Magical Facts

About PatientsThat you would die to know8

It’s all about word of mouth

Our research over a ten year period confirms that, organizations with the highest ratio of promoters to detractors in their sector typically enjoyed both strong profits and growth.

Bain & Company

0

100

200

300

-100

-200

AVERAGE CUSTOMER

BASE

AVERAGE CUSTOMER

BASE

RETENTION

MARGINS

ANNUAL SPEND

COST TO SERVE

Economic benefits

NEGATIVE WORD OF MOUTH

COST TO SERVE

ANNUAL SPEND

MARGINS

RETENTION

Economic penalties

Patients who spoke bad

Patients who spoke good

POSITIVE WORD OF MOUTH

Each one point decrease in satisfaction is associated with a 6% increase in complaintsStelfox, et. al. (2005) AJM 118

1

Patient Experience is a lot more than clinical outcomes

All other things (including the quality of clinical care) being equal, more than 50% of the patients said they would shift hospitals if they knew about or experienced higher levels of service in a hospital

20% OF A PATIENT’S CHOICE IS BASED ON A HOSPITAL’S CLINICAL REPUTATION, 41% ON NON CLINICAL EXPERIENCE. A DOCTOR’S RECOMMENDATION AND THE HOSPITAL’S LOCATION ARE RESPONSIBLE FOR THE REST OF PATIENT’S DECISION.

Mc Kinsey Research , 2008Survey involving > 100O US patients and > 100 Physicians , 2007

41

21

18

20

Physician’sDecision

Location

HospitalReputation

PatientExperience

4130

20

NeverRequested

Discussed but did not make request

RequestedSpecificHospital

56

Might or might not request

WouldDefinitelyRequest4442

% of patients % of patients

Would you request a hospital if it were distinctive for patient experience, all other things being equal

Have you requested a specific hospital from your physician

Factors influencing patients’ choice of hospitals [ patients allocated 100 points}

2

Patients are willing to switch for better…

Conventional thinking has long held that most patients base their choice of hospital on its clinical reputation, its location, or their physician’s recommendations.

McKinsey Research, 2008

Most of the patients are now willing to switch hospitals for better service and amenities

Mc Kinsey Research , 2008

% patients who said they would switch hospitals as a result of non-clinical criteria

Non clinical criteria Willingness to switch% of patients

Relative interest in each criteria

Keeping patients informed about treatment both during and after visit

77 100

75 38

3366

64

63

17

62

61

59

55

52

52

36

50

17

24

28

27

8

Conducting scheduled appointments on time

Room appearance and furnishing

Ease of scheduling appointments

Food and entertainment options in room

Value for money eg.discount

Simplicity of registration, access to medical record

Ease of understanding bill

An environment supportive of family and emotional needs Convenience and ease of accessing the facilityComfort of waiting room and other common areas

3

What’s bad about good service quality

A satisfied person has no story to tell. Everything went just as expected. It is the unexpected event that makes a stay memorable.

For every loyal customer, there is usually a special story

Fred Lee , Author of award winning bookIf Disney Ran Your Hospital

Touch Point 1

Touch point2

Touch point3

Touch point4

Touch Point5

Touch Point6

Touch Point7

TO

UC

H

PO

INTS

What made them feel bad and at which touch point?

What created tears of joy and at which touch point did that

happen ?A good story to tell

A bad story to tell

Satisfied Person

Hyper Satisfied Person

Dissatisfied Person

4

If you can’t measure, you can’t manage

2 3 4 5 6 7 81 90 10

Never Absolutely

Detractor Passive Promoter

Detractors are customers with the lowest rates of repurchase and referrals. Detractors spread negative word-of-mouth comments about the company

Passively Satisfied customers stay with a company more due to inertia than true loyalty

Promoters have the highest rates of repurchase and referral.

THE NET PROMOTER SCORE

5

Patient Experience is all about bottom line

LEASTPROFITABLEQUARTILE

MOSTPROFITABLE

QUARTILE

PATI

ENT

SATI

SFAC

TIO

N

1 2 3 4

82.2

83.583.7

84.3

In research conducted by Press Ganey, hospitals were divided into four groups (quartile) based on their profitability.

The least profitable hospitals had the lowest patient satisfaction scores (out of 100 points). The most profitable had the highest patient satisfaction

Source: HFM Magazine, 2008 : Looking to improve financial results ? Start by listening to patients : By: Melvin F Hall PhD

As patient satisfaction increased, the average hospital profitability increased

Without a quantifiable link to profits, the push for patient satisfaction is based on nothing more than the moralistic view that “it’s nice to be nice”

6

Why patient satisfaction is beyond satisfaction surveys !

We have studied 400 plus Satisfaction Survey forms and have come to a conclusion

It’s not the questions that are flawed, it’s the direction Team doesn’t

know as to how to take

corrective action

Caregiver responds on

behalf of patient

Don’t take into account the overall experience

Questions are forced

choices

Manipulated to

suit the desirable evidence

Most often partially filled

The Forms never linked back to the future and to economics

Seldom capture level of

satisfaction/dissatisfaction

7

Patient Experience is a lot more than clinical outcomes

How well staff worked together to care for me

Overall Cheerfulness of the Hospital

Response to concerns/complaints made during my stay

Amount of attention paid to my personal and specific needs

Staff sensitivity to the inconvenience of hospitalization

How well nurses kept me informed

Staff’s effort to include me in decisions about my treatment

Nurses attitude towards my requestsSkill of the nursesFriendliness of the nurses

Press Ganey Satisfaction Report , August , 2003

0.79

0.74

0.68

0.650.65

0.64

0.64

0.640.630.62

When hospitals spend most of their efforts in clinical results & process improvement, their data are defined by outcomes and thus can be measurable objectively.

Patient however,

judge quality by his/ her perceptions, something that is subjective and cannot be verified in the same way as outcome.

8

Medium is a healthcare consulting firm. Our services include Business Strategy, Marketing & Sales, Quality & Patient Experience, Performance Transformation, Healthcare Franchising. and Public Health. We are innovative, passionate and performance-driven. But, most of all, we are committed to delivering significant and tangible business impact for our clients. Our clients have ranged from large hospital chains and single-specialty hospitals to primary care clinics, medical equipment manufacturers and private equity.

www.med-ium.com

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