By Lonnie Hirsch and Stewart Gandolf
In many ways, Chicago’s Magna Health Systems’ (MHS) business model is much like any other ASC. Cultivating relationships with surgeons is a driving factor for business development.
But MHS is also significantly different from other players in the industry. A proactive and leading-edge marketing initiative — targeting both surgeons and prospective patients — sets them apart from many others in the business. It’s a successful program that leaves some people curious, if not mystified.
To illustrate, MHS president Guita Griffiths shares this anecdote. As the story goes, a senior ASC industry executive commented (on behalf of their company), “We don’t believe in marketing."
“This individual wanted to know why our bariatric program has been so successful while their effort has been a disaster," Griffiths recalls. It’s not clear if they just haven’t had any success at marketing, or if they don’t understand the power of effective marketing. Both answers seem likely.
“ASC marketing isn’t passive or accidental," Griffiths explains. “Magna Health Systems has carefully defined goals and tracks outcomes data for our marketing efforts, mirroring our approach to tracking clinical outcomes.
Our marketing is focused on surgeons, referring physicians and direct-to consumers for bariatric. If there’s a secret to the success of our bariatric program, it’s in continually monitoring our marketing effectiveness and making regular updates."
For MHS marketing plans, return on investment (ROI) is the yardstick of success. “Marketing is not an expense, it’s an investment. And ROI is a business fundamental that every ASC understands. Marketing is expected to produce measurable results," Griffiths asserts.
As background, the MHS operation is multifaceted. It provides turnkey management services for three accredited multi-specialty ambulatory surgery centers and several large physician practices that collectively employ more than 160 people.
In addition, the 60,000-squarefoot Magna Medical Campus is under development near Chicago’s Midway Airport to bring Magna Surgical Center together with an advanced imaging facility and an urgent care center, as well as physician office suites.
DayOne Health is MHS’ branded direct-to-consumer bariatric program for outpatient surgical weight loss using the Lap-Band® System and patient support. DayOne Health at 900 North Michigan Surgical Center was one of the first facilities to perform the outpatient surgery 10 years ago, and has been designated a Bariatric Surgery Center of Excellence by the Surgical Review Committee of the American Society for Metabolic and Bariatric Surgery.
While bariatric surgery is an important part of the mix, MHS facilities also perform orthopedic surgery, general surgery, neurology, pain management, plastic surgery, gynecology, ophthalmology, podiatry, urology, GI and ENT. Collectively, these facilities represent 10 operating rooms with approximately 12,000 surgical procedures annually.
The success of the bariatric and marketing programs of MHS has been proven through the years. But as complex as their business is, there are essentially six core components to their marketing activities:
PROFESSIONAL REFERRAL MARKETING
Existing professional referral sources can’t be taken for granted and new referral sources don’t materialize spontaneously. Success requires a written plan and an unfailing system that preserves and grows the stream of inbound referrals.
INTERNET MARKETING
Online marketing is a mainstream channel for branding, marketing, advertising and public relations. This can include websites and social media tools, as well as patient portals and mobile apps – all in the right mix.
BRANDING
A powerful, differentiating brand is an important part of establishing and building a positive reputation and the ability to attract referrals and new business. This is also a deliberate endeavor that shapes and expresses the right message at the right time.
INTERNAL MARKETING
These are all the ways of communicating with those people who are already familiar with the ASC, including present referral sources and previous patients. It’s an influential resource for referrals, additional services, testimonials and/or word-of-mouth advertising.
EXTERNAL MARKETING
These are the media and messages that reach prospective patients and referral sources that don’t know you. Advertising via the Internet, newspapers, radio, television, billboards and the like, tells others about a solution for their needs.
PUBLIC RELATIONS
Planning and generating “free press" exposure, such as newspaper articles or broadcast interviews, can be a positive and powerful influence. But free press typically results from careful planning, good timing, a clear message and a deliberate effort.
MHS proactively tackles two high level initiatives in this multi-faceted picture. One of these programs targets doctors, while the other focuses on direct-to-consumer marketing.
