We help hospitals, specialty practices and regional healthcare organizations move toward value-based payment structures. Vera Fischer, President of 97 Degrees West, shares some typical questions clients ask her about switching to this new model.
What’s the biggest challenge facing value-based healthcare organizations?
They don’t know how to charge for it. That’s because there’s no precedent. The entire healthcare system was predicated on organizations getting paid for service. This payment structure has been going on for decades and we have to undue it. But it’s not going to happen overnight. You’ve got to do a little bit at a time. That’s why I think we’re going to start seeing specialty medical practices do this first — they’ll be quicker and more effective and won’t be as burdened as larger hospitals or networks.
What kind of organizations are going to be ready to adapt to a value-based care model?
The organizations that embrace, accept change and start on acting on it — they’re going to be in good shape. For example, the organizations that didn’t shy away from digital content a few years ago — they’re the ones who can start tweaking their messaging and re-writing topics about value-based care with more ease than those who didn’t put any importance on digital content. The ones with “content machines” in-place will be in good shape to promote value-based care.
How can investing in value-based care keep my organization competitive?
Changes in the healthcare industry often mean you're doing more with less. Patients come in with higher expectations, insurance providers cut reimbursements and you struggle to thrive with traditional medical marketing methods. If you keep trying to compete on price and high volume alone, you'll continue to fall behind. Value-based strategies help you improve your revenue and market share through differentiation. You carve out a segment in your region and use your patient outcomes to support this approach.
How can value-based care generate referrals to my organization?
Word of mouth and social networks generate many patient referrals. If your regional healthcare organization only focuses on price and volume, you will end up with people sharing their neutral or negative experiences online. They don't understand what they're getting for the price they pay. You also can't offer a high-quality patient experience if you have to book appointments for as many people as humanly possible. Value-based marketing gives you the opportunity to increase your prices so you can focus on the end result for the patients.
This is third installation of seven blogs that make-up our white paper, Master the Marketing Techniques of Value Based Care. Can't wait until next week to read the next section?