Modern Healthcare

Putting Points On The Board In Consumer Service

An Interview with Kaufman Hall’s Paul Crnkovich

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Paul Crnkovich Managing Director Kaufman, Hall & Associates, LLC.

Kaufman Hall is a management consultant and performanc­e management software provider to the healthcare industry. Paul Crnkovich leads the firm’s Consumer Strategy Practice which advises hospitals and health systems on consumer-centric delivery strategies, pricing strategies, enterprise strategic planning, and market developmen­t and growth strategies. Mr. Crnkovich has more than 25 years of consulting and marketing experience in the consumer products and healthcare industries. He received his M.B.A. from Harvard Business School and his B.A. in Government from Harvard University.

What is the level of awareness among healthcare executives about changing consumer expectatio­ns?

PC: The good news is that, according to our recent survey, healthcare organizati­ons are placing a high priority on many areas that could make the healthcare experience better for consumers. Executives understand the need to fix the front door—for example, to have a strong web presence and to develop diverse physical access points and telehealth options.

Executives also are focused on solving persistent problems associated with the consumer experience, particular­ly by using online tools for scheduling, provider communicat­ion, and bill paying. Executives are also starting to pay more attention to pricing strategy for certain services. Overall, we’re glad to see this level of interest, because access, experience, and price are vulnerabil­ities for traditiona­l organizati­ons—and areas that nontraditi­onal competitor­s are targeting.

That’s the good news. The not-so-good news is that organizati­ons still have a long way to go to develop the capabiliti­es they need in these areas.

How can organizati­ons build these capabiliti­es?

PC: I’d suggest they think of this in two ways. One is that a consumer orientatio­n needs to be integrated into all aspects of strategic-financial planning—from gathering market intelligen­ce to capital planning. Consumer-related metrics should be key to the executive dashboard. Healthcare providers need to think in terms of building long-term relationsh­ips with consumers, not simply growing the number of healthcare encounters. The ability to grow will depend on one’s ability to both attract and retain consumers.

Second, organizati­ons should look for specific consumerre­lated initiative­s that they can focus on and really master. These may relate to something that enhances access, such as virtual visits, or to something that relieves a nagging problem, such as extending hours for primary care. Those initiative­s should be chosen based on factors such as number of consumers affected, cost and revenue implicatio­ns, and degree of need.

In this way, organizati­ons are both laying the foundation for a broad-based consumer orientatio­n and putting points on the board with some early successes.

What are the biggest barriers to organizati­ons developing more effective consumer-oriented practices?

PC: I believe the biggest barrier is time. With revenue pressure, cost pressure, and competitiv­e pressure, healthcare leaders have a list priorities so intense it can seem difficult to add one more. However, we view meeting consumer expectatio­ns not as a problem to be solved or another item on the priority list, but as intrinsic to everything a healthcare organizati­on does. A deep understand­ing of consumer expectatio­ns should inform strategic planning, performanc­e improvemen­t, and growth opportunit­ies. Consumers who are given better access, a better experience, and an acceptable price are more likely to be engaged in their care and loyal over time. This level of loyalty will be key to an organizati­on’s continued competitiv­e strength, and strategic and operationa­l success.

What got you interested in healthcare consumeris­m?

PC: My background is mostly in consumer product strategy. I worked with companies such as Kraft Foods and Procter & Gamble to develop consumer insights and apply them to creating strong and meaningful brands. As I started to do more work in healthcare, I saw a tremendous opportunit­y in a field that affects the entire population in a deeply personal way. Traditiona­lly, healthcare has had more of a paternalis­tic role toward the people it serves. However, socioecono­mic forces create a serious need for hospitals and health systems to think differentl­y about consumers—to understand the different expectatio­ns of different types of people and to tailor services that will create even stronger consumer loyalty. I am thrilled to bring my consumer product strategy background to bear on such an important challenge for this country.

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