Skip to main content

Payment Rates Rise, Payment Rates Fall. So?

With a flattening revenue growth trajectory, it's always tempting (and usually more fun) to blame external forces.  Fingers point 'out there.'  It's 'them!'

The music industry blames piracy,  the better for minimizing their strategic mistakes while pleading that endless quests to find the next body-jiggling, platinum-selling pop diva are really "talent acquisition" and darn hard work.

Now, I'm no pirate (as my monthly iTunes bill will attest.)   But somewhere there's a lesson to be learned when an industry's customers act like "free" is an appropriate price.   What is a transaction, after all?  Consideration given for value gained?

A lesson to be learned.  An edifice complex to be maintained.

With health care, the external forces of darkness are usually declining reimbursement. "We need managed care and Medicare to pay us more" goes the cry.  Well, sure.  Who wouldn't like their customers to fork over more money just for the heck of it?

Funny how you never hear anybody say "We built a business model driven mostly by chasing the hot payment rates du jour, a model frequently decoupled from any sense of value delivered.  We never figured that what went up might someday come down."

Continue the discussion.  Leave a comment or connect with me on Linkedin.

Comments

Popular posts from this blog

Becoming Consumer Friendly In Five Easy Steps...Or Not

An article at hhnmag.com offers hospitals 5 steps to becoming more consumer friendly.

If you still think there's a secret sauce to your hospital becoming more "consumer friendly," these 5 steps are as good a place to start as any.  Unfortunately, it's a little like that old Steve Martin comedy bit where he says he'll teach you how to be rich. The first step is to go find a million dollars.

Step 1 from the article is realizing that "...a Medicare beneficiary with chronic conditions is different from a young mom who brings her kids in for an annual check-up." This is market segmentation for beginners, and, yes, one size decidedly does not fit all. I'm sure your marketing team's been saying this for a while.

Steps 2-5: have a strategy, metrics, a champion and resources. OK. Hard to argue with any of those.

But those things, alone or together, won't overcome culture. They're important components to be sure, but insufficient without a …

Another Day, Another App, Another Satisfied Customer

How might health care providers use technology to turn customers' mobile phones into information displays and ordering devices? A few years ago, the NY Times outlined how retailers are doing it...
"(Designer Norma) Kamali is at the forefront of a technological transformation coming to many of the nation’s retailers. They are determined to strengthen the link between their physical stores and the Web, and to use technology to make shopping easier for consumers and more lucrative for themselves.
...

Cisco Systems, the supplier of networking equipment and services for the Internet, is also a leader in the field. The company’s Mobile Concierge system is capable of connecting customers’ smartphones to retailers’ wireless networks — so a shopper could type “Cheez Whiz” into a cellphone, then pinpoint its location in the store." Ms. Kamali's boutique installed a technology called ScanLife, "allowing people to scan bar codes on merchandise and obtain details about the…

Why Change Happens, Or Not

From LinkedIn: