Increase Patient Volume by Focusing on Prevention, Early Detection, and Wellness

April 30, 2010

Increasing amount of dollars, especially super-profitable self-pay dollars, are being spent on Prevention, Early Detection, and Wellness. This is profitable business immediately and very profitable downstream when risks are detected.

Baby Boomer dollars are being spent on various types of elective imaging like $99 CT heart scans or PVD screenings, vaccines, full-body dermatology scans, elective early detection lab work (for cancers and other risks) and more. Boomers generally don’t care if insurance pays – they want it anyway.

I have seen a for-profit group of imaging centers drive huge amounts of business focused only on early detection. This group is owed by professional investors- not medical people, but business people. The potential downstream revenue is so great from the imaging that they are now investing in nearby Cardiovascular clinics.

We have a client that has a super early detection blood test for various cancers. Although they have had spotty reimbursement they still enjoy growing sales because boomers want to live forever and are willing to pay for it.

A recent survey found that middle class women fifty years of age and older have two clear priorities: 1) taking care of their families; 2) Wellness.

Both of these things play into your hand as a hospital marketer because she can do both better with your Early Detection, Prevention, and Wellness programs.

If you market to Early Detection, Prevention and Wellness you make lots of money today – while actually helping people. You make even more money downstream from the risks you detect. It is a Win – Win – Win.

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The Hidden Benefit to Building Patient Volume: Downstream Revenue

March 10, 2010

Your successful efforts to build patient volume have a big hidden upside: Downstream Revenue. This later revenue will likely far exceed the amount of money you drove in by the initial marketing campaign.

For Example #1:

A program in a medium-sized market Academic Medical Center to increase mammograms drove in a marginal 1000+ mammograms per month for nine straight months. This was considered a fantastic success. The bottom line (minus all costs and marketing expenses) Contribution Margin from imaging, lab work, and biopsy surgeries was $2.7 million.

There was measurable Return on Investment (ROI). Everyone was thrilled.

But over the next year came more money from inpatient surgery, outpatient medical oncology, radiation oncology, and more imaging. The additional bottom line money a year after that nine month campaign was over $12 million. That is in addition to the initial $2.7 bottom line Contribution Margin in Year One.

For Example #2:

Another unexpected driver of business we have seen is Cardiovascular campaigns. We can’t fully explain it (although we have some answers and some theories), like cause and effect when a hospital runs a successful CV campaign, other procedures go up during the campaign period.

Some of this gain in business is obvious from the cross screening for other risks when a patient comes to a screening event. But like I said above, some I can’t completely explain. But as sure as summer follows spring it happens every time.

We recently saw a CV campaign that drove over $12 million additional Contribution Margin into the system. But the “unexplained” increase in business was over $40 million in net bottom line Contribution Margin.

The real interesting thing about CV campaigns is that when you find a high-risk patient, they eventually turn into a surgery patient. CV campaigns keep paying off for years to come.

You are doing great work as a health system marketer. You can drive business with measurable ROI. But what you may not have noticed is the additional downstream revenue you have been driving into the system.

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