Use Tesla’s Strategy to Disrupt Your Healthcare Market

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Last year, Becker’s Hospital Review reported that for the 11th year in a row, “hospital CEO’s ranked financial challenges as the No. 1 issue facing their organizations in 2014.”[1] The 338 CEOs polled by the American College of Healthcare Executives were most concerned about:[2]

  • Medicaid reimbursement – 69%
  • Bad debt – 67%
  • Decreasing inpatient volume – 63%
  • Medicare reimbursement – 57%
  • Competition from other providers (of any type) – 55%

Surprised? We aren’t either. These looming issues cause hospitals to either merge, declare bankruptcy, close or cut costs so deeply they can barely keep their doors open. None of this is a secret, yet many hospital systems continue to operate in the same manner as they have for years. Hospitals and private practices must disrupt current modes of business to survive these tumultuous times. But how? What to do?

Interestingly, the answer comes from a car manufacturer. Lee Lewis posted a brilliant blog on LinkedIn Pulse that suggests Tesla’s strategy could be the cure for the unsustainable healthcare financial debacle. Lewis, a VP for consultants Arthur J. Gallagher & Co., says that Tesla’s “unique distribution and software model” are transforming the auto industry and ending “outdated business models.”[3]

According to Lewis,

“Tesla succeeds amid revolution in the auto industry because it is a different kind of automobile manufacturer: it sells direct-to-consumer instead of through dealerships; it focuses on automobile experience instead of automobile mechanics; and it occupies a leading position in the market shift away from ‘owning a car’ to ‘paying for transportation. These three trends are a shockingly close parallel to three disruptive trends transforming healthcare and benefits.”[4]

Go Directly to Your Consumers

Tesla doesn’t depend on dealerships because it doesn’t have to. Tesla, who has never had dealerships, can sell directly to consumers because it isn’t legally required to sell only to dealerships as are manufacturers who have dealership partners. In the same way, insurance companies have been the primary customers of hospitals and practices. Notice that Medicaid and Medicare reimbursements are listed as concerns for CEOs. To survive you need a good mix of patients including commercial patients. To get commercial patients, try going direct.

Open your storefront to consumers, the people who are paying for their healthcare and taking a greater interest and proactive approach in buying their healthcare. Whether it’s a hospital, clinic, urgent care center, private practice or telemedicine, these are your storefronts. To get people to walk into your storefronts, you can provide them with an online medical marketplace, an e-commerce platform that reaches out, pulls them in, engages them and helps them with three difficult areas of healthcare for consumers: shopping, scheduling and paying.

Update Your Business Model with E-Commerce

An e-commerce strategy allows you to tell consumers exactly what it will cost them for any procedure or service. You can provide instant scheduling from your online service. You can work with them on a payment plan to help them pay you. This is treating your customers the way they want to be treated because they are comfortable in e-commerce platforms like Amazon. E-commerce changes the experience and draws people into your storefront, i.e., your hospital or practice or your telemedicine service.

HealthQRS can provide you with an e-commerce strategy that provides an online healthcare experience for consumers with shopping, scheduling and paying for procedures and services. People can find you on their smartphones, tablets or computers. Our powerful algorithms calculate the exact, true amount, not just estimates, that they will owe. We have over 12 years of experience developing retail experiences for consumers. We can have your group set up in a matter of weeks at your point-of-service and online, with a Retail Medical Marketplace customized just for you. And because we are a software as a service (SaaS), you don’t incur any capital expenses, only a low monthly fee.

HealthQRS can help you establish an e-commerce retail solution that will attract consumers and grow your market share. We can install retail solutions in your “storefronts,” i.e., your hospitals, clinics and practices, with retail solutions that allow your office teams to tell consumers exactly what they owe. You can provide automated alerts to patients for necessary preventive services they need as well as how much they will cost, and they can schedule and pay for those services right from the alert. These cutting-edge features are popular with employers and can serve as a marketing tool for your organization, helping you to expand your reach and become the “go to” facility for healthcare.

If your competitors don’t have a strong e-commerce strategy and you do, you will disrupt your marketplace, outpace your competition and totally transform your present, your future and your legacy. Click here for a quick, 6-minute video about our e-commerce strategy.

The status quo doesn’t work anymore and you can’t just depend on Medicare and Medicaid. The good news? You don’t have to. An e-commerce strategy from HealthQRS gives you powerful tools to proactively attract commercial consumers and the self-insured business, whether it’s small, medium or large companies.

It’s time for you to utilize both an e-commerce and storefront retail solution for your patients. Why not  contact us right now for more information or click here to schedule a demo? We invite you to learn more about HealthQRS’ solutions and turn your situation around today.

[1] Erin Dietsche, “60 Things to Know About the Hospital Industry: 2016,” Becker’s Hospital Review, January 14, 2016, http://www.beckershospitalreview.com/lists/50-things-to-know-about-the-hospital-industry-2016.html

[2] Ibid.

[3] Lee Lewis, “How Tesla Inadvertently Provided a Playbook for Healthcare Disruption,” LinkedIn Pulse, April 21, 2016, https://www.linkedin.com/pulse/how-tesla-inadvertently-provided-playbook-healthcare-disruption-lee

[4] Ibid.

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