Medical Practice Marketing: Case Study Summary
During 1999, the first year of implementation of the structured marketing department, the main goal of the practice was to increase revenue for the practice by 20% by year-end. At year-end the practice maintained a 25% increase in revenue from the prior year. The total amount budgeted for the Marketing Department, including the salary and benefits of the Director, was less than 0.07% of the total gross revenue for the year. This increase was by far more than the practice was anticipating.
During 2000, the practice developed a webpage and continued to focus the expansion of their workers’ compensation patient base. Three new physicians were added to the practice. One physician was well established within the area, the other two had no patient base. Physicians and staff members were participating in local community events, presentations for hospitals, employers and worker’s compensation conferences.
After the second year of implementation of the plan, the practice showed a 20% growth in revenue verses the prior year. The Director salary received a pay increase plus four quarterly bonuses up to $1,000 each. The total amount budgeted for the Marketing Department was 1.1% of the total gross revenue for the year.
Into the third year of the marketing effort, the practice still maintained growth in their year-to-date numbers. Workers’ Compensation is now over 31% of the practice. There is a team of four employees who solely handle workers’ compensation patients and payor representatives.
Now the practice advertises on local TV and radio stations as well as with a statewide Internet site. They are contemplating billboard advertising for 2002. The practice has cut their Phone Book advertising to less than 1/3 of the budget amount in 1999.
After the first year, all 10 surgeons were sold on the idea of marketing. They realized that the medical industry was changing and marketing their practice wasn’t a “bad thing”. Their public image and public awareness of the physicians and practice were five times what it had been in the past. The practice was tactful in their marketing approach and it is evident they were doing things right. It is amazing to see how far the practice has come over the past three years and the places that they are daring to go in the future.