Rural Healthcare - The basic Challenges and Steps in creating a Hospital’s Strategic Marketing Plan

Rural Healthcare - The basic Challenges and Steps in creating a Hospital’s Strategic Marketing Plan

The heart of this article is focused on developing how to achieve their goals and objectives. 

The first step in “walking the talk” starts with how we approach the story.

1. The challenges facing rural hospitals in marketing

2. The Steps to Creating Hospital’s Strategic Plan

“The codfish lays ten thousand eggs, The homely hen lays one.
The codfish never cackles, To tell you what she’s done.
And so we scorn the codfish, While the humble hen we prize,
Which only goes to show you, That it pays to advertise.”

So, we know that marketing is more than just advertising…  however, this anonymous poem points out the need to make sure others know what it is we do- especially what it is we do well. 

As we continue to see the healthcare environment change, and to get more and more competitive, it’s important that there is some time spent focusing on marketing of hospital. 

Marketing in healthcare – especially in rural healthcare - is different than in the business world.

We will have to think a bit differently here about our purpose of marketing.  Where some businesses’ goal or mission may be to make profit, which we also ultimately would like, we also have the added challenge of our mission to serve the community and keep the needs of our patients’ high priority, and serve as the safety net provider.

These things can all change the focus and purpose of our marketing efforts.

Marketing: the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, & services to create exchanges that satisfy individual and organizational objectives

- “Marketing is the sum total of all impressions.”

Key to this definition is a focus on the consumer--- which in the case of a hospital, could include a patient, a physician, another organization or the community at whole.   

In marketing, there must be two or more parties with unsatisfied needs– a desire of one party, such as the hospital, seeking to exchange a service for gain- and the ability to meet that need.  Another prerequisite of marketing is that there must be an exchange– which we know in many cases, our patient’s do not have anything to exchange for our service- no insurance or financial resources.  Lastly, marketing is about learning about the other party’s existence--- Patients must know what our hospitals have to offer, and hospitals must know what our community’s needs are.   It’s all about this “exchange.”  Whether your hospital is non-profit or a for-profit, and regardless of your mission, marketing is all of the activities we do as a hospital or system to promote this exchange.

Marketing, then for hospitals, ties directly in with customer satisfaction – a key issue we face today is patient satisfaction.   And that is what is so unique and key to our marketing planning and strategy– that although the ultimate goal of marketing is to help our hospitals grow in market share- to increase the number of patients we are able to serve– increase the number of “exchanges”-- we also have to balance that growth goal with some challenging factors unique to healthcare.  

- Moving from patient volume to value
- Publishing of patient satisfaction scores
- Social media and immediate feedback made public

- Coming soon, if you aren’t already, pricing transparency
- An increase in other forms of competition- from large systems, to Urgent Care, etc.

All of these things are going to change how we must market our hospital and its services to the community around us. 

One more thought about having a marketing strategy is that people are already talking about your hospital– pricing and patient satisfaction is already out there.  The second definition, “Marketing is the sum total of all impressions,” means that people are developing a perception of your hospital with each interaction- from the front desk, to the cleanliness of your hospital sign, to the way their family member is treated while being cared for.  So whether you have a hand in it or not, this information and a perception about your hospital is out there and being developed.  

Its important, than, as a hospital, that you know what’s being said about your organization, know where you want to be, and help to guide your hospital in that direction as best you can.  In other words, you want your marketing to be intentional and to be a part of every impression you make.  Otherwise, those often loud minority of unhappy consumers that are going to dominate the information out there about your hospital.    

Developing a Marketing Roadmap - Preparing to go on a journey of identifying the healthcare needs of our community and then meeting them.

If we think about our hospital in terms of sales, it means generating volume– and filling beds.  In terms of production, it would mean focusing on clinical quality.   But when it comes to marketing, its all about satisfying needs and wants– or identifying the healthcare needs of our community and then meeting them.

With hospitals or health system, marketing is not just about a one-time exchange.  Instead, its about growing a market or patient base and community that supports and is loyal to the hospital.   Its about building a trusting long-term relationship with our current or potential patients.  That’s a transition and can be a journey.

As opposed to promoting readmissions, its not that we want them to visit us as often as possible--- but when there is a need for a service we offer, that they are both aware that we offer it, and that they choose us over other options. 

To accomplish this goal we’ve got to take the time to develop a Roadmap--- or a marketing strategy.

Many have a robust marketing plan in place- and that’s a good thing.  Others may do a few campaigns over the year, and still others may be attempting to keep the hospital’s head afloat – maybe you have minimum staff already and marketing is the last thing on your mind.

However, it really is something that at least annually- if not monthly or weekly, that a marketing plan is created and put into place. 

That’s what we’re talking about creating a roadmap for our hospital for its marketing efforts.  But before we move into those steps of developing a marketing strategy, I would also like to mention what’s the danger is jumping into marketing activities without a long-term plan?

Most likely, we’re going to have ineffective marketing campaigns that waste time, waste money,  or frustrate our hospital or our patients.  They may work in the short-term, but have no long-lasting effects.

As I mentioned earlier, if it isn’t your team at the wheel steering when it comes to the public perception of the hospital, there are other out there that will be driving the perception of your hospital. Unhappy people on social media. Your competitors.    

Without buy in from the staff or from your board, this can be a difficult road.  But that’s just another reason for having a marketing plan in place – to be able to communicate it to the team and board so everybody is on the same page.

Hold a retreat or set aside a day = we often call it a Visioning Day= that will help set the stage and gain buy in and feedback from your whole team. 

Steps to Creating Your Hospital’s Strategic Plan

Know Where you Are: Market Position

Know Where you Want to Be: Vision

Determine the Best Route: Marketing Objectives

Determine Who’s Riding in the Car: Stakeholders

“Ready to Navigate:”  Action Items

Know What to Avoid

Step One: Know Where You Are - Understand Your Hospital’s Market Position

There are two areas you need to look at when it comes to knowing you hospital’s market position.

First is Community information. What are the needs of your community when it comes to healthcare? We first need to have a document where the market research piece has been done for us – its called a community needs assessment.  This gem really should be the foundation of how we build our marketing plan.  Remember we said before- marketing is about meeting needs. If we attempt to build a marketing program  just around our strengths and there’s no need for it in the community, it is going to end up failing or costing us. 

Second, we need to understand our market share. What communities do we serve?  What is the age and gender breakdown of that county?  How much is Medicaid/Medicare? Helpful to know where your community population is going when they need care.

Third in understanding your hospital’s position, is looking at your competition.  Where is our closest competition?  What services do they offer?  What competition is also our partner at times? 

The second part of a marketing strategy is understanding your hospital’s position.

Here are some great ways to do this…

The first is to do a group SWOT analysis– where the whole team comes together and make a list of hospital’s Internal Strengths and Weaknesses and external Threats and Opportunities.  What departments are strong?  What areas need remodeled? Where are we short staffed?  What do our patients tell us they love about us?  What specialists or services do we have that no one nearby has?  What are we lacking?

We don’t want to build a marketing plan around just the organization’s goals– but if we can figure out where there are community needs and where we have or can build a solution, then we are on the road to figuring out your current position.

Another good piece of information is patient feedback from other surveys – hence we should do a marketing survey in the community - Check out Social Media

Step Two: Know Where You Want to Be - Determine Your Vision for the Hospital’s Future

Once you know where you are, as a group, determine where you want to be. This is what’s called a Vision or Vision Statement. Now, a vision statement isn’t the same as your Mission Statement.

A mission is something that doesn’t change:  the present state or purpose of your organization; WHAT the hospital does; WHO it does it for; and HOW it does it.

A vision statement is about the future--- it’s a mental picture of what you want to achieve over time – it’s a “north star” and provides guidance an inspiration.  In a GPS, it’s the destination.

So – how do we come up with a Vision Statement?  Think about a vision one year down the road for the hospital... 

What would it look like if everything was incredible? 

What do you want people/hospital leaders to know about your hospital?
Where do we want to be a year from now?

What’s amazing is that as many times as we do it we will see some common core beliefs and desires come out of each group that really speaks to the staff and community we are serving.  We shouldn’t be afraid of new ideas– this is a time of change and it may be time to consider updating a mission.

For example, there is a trend that is moving from a mission of “providing high quality healthcare” to “improving community health.” This is the time for developing center of alternative and integrative health.  “Walk with a Doc” - health & fitness walks with the community.

Step Three:  Determine the Best Route - Set Your Marketing Objectives

At this point, we know where our hospital is in relation to the community, we know where our envision the hospital being  a year from now, so we plug those pieces of data in and we are provided with a set of instructions on how to get there!

Its not quite that easy with a marketing plan--- we’ve got to set some objectives for the hospital too.

What’s a marketing objective?  
A good way to think about it is like this.   Ask yourself--- 
At the end of this year, if our hospital has become what we envisioned it being, what would have happened?
What are the big steps or major changes that we will have made? What are the major accomplishments?

What do these marketing objectives have in common? 
Like any other goal you set, they should be SMART - Specific, Measurable, Attainable, Relevant, Time-bound.  

Being able to measure the effectiveness of campaigns and be able to adjust if needed to reach those goals, is critical.  One big mistake often seen-- once we find something that works, don’t abandon it to try something new!  Do what works. Learn from what has been effective. 

We can think of having each department or services area set their own marketing objective.
We might want to start with just a few bigger objectives that work for the hospital as a whole department.
Or we may focus on just the top three opportunities / just the top three threats your hospital faces.

Growth Strategies to Consider

-          Market Penetration: Increasing the sale of present products and services in present markets

-          Market Development: Initiating sales of existing products and services in new markets

-          Product Development: Providing new products to existing markets

-          Diversification: Developing new products or services for new markets

-          Strategic Alliances: Partnering with another resources to enter a new market

-          Divestment/ Pruning: Selling off a business or product line/  reducing the products/services it offers

Step Four: Who’s Riding in your Car? - Consider Your Stakeholders & Communication Plan

Before you jump in your car and start making a list of all the things you are going to do as a team, its important to consider “who is riding in your car?” In other words, who are the stakeholders this can affect, and who needs to be involved in the process? Who do we need to communicate this plan to?

-          New / Current / former patients

-          Potential patients

-          Local / National Government

-          Board

-          Providers

-          Health care Suppliers

-          Community at large – associations, clubs, organizations, other businesses

With each of these groups, think about how the vision and the objectives may be received.  Do we need to tailor the message for each group? Which groups are key to success in making this vision happen?  How should it be communicated?  Do we need to ask for something for each group?

How are you going to communicate the message to your stakeholders? There are many ways to get the word out and to being marketing--- so it’s a good idea to take some time to brainstorm not just about what the message should be, but the best medium to get the word out.

For example, if there is an opportunity to work with a local nursing school nearby, is there a communication that best reaches young adults?

Here are some means to communicate…

•       Publications

•       Direct Mail

•       Press Releases to Local & State Media, Trade Associations

•       Advertising

•       Listings in Trade Directories and Internet Listings

•       Web Site Strategy

•       Local Events - Exhibits

•       Telemarketing

•       Specialty Promotional Items

Step Five: “Ready to Navigate!” - Putting a Plan Into Place, Develop Action Items, Timelines and Budgets

Marketing Objective: the business goal (what we would like to achieve)

Action Plan: the strategies that can be implemented to reach that goal. Break down into small, achievable steps and then identify the actions you need to take for each step. 

Using some of the tools available, brainstorm an action item list with the team for each of the marketing objectives.  We don’t always need to plan out a whole year- start with maybe three months out, and determine who needs to be involved internally.

For example, if one of the marketing objectives involves employees, then make sure HR is highly involved. 

Also set Timelines for objectives and if available, budgets.

It can be used as a short term (6-12 months) action plan to achieve short term business goals,
a medium term action plan (2-3 years)
or a long term action plan (3-5 years).

Set a weekly or monthly time to follow up on action items, measure effectiveness, and discuss next steps.  

Step Six: Know What to Avoid - Liability & Risk in Marketing

Ready to start the engine?  Not quite yet.

Before starting rolling out new messages, campaigns, or other actions-  it is important to do one last check.  it’s called “Avoidances.”  Its all of the things that could slow down, halt or hurt us along the journey.

Make sure anyone involved in marketing is aware of some of the liability involved in marketing and ensure that the initial and future action plans don’t steer down the wrong or unintended road. 

Consider how important advertising can be to community relations programs or wellness campaigns in improving community health. It can help to educate consumers about their health needs and encourage them to seek treatment.  These are all positive, good things.

We just have to be careful that in any communication that comes from our organization, that we aren’t setting ourselves up for liability.

•       Regularly review Factual Messages:  Even if objective and verifiable, some facts about a hospital can change over time – i.e. religious affiliation, the cost of services, hours, appointment procedures, accessibility by public transportation – make sure to review these periodically

•       Make sure Opinion Messages are substantiated:  Especially those that are comparative or superlative: “best care,” “the latest technology,” – these must be substantiated  by an outside group or a certification/designation

•       Ensure Expert Endorsements are substantiated: for example, “tests prove,” “doctors recommend,” and “studies show” need to have the test, recommendations and studies to back up the claims

•       Consumer Testimonials should be representative of what consumers should generally expect.

This strategic approach will help shape the perception of the value both organizationally and personally  and will credentialize the Hospital truly.