Lehigh Valley Health Network’s ‘Moneyball’ marketing strategy attracts insured patients

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Credit: Lehigh Valley Health Network

Health system’s marketing team uses data to target higher-paying commercially insured consumers to balance growing Medicare demographic.

As providers use analytics to drive population health, so are marketing departments taking advantage of data and social media to target new consumers.

Lehigh Valley Health Network in Pennsylvania, for instance, is netting an increase in appointments from consumers who have commercial insurance.

An estimated 10,000 clicks on targeted Facebook and other social media ads have converted to 4,500 new consumers; 60 percent of these are commercially insured, according to Dan Lavelle, the administrator of Marketing at Lehigh Valley Health Network.

“To me, that’s the moneyball number,” said John Marzano, Vice President Marketing and Public Affairs. “We kind of coined this ‘healthcare marketing moneyball’ after what Billy Beane did in baseball.”

“‘Moneyball’ is the book and movie centered on Billy Beane’s chase for a win using baseball statistics. Beane, then general manager of the Oakland Athletics, is now executive vice president of baseball operations and minority owner in the team.

Healthcare marketing has changed dramatically in the last five years, and those hired to do the job need to keep up, according to  Marzano, who with Lavelle, is speaking at HIMSS18 in Las Vegas.

“Five years ago, we’d talk about which doctor to put on a billboard,” Marzano said. “Historically we were probably 75 to 80 percent traditional marketing. And now we’re probably almost 50/50 digital vs. traditional. We’re using the same dollars for the same fiscal years.”

Lehigh Valley works closely with clinical leaders to target message campaigns for such services as prostate exams. Banner ads appeared on Facebook. When someone in nearby Hazleton did an online search for prostate cancer, the program in Allentown popped up.

“We invest ad dollars to win that top page search,” Marzano said.

The health system has recently run an estimated 22 campaigns for  mammography, orthopedics and hernia screenings, among others.

“Digital is such an immediate thing,” Lavelle said. “We can track all of these things to understand not only how many people click on an ad, but how many made appointments.”

One reason to drive commercial business is demographics. An aging baby boomer population will grow the Medicare business in the area to 50 percent of the market. At a lower reimbursement rate, Lehigh Valley needs the commercial dollars to balance that out.

Gone are the days when hospitals could tout their benefits through advertising alone. The competition, and in Pennsylvania UPMC is creeping ever eastward, demands that the chief marketing officer  become friendly with chief information officer to leverage data to grow the hospital’s population.

“It’s not about us anymore, it’s about the consumer,” Marzano said. “We need to be there with the information. They have to select us rather than competition.”

Bringing Moneyball to Medicine

http://www.chcf.org/articles/2017/02/bringing-moneyball-medicine

Image result for moneyball

For most of the last year I had the privilege of serving as director of the US Agency for Healthcare Research and Quality (AHRQ), the lead federal agency charged with improving the safety and quality of America’s health care system. AHRQ is not a payer or regulator. It develops the knowledge, tools, and data needed to improve the health care system and help Americans, health care professionals, and policymakers make informed health decisions.

Change is a reality of our political process. When the new administration took over last month, I reluctantly departed to return to my work as a primary care physician and a health services researcher at the University of California, San Francisco (UCSF). The completion of my work at AHRQ did nothing to dampen my excitement about AHRQ’s future and its readiness to support transformation to an improved health care system.

In meetings with staff at AHRQ, I described our challenge as bringing Moneyball to medicine. It was my way of pointing out how major league sports have integrated data analytics into their workflow to improve team performance. There is a parallel opportunity for us in health care.

Moneyball is a movie based on the true story of Billy Beane, the general manager of Major League Baseball’s Oakland A’s. The film tells the story of a ballplayer-turned-executive, played by Brad Pitt, who finds himself stuck with an underperforming team that makes roster choices based largely on the opinions of “expert” scouts. While these scouts know a lot more than the average person does about the star potential of young players, they also have a remarkable number of misfires, leading the team to spend money on players who don’t pan out.