For Sentara Health System, boosting hospital revenue through physician recruitment-based sales efforts required moving to a physician relations plan that stresses accountability and customer-focused relationships.
As a result, the Norfolk, Va.-based, not-for-profit system experienced an 8 percent increase in revenue in eight months after it overhauled its physician relations functions with a sales tracking database and physician team leaders. Additionally, the reorganized sales force is credited with the 40% revenue increase in cardiology and cardiac surgery from one territory and an 89% surge in obstetrical revenues in another.
Making the transition required abandoning the physician liaison "problem solver" model that was so popular in the industry 10 years ago. Sentara conducted an internal audit that identified its baggage and pursued outside consulting help on developing a formal sales plan from the Corporate Health Group, based in Omaha, Neb.
Fixing What Was Broken
Sentara's previous physician relations relied on liaisons focused on rural markets - a "problem-solver" model that was popular a decade ago. It lacked a coordinated sales program, duplicated efforts with multiple contacts with the same physician and missed cross-selling opportunities among health plan services, says Karen Winters, Sentara's director of referral sales and marketing.
In order for its physician relations program to generate sizable revenues, Sentara determined that it had to move to a model that:
- focuses on the physician as a customer;
- broadens the geographic draw beyond rural market concentration; * uses generalists who can promote Sentara's overall product portfolio;
- incorporates sales team leaders that oversee day-to-day operations, evaluates staff and develops training programs; and
- tracks sales performance via an internal database capable of generating physician profiles, market intelligence reports and sales call timelines.
Hitting The Streets
The concept of "sales" in healthcare is still considered taboo, says Kriss Barlow, a Corporate Health Group consultant.
The process of linking physicians with hospitals is most effective when a structure is in place to strike and maintain education-rich relationships.
To meet its marketing objectives, Sentara realigned its sales territories by physician density, growth/maintenance/tertiary referral markets, and competency of sales representatives. The sales team received training to become market generalists focusing on Sentara's key product lines: cardiac, cancer, women's health and surgical care.
Each salesperson has a territory of 500 physicians and is armed with a laptop computer for tracking calls.
Expected to make five calls per day, the sales reps rely on a broad range of tools to earn "face-time" with the physicians.
Fact sheets provide clinical overviews on Sentara's products and patient-focused action sheets provide educational material physicians can distribute on key conditions like stroke, epilepsy and Parkinson's disease. (Sentara Health System, Karen Winters, 757/455-7135; Corporate Health Group, Kriss Barlow, 715/381-1171)