Skip to main content

How About A Discount? I'm Glad You Asked!

Interesting article in the New York Times about negotiating prices with health care providers. The Times is right: whether insured or not, consumers can and should negotiate prices.
"And keep in mind that doctors, hospitals and medical labs are accustomed to negotiating. After all, they do it all the time with insurers. A hospital may have a dozen or more rates for one procedure, depending on whether Medicare, Medicaid or a private insurer is paying the bill, said Ruth Levin, corporate senior vice president for managed care of Continuum Health Partners, a nonprofit hospital system in New York. Your request for a special arrangement will hardly confound their accounting department."
Perhaps. I've seen accountants confounded by matters far less complicated, but let's not get sidetracked here.

Right now, dear marketer, there's more fiction in your hospital's charge master than on Amazon.com, more 'wishing and hoping' than at Victoria's Secret. But as an especially astute health care marketer, you can get out in front of this trend and, possibly, make friends with your CFO in the process.

Remember, there are FOUR 'Ps' in marketing, not just 'promotion.' This economy is crying out for you to demonstrate how pricing flexibility can be a route to market share gains.


First, though, you must stop thinking of the uninsured and under-insured as "medically indigent." Think of them as "c-u-s-t-o-m-e-r-s" and figure out lower-cost ways to serve their needs. The ranks of the "permanently medically indigent" are smaller than you think, meaning that the customer you serve at a discount today will remember, be grateful, and come back when times get better for them - leading to more long-term customers and better times for you.

That's my theory and I'm sticking with it. Any takers?


Comments

Popular posts from this blog

Michael Porter On Health Care Reform

Michael Porter, writing in the New England Journal of Medicine, proposes "A Strategy For Health Care Reform - Toward A Value-Based System." His proposals are fundamental, lucid and right-on, meaning they're sure to be opposed by some parties to the debate, the so-called "Yes, but..." crowd. Most important, in my opinion, is this: "... electronic medical records will enable value improvement, but only if they support integrated care and outcome measurement. Simply automating current delivery practices will be a hugely expensive exercise in futility. Among our highest near-term priorities is to finalize and then continuously update health information technology (HIT) standards that include precise data definitions (for diagnoses and treatments, for example), an architecture for aggregating data for each patient over time and across providers, and protocols for seamless communication among systems. "Finally, consumers must become much mor...

Simplicity From Complexity

Health care planners typically juggle many different services and businesses, each with unique customers, competitors and prospects.  The complexity can be overwhelming.  So-called portfolio models for assessing industry attractiveness and competitive strength can be a good analytical jumping-off point, including the McKinsey-GE 9-box matrix . (Click on the "Launch Interactive" link.)

5 Marketing Megatrends

Coming to a brand near you, from Adam Kleinberg at iMedia Connection, here are " 5 marketing megatrends you can't ignore ." Mass collaboration... Constant connectivity... Globalization... Pervasive distrust in big corporations... A global sense of urgency... #4 is, I think, under-appreciated in health care. Doctors and hospitals like to think of themselves as the last of the white hat-wearing good guys, and maybe they are. But trust is a funny thing - built over decades and lost overnight. Screw it up and watch the laser beam of populist rage move from Wall Street to Medical Avenue.