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HFMA Views - Can Hospitals Compete in EHM – On Convenience?

HFMA VIEWS


Monday, November 26, 2007
Can Hospitals Compete in EHM – On Convenience?

Scott MacStravic, PhD

There are a growing number of hospitals that have taken the plunge by offering employee health management (EHM) services – to their own employees, to local or even national employers, or both. They are necessarily challenged competitively in terms of costs, since hospitals have long held a spot near the top among sources of sickness care. But they are also challenged with respect to convenience, for participants since they are the most critical determinant of EHM success.

Hospitals used to have only one location, for example, until they began merging with or acquiring, as well as building new locations in the suburbs in pursuit of more well-paying patients. But even so, the number of locations they offer tends to be in the single digits for any one market, and their locations are often not the most convenient to where workers live. Even when they offer multiple locations, hospitals tend toward “bankers’ hours” in terms of the hours their outpatient services are available.

By contrast, physicians’ practices, particularly of the primary physicians that engage in EHM, tend to have far more locations, and to be located closer to more workers, then the typical hospital. Of course, the hospital may limit its role in an EHM strategy or program to services that require relatively infrequent visits, and serve large numbers of patients at the same time, such as group education or screening for people with the same EHM challenge or goal.

For example, the Diabetes & Nutrition Center at Northeast Medical Center, in Concord, North Carolina (www.northeastmedical.org) provides back-up for its 20 primary physician practices in managing the risk among diabetic patients. Education sessions, including an intensive assessment and intake individual visit, along with a limited number of follow-up visits, preferably in groups, are provided as needed, to promote patient compliance with their medications and lifestyle regimens. Such visits are covered by Medicare, though with a strict limit of ten visits in the first year, and two visits per year thereafter, which may be individual or group visits. Commercial insurance or employers paying for such services may be more generous.

Another competing option, however, is the multiple sites, extended hours, and convenient location (as well as free parking) that characterize retail clinics. While most of these clinics offer mainly routine sickness care services, most also offer flu shots and some screening services, that can be used to track progress of EHM participants, such as blood pressure, weight, and similar checks. And at least one chain of such clinics is already heavily into “Stay Well” EHM services, in addition to traditional “Get Well” care.

The RediClinic chain, which already has 19 locations in the US, with twelve of them in the greater Houston area, in a joint venture with Memorial Hermann Healthcare System, is a good example. A recent CDC study reported that “…retail clinics are particularly well-suited to the delivery of preventive care…that can produce superior returns on terms of employee health improvements and cost savings…(such as) smoking cessation, adult immunizations…and screenings for hypertension, cholesterol and diabetes.” [“Houston Employers Hear New Research That Supports the Case for Retail Clinics” ResidentandStaff.com Oct 29, 2007]

Even more convenient are the growing number of “worksite medical clinics” that operate right were employees work, including some that serve multiple employers who happen to occupy the same campus. These were once used solely for routine occupational health or other sickness care, to save money on charges, and save employees lost time seeking care elsewhere. But they have recently added the mission of promoting employee health and managing chronic disease so as to minimize the use of sickness care, and reduce both absenteeism and presenteeism causes of worker productivity and performance impairment.

Hospitals could be overall sponsors of worksite clinics just as Memorial Hermann is of retail clinics, hiring and supervising physicians or nurse practitioners, as well as other staff needed in EHM programs. And they could certainly function as does Northeast Medical Center in providing services for large numbers at their own sites, where this is more efficient, when such services are not used frequently. Already, the hospitals that are partnering with U.S. Preventive Medicine, Inc. in its Centers for Preventive Medicine and its Prevention Plan, described as paying off for employers:

The tough EHM suppliers for hospitals to compete with would naturally be those that do not rely on one or even many places or times, but deliver EHM initiatives online, via website visits, or by mail. Health risk assessments (HRAs) and their feedback, together with continuous and customized communications can be delivered by such means, whereby participants totally control where and when they get the interactions they want. Since such methods tend to be the lowest-cost EHM options, as well, they are that much more convenient.

The only way that hospitals can compete with the convenience of online options is to either join ‘em, as has the Mayo Clinic, for example, that offers online EHM services to some 70 employers in the U.S., or to deliver significantly better outcomes, for both employers and employees, given higher costs. Convenience will always be a major factor in determining both participation and success rates for EHM interventions, but the ultimate test is what the results turn out to be.

posted on 11/26/2007 3:23:32 PM (CST)  Permalink 
Comments [1]
1/23/2008 11:52:40 AM (CST)
The retail/in-store clinic movement is more than a highly beneficial strain of “disruption” to the primary healthcare delivery system. Looking forward, it should also be a significant catalyst and test-bed to improve community health status.
This strategy entails e-collaboration with a robust referral care network harmonizing enabling tools related to consumer-directed wellness, early disease detection and disease management services. Add a hefty dash of one-on-one customer rewarding based on health risk appraisal completion. Follow up with sequential adherence-based economic incentives fulfilled through behavioral target marketing with customized couponing triggered by the HRA findings, seasonal drivers, and respondent demographics. Similar reward triggering could be based on benchmark attainment within disease management protocols.
Win-wins arise building loyal families in touch with new teams of wellness providers. It’s opt-in and HIPAA immune, and is freed from the babble generated by a zillion committees, taskforces, and “working” groups intent on cyber transacting everything. To the extent progressive local and regional health systems are included, the smoother the political sailing. For example, a Blue Cross plan could co-venture production of selected services. Local VNA and health departments would continue to make excellent staffing partners for short-lived campaigns such as back-to-school vaccinations. With insurance coverage arising and rising, the customer is the beneficiary regardless of the chosen production function.
Service demand can be continuously driven by demographic (gender and age) thresholds per U.S Public Health Service guidelines. Such info is captured within the HRA completion process to trigger sentinel announcements (for example, 50th birthday) and invites along with customized coupons to promote visiting the clinic and the store. Intervention opportunities also arise seasonally. Examples include the promotion of back-to-school and vacation-prompting vaccinations, flu season shots with pneumonia piggy-backed on, spring and fall seasonal allergies, and national body part (i.e., Breast Cancer) of the month campaigns.
Why Retail Clinics as the Locus for Change?
Incumbents in the retail clinic space grow because their business case is compelling, enterprises are sufficiently capitalized and customer experiences are highly scored by all relevant satisfaction metrics. These operations are still in early growth facing normal start-up woes:
1. Uncertain ROIs and break-even points, staffing, information capture and work-flow patterns
2. “Without the doc” risk-averse service menus, voluntary script dispensing/selling firewalls, constrained spatial layouts and low-ball pricing.
Thus, there is plenty of wiggle room to now plan additional functionality as the kinks get worked out and consumer acceptance grows. As competition increases, investment drivers include the need for continuous product improvement and differentiation as well as for satisfying large customer cohorts shifting from latent to expressed demand for diagnostic, immunization and screening services. In-store worker-focused risk assessments add icing to the convenience cake, especially by filling in off-peak appointment slots, smoothing work flow and reducing queues and wait times. (Workers’ rewards must be nondiscriminatory per U.S. Department of Labor regs compared with customers’ rewards.)
Like Lipitor, the “daughter products” released after its ingestion are more beneficial than the original dose. Sensible protocol-based and decision-supported adult primary care is the core retail clinic output platform now in place. Providing appropriate consumer-assisting programs with health systems co-venturers builds upon sunk investments at low marginal cost.
In many urban and rural communities, the default locus for free “medical advice” has traditionally been the neighborhood pharmacist. The retail clinic can expand this tradition with one-on-one assistive and practical care in terms of fuller primary prevention services that are disease- or body-part specific.
Many screening and testing services have been battle-tested in drug stores, at health fairs and convention lobbies and within assorted clinics of all stripes. More recently, based on strong empirical evidence from workplace wellness settings, providing customized incentives and rewards is essential to “get people to the last mile” to initiate behavioral change. This might become an especially compelling strategy with the deployment of emerging home-based disease management products incorporating remote monitoring. Incentives could take many forms from reward programs to price discounts on in-store goods and services.
Convenient Primary Prevention Would Gain Equal Footing with Convenient Care
Given pervasive techno-chaos within the overall healthcare industry, it takes business discipline and standardization to harmonize appropriate processes and technology. Just consider the hundreds of options flowing from web-based and traditional programming in risk assessment and personal auditing and tracking programming including health risk appraisals, HSAs and derivative financial products, mini personal health records, electronic medical records, chronic disease management with remote monitoring, behavioral targeting and one-on-one relationship marketing and loyalty card systems.
Each of these now operate under different parentage – from health departments, governments, self-insured large employers, progressive unions, managed care organizations, classic insurers, marketing services firms and, increasingly, by customers themselves. Many have or will become zero-priced commodities. The good news is that all are adjunctive to enhancing the retail clinics’ care and caring missions.
The retail clinic could assume employers’ traditional role in health risk appraisal to get incentive packages, monitoring and benchmarking locked and loaded. Then, many follow-through tests and procedures are done in store with out-referral when appropriate. Record keeping would be online and really simple. It’s like installing training wheels for the emerging PHR and EMR systems. These convergent systems are typified by early developer groups such as WebMD while Google is constructing a PHR system.
Caring Processes are Inseparable from Care Processes
Retail Clinic 2.0 positioning is not glitzy PR to deflect the opening blows by organized physician groups that wrongly perceive negative competition from nurse practitioners and others. The reality is all PCPs (and, more importantly, their patients) will be universally better off if they begin to mimic some of the critical convenience, staffing, IT and pricing success factors put in place by the retailers.
The docs are far from being disintermediated; they can be emancipated from the routine sniffles and scratches while remaining wired in, utilizing their time and skills more appropriately and productively. Ditto for our under-funded public health clinics that will face huge work flow and staffing problems as prevention and wellness eventually obtain public and private core financing. Latent demand for the 55-year-olds and kids is likely to explode if Medicare expands down and SCHIP widens.
Recent AMA opening moves challenging the emerging retail clinic industry’s usurpation of physician roles and functions were inevitable. It’s fuming again but will lose the battle because:
1. Their economic self-interest becomes more visible than their patients’,
2. The inherent cost-effectiveness of the current approaches is readily apparent to customers (especially where services are insured), and
3. Business groups, governments, employers, public health associations and insurers all welcome price and quality competition wherever and whenever they find it.

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