November 2001


Entrepreneurial Spirit

By Nancy J. Beckley, MS, MBA

Marketing for the Future
Tactics for effectively marketing rehabilitation as a service, not a product.

What type of marketing activities and strategies work for rehabilitation facilities? In the days of old-translate that to mean the health care marketing days of the 1980s- the best marketing strategy was simply to announce a new program or service and wait for the folks to fill up your facility. During this era, we saw the unprecedented growth of a tremendous number of programs in all of health care.

The good old days
Employers paid for health insurance premiums with little financial burden to employees other than to meet a deductible and co-payment. Managed care had not yet gained a major foothold and provider networks, in general, included everyone in town. During this period of time, inpatient and outpatient rehab grew at phenomenal rates, particularly due to the cost-based nature of government programs supporting the development of inpatient rehab hospitals and units, which could be exempted from the Medicare prospective payment system (PPS), comprehensive outpatient rehabilitation facilities (CORFs), and rehab agencies.

Providers could not lose in the era of supply-side economics-build it and they will come. During this time, pain management inpatient and outpatient programs, postpolio programs, and head injury programs all proliferated.

While we saw continued rehab growth in the early 1990s, the ability of providers to magically attract patients, either directly or through referral sources, diminished. Managed care grew in the commercial sector, particularly in large metropolitan areas, and Medicare managed care began to change the way we treated Medicare recipients. The rug was really pulled out from under us with the passage of the Balanced Budget Act of 1997. Outpatient rehab went to a fee schedule in 1999, and the skilled nursing portion of rehab went to a new PPS that set in motion an unprecedented tumbling of the nursing home industry. The inpatient rehab PPS is poised to launch this coming year.

Strategies and Tactics
In order to position an effective marketing strategy in rehab, we must recognize that the industry is now driven by market based-strategy rather than a provider-based strategy.

What kind of marketing strategies and tactics work? Since rehab is a service rather than a product, the marketing is a bit different. Products are tangible-you can see them, touch them, feel them-all before you buy. With an intangible service, you cannot experience before you buy. You have to rely on judgement: the judgement of physicians or insurance companies or word of mouth.

Each marketing strategy will encompass numerous marketing tactics, which are activities that you do to implement your strategy. Your marketing plan will encompass a mix of strategies that are specifically designed by you to get patients into your facility. For facilities that offer multiple programs, such as outpatient head injury day treatment programs or pain management programs, and traditional outpatient rehab therapies, a different marketing strategy is necessary for each market segment, even though there may be common marketing activities or tactics among the various segments.

Direct contact. The most effective method for marketing rehab services is one-to-one contact with potential clients or those who can refer clients. For example, an orthopedic physician who is acquainted with your facility and is pleased with patient outcomes is a great direct contact because he or she has the potential to refer many patients and be a consistent referral source. This physician is probably not a good referral source for your head injury day treatment program. An important aspect of direct contact is consistent follow-up.

Patients rely most heavily on the recommendations of their physicians for information about rehab programs, which emphasizes the importance of building direct contact with those physicians who can refer to your programs.

Networking. Attending local chamber of commerce functions may help in spreading the word about a chronic pain program or massage therapy services, but may not have a direct impact on attracting patients for an inpatient spinal cord injury program, whereas networking at a national meeting of case managers will be more effective.

Speaking engagements. Carefully selected and targeted speaking opportunities should be sought out if you are in special niche markets, such as pain management and head injury. Patients in these categories have often finished acute care and possibly even rehabilitation, but are looking for something more. These clients act as advocates for themselves and often do not hesitate to ask a physician for a referral to a program they believe will help. While working as a marketing director at an inpatient rehab facility, I developed an educational seminar for case managers and vocational rehab counselors on spinal cord injury. This was repeated successfully on an annual basis, and always generated referrals, despite the fact that we did no self-promotion during the seminar itself. The success of this seminar led to another successful seminar on back pain, which was targeted to insurance adjusters and other workers' compensation companies. Different market segments, same marketing strategy, but a variation on the two different targeted market segments.

Public relations. You do not need a PR person, but you need to have public relations. In today's media age, it is important to keep your name in the memory bank of key referral sources. Identify areas where you can write articles that will be read by your key publics-potential patients as well as referral sources. Now that winter is upon us, there is a good opportunity to issue public service announcements in local papers, as well as radio stations, about issues and concerns involving the cold weather.

Special events. While hospitals and large rehab programs may hold special events that attract many attendees, smaller rehab providers can benefit as well through open houses targeted to key groups as well as tapping into community special events by offering services such as massages at the finish line of the local 10K race.

Advertising. Advertising can be an important part of a rehab marketing initiative if used cautiously and effectively. A word of caution about advertising: don't be lured into advertising for referrals without having a clear understanding of all of the components of an effective advertising campaign as well as the expenses that can pile up quickly along the way.

Differentiate between advertising for imaging and advertising that generates referrals. As part of a comprehensive strategy for Tampa General Rehabilitation Center, part of a large public hospital, I contracted for a highway billboard campaign with the goal of raising awareness in the community of our rehab programs. The photography for the billboard was spectacular, and featured a local and well-loved female wheelchair athlete, our name, and our slogan. The campaign ran for 2 years, and was effective in raising the image of the rehab center in the community, which was our goal.

Good luck with your marketing activities, and remember that a good marketing program should reflect the good that your rehab facility provides not only to patients but to your community.

Nancy J. Beckley, MS, MBA, is president of Bloomingdale Consulting Group Inc in Tampa, Fla. Comments and questions are always welcome at (888) 999-0275 or via email at: bcgbeckley@aol.com.

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