News, Analysis, Trends, Management Innovations for
Clinical Laboratories and Pathology Groups

Hosted by Robert Michel

News, Analysis, Trends, Management Innovations for
Clinical Laboratories and Pathology Groups

Hosted by Robert Michel
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WellPoint’s New Pay-for-Performance Program to Pay Hospitals More for Meeting Quality Measures

Private payers taking first steps on a path toward value-based purchasing that could eventually include clinical pathology laboratory testing services

Pay-for-performance just took a leap forward with news that one of the nation’s largest health insurers will link hospital reimbursement to specific quality measures. This development could be a precursor to similar payer initiatives that involve how private payers reimburse clinical laboratories and anatomic pathology groups.

Indianapolis-based WellPoint, Inc. (NYSE: WLP) will revamp the way it reimburses about 1,500 hospitals across the country. In a news story published by Bloomberg Businessweek, Rick Wartzman, Executive Director of the Drucker Institute at Claremont Graduate University, explained that, going forward, WellPoint wants to base annual payment increases to hospitals using a formula that incorporates the health insurer’s quality criteria, rather than to the quantity of services delivered.
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Pharma Companies Lay Off Sales Reps and Use More Digital Tools to Market to Office-Based Physicians

Clinical laboratories and pathology groups may benefit from the attractive economics of digital marketing

For more than two decades, pharmaceutical sales representatives have been ubiquitous in doctors’ offices. But in a surprise development, many of the nation’s largest pharma companies are dramatically downsizing their sales forces and opting to promote their products through digital media.

This is an important new trend which has consequences for those clinical laboratories and anatomic pathology groups which send their own medical laboratory sales reps into doctors’ offices. It is evidence that the economics of sending sales reps into offices to educate and persuade physicians to prescribe new drugs for patients may be less favorable when compared to the economics of reaching physicians via the growing number of new digital sales and marketing channels.

In a recent story published by The Wall Street Journal, it was noted that pharmaceutical companies, as they reduce the number of sales reps who make calls on office-based physicians, increasingly make greater use of digital sales and marketing programs that include the Internet, smart phones, tablet technology and even iTunes.
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How Some Hospitals Strive to Achieve the Acme of Customer Satisfaction

In recent years, we’ve written plenty about one major change in how hospitals and other healthcare organizations undergo accreditation. That is the requirement that: 1) hospitals measure patient satisfaction; 2) that hospitals develop a plan to improve patient satisfaction; and, 3) that by the next inspection, the hospital or healthcare organization demonstrate measurable improvement because of that plan.

This shift in what an accreditation inspection measures is consistent with the goals of employers and Medicare to improve the quality of care, boost patient safety, and, because of better outcomes, lower the cost of care. Hospital-based laboratories and pathology groups have watched their parent institutions take the baby steps needed to survey patient satisfaction and then actively work to improve service.

Now the outcomes from this effort are starting to attract attention. Just a few weeks ago, The Wall Street Journal published an article detailing how hospitals nationwide are using patient satisfaction surveys to expose problems with they way they do business and get suggestions for how they can improve. A survey conducted by Michigan-based hospital chain Spectrum Health in 2004 revealed that staff members were given low marks for helpfulness and attitude towards visitors. It was also learned that patients and their families felt ill-informed about their in-hospital treatment and weren’t given good instructions about how to care for themselves once they went home.

Spectrum took its survey results to heart. It adopted a family-centered health care model, creating a patient and family advisory council to help shape hospital policy. Hospitals conducting patient surveys have found many ways to improve patient care, such as eliminating visiting hours, sending apologies such as flowers or candy to disgruntled patients, having DVD players in waiting rooms, and issuing $25 gas cards to compensate patients for long wait times that required them to return on another day for a test or procedure. Try Googling “Hospital Satisfaction Survey” to see how dozens of hospitals and health systems are conducting on-line patient satisfaction surveys.

Don’t forget that this is also the first year that hospitals will be required to participate in the federal government’s satisfaction survey program to receive full reimbursement from Medicare. The results of patient surveys will be posted on the government’s Hospital Compare Web site. First results are expected to appear on the Web site later this year. It will be the first time that Medicare patients can see how patients ranked their hospitals.

By the way, some of the nation’s most progressive laboratory organizations are already deeply-engaged in measuring patient satisfaction, then using that information to improve and refine their services. During the May 2006 Executive War College, careful listeners in the audience heard a number of case study speakers describe how their laboratories considered improving measured patient satisfaction to be a major strategic goal. Collectively, this is a trend that will raise the competitive bar in the marketplace. That means competitive advantage to laboratories using this tool.

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Patient Satisfaction Surveys Prompting Hospitals To Improve Patient Experiences

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PS: Hospital measurement of patient satisfaction is about to impact another important laboratory service: phlebotomy. In an upcoming Dark Daily, we will share with you how and why hospital administrators are starting to pay attention to phlebotomy services, with an eye to improving them. It’s an unlikely turn of events for a service that been too often underappreciated!

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