobs so that student can in turn support his/her family MA program helps students change their employment opportunities/track MA academic and support faculty can help change student s employee persona Certified Accreditation information Certifications graduates will be eligible to achieve Flexible Personalized Scheduling that works for working adults
Media consumption and device usage amongst key MA segments TV and web browsing most commonly occur after peak hours (11 PM 5 AM) Print media focus on parenting-related content Pay-as-you-go wireless plans very common MetroPCS plans and Android phones popular within key groups Heavy social media use connecting with brands, other users on sites; enjoy sharing content and product reviews
Density of target demographic groups by media market
SCHOOL Reach prospects across all marketing channels Channel/Device Interplay SEO Affiliate Sites Email Paid Search TV, Radio, Print Display Social Media Requires consistent messaging & experience across channels STUDENT
SCHOOL Reach prospects across all marketing channels Channel/Device Interplay SEO Affiliate Sites Email Paid Search TV, Radio, Print Display Social Media Requires consistent messaging & experience across channels STUDENT
Building the MA-focused media plan Cross-channel reach 1. Branding Targeted display TV/radio Social media 2.Direct Response Mobile/desktop affiliates Pay-per-call Search Multiple response options 3.Re-engagement Re-targeting Email nurturing Messaging consistency and frequency
Steps to MA program success Understand student and job demand trends to help take advantage of both Implement best practice program strategies to help graduates succeed Reach the right prospects with a multi-channel, mobile-first marketing plan Seize the opportunity!
Thank you. Any questions? Contact: Liz Dye, Sparkroom elizabeth.dye@sparkroom.com 201.477.7809 Bob Atkins, Gray Associates bobatkins@grayassociates.com 617.401.7662