With a brand-new decade on the horizon, it’s time many healthcare practices, hospitals, health plans, and other organizations make serious shifts in the way they approach marketing.
Are you positioning your healthcare institution for growth in the new year? My healthcare marketing predictions for 2020 can guide you towards a more comprehensive strategy for the start of the decade, with insights from 2019 and a clear vision for 2020 based on research, decades of experience, and expert guidance.
Welcome to the Business of Healthcare
Just a decade ago, doctors were extremely hesitant to call any healthcare organization a “business.” Today, many practitioners still go on the defensive when asked about the business side of healthcare.
But whether we like it or not, there’s no denying that healthcare is a business—and a highly competitive one at that. Aggressive advertising techniques and speedy acquisitions, combined with the changing behavior of “consumers” in the healthcare space, means you have to run your business wisely to keep up.
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After decades in the healthcare industry (and previous years spent marketing a wide range of organizations) I can truly say I’ve never seen anything like it. Healthcare is a rapidly evolving market, and if you don’t consider these 2020 healthcare marketing trends, you’re likely to miss out on the business you need to thrive.
#1: Private equity is changing the nature of practice marketing
Healthcare practices are a hot commodity for private equity in 2020. With each year, private equity deals continue to set records in the healthcare space. As a result, these groups are making a huge impact on practice marketing.
As one of the fastest-growing investments, private equity groups are now consolidating groups in nearly every specialty. However, the primary focus tends to be with the following:
- Dermatology
- Ophthalmology
- Orthopedic surgery
- Addiction
- Autism
- Long term care
- Gastroenterology
When we spoke at the McGuireWoods Healthcare Private Equity & Finance conference earlier this year, we heard many speakers note that private equity roll-ups focus their attention on consumer-direct marketing. All in all, I predict that this consumer-direct approach will add immense value to practices positioning themselves for sale—and for those that need to maximize value post-acquisition.
#2: Successful healthcare institutions will tackle consumerism
“Healthcare consumerism” may be a well-worn term in the industry today. But even the most conservative institutions are beginning to understand how a consumer mindset effectively shapes the way a healthcare business can (or should) be run.
Consider the success of retail clinics. It’s tough to keep up when one major corporation merges with another to provide both convenience and affordability. But this type of competition will only continue to increase, as even smaller companies offer patients more of what they truly want.
Keep up with what other organizations are offering, or patients will go to someone else who does.
- Treat patients right. Of course, most organizations truly believe they already do, but your patients may not agree. Go above and beyond in considering patients’ time, schedules, anxieties, and comfort levels.
- Offer the right services. Are you truly offering—and marketing—what patients need the most?
- Find ways to lower cost or effort. If lowering costs is not an option for you, find ways to make it easier for patients to receive services, such as telemedicine or online scheduling.
- Keep them coming back. Patients have many options today, so find ways to remind existing patients of the great care they can expect when they’re loyal to your organization.
#3: Hospitals will continue with major acquisitions
The number of private practice acquisitions by hospital systems has increased by 128% since 2012. The last decade has also seen changes in hospital-acquired or hospital-created insurance plans. While private equity has seen huge growth in healthcare mergers and acquisitions, they’re not alone.
Hospital systems will continue to merge, acquire, and grow their offerings with hospital-based insurance plans and doctor networks in 2020 and beyond. Expect hospital systems to continue to push for an umbrella model of care to keep patients loyal to (or locked into) their services.
#4: Consumers will seek out integrated systems above all else
Yes, more private equity or hospital system roll-ups mean more integrated healthcare systems. But the fact of the matter is—this is what many patients want. As we and others have written about time and time again, consumers want convenience, period.
Consumers look more and more for integrated systems where they have access to urgent care, primary care, and hospitals when needed. As hospital systems and large group practices face mounting pressure from consumers, as well as competition from retail-based clinics, they will look to expand their service line offerings in 2020.
#5: Retail will continue to change the healthcare landscape
Led by CVS, retail chains continue to change the entire landscape of the healthcare business. There are a few clear advantages to this model of healthcare. First and most obvious is that the hours and location of these retail clinics is convenient. With 1,500 new CVS clinics opening by 2021, hospitals and many types of practices—particularly urgent care and primary care—can expect even more competition.
Additionally, CVS and other retail clinics offer transparent prices available upfront. Moreover, CVS offers widespread availability of telehealth. And its new multipurpose wellness locations offer space for everything from yoga to vitamins to health classes.
These conveniences put pressure on private practice primary care and urgent care, which often fails by comparison. This also offers further proof that the consumer mindset values convenience first and foremost.
Source: Healthcare Success
