By Ken Peach, FACHE

Linus Paul was fond of saying “The best way to have a good idea is to have lots of ideas”.

A few years ago, a fellow hospital administrator from South Florida told me that for an industry with more than its fair share of well educated executives, hospital leadership teams spend a great deal of time waiting for government, payers, and regulatory agencies to impose solutions rather than using their own expertise to address them. In my experience, by adapting ideas from other industries, hospital planners and marketers can apply proven concepts in a new environment.

To get you started, here are sixteen approaches used by a variety of businesses to encourage growth that may be applied to hospitals.

1. Perspective

During my past twenty years in hospitals, I have entered thousands of physician offices to find old magazines, dead flowers, and even dead aquarium fish in the patient waiting area. My first question to the practice manager or physician was always “when was the last time you entered the office through the waiting room?” Inevitably, the staff always used the back entrance. I encouraged them to walk in the steps of their patients to share their perspective of the medical practice.

In hospitals, some of the best lessons came when I sat in our waiting areas, did my building rounds, or visited patients. That is getting close to your customers. It lets you gain their perspective and helps identify what needs to be changed or corrected.

2. Differentiate

Whenever I am in Washington, DC, I try to pay a visit to the Booeymonger™, a deli on Connecticut Avenue with a decidedly different approach to what could be a fairly standard menu. For years it has featured sandwiches like the Richard Nixon (primarily bologna) or the Patty Hearst. Contrast that with the deli around the corner from my office that has gone out of business twice. Okay food, but nothing that makes it stand out from the competition.

The hospital that introduces a concierge service to walk a patient through the complex system, or a registration process that can be done on-line to allow patients to go right to their room will be the success. Something as simple as providing a book of poetry to women who come in for their mammography can make you stand out.

3. Distribute and Deliver

A client of mine used to visit television stations nationwide in order to train their sales teams. After 9-11, he called to complain that air security was making his trips a real hassle. We talked about what his clients always have behind their television stations, and today, he delivers his instruction beamed from his home studio in North Carolina to TV stations everywhere by satellite.

Do we have to force our patients and families to always come to our location for education and services? What can we deliver to them? The Internet has opened vast possibilities.

4. Database

A few years ago, an optician noted a decline in office visits. As more of his clients moved out into neighboring suburbs, his market share declined. By surveying his existing and past customers and analyzing a database, he realized that most of the current clients worked downtown and visited while at their offices. He developed a lunchtime special exam, increased staffing during those hours, and used a database-supported direct mail campaign to build up the business.

Customer relationship management (CRM) was all the rage a few years ago. HIPAA permits you to use database tools and marketing to provide education to your patients. By surveying and analyzing their needs, you can market to past patients and family members who are most likely to use you again with a little reminder or offer.

5. Partner

I’m working with a new publication that has a good chance of becoming a national franchise. The client and I have assembled a virtual team including a printer, local chamber of commerce, and developer of franchise support software to get this publication tested and proven to take to the franchise stage.

No one says that a hospital has to do it all. Seek partnership opportunities with the local YMCA, grocery stores, employer groups, etc. Look for natural strengths that you can all build on. When I was opening a new labor and delivery program, I did a partnership with a local pharmacy to place promotional items adjacent to the pregnancy kits. These little “expecting a baby” booklets carried information on our physician referral service for women who had not selected an OB/GYN doctor.

6. Maximum Yield

You’re no doubt well aware that the last time you took an airliner, the seat next to yours probably sold for a different price than what you paid for yours. Likewise, hotel accommodations and your rental care take into account your corporate rate which may well be different for each customer group. In his book Revenue Management, author Richard Cross explains how he took this concept to the local barber shop. By raising rates on the busy Saturday and lowering them on Monday, there was less congestion and more revenue on Saturday and more volume on the slow days.

Do you price your operating room time depending on the time of day? The day of the week? You too can generate additional revenue by pricing according to the demand curve.

7. Cross Sell and Up Sell

I recently visited a dry cleaner near my home. On the counter were discount coupons from a consignment store in the same shopping plaza. I walked over to that store and discovered dry cleaner coupons on their counter. Each store had found a way to promote the other.

How well do you promote complementary hospital services? Do you encourage referrals to non-hospital services or businesses that share a similar mission of promoting good health? Look for products that can benefit from steering patients already using your other inpatient or outpatient services.

8. New Demographic

The Tiffani Kim Medical Spa has served the typical clientele for years, providing women with spa treatments. Husbands, boyfriends and significant others often accompanied women to this spa and were forced to wait. Recently, the spa began offering “sports buff” treatment for men, and has opened an entirely new line of business.

Is there a population that you have not served that offers potential in your market? A new demographic or potential geographic market can drive additional demand for your service.

9. Loyalty

Our local pool supply store offers me a free jug of chlorine for every ten that I purchase. They have been known to punch my card twice when I start a new one to help me feel “invested” so I am less likely to consider buying from one of the many area competitors.

Research has shown that regular customers are eight times more likely to buy from you than newcomers. Seek ways to reward your regular patients to keep them loyal. I have used the “BDA marketing model” to accomplish this. Market to them before they visit, deliver an outstanding experience during their visit, and keep them “loyal alumni” after you have served them so they will come back.

10. Simplify

One national fast food restaurant has 27 entrée items on their menu. Another has six. Which do you think has the better food quality? Which experiences parking problems at Noon every day as customers fight to get in?

Package your individual services to make it easier for customers to make a decision. There is a reason why fast food combos include french fried potatoes. You might not be inclined to order those with lunch, but they come with it when you select combo 2. Make buying easy, and the revenues climb.

11. Before and After

I have a client with a patented service that donates $1,000 to any not-for-profit organization (including some hospital foundations) in the name of the buyer when a piece of real estate is sold in Florida. While the service alone is unique, we needed to increase the number of potential homebuyers using this free service. Knowing that new homebuyers from out of state often fly down and rent a car to look for their new home, we invited a national car rental company and airline to join us. Likewise, we have a mortgage company and will soon be adding a home repair company to the “back end” as we can feed new homebuyers to these services.

Seek companies and organizations that enable you to improve the continuum of care you offer to patients.

12. Platform

General Motors and International Harvester have introduced platform products to enable enhancements to increase customer satisfaction. On-Star® has the potential to be used to offer car owners additional services like stock trades. Even now, you can have it deliver step-by-step directions when you are seeking a new destination. International Harvester uses an on-board computer and GPS unit to track harvesting. Information is sold back to the farmer at the beginning of the next growing season so seed is distributed in the most ideal manner to increase the crop yield.

Look for ways that a particular hospital or outpatient service can serve as a natural platform for delivery of another.

13. Experience

Last summer while in Seattle, I observed first-hand what I have seen in customer training videos and books. At Pike Place Fish Market, my family fought the crowds to watch fish tossed back and forth over the counter. Everyone had their camera, were smiling, and enjoying an experience that has become a “must see” in Seattle.

When developing a new endoscopy suite a few years ago, we gave patients the opportunity to select their favorite music to enjoy during the procedure, and beverage to drink afterward. By requesting this information in advance, we customized and created an experience around each patient.

14. Legislate and regulate

I serve on the governing board for a new city being built in Central Florida. Recently I asked why we were installing the second of what I learned will be thee community pools. The developer explained that even though most residents are installing their own pools, state regulations require a certain number of community pools based on population. These regulations were developed with the support of the swimming pool industry, and obviously drive the construction of more pools.

The Florida Hospital Association and its member hospitals have been very effective over the years in monitoring and encouraging legislation and regulations that impact hospitals in our state. While the number of laws and regulations affecting hospitals is stunning, keep in mind that sometimes they may offer opportunity. Talk to your hospital government relations team to get ideas.

15. Second Mover

You may have a Quik Drop store in your neighborhood. It was invented to help people use ebay. Likewise, how many of you have purchased Ipod cases, amplifiers, and any of the many other support products? Sometimes the development of a new product or service opens the way for “second mover” organizations to introduce support items.

At one hospital, a new cardiac program aimed at women opened the opportunity to introduce lipid screening available through the laboratory patient service centers. Consider other natural tie-ins to existing services you or others provide.

16. Uncontested Market Space

Years ago, Southwest Airlines saw a hole in the market. Introducing no frills, low fares and point-to-point service paved the way for 35 years of profitability.

Rather than focus on competing with other hospitals, look for the “blue ocean” and create your own uncontested market.

Designated Reader

I earned the title “designated reader” from my leadership team at a small community hospital a number of years ago. I read everything, digested and selected the best ideas to share, and presented them at our weekly leadership meetings. Look for ideas in other industries that you can bring to health care. Remember, “Resources destroy creativity”. Be creative, grow your business, and have fun.

Ken Peach, FACHE Lives in Orlando FL 888-432-0693 or at krpeach@juno.com.