Psychographic Segmentation: Using Consumer Industry Methods to - - PowerPoint PPT Presentation

Psychographic Segmentation: Using Consumer Industry Methods to Enhance Revenue and Patient Collections

Brent Walker, SVP Marketing & Analytics Mike Schiller, SVP Sales

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http://admin.patientbond.com/segments

Psychographic Segmentation – The Foundation

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Patient Responsibility – The Changing Landscape

Patient Balances Are and Increasing Portion of Healthcare Provider Revenue

• Patient Out-Of-Pocket Healthcare Costs – Increased 30% since 2015
• 2016 – 68% Failed to pay of Medical Balances
• 2020 – Estimated 95% will fail to pay Medical Balances
• 2018 - > 30% of the average healthcare bill comes from the patient pocket!
• It costs 4x more to collect from a patient than an insurance company

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Patient Responsibility – Have We Changed?

How Patients Feel About Paying Their Balances

• 70% of Patients are frustrated with the self pay billing process
• 65% of Patients would consider switching providers if payment experience was

easier AND more convenient!

• 79% of Patients STILL receive a paper bill
• 80% of Patients would prefer to pay their bill via their own secure mobile device

Thank you for visiting Priority Medical on 7/10. We have submitted your claim to insurance. Please call us with any questions @ 312-445-8750. Reply X to opt out.

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Patient Responsibility Increasing every year (>30%) Aggressiveness of Collection Effort Balance Patient Satisfaction and Loyalty

PFR – The Dilemma Facing Healthcare Providers

Providers need to meet the Healthcare Consumer how THEY prefer, when they want and how they want with options and convenience aligned to what motivates them in order for them to act. Hint: It is not a paper statement!

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WHAT’S THE PROBLEM?

WHILE HEALTHCARE CONSUMERS AND PROVIDERS SEE VALUE, PATIENT ENGAGEMENT TECHNOLOGY SIMPLY ISN’T VERY ENGAGING

D E L I V E R Y

“One channel fits all” doesn’t engage or activate

C O N T E N T

“One message fits all” approach doesn’t resonate

“Digital Health is not a computer science or an engineering science. It is a … behavioral science. Creating the tech isn’t the hard

• part. The hard part is using the tech

to change patient behavior”.

• Dr. Brennan Spiegel

Cedars-Sinai Medical Center Fortune – April, 2018

R E S I S TA N C E

Lack of compelling content and delivery causes patients to ignore

• r procrastinate

U N D E R P E R F O R M A N C E

Patient outcomes and practice

• perations miss expectations

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INFLUENCING BEHAVIOR WITH DIGITAL RELATIONSHIPS

CLOUD MANAGED SERVICES PLATFORM FOR HEALTHCARE CONSUMER ENGAGEMENT U N D E R S TA N D G R O W M A R K E T S H A R E I M P R O V E PAT I E N T C O L L E C T I O N S O P T I M I Z E C A R E

Self Achievers Balance Seekers Willful Endurers Direction Takers Priority Jugglers

DELIVER FIVE VARIATIONS OF THE SAME CORE MESSAGE BY CHANNEL ANALYZE PATIENT RESPONSES AND DETERMINE NEXT ENGAGEMENT CLASSIFY INTO FIVE DISTINCT PYSCHOGRAPHIC SEGMENTS

OK OK

Alert care team Send next email in 2 days + text in 5 days

OK

October Campaign Two way SMS Texts Email Messaging Phone with IVR/Live Transfer Smartphone Apps Third Party Web Portals Print Server for Mailings

C o n s u m e r I n s i g h t s E N G A G E D i g i t a l O u t r e a c h A D J U S T N e x t B e s t A c t i o n

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Psychographics and The Healthcare Consumer

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Healthcare Consumer Segmentation

SURFACE DEEP

I N S I G H T S

Behavioral

Values Attitudes Interests Motivations Buying habits Website Visits Search History Age Race Income Gender

Psychographics Demographics

*Advantages – More effective in resonating with a consumer’s motivations and unarticulated needs

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PSYCHOGRAPHIC SEGMENTATION

APPLYING A CONSUMER MARKETING APPROACH TO HEALTHCARE SERVICES AND COLLECTIONS

• Attitudes, values, lifestyles and personalities and are the key

to understanding healthcare consumers’ motivations.

• Segmenting people by these characteristics allows you to

target and deliver communications that resonate more effectively and increase the likelihood of behavior change.

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15 minutes could save you 15% or more on insurance!

Segmentation In Action

The Five PatientBond Psychographic Segments

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EXTENS I V E RES EA RC H OUTCOM E : ONE S I ZE FI TS ONE

PATIENTBOND COMBINES PROPRIETARY BEHAVIORAL SCIENCE WITH MULTI-CHANNEL COMMUNICATIONS TO AMPLIFY DIGITAL RELATIONSHIPS

PRIORITY JUGGLERS

Busy with things other than health Reactive to personal health Proactive with family health

DIRECTION TAKERS

Deeply trust healthcare providers Visit doctor at first sign of issue May not follow advice due to other responsibilities

SELF ACHIEVERS

Proactive, driven by appearance Treatment and screening diligence Task oriented, challenge driven

18% 19% 15%

WILLFUL ENDURERS

Live in the here and now Do what they like, when they like Self-reliant and resilient Only visit doctor when necessary

31%

BALANCE SEEKERS

Proactive and wellness-oriented Open to ideas and options Self-defined success Providers are resources

17%

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Self Achievers

• The most proactive when it comes to their

wellness, investing what is necessary toward their health and appearance

• Task oriented, and will tackle a challenge if they are

given measurable goals

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Balance Seekers

• Generally proactive in their health and are wellness-
• riented
• Open to many ideas, sources of information, and

treatment options when it comes to their healthcare

• Physicians are just one of many sources of healthcare

information

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Priority Jugglers

• Very busy with many responsibilities
• May not take the time to invest in their own

wellbeing

• However, very proactive when it comes to

their family’s health

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Direction Takers

• Believe their physician is the most credible resource
• Look to healthcare professionals for direction and

guidance because of their expertise and credentials

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Willful Endurers

• Live in the “here and now”
• Self-reliant; go to the doctor only when they

must

• Focuses on the first/next step

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LIKELIHOOD to Pay Medical Bills

If facing financial hardship, how likely would you pay your bills on time for the following healthcare providers

Self Achievers and Priority Jugglers are the likeliest segments to pay their medical bills Willful Endurers and Balance Seekers are the least likely to pay their medical bills (however, Balance Seekers are generally healthy and do not utilize the healthcare system frequently)

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ATTITUDES Around Paying Medical Bills

Why the segments are likely (or unlikely) to pay their medical bills

Willful Endurers are the most likely to believe that financial hardships challenge their ability to pay their medical bills HOWEVER: There is no statistical difference among the segments in annual household income below $80K (median U.S. household income is $59K) This is a matter of priorities and choices and the ability to motivate positive health (and payment) behaviors

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Preferred Method of Balance Due Notification – Our Data

Secret Sauce!

PatientBond knows, and can execute, the right segment-specific messaging and channel mix to make each segment aware of Balances Due…

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Paying Healthcare Bills – Preferred Method – Our Data

Preferred Method for Making an Out-of-Pocket Payment for a Balance Due Self Achievers a Balance Seekers b Priority Jugglers c Direction Takers d Willful Endurers e Online payment via credit card (Digital) 44% 45% 44% 40% Online payment via Paypal 8% 6% c 3% 5% Online payment via HAS (Health Savings Account) card 7% 8% d 6% 5% Payment by phone (call provider with payment information) 5% 4% 4% 4% Payment by smartphone app (fill out form on phone with payment information) 1% > > > Mail in payment (e.g., U.S. Postal Service) 18% 17% e 22% be 22% be Pay in person at the provider’s facility 13% 15% 15% 15% Other 1% 2% a 2% 3% ae None of these 3% 3% 3% 6% ab

Secret Sauce!

… AND PatientBond knows each segment’s preferred Method of Payment and can steer them there to maximize the likelihood of paying Balances Due

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Self Achievers 19% Achieve the Goal; Improvement Balance Seekers 17% Choices, Options; Knowledge; Context Priority Jugglers 18% How the Family/Others Benefit; Commitment, Duty Direction Takers 15% Expert, Credentialed Physician Says So Willful Endurers 31% Here & Now; Live For Today; First Step

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Every Segment Has a Different Engagement Strategy

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“We are looking at healthcare choices through the eyes of the healthcare consumer NOT how we think the consumer sees healthcare choices!”

How Patients View Things

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COMMUNICATIONS PREFERENCES BY SEGMENT

PFR MARKETING SURVEYS CLINICAL

Balance Seeker

Every month Every 2 months Every 2 months Every month

Willful Endurer

Every 3 weeks Every 3 weeks Every 3 weeks Every 2 weeks

Priority Juggler

Every month Every 2 months Every 2 months Every month

Self Achiever

Every 2 weeks Every 2 weeks Every 2 weeks Every 2 weeks

Direction Taker

Every month Every 2 months Every 3 weeks Every 2 months

A Digital Patient Financial Responsibility (PFR) Solution – How To Do It!

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A Psychographic Segmented PFR Platform

41% 20% 19% 10% 10%

• Client Satisfaction - Patients Prefer It!
• Cost Avoidance
• Labor – Outbound Collection Effort
• Paper – Statement Volume and Collection Letters
• Collection Agency Fees (Small Balance example)
• Utilize text, IVR, and email channels (By Segment) to facilitate faster payments
• Drive traffic to your online bill pay portal
• Reduce Average Days Outstanding (DSO) for patient responsibility bills
• Reserve recovery – EBITDA improvement

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SEGMENTED MESSAGE PFR DIGITAL WORKFLOW OPTIONS

Interventions in the PFR Revenue Cycle

• Billing Process – Education and

Payment options (70% Confused)

• PFR Notification of Balance Due and

will be sent via (text, email or statement)

Pre-Statement

• Statement sent (If Provider chooses)
• Text, email or statement sent
• Thank You - Payment received

notification

• 2nd reminder if no payment received
• 3rd, 4th or 5th reminder if no payment

received – Different channels

• Opt out and notification
• Small Balances - Digital

0 – 90 Days (Early Out)

• Suppressed statements and small

balances

• Payment Plan options by segment
• Pre-Collections notification

90+ Days and Bad Debt Patient Financial Responsibility (PFR) Revenue Cycle Prior To Statement Single Statement No Statement

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Regulatory Compliance

41% 20% 19% 10% 10%

The Telephone Consumer Protection Act (TCPA) regulates telemarketing calls, auto-dialed calls, pre-recorded calls, text messages, and unsolicited faxes. The TCPA primarily applies to telemarketing calls. The following messages (among others) are excluded (these types

• f communications are allowed under TCPA).
• Debt collection calls by a creditor, the consumer has given the cell phone number to creditor for

use in normal business communications

• Health Care messages made by, or on behalf of, a “covered entity” or its “business associate,” as

those terms are defined in the HIPAA Privacy Rule

*PatientBond always provides Opt-Out capabilities

Best Practice: use an Opt-In

I understand that Priority Medical may contact me by telephone (including mobile phone), and its affiliates or agents may use pre-recorded/artificial voice messages, an automated telephone dialing system, text messages or email for any communication related to my account(s). I understand and acknowledge that such communication methods may not be secure.

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How Do You Segment a Healthcare Consumer?

Classifier – 91.1% Pre-Segmentation

Psychgraphic Segment Client Nat Average Variance 1 - Self Achiever 17.18% 18.40%

• 1.22%

2 - Balance Seeker 13.86% 17.39%

• 3.53%

3 - Direction Taker 14.13% 15.42%

• 1.29%

4 - Priority Juggler 20.99% 17.41% 3.58% 5 - Willful Endurer 33.84% 31.32% 2.52%

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How it Works?

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Early Out Workflows – Education and Status

41% 20% 19% 10% 10%

Day 0-30: Charge is submitted to insurance

Thank you for visiting Priority Medical on 7/10. We have submitted your claim to insurance. Please call us with any questions @ 312-445-

• 8750. Reply X to opt
• ut.

* The goal of Early Out Workflow is to work with the current process that is being used and to inject digital messages into the workflow. Ultimately, this will allow the customer to decide whether 2nd or 3rd statements and collection letters are needed or not. PatientBond recommends doing both and within 60 days of live date to determine steps on statement suppression.

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Pre or Initial Statement Messaging

41% 20% 19% 10% 10%

Msg from Priority Medical- We received your insurance payment for your 8/5 visit. Your remaining balance of $45 is now ready for payment. Click here to pay online or call 312-445-8750 to pay by phone. Your acct# is

• 4321. Thank you. Reply X

to opt out.

Day 9-23: Claim is paid, PFR is established

• Message sharing with the patient that his/her

statement is processed and ready for payment. Frequency or channel varies based on patient segment.

• Facilitate quicker payments and keep patients out of

the statement cycle

Easy to do now! Msg from Priority Medical-Your insurance has paid and the payment for Mike’s visit on 8/5 for $45 is due. Please go to ppay.url or call us @ 312- 445-8750 to make the

• payment. Your account # is
• 65432. Thanks for your

prompt attention! Reply X to

• pt out this campaign.

Willful Endurer

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Payment Options – Segmented Email

• 2nd Notice (Text first)
• Worries about effect of healthcare

bills on their finances

• Optional – Offer payment

alternatives 5 days after 1st notice to this segment earlier based on consumer insights

• Prefers online bill payment and

doesn’t need detail

Willful Endurer

Dear first name last name, You want to make every day the best day possible, and we thank you for choosing Organization Name to help make this happen! We have billed your insurance for your last office visit, and according to your financial plan, your portion of the balance is now due. As a service to you, we have several ways for you to make this payment. Please click on the link that is best for you:

• Client Name payment portal
• Patient portal for eStatement and balance detail
• If you have any questions related to you bills or to make a payment, please contact our

billing office at organization phone. Thank you for addressing this immediately and letting us strive to earn your trust Sincerely, Organization Name This email was sent from a notification-only address. PLEASE DO NOT REPLY TO THIS EMAIL. (NOTE-Add standard Opt Out Language)

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Sample (Non Segmented) Past Due Workflows

41% 20% 19% 10% 10%

Day 30: Patient is now past due

Courtesy reminder from Priority Medical that the payment for your visit on 6/10 for $45 is now 30 days past due. Click here to pay online or call 312- 445-8750 to pay by phone. Your acct # is 4321. Thanks for your prompt attention! Reply X to opt out.

Day 60

Reminder from Priority Medical that the payment for your visit on 5/10 for $45 is now 60 days past

• due. We understand you

may be busy, so you can easily click here to pay

• nline or call 312-445-

8750 to pay by phone. Your acct # is 4321. Reply X to opt out.

Day 90

Your payment of $45 for the 4/10 visit to Priority Medical is now more than 90 days past due. It is urgent that you call us @ 312-445-8750 or go to ppay.url to make the full payment to protect your credit rating. Your account # is 4321. Reply X to opt

• ut.

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Bad Debt, Small Balances and Suppressed Statement Workflows

41% 20% 19% 10% 10%

• Digitally reach out to those patients that have

balances that have been written off or statements are being suppressed due to small balances.

• PatientBond recommends, for bad debt, that the

customer identify balances for patients that have a balance due and have not been to a client facility in a determined period of time (for example; the last 6 months).

Msg from Priority Medical- You have an

• utstanding balance of

$45 from your 10/15/18

• visit. Click here to pay
• nline or call 312-445-

8750 with any questions

• r to pay by phone. Your

acct# is 4321. Thank you. Reply X to opt out.

Results and Economics

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RESULTS

LEARN MORE

By month 2 (60 Days) of deployment

5x ROI

Reduction in Statement Volume

24%

Increase in patient payments within 10 days of ”Go Live”

4x

Increase in patients making payments from Baseline

60.9%

Increase in amount of payments paid via portal

49.5%

Increase Bad Debt Balances Collected

14-25%

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RESULTS

LEARN MORE

50 Location Client (10,000+ Patients) Statements Suppressed 5 days (By Design) Pre Statement Messaging – PatientBond Digital Workflow 24% Paid PRIOR to Statement Run Within 5 Days of PFR Transfer Date Estimated 22% Statement Cost Reduction

Q & A

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THANK YOU

Mike Schiller Senior Vice President mike.schiller@patientbond.com (303) 453-9484 Brent Walker SVP Marketing & Analytics brent@patientbond.com (513) 314-5981