'Sky Is Falling' Community Perceptions
In spite of the over-bedding and cost reimbursement problems that are threatening the survival of hospitals nationwide, outside-the-box reorganization strategies are providing
a silver lining. But for a bold turnaround plan to fly, it has to pass muster with influential stakeholder groups like employees, community leaders and regional legislators
before a final draft is signed off on. Without their support, your plan will be second-guessed and the media will have a field day with the perceived dissension.
Marketers who headed up the recent announcement of Temple University Health System's (TUHS) "Bold Ideas for a Brighter Tomorrow" program are convinced that giving legislators
in its backyard a heads up about its reorg plans prevented significant backlash. Back in February Temple gave this group a blueprint for saving its three facilities by
reallocating services to better meet the community's healthcare needs. The formal press announcement went out in July. As a top employer in Philadelphia with 10,000 employees, it
was critical that legislators be targeted first with information about Temple's intention to avoid major layoffs and keep its facilities open, says Michael Scher, assistant to the
vice chairman of TUHS. Many community leaders had come to associate hospital reorganizations with shutdowns and drastic downsizing. Temple's executive management also wanted to
reverse that perception with other key audiences, chiefly employees and the community. "Rather than control or limit the flow of information about its reorganization plans, Temple
was different. They wanted us to go out into various neighborhoods and explain [in full detail] what the strategies were," says Kevin Feeley, director of Bellevue Communications,
which was hired to help Temple communicate its turnaround plan. To respond to its over-bedding and long-running reimbursement disputes while aligning healthcare services for an
increasingly older patient base, Temple's Bold Ideas program calls for an aggressive shift in services, such as:
- an emergency department expansion;a relocation of psychiatric
services;
- outpatient and community services expansion; and
- a new maternal/child health services facility.
These efforts are expected to result in the furlough or layoff of less than 100 employees and chart a course for Temple's future growth. The combined expenditures of this plan
are projected to cost approximately $43 million over the next two years. Without significant realignment of resources, Temple was expected to lose $30 million over the next three
years, says Feeley.
Beyond legislators, church groups, civic associations, community development organizations and health agencies were also targeted for on-site presentations.
Making the neighborhood rounds led to an unexpected reaction -- minimal community confusion and non-controversial media coverage. The communications task force anticipated that
the reorg plan would not be easily digested by the community because it involved more than 12 realignment initiatives.
But the preliminary footwork with legislators and the subsequent outreach to community leaders shortly after the press announcement did a sufficient job of allaying consumer
fears, says Charles Sultoff, Temple's associate VP for program development, who is heading up the advertising campaign for the reorganization. As a result, the three-phase
advertising campaign explaining the reorg's goals, which was scheduled to launch shortly after the press announcement, wasn't necessary. Instead Sultoff's team is tweaking the
campaign to promote the specific services that will be realigned and expanded.
Silencing the Rumor Mill
When you don't have the luxury of being up front about your reorg strategies because of the lack of consistent leadership, attacking the rumor mill is the best course of
action. That's how Mercy Hospital is allaying concerns about its recovery plan, which is expected to improve the organization's finances by as much as $51.5 million within a year
and correct problems that led to a $42 million loss for fiscal year 2000.
The hospital is relying on interim leadership to correct the operational and financial sins of the prior executive management who are primarily responsible for millions of
dollars in losses associated with poorly negotiated managed care contracts and difficulties in collecting payment for outstanding claims.
"Mercy is viable!" is the key message that Mercy's interim executive management --Dennis J. Patterson, CEO and Janice James, CFO -- are trumpeting to employees and the media.
Major areas where Mercy's transformation plan identified improvements include:
- labor productivity, where $15.6 million in savings is outlined;
- renegotiating managed care contracts, where $10 million is expected to be recouped; and
- improved management of accounts receivable, expected to generate $17 million in potential revenues.
But making sure these messages resonate with employees is up to Connie Murphy, who heads Mercy's PR department.
By the time the interim executive team took over last year to rescue the hospital from plunging deeper into a financial black hole, "doom and gloom" rumors had already wreaked
havoc on employee morale, says Murphy. To restore Mercy's image, a rumor hotline was immediately put in place to address questions of how the reorg plan would make Mercy more
stable and what job security employees could expect. Hospital newsletters and townhall meetings also kept employees in the loop with plan updates and progress reports.
Having survived the most grueling aspects of deflating rumors about the turn-around plan, Murphy is convinced that there's no such thing as "too much communication." Using
every communication avenue available to get the word out to employees about their fate before, during and after a reorg is the best way to ensure its success.
(TUHS, Michael Scher, 215/707-0900; Charles Sultoff, 215/707-8447; Bellevue Communications, Kevin Feeley, 215/735-5960; Mercy Health System, Connie Murphy, 312/567-7058,
Janice James, 312/567-5544)
Down But Not Out
While the industry's knee-jerk response to problems with over-bedding and reimbursement disputes has been massive hospital layoffs and shutdowns, turnaround plans offer
communicators a refreshing chance to promote a light at the end of the tunnel. Get community buy-in by:
- Targeting legislators with your game plan early on;
- Scheduling town hall meetings to address employee concerns; and
- Educating the media on how the reorg strategy will result in improved patient access, cost savings, etc., via detailed initiatives.