Why do the Hospitals need to invest more in Advertising?

Hospitals in India hardly advertise. Most of them look at advertising as an unnecessary expense and keep it minimal. This really need not be so. Looked from another angle, advertising for a hospital can be a critical investment, which allows it to differentiate its services, educate customers about its core beliefs, introduce new products and services and help gain new customers. Unfortunately, in India hospitals believe that customers do not appreciate hospital advertising and may even be put off by it. Many hospitals, who are doing well do not see the need for advertising. With occupancy rates high, the hospitals feel they are wasting money by advertising. Little do they realise that advertising quite often is not only about getting more patients.

To make matters worse, whatever little advertising one sees is mostly inane and dull. The communication usually bears the imprint of too many cooks adding different flavours to the advertising, making it a weird medley of pictures, long copy and a strange layouts. The marketing teams in the hospital are forced to accommodate various view opinions (that of the hospital COO/CEO, the heads of medical departments, other leading physicians, the sales head, and sometimes the owner of the hospital ) to arrive at a piece of communication, which is usually a disaster from a marketing communications point of view. While, this piece assuaged inflated egos, ensures gory pictures (usually reflecting some landmark surgery) in the ads, highlights achievements of some or the other doctors, it fails in its primary purpose of connecting with the end-user.

Here are a few reasons, why hospitals should look at their advertising a lot more seriously and spend money wisely in connecting with their customers.

Core Beliefs and Positioning

A hospital must advertise its core beliefs through a well thought of brand campaign. It is imperative for customers to know what their hospital stands for, what its core values are and how does it strive to stay true to those beliefs. Thus, if a hospital professes to provide ‘Total Patient Care’as a consumer I would love to know, what it means and what all can I expect from the hospital. Similarly if a hospital is positioned as a ”cutting edge technology” centre I would like to know what that means to me as a customer. A hospital must stand for something in the consumer’s mind. I am not sure, our big hospital brands Apollo, Fortis, Max and Wockhardt (now part of Fortis) have been able to establish any kind of distinct identity in the consumer’s mind.

Products and Services

A hospital offers a multitude of services. Customers need to know about them and hence advertising is a good way of keeping customers informed. New services keep getting added from time to time and the hospitals need to keep their customers updated. Recently Max Healthcare started its cancer services. All that they did was release a solitary advertisement, welcoming the new Chairman of Cancer services!!! The ad was also supposed to serve the purpose of informing the customers about the commencement of cancer care services at the hospital. Wouldn’t it make greater sense to announce the commencement of a service with a nice campaign and if needed also feature the medical leader/team in the ads?

Hospital Launch

A new hospital commencing operations needs high decibel advertising. Artemis did this well, when we launched the hospital. We had large bill boards in Gurgaon, a fairly heavy presence in the local print media and local community engagement through ‘fam visits’ to the hospital. I recall Max Healthcare during their launch also did a fairly well orchestrated multi-media campaign. However, many hospitals too try to save money by launching quietly and hoping the customers will come through the word of mouth or through doctors pulling in their existing customers. I believe, these are sub-optimal ways of launching the hospital’s services and an old-fashioned media blitzkrieg works the best.

Renewing Existing Services

Sometimes it is necessary that a hospital ‘renew’ its existing services. These days, I am seeing some bill boards near my residence advertising Apollo’s new Knee Clinic. The communication is targeted at the elderly, informs about the new Knee Clinic, which offers Knee Replacement services at the hospital. Now, Apollo hospital has been doing knees for a long time, however the communication is trying to repackage the service and relaunch it. Unfortunately, There are just two bill boards and, while the intent is laudable, the hospital is being very stingy. Similarly, while in Bangalore recently I came across a ‘Short Stay Surgery’ campaign by Wockhardt Hospitals. Again the effort seems to be to reposition their Laparoscopic Surgery services in a customer friendly matrix, but the money behind the campaign appeared too little to make any significant impact. Other hospitals too need to often ‘renew’ and repackage their services smartly.

Driving Traffic

Hospitals can drive traffic to their OPD’s through innovative offers. In fact the bulk of hospital advertising today focuses here. A free Cardiac Camp around the World Heart Day is routine. Similar camps and offers in other specialities help drive traffic to the hospital OPD’s. The problem here is that hospitals do these sporadically, without adequate planning and often as band-aid solutions to transient OPD traffic related issues. Tactical campaigns need to be more consistent and better planned to yield optimal results.

Educating Customers

Wouldn’t it be wonderful if a hospital did an educational campaign about let us say heart disease or diabetes or any other lifestyle diseases. The campaign should aim to educate customers about the disease, its symptoms, treatment options, success rates, technology available and the medical expertise available to treat the disease. The objective should be to inform the customers, help them ask the right questions and thus make the right choices. Unfortunately, none of our hospitals including the big chains are willing to invest in patient education simply because the returns are relatively long-term.

Pic is indicative.

The Dilemma of Single Speciality Hospitals

A recent cover story in Business World highlights the growing influence of Single Speciality Hospitals (SSH) in India. I read the story carefully. First and foremost, I was delighted to see a cover on healthcare in Business World. It is not often that the business of healthcare gets prominence in a widely circulated and highly respected business weekly. That, BW decided to do this story is a testimony to the growing importance of the private healthcare sector, which is something to cheer about.

SSH’s make good business sense at least in some specialities. The investment required is low compared to a large Multi Speciality Hospital (MSH), funds can be accessed through PE firms and financial institutions, the hospital can be set up quickly and if one ropes in a well known medical luminary of that particular field, it is not too difficult to fill up the beds. Once the operations stabilise, one can consider franchising or expanding by setting up super specialised centres in large multi speciality hospitals. Specialities like Ophthalmology, Dentistry, Obs and Gynaecology (remember the neighbourhood mother and child centre) have always had Single Speciality Hospitals and clinics. The trend is now towards large SSH for Oncology, Urology and even Day Care Surgeries.

These hospitals are presently being set up by eminent doctors, who are partly putting in their own money and getting PE funds and financial institutions to invest in their ventures. Thus these SSH’s are hugely dependent on the goodwill and equity of the owner-doctor. Also one is not sure, how capable these hospitals are of attracting the best medical talent and thus providing high standards of care to patients. Typically, in a doctor owned SSH set up, it is rare to find other doctors of similar or higher capabilities than the owner. The fear of always being eclipsed by the owner-doctor drives other talented doctors to MSHs, where the canvas is bigger and the environment less claustrophobic.

From a consumers perspective SSH’s are a huge dilemma.

My father, now in his seventies suffers from an enlarged prostate. This is a problem that most elderly men are likely to have. Like most people he is terrified of surgery and has been on medication for the last few years. However, we know that surgery can only be postponed for a while and sooner than later he will have to go under the knife. Now should I choose a RG Stone Clinic, which is a well known SSH for Urology, or do we go to the multi speciality Max Hospital. While RG Stone may have better and more advanced equipment for the treatment of his condition (some fancy lasers), I am not sure they are equipped to handle complications, which may happen. The last thing one would want to deal with is an emergency requiring shifting him to a larger hospital after the surgery.

Also, I am not sure about the credentials of the doctors in RG Stone clinic. On the other hand MSHs like Max and Fortis and Apollo are well established brand names, have systems and processes (Apollo is JCI accredited and the others are in the process of accrediatation) and some of the most well known surgeons in the city are associated with these hospitals. From a cost perspective RG Stone might be cheaper, but if the patient is fully covered by health insurance (as my father is), expenses are the least of ones concerns.

Thus, in a situation like this, I will be inclined to go to the bigger MSH and I would reckon most of you will do the same.

And here is than the lesson for the SSH’s. They need to establish themselves as a far superior option in their chosen speciality. They need to invest in the brand, move away from the perception of being owner-doctor driven centres, hire the best talent by offering a great work environment and competitive salaries and establish systems and care protocols comparable to the best in the business.

SSH’s must convince me, the consumer, that they really are super experts, before I can seriously consider entrusting them with my care.

On the Back of a Star

The star syndrome is a common phenomenon, which dazzles many a newly minted hospital.

I have been part of several start-up hospitals and have attended numerous meetings where all those who matter spout the now so familiar arguements about staying away from the 'stars' in the medical firmament. The arguements run something like this.

The star doctor (a well established doctor with a roaring practice) will be too set in his practices, will bring too much baggage and will never follow our pristine processes, which are far superior to his current practices. He will be a bad influence on everybody else. Another arguement goes that we do not believe in the 'star' system. Why should a 'star' enjoy priviliges, which are not available to our other doctors. A third arguement goes that we believe in growing our own stars. The hospital brand should be the real star and not individual doctors.

One can not really pick a flaw in any of these arguements. Star doctors are known to be egoistic, believe that making patients wait only adds to their stature, often indulge in practices, which are against the laid down hospital policy, break rules with impunity and in general do what they please. The management treats them with undue deference often causing resentment amongst peers. All this because they know they pull in a large number of patients and contribute significantly to the hospital revenue.

Once a new hospital commences operations without stars and the overheads mount relentlessly, while the revenue stream is at best a trickle, the need of a 'star' is felt acutely. The desire to ramp up fast and keep the promoters and other stakeholders off ones back takes precedence over all those arguements cited earlier.

The Star becomes the saviour. The CEO and all other 'chiefs' go 'star' chasing. The star is difficult to catch and quite often one can only sight it in the middle of the night. Meetings happen at his convenience usually anytime between midnight and 3 in the morning. Once on board he is treated like royalty. The star joins with a retinue comprising of his personal staff (numerous secretries, personal assiatants etc.), other doctors ranging from senior consultants to residents and the like. The star is presented to potential patients as as a great trophy. The hospital starts shining in the star's reflected glory. The patients start coming in and life becomes wonderful.

The bliss lasts for a few years. The star is able to fill up many beds. The trouble begins when one realises that under the star's dazzle nothing else grows. He eclipses the hospital brand, does not allow others to take roots, keeps the hospital management genuflecting to his whims and fancies and often bullies patients leading to bad word of mouth. The aura of the star starts diminishing.

Soon the hospital realises that probably they were better off without the star. The old arguements are resurrected. The star starts becoming a mere mortal. The hospital realises that getting rid of the star might not be a bad idea. However, it is easier said than done. Rememeber within the hospital's system the star has many a planets revolving around him.

Eventually the star is either eclipsed or simple allowed to wither away. The management team now believes that they can pull in patients on the strength of the hospital's brand name and soon the star finds itself being wooed by another new hospital, which has come up in these years and is desperately looking for a star to shore up its fortunes.

I wish this was a fable. Folks at all the leading hospitals in Delhi, which include Max Healthcare, Fortis, Apollo Hospitals and Artemis will bear this out. Some are at the stage where their 'stars' are falling, others are desperately looking for the stars to light up their lives.

The great game goes on...

The image is from http://www.flickr.com/

The Marketing of a Hospital

Before I get into the business of writing about the Marketing of a Hospital in India I must establish my credentials.
I have been working in the arena of Marketing of Heathcare Services for the last 8 years or so. I have been involved with Apollo Health and Lifestyle Ltd., which is the franchisor of Apollo Clinics part of the Apollo Hospitals Group, headed the Marketing and later the Corporate and International Sales for Max Healthcare a large healthcare services company based in Delhi and for the last two years have been heading the Sales and Marketing function at Artemis Health Institute, a tertiary care hospital based in Gurgaon and promoted by the Apollo Tyres group.
When I started working for Apollo Hospitals as the Marketing Manager for The Apollo Clinics and later at Max Healthcare I was often asked the question as to what really a Marketing person did in a hospital. Marketing of hospitals was understood to be a big no no. If you had a good hospital infrastructure and some well known doctors working for you the conventional wisdom dictated that the patients will follow.
Over the years this line of thinking has completely changed. Healthcare Services Marketing is gradually coming of age. We now even have advertising agencies dedicated to healthcare!
Some of the reasons for this sea change are not far to seek.
Patients to Customers
Patients are fast metamorphing into customers. They are just not satisfied with being a passive presence in their treatment. Increasingly they are demanding that they be included as active partners in their care. They are far more knowledgable and willing to question their care givers including the doctors. Hospitals are realising that for them to succeed in today’s environment they have to engage with patients/customers in a manner which they appreciate and understand. The communication, which engages with customers is generally the prerogative of the Marketing folks. This often translates into Patient Information booklets, detailed instructions before admission, during hospital stay and after the discharge. Extensive websites provide authentic information and hospitals like Artemis also provide interactive websites (http://www.artemisinteractive.in/), which allow patients to communicate freely with each other. Artemis also engages with customers by organising Public Forums, where eminent doctors interact with the public at large.
The Need to Standout
The healthcare revolution is truly underway in India now. The great urban middle class in large metros has multiple choices for their healthcare needs. Most of these hospitals have a lot going for them. However, most of them do not have much to differentiate them from each other. The failure rate of a bypass surgery in Apollo, Escorts, Max and Fortis Hospital is less than 2% and would compare favourably with any hospital across the world. Increasingly the medical expertise is becoming a given. The battle for differentiation is now gradually moving towards the overall customer experience that a hospital is able to deliver to its customers at all touchpoints. The Marketing teams in a hospital defines customer experience parameters and oversee the delivery of this experience at various touchpoints.
The Advertising Conundrum
Advertising in healthcare services have always been a contentious issue. Many people see hospitals splurging money on slick advertising as an effort to profit from some people’s misery. Afterall no one goes to a hospital to enjoy themselves. Hospitals are quite aware of this latent sentiment and try to be discreet about their marketing communication. However, with the patients gradually moving towards becoming customers the old taboos are disappearing fast. An increasing number of customers see private hospitals as commercial enterprise and understand that the stakeholders do need profits. (What they continue to object to and rightly so is to reckless profiteering) In the future healthcare advertising will gain more prominence and we will see more hospitals and probably doctors advertising their services in various media.
The Health Insurance
Presently Health Insurance has a miniscule penetration (4%) in India. With pureplay health insurance companies (Star Health, Apollo DKV and yet to start Max BUPA) commencing operations and with MNC’s offering health insurance coverage to their employees and their families, health insurance is poised for explosive growth. From the perspective of the customers cashless services at all corporate hospitals have taken the all important issue of price out of the customer equation. Thus in this unfolding scenario the differentiation will be through communication salience and top of the mind recall.
The Constant Customer Engagement Paradigm
In the days of yore a hospital interacted with patients only when they came to the hospital and stayed as inpatients. In today’s dynamic environment hospitals engage with customers throughout their lifestyle. Specialised programs are being devised, which enrol customers who are high risk for a disease (cardiac diseases-people with a family history, sedantary lifestyle, high stress levels, smokers and hypertensives). The hospital endeavours to be in constant touch with this group of people. The idea is to remain engaged so that God forbid if something happens the hospital is not too far off. The hospitals are now also devising Post Discharge Care Programs, which allows them to maintain a dialogue with patients even after they have been discharged from the hospital.
These in reality are another version of ‘loyalty programs’. (More on this in a separate post) adapted to the needs of the healthcare industry.
The Marketing function in hospitals is thus fast emerging as a critical function. The Marketing folks are tasked with engaging with customers (no more patients) both outside and inside the hospital. Happily for customers this can only mean a far better hospital experience and not just better care