Succeeding in a Retail Market: A Preview of Sg2’s 2014 Executive Summit

Health care is clearly shifting toward a retail orientation. The importance of serving the needs of “wholesale” customers like physicians and insurers will never go away. But, increasingly we will need to make ourselves relevant to individual consumers—who will hold more influence over key decisions, be more assertive and better informed, and bear financial risk associated with the decisions they make. On this topic, our clients consistent ask us: “OK, so what do we do?” Cue the Sg2 2014 Executive Summit. When it came time to decide the theme for our flagship summer conference series, there wasn’t much debate. We knew we needed to dedicate the conference to addressing strategies for success in this new and mostly unfamiliar market.

Sg2 Senior Vice Presidents Steve Jenkins and Bill Woodson will start Day One of the Executive Summit with a discussion of the forces driving the rise of the retail health consumer. They’ll talk through scenarios for the next stage of the Affordable Care Act, whether the math of ACOs could ever work, how to interpret the rise of private exchanges, and the scourge (or blessing?) of price transparency. Each of these dynamics has a somewhat independent story, but, when reviewed as a whole, a retail market emerges.

Steve and Sg2 Chief Nursing Officer Joan Moss will then explore strategies for growth in the emerging retail health market. Their core message: we need to move beyond a blinkered focus on physician referrals. Growth in the retail era requires a Systems of CARE approach, incorporating all potential access channels. This includes more familiar entrance points, but also emerging channels, like employer worksite clinics, virtual consult services and fourth-generation portals. Your channel strategy needs be highly flexible—there are important nuances across diseases, markets and consumer types. Joan and Steve will share some of the most interesting pilot approaches we’ve encountered.

Of course, the challenge with building a strategy around ambulatory channels is that we have no visibility into that side of our market, right? Not anymore. Sg2 analytics guru Jim Jacobsohn will illustrate how to translate System of CARE channel strategy into quantifiable action. Using a real-life case example—an Sg2 client looking to drive growth for its colorectal cancer program—Jim will step through how we used Sg2’s analytics platform to craft a growth strategy. The ambulatory data let you see—in real numbers and with real provider names—the “funnel” of ambulatory channels that patients follow toward surgery and chemotherapy. You can see where the funnel narrows—where patients are leaving the client’s System of CARE—and where it broadens again. Think of it as drawing a road map, with data, to building the right capacity in the right channels to optimize your growth strategy.

So, once we’ve drawn retail consumers into our System of CARE, how do we engage and manage them more effectively? That’s the topic that Joan and Sg2 Vice President Henry Soch will address. They begin by redirecting the population health debate to focus on 95% of the population, as opposed to the highest-risk 5%. Joan and Henry’s talk explores how to hook consumers upstream and activate them in new ways and on their own terms. Their premise is that, in a retail health care market, the notion of engendering long-term, locked-in loyalty is misplaced. We instead need to think about ways to create “moments of truth” that can inspire and engage the lucky 95% of us who have few ongoing health concerns.

Next, comes the “tech talk.” Our technology guys, Henry and Trever Burgon, begin by dispelling a conventional view on technology acquisition. They encourage us to move past competing with technology by focusing on Big Iron—spending $2M dollars, along with putting up some scary-looking billboards, to win the fleeting loyalty of a single urologist. It’s hard to conceive of a more capital-inefficient channel strategy. Henry and Trever instead focus on a variety of emerging technologies that offer new, sometimes disruptive, ways to reach the retail health consumer.

Bill Woodson returns with Sg2’s Chris Cornue for a discussion on building your execution strategy, based upon insights from leaders throughout the US. Today’s execution will be based in the right skill set, leadership attributes and smart decisions to differentiate your organization amid this sea of strategic possibilities. Additionally, Bill and Chris will provide a glimpse into the future of health care over the next decade and beyond and explore the role your organization may play in that reality. This future is already being written; an evolution of our current environment will permanently change our health care paradigm and perspective.

On Day Two, we will drill deeper into service line strategy, showcase our updated 2014 forecast and share our clinical leadership team’s key stories for the year. These sessions are designed for all hospital leaders and key themes will include:

  • Cancer—Interpreting the conflicting news on lung cancer screening
  • Neurosciences—Capitalizing on the shift toward home-based sleep studies
  • Medicine—Determining ideal patient pathways for post-acute placement
  • Cardiovascular Services—Creating meaningful growth metrics for a declining service line
  • Women’s Health—Making way for technology that displaces amniocentesis
  • Pediatrics—Understanding the implications of being “out of network” for neonatology
  • Orthopedics—Capturing the ripe opportunity for outpatient joint replacement

The retail health care market will be very different from what we know today. It presents all sorts of opportunities to break through the barriers of time and geography. Health care will still be about face-to-face, real-time interactions—except when it isn’t.  Health care will still be local, or will it?

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As of February 11, 2016, Vizient, Inc. has completed its purchase of MedAssets Sg2 and spend and clinical resource management segments from Pamplona Capital Management, LLC. MedAssets revenue cycle business will continue to operate as a wholly-owned subsidiary of Pamplona Capital Management LLP.

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