Listen, adapt, deliver
How a few key changes in the Medical Industry can lead to tremendous waste reductions.
Over the past few months, we’ve seen an unprecedented revolution in Healthcare. All across the globe, Healthcare systems focused on the crisis at hand, while providing only the most urgent of care to the rest. Although we will likely see the implications of under-treatment, we learn that, to extent, we can work radically different and still provide quality care to patients. This mass experience will accelerate the review of inefficient mechanisms and elimination of redundancies across the entire healthcare system, including Medical Industry.
A good example of how “less is more” in Healthcare can be found in a recent publication by the Netherlands Bureau for Economic Policy Analysis. Two Dutch hospitals decided to reduce care activities through smart interventions. They managed to accomplish a tremendous “waste” reduction through a few key change initiatives, which allowed them to do less, but maintain high quality care. This is an excellent example of true added value and was accomplished by five change initiatives:
- Long-term agreements between payer and provider.
- Better collaboration between stakeholders.
- Organizational changes.
- Listening to physicians.
- Stimulation of quality.
So, if these steps were able to tackle such a complex problem, could Medical Industry learn from this in adding value to the healthcare system? Let’s find out how these principles can guide industry to build strong relationships.
Long-term agreements stimulate quality
A multi-year commitment between parties allows both to steer away from short-term incentives like a low price. From a value-based point of view, it is highly desirable to show benefits over a longer period of time. For example, if we consider a higher per-product price but with a lower re-treatment rate after 3 years, costs are higher today, but lower tomorrow. Long-term agreements are a catalyst for value creation and help both parties to collaborate qualitatively towards a strategic goal.
Customer-centricity as prerequisite for collaboration
Backed by experience, studies and reports, we know that the healthcare industry is struggling with their customer engagement. We often encounter companies that are desperately looking for ways to reconnect with the market and finding solutions for inefficiencies in their market approach. Efficient and effective relationships, in which relevant solutions are developed, start with understanding the needs of the customer. Too often, lack of communication stands in the way, while it may be the single most important contributor to a fruitful collaboration. Customer-centricity should be at the heart of engagement, as it gathers stakeholders around a common goal.
Re-shape the organization
When facing big changes, one should always consider the appropriateness of the use of own resources. Roles and processes set-up around the status quo will not suffice in a changing environment. The healthcare market more and more opposes top-down customer approaches, where customers are ‘forced’ to collaborate through industry’s existing channels. Bottom-up customer engagement models follow customer-centricity.
How to accomplish this?
The first part is most straightforward: reconnect with your customers. Learn their challenges and their needs. Find out what you can offer to help them achieve their goals. The next part is harder. Your organization should be flexible in response to customer needs. Questions to ask yourself are: who is orchestrating the efforts? Which resources and investments are required? Whom should we involve? How do we align on actions? These questions are at the center of strategic partnerships. The goal is to develop a customer engagement model that can address different needs of different stakeholders, without fragmenting the organization and its processes. Most organizations contain the right ingredients, yet finding the right mix seems challenging.
At Motion5, we have solid ideas on how to achieve this. Interested? Let’s talk.