Lifestyle and Decision Making Principles of Patient Centered Care

Lifestyle andDecision MakingPrinciples ofPatient Centered CareLifestyle and Decision MakingPrinciples of Patient Centered CareBarry A. Freeman, Ph.D.Senior Director Educationand Audiology

Patient Centered CareCreating a system that maximizesthe Patient JourneyLifestyle and Decision MakingPrinciples of Patient Centered Care

Good to GreatLifestyle and Decision MakingPrinciples of Patient Centered Care

Greatness• Not a function of circumstance• “It’s a way of life” with– Disciplined people– Disciplined thought– Disciplined actionLifestyle and Decision MakingPrinciples of Patient Centered Care

Disciplined People• The right leadership• The right people who are on “the rightseats on the bus”• Defining and Understanding yourHedgehog ConceptLifestyle and Decision MakingPrinciples of Patient Centered Care

Hedgehog Concept• What are you deeply passionate about?• What can you be the best in the world at?• What drives you and your practice?• What are the core principles that drivepatients to your practice and makes yourpractice successful?Lifestyle and Decision MakingPrinciples of Patient Centered Care

Patient Centered CareLifestyle and Decision MakingPrinciples of Patient Centered CarePractice Hedgehog

Attracting patients to the practiceCreating an Emotional ExperienceLifestyle and Decision MakingPrinciples of Patient Centered Care

The Emotional Experience• Provides a framework to create value forpatients and employeesConveys how you want patients to feelbefore, during and after their experienceLifestyle and Decision MakingPrinciples of Patient Centered Care

Branding• Attributes and symbols that convey the essenceof a company, product or service– Name, logo, slogan and design scheme• Brand recognition created by experiences withthe specific product or service– Through its use and through influence of advertising,design and media publicityLifestyle and Decision MakingPrinciples of Patient Centered Care

Branding• Generates associations and expectationsamong products and services– Logos, fonts, color schemes• Represents implicit values, ideas and evenpersonality• Key objective is to create a relationship of trustLifestyle and Decision MakingPrinciples of Patient Centered Care

Lifestyle and Decision MakingPrinciples of Patient Centered Care

Lifestyle and Decision MakingPrinciples of Patient Centered CareWhose Bologna Is It??

Branding Goal• When a customer calls yourproducts/services theirs,• e.g. “my audiologist” “my physician”Lifestyle and Decision MakingPrinciples of Patient Centered Care

Branding Goal• Your practice becomes the automaticresponse for persons with hearing lossLifestyle and Decision MakingPrinciples of Patient Centered Care

Brand “Plus” Exercise• Been in business over 20 yearsCompetencies• Offer best hearing aid technologyavailable• Professional Staff• Approachable• Rooted in community• ExpertBrand Statement• 100 % Satisfaction• Quality care at thebest price in townPersonalityLifestyle and Decision MakingPrinciples of Patient Centered CareValues

Patient Centered CareLifestyle and Decision MakingPrinciples of Patient Centered CareProfessionalismPractice BrandPractice Hedgehog

The Front-Line Experience• Carrying the brand and image through toyour staffLifestyle and Decision MakingPrinciples of Patient Centered Care

The Front-Line Experience• Professionalism begins with the initialpatient contact– Initiates the Patient Journey– Establishes trust and confidence– Understands roles and capabilities ofpractitioner– Builds trust in the brand and image of thepracticeLifestyle and Decision MakingPrinciples of Patient Centered Care

Patient Centered CareLifestyle and Decision MakingPrinciples of Patient Centered CareOffice ImageProfessionalismPractice BrandPractice Hedgehog

Office Image• Office design• Brochures• Stationary• Furniture• Color scheme• Staff appearanceLifestyle and Decision MakingPrinciples of Patient Centered Care

Office Design: HospitalityLifestyle and Decision MakingPrinciples of Patient Centered Care

Office Design: Color Scheme• Affects emotional experience and behaviorVioletRedOrangeGreenBlueRoyaltyMotivationEnthusiasmWelcomePeaceNobilityStimulationVitalityPeaceCalmSelf-respectPowerJoyCareTranquilityEmpowerment“Wow” FactorGenerosityHarmonyWisdomAppreciationLifestyle and Decision MakingSoothingPrinciples of Patient Centered CareCalmingWarmthNature of Life

Branding and Image Summary• Public/ patient perception of the practice• Building trust• Sets stage for:– Treatment recommendations, including high leveltechnology– Counseling and building trust inrecommendationsLifestyle and Decision MakingPrinciples of Patient Centered Care

Branding and Image Summary• Seniors said that trust in the qualificationsof the provider is the #1 most importantfactor in their decision to purchase a hearingaidLifestyle and Decision MakingPrinciples of Patient Centered Care

Patient Centered CareLifestyle and Decision MakingPrinciples of Patient Centered CarePatient AssessmentOffice ImageProfessionalismPractice BrandPractice Hedgehog

Patient Lifestyle Assessment• Case History• Lifestyle Assessment• Diagnostic Test Results– Rule out correctable and/or treatable medicalcondition• Recommend Treatment PlanLifestyle and Decision MakingPrinciples of Patient Centered Care

Patient Lifestyle AssessmentLifestyle and Decision MakingPrinciples of Patient Centered Care(From Ken Dychtwald, Agewave, 2008)

Senior Market Segmentation(From Ken Dychtwald, Ph.D., AgeWave, 2008• Ageless Explorers• Comfortably Contents• Live for Todays• Sick and TiredsLifestyle and Decision MakingPrinciples of Patient Centered Care(From Ken Dychtwald, Agewave, 2008)

Ageless Explorers: Rich retireeswho respond to images of silverhairedscuba divers reinventingselves in later years (27%).Lifestyle and Decision MakingPrinciples of Patient Centered Care(From Ken Dychtwald, Agewave, 2008)

Comfortably Contents: Wealthy andattracted to scenes of fishermen andfriendly dogs. Want to spend final yearsfree from work and social obligations(19%).Lifestyle and Decision MakingPrinciples of Patient Centered Care(From Ken Dychtwald, Agewave, 2008)

Live for Todays: Didn’t save muchbut want to relax. Respond to adsfor Costa Rican retirementcommunities (22%).Lifestyle and Decision MakingPrinciples of Patient Centered Care(From Ken Dychtwald, Agewave, 2008)

Sick and Tireds: Attracted toanything that makes waiting to dieless painful, especially if it costsless then $19.95 (32%).Lifestyle and Decision MakingPrinciples of Patient Centered Care(From Ken Dychtwald, Agewave, 2008)

Patient Lifestyle Summary• “Life is based on someone’s needs, nothow many years they’ve lived. Emphasizethe idea of ageless aging.”Lifestyle and Decision MakingPrinciples of Patient Centered Care(New York Times, 2008)

Lifestyle Assessment• Software Evaluation Tool to:– Assess patient lifestyles– Assist with counseling– Select productLifestyle and Decision MakingPrinciples of Patient Centered Care

Lifestyle and Decision MakingPrinciples of Patient Centered Care

Lifestyle and Decision MakingPrinciples of Patient Centered Care

Lifestyle and Decision MakingPrinciples of Patient Centered CarePatient Centered CareRecommendationsPatient AssessmentOffice ImageProfessionalismPractice BrandPractice Hedgehog

Lifestyle and Decision MakingPrinciples of Patient Centered CareHearing Aid Buyers typicallydon‟t follow traditionalretail behaviors

Not spontaneousHearing AidBuyersNot impulsiveThorough, thoughtful, carefulRespect expertise and valueSeek high quality servicesLifestyle and Decision MakingPrinciples of Patient Centered Care

Today‟sPatientsmore inquisitivemore educatedmore sophisticatedmore demandinghigher expectationswant to be involved in decisionsLifestyle and Decision MakingPrinciples of Patient Centered Care

How do peoplemake decisions?Lifestyle and Decision MakingPrinciples of Patient Centered Care

What can we learn fromconsumer studies ofhearing aid buying?Lifestyle and Decision MakingPrinciples of Patient Centered Care

HIA Survey of “Delight”with Hearing Aid1 Hearing Care Professional2 Continued Connection to Provider3 Verification and validation4 Experimentation5 Strong Recommendation6 Personal Counseling7 Thorough Evaluation8 Professionalism9 Personal Motivation10 Hearing Aids Really Work!Lifestyle and Decision MakingPrinciples of Patient Centered Care

HLAA Consumer Check List:Purchasing a Hearing Aid(Hamlin, 2009)Audiologist and Hearing ExaminationExplanation of results and counselingHandicap and lifestyle assessmentStyles and models of hearing aidsFeatures of hearing aidComfortInstructions on use and care including written materialVerificationUse of telephoneClasses on speech reading or managementContract in accordance with lawCheck if 3 rd party reimbursementInformation on manufacturer, warranties, refundand trial policiesLifestyle and Decision MakingPrinciples of Patient Centered Care

PracticeTipsConsumers look for practitioner they can trustConsumers look at qualifications and credentials ofpractitionersCost is not a major factor compared to servicesofferedLifestyle and Decision MakingPrinciples of Patient Centered Care

1RationalDecision MakingLifestyle and Decision MakingPrinciples of Patient Centered Care

Rational?Emotional?Lifestyle and Decision MakingPrinciples of Patient Centered Care

The Tug of WarPriceUtilityPleasurePainLifestyle and Decision MakingPrinciples of Patient Centered Care

Are patients decisions always rational?“No”but they can be predictableLifestyle and Decision MakingPrinciples of Patient Centered Care

The human mind is wiredto constantly compare…Lifestyle and Decision MakingPrinciples of Patient Centered Care

Circle ACircle BLifestyle and Decision MakingPrinciples of Patient Centered Care

What variablesdo patients compare?Lifestyle and Decision MakingPrinciples of Patient Centered Care

Do Do patients we fall shop into the for retail our products model?based only on price?Lifestyle and Decision MakingPrinciples of Patient Centered Care

Panasonic $69036”Highest profit margin!Toshiba $85042”Phillips $1,48050”Lifestyle and Decision MakingPrinciples of Patient Centered Care

TraditionalRetailHigh price items can boost revenueeven if nobody buys them!Typically buy the middleor next most-expensive itemThe high priced item is the decoyLifestyle and Decision MakingPrinciples of Patient Centered Care

Retail vs. Performance Pricing• Best Buy, Costco, Walmart compete onbasis of cost• We need to compete on basis ofperformanceLifestyle and Decision MakingPrinciples of Patient Centered Care

Performance Pricing• Identify what you do best• Manage them effectively• Communicate them to your customers• Assure the extra values re recognized and delivered• Do it better then anyone else (competition)• If do well, will be able to boost prices and profitsLifestyle and Decision MakingPrinciples of Patient Centered Care

Performance Pricing: Key• Communicate benefits to customers• Higher prices may be justified by improvedbenefits to customer• Profitability maintained by communicatingvalue to cost-conscious customersLifestyle and Decision MakingPrinciples of Patient Centered Care

Pricing in an Inelastic MarketDemand Raise Prices Reduce Prices• ElasticRevenue Decreases Revenue Decreases• InelasticRevenue IncreasesRevenue DecreasesAmlani (2008); Mahdavi (2010)Lifestyle and Decision MakingPrinciples of Patient Centered Care

Discounting• Erodes profit• Conveys message that hearing aids overpriced and can be negotiable• Conveys that price is THE major factor inthe purchasing decisionLifestyle and Decision MakingPrinciples of Patient Centered Care

PracticeTipsDifferentiate your office(s) from other practicesBuild a relationship of trustKeep the choices clean and simpleLifestyle and Decision MakingPrinciples of Patient Centered Care

2Effectof Alternative ChoicesLifestyle and Decision MakingPrinciples of Patient Centered Care

$275$400Example : Williams SonomaLifestyle and Decision MakingPrinciples of Patient Centered Care

PracticeTipsIt helps to show the customer choicesDon‟t sell a product in a vacuumUse alternative choices effectivelyRelativity helps make decisionsLifestyle and Decision MakingPrinciples of Patient Centered Care

3ControllingRelativityLifestyle and Decision MakingPrinciples of Patient Centered Care

“A man‟s satisfaction with his salary dependson whether he makes more than his wife’ssister’s husband. This is the comparison that issalient and readily available from your own wifewho will keep you fully informed of how well yourbrother-in-law is doing!!”H.L. MenckenLifestyle and Decision MakingPrinciples of Patient Centered Care

Similarly, people will compare providers andtechnology…word of mouth is best marketing tool!You want your patients to have ownership in yourpractice:“…my hearing care provider”Lifestyle and Decision MakingPrinciples of Patient Centered Care

Scenario #1Scotch tape dispenser$15 $8Scenarios: The $7 AdvantageLifestyle and Decision MakingPrinciples of Patient Centered Care

Scenario #2Designer suit$455 $448Lifestyle and Decision MakingPrinciples of Patient Centered Care

Will customers leave you for $7?$15$8$455 $448Lifestyle and Decision MakingPrinciples of Patient Centered Care

The relative advantage for the tape dispenser islarge --- but is small for the clothing.CustomerDecisionsCustomers will assess relative advantage of yourbrand, your trust, and, then, your products andservices.You might benefit from a small relative advantagefor higher priced products — services canmake the difference.Lifestyle and Decision MakingPrinciples of Patient Centered Care

Lesson LearnedDon‟t assume that logical pricing is smart pricingLess expensive might be interpreted asless qualified or 2 nd rateTake price out of the comparative equationand focus on trust and expertiseLifestyle and Decision MakingPrinciples of Patient Centered Care

4Rulesof PricingLifestyle and Decision MakingPrinciples of Patient Centered Care

Rule ofPricingtoolowdeadlymiddletoohighLifestyle and Decision MakingPrinciples of Patient Centered Care

Pricing TipsIf no one complains – too lowIf many complain – might be too highBeing at one end of spectrum (high or low),narrows competitionBeing in the middle means your competing with everyoneRecommendation – Don’t try to compete on costLifestyle and Decision MakingPrinciples of Patient Centered Care

5PracticeAnchorsLifestyle and Decision MakingPrinciples of Patient Centered Care

AnchorPerceptions AboutPractice, Products, & ServicesLifestyle and Decision MakingPrinciples of Patient Centered Care

PriceAnchorsThe first price we see orhear becomesour anchorLifestyle and Decision MakingPrinciples of Patient Centered Care

Once Anchored …Imprint is set as a „peg in the ground‟Has a long term effect on willingness to pay adifferent pricePrices become established in minds of consumersDon‟t let price become your anchorLifestyle and Decision MakingPrinciples of Patient Centered Care

PracticeTipsFocus on anchoring Technology and Lifestyle, notthe priceUnderstand difficulty of moving patients up to nextlevel if anchored to lower technology and priceLifestyle and Decision MakingPrinciples of Patient Centered Care

6Supply and DemandLifestyle and Decision MakingPrinciples of Patient Centered Care

Lifestyle and Decision MakingPrinciples of Patient Centered CareStarbucks ChangedLaws ofSupply & Demand

Wait…we used to pay a lot less for coffee!Lifestyle and Decision MakingPrinciples of Patient Centered Care

You were anchored to lower coffee prices—what changed?Starbucks focused on creating a different positiveexperience. Allowed the anchor for coffee to shift and beincreased by the experience.It‟s not the coffee…it‟s the ambience, friendliness, alluringand unique snacks…it‟s the EXPERIENCE.Lifestyle and Decision MakingPrinciples of Patient Centered Care

PracticeTipsPrime the pleasure centersThe longer people analyze their choices/options,the less satisfied they becomeThe Experience does matter!!Lifestyle and Decision MakingPrinciples of Patient Centered Care

7TheValue of “Free”Lifestyle and Decision MakingPrinciples of Patient Centered Care

Lifestyle and Decision MakingPrinciples of Patient Centered Careis emotional hot button

Irrational urge to jump forLifestyle and Decision MakingPrinciples of Patient Centered Care

Examplesof “free”Lifestyle and Decision MakingPrinciples of Patient Centered Care

Rational decision-makerswould look at cost-benefitbut are we always rational?Lifestyle and Decision MakingPrinciples of Patient Centered Care

PracticeTipsFREE(Huge Difference!)Lifestyle and Decision MakingPrinciples of Patient Centered Care

8RelationshipofPrice and QualityLifestyle and Decision MakingPrinciples of Patient Centered Care

Does Higher Price Imply Higher Quality?Lifestyle and Decision MakingPrinciples of Patient Centered Care

Less Expensive hearing aidwill be perceived as Less EffectiveLifestyle and Decision MakingPrinciples of Patient Centered Care

PracticeTipsValue is associated with costPromote perceived value of our services,products, and affiliationsMust be able to objectively prove claimsMarketing breeds expectationsPeople don‟t look for bargains when it comes to healthcareLifestyle and Decision MakingPrinciples of Patient Centered Care

So, what have we learned?Lifestyle and Decision MakingPrinciples of Patient Centered Care

“Expectations, emotions,and other seemingly illogical forcesskew our reasoning abilities”Lifestyle and Decision MakingPrinciples of Patient Centered CareDan Ariely, Predictably Irrational

Lifestyle Decisions• Be Relevant– Explore issues that are important to your patient’s lives– Focus benefits on these issues• Engage Patients– Develop brand and product/services positives• Build Trust– Be genuine and totally transparentLifestyle and Decision MakingPrinciples of Patient Centered Care

SummaryPatients are not always rational when making decisionsDifferentiate our practices from the competitionWe must be viewed as the larger circlePlace a value on our services and productsLifestyle and Decision MakingPrinciples of Patient Centered Care

SummaryDefine our anchorsPricing is more than just supply and demandDefine “free” for our practicesSeparate our practices from competition basedon the quality of what is offeredLifestyle and Decision MakingPrinciples of Patient Centered Care

SummaryPatients are not always rational when making decisionsDifferentiate your practices from the competitionPlace a value on your services and productsLifestyle and Decision MakingPrinciples of Patient Centered Care

Lifestyle and Decision MakingPrinciples of Patient Centered CareThank You!