Generating healthcare revenue has changed dramatically. At one time, stations thought developing healthcare revenue was selling a local plastic surgeon a spot schedule. This was appealing to the physician largely because their procedures and revenues were patient-driven. In other words, they were direct marketers.
Local hospitals then began developing “Centers of Excellence” (e.g. cancer, cardiology, women’s health). These Centers of Excellence were the most profitable areas for the hospitals and, again, were largely patient driven vs. physician referrals.
Today, instead of several hospitals in a single market competing for these same Centers of Excellence, they have consolidated into market-wide systems. This way, by combining multiple hospitals into a single system, each one could act as a “specialty” hospital in a high-profit, patient-driven area of focus.
Generating significant new broadcast revenue from a health system is much more complex and much more rewarding than selling a spot schedule to the plastic surgeon of the past.
The most effective and proven way to generate new revenue from health systems is to develop exclusive co-branded media partnerships with the leading system in your market. The challenge is not to compromise existing healthcare spot revenue.
In future columns, we will explain how your station can develop these media partnerships that will generate up to $1.2 million in new revenue per year.
Remember, for every hospital that is number one, there are two that want to be. When it comes to profit and ad spending, the services hospitals provide are more important than how large they are. The largest hospitals also tend to provide level one trauma care which hospitals lose money on.
A hospital in your market may be 1/3 the size of the largest hospital yet generate 3x the profit and have 3x the ad budget. The important thing when targeting a hospital is to look at the services they provide.
Hospitals get their patients in two ways: one is physician referrals; the other is consumer driven. Today patients have access to an abundance of healthcare information that can be confusing at best or misleading at worst. In areas of care such as cancer, cardiology and orthopedics, the decision where to get treatment is often driven by consumer research. The challenge hospitals face is reaching those who have already been diagnosed and are in the decision-making mode for treatment.
We have learned over the years that when developing a relationship with a healthcare provider in your market, the more you understand their goals, the more successful you’re going to be.