Developing Your Value Proposition - Resource...

Developing Your Value Proposition

Pamela Ballou-Nelson, RN, MSPH, PhDPrincipal ConsultantFebruary 21, 2018

©2018 MGMA. All rights reserved. - 2 -

Objectives

• Define value proposition

• Who is my customer?

• How to develop a practice value proposition

• Examples of value propositions

• Share your story


Value Proposition

What is a value proposition?

• Value proposition is focused on the needs of the customer

• Includes a promise of value to be delivered according to factors important to the customer

• Putting the customer at the center of the value proposition means that a deep knowledge of the potential and current customer base is required

• Who is our customer?

Presenter

Presentation Notes

Customer Patient Employer Payer Medicare Medicaid Your value proposition starts and ends with your customers. Spend time understanding their opportunities and challenges, then give them products and services that delight them. Business success is fundamentally about delivering customer value, so it makes sense that you should spend time understanding what value means to your customers.


Value Proposition

Value proposition requires effective physician leadership:

• The “end customer” in healthcare is the patient

• Shifting the paradigm of our healthcare culture from a physician-centric to a customer-centric one

• Focus on caring is narrow need to focus on helping

Presenter

Presentation Notes

value is what drives consumers, Not quality. Most of us wouldn't shell out $100,000 for a new automobile, regardless of its quality. Not cost. We wouldn't buy a new car for $5,000 if we were convinced it would spend most of its time in the repair shop. Honda and Toyota have been kicking Detroit's butt because of value. Most of us see Honda or Toyota automobiles as providing high quality and low cost. It's time we move health care in the direction of value. People who are generally well but require a specific service — for example, a prescription refill — want an efficient transaction. · People who have a discomfort that stops short of an emergency want convenient access to a caregiver for quick diagnosis and treatment. · People who have chronic conditions that require ongoing management and that put them at risk of hospitalization or emergency department visits may need assistance with living conditions, transportation or nutrition — services that may previously have been called “public health.” · People who are healthy and want to stay that way want resources to help them learn, practice, track and reward healthy behaviors. And the entire community needs care that is coordinated among multiple settings and providers and is far easier to navigate than what they have now. A focus on caring is important, but it is inherently narrow. The new hospital value proposition requires a much broader perspective. This value proposition needs to expand from caring to helping. The value proposition of helping will take different forms to meet the needs of different population segments. For certain segments, helping will mean identifying factors that put people at risk for poor health or hospitalization and helping people address those factors, from medication management to family issues. For other segments, helpingmay mean providing expanded care options — home visits, nurse practitioner visits, group visits, virtual visits, health coaching. And for other segments, it may mean assistance in navigating the health care system and community resources. Helping may take place in a hospital, clinic, home, school or community center, or it may take place on the phone or online.


Value PropositionYour value proposition requires a broad perspective• People who are generally well but require a specific

service — for example, a prescription refill — want an efficient transaction

• People who have a discomfort that stops short of an emergency want convenient access to a caregiver for quick diagnosis and treatment

• People who have chronic conditions that require ongoing management and that put them at risk of hospitalization or emergency department visits may need assistance with living conditions, transportation or nutrition — services that may previously have been called “public health.”October 22, 2015Kenneth Kaufman

Presenter

Presentation Notes

The value proposition of helping will take different forms to meet the needs of different population segments. For certain segments, helping will mean identifying factors that put people at risk for poor health or hospitalization and helping people address those factors, from medication management to family issues. For other segments, helpingmay mean providing expanded care options — home visits, nurse practitioner visits, group visits, virtual visits, health coaching. And for other segments, it may mean assistance in navigating the health care system and community resources. Helping may take place in a hospital, clinic, home, school or community center, or it may take place on the phone or online.

https://www.hhnmag.com/authors/3908-kenneth-kaufman


Value Proposition

Value proposition requires a broader perspective

• People who are healthy and want to stay that way want resources to help them learn, practice, track and reward healthy behaviors

• The entire community needs care that is coordinated among multiple settings and providers

• Care that is far easier to navigate than what they have now

• Your value proposition needs to expand from caring to helping

Presenter

Presentation Notes

The value proposition of helping will take different forms to meet the needs of different population segments. For certain segments, helping will mean identifying factors that put people at risk for poor health or hospitalization and helping people address those factors, from medication management to family issues. For other segments, helpingmay mean providing expanded care options — home visits, nurse practitioner visits, group visits, virtual visits, health coaching. And for other segments, it may mean assistance in navigating the health care system and community resources. Helping may take place in a hospital, clinic, home, school or community center, or it may take place on the phone or online.

How Do I Develop a Value Proposition?

- 8 -©2018 MGMA. All rights reserved.

Value Proposition Tool

Team Exercise

• Make it visually appealing

• Get the providers involved

• Use marketing materials

• Leverage your strengths

• Use both quantitative &

qualitative data

• Tell YOUR story…


Value Proposition - ComponentsPractice Differentiators Practice Information

What does your practice offer in the market that differentiates you from the competition?

• Access?

• Technology?

• Affiliations of interest (i.e., sports teams, schools)?

• Accolades?

• Participation in alternative payment models?

• Special Programs?

Describe your practice succinctly

How many MDs? Non-physician providers? Specialties? Locations?

Describe your “service mix”?

Ancillary services?

Alternative payment models? If so, which ones?

Affiliations with hospital systems, IPAs, ACOs etc.?

Accolades? What are you working toward?


Value Proposition - ComponentsGoals & Ratings

• Mission Statement

• Organizational Goals

• How does your practice “rate”?

Medicare

Commercial Payers

• Narrow network participation

• Transparency: Do you understand where you stand relative to costs compared to your peers?

• Quality compared to peers?

Outcomes

• What do you know about practice “outcomes” compared to peers?

Infection rates?

LOS?

ED utilization?

Readmissions?

Costs?• Patient satisfaction scores?• Quality Initiatives – PQRS? MU?• Referring provider satisfaction

scores?• Employee satisfaction scores?• Patient engagement activities?


Value Proposition - ComponentsCommon Ground KEY Questions

• Understand how your practice aligns with payer goals

• Define how you envision collaborating

• How does your practice work toward achieving the “Quadruple Aim”?

• Where do you want to be on the managed care contracting continuum?

• How are you going to get there?

• What kinds of value-based contracts should we explore together?

• How can we facilitate improved communications?

• What types of models would be worth investigating?

• What timelines are we working within?

• What kinds of arrangements are being explored with our peers?


Customer Value Canvas

Presenter

Presentation Notes

realize you should build their value proposition statements on what they do best.”


Make Choices

Value Propositions

Maximize the value

• Specify the value proposition in your choice. We often make choices because they seem to be the right thing to do, but fail to identify the specific value proposition for the choice, i.e. adding care managers, BH worker, decreasing re-admissions

• Ask “Is the customer asking for this objective; Why are we doing it?”

• Ask “Did we really achieve the objective?”

Presenter

Presentation Notes

Lets say you need innovate, add to your value portfolio as you fond you are missing key components required or desired of the customer Be sure to For example


Make Choices

Value Propositions

Minimize choices that do not add value

Value propositions often have a narrow, internal focus

For example, best-intended efforts to decrease re-admissions may simultaneously decrease staff productivity in meeting other patients’ needs by increasing the time and complexity of the transition to care

Presenter

Presentation Notes

Lets say you need innovate, add to your value portfolio as you fond you are missing key components required or desired of the customer Be sure to For example

Examples of a Value Proposition?

Presenter

Presentation Notes

Turn over to Doral to speak to some examples of client value proposition outcomes.


Example #1

Est *$6,554 cost savings/procedure

Example #2

Presenter

Presentation Notes

As “time is brain”, a quick diagnosis on a potential stroke patient can improve the patient’s outcome and potentially save cost of treatment over time. The door to interpretation time on stroke CT of the head is less than 20 minutes on average, which is below the goal time of 45 minutes.


Example #3

Your Story


The Story of Your Practice

Write the value proposition statement:

• What market are you targeting?

• What product or service are you delivering?

• How are you delivering it, and why?

Create a WORD Cloud about your practice:https://worditout.com/word-cloud/create


Summary

Do Your Homework

• Constructed Value Proposition

• Model current payer arrangements

• Know your patients

• Surveyed payer environment

• Focus on what you do best

Game Plan

• Focus groups surveys patient councils

• Approach Payers Face-to-face

meetings Collaborative

approach Rigorous follow-up Set the tone for

future relationship

Presenter

Presentation Notes

I propose that a healthcare organization can focus choices on just one value proposition – Ideal Patient Care – and thrive. Ideal Patient Care is not a target or a goal. Rather than “implement Ideal Patient Care,” organizations enable people to chose to respond when opportunities arise to move care closer to Ideal. And if the choice adversely affects any of the attributes of Ideal Patient Care, that signals an opportunity to maximizes gains and/or minimize losses. For example, if we find that our choice to decrease re-admissions created extra steps and time for RN’s, that’s not Ideal because we would be wasting precious resources – staff time, effort and energy – and making it more difficult to meet other patients’ needs exactly. That discovery creates new opportunity to minimize the negative effects of the change. Ideal Patient Care is a broad-based guide for value propositions that can be applied to any clinical or organizational situation.

Thank You.

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