Consumer demand for complementary alternative treatments is causing health plans to take heed. Hospitals also are beginning to recognize the huge marketing potential of creating new product lines to meet that consumer demand. American spent $27 billion for alternative therapies in 1997, comparable to the out-of-pocket expenditures for all U.S. physician services, according to a study published in the Journal of the American Medical Association. The message is loud and clear - while consumers aren't replacing alternative care with traditional medical care, they certainly are integrating the two, fueling the demand for complementary healthcare services.
Two-thirds of HMOs offer at least one form of alternative care. The most common services are chiropractic and acupuncture, according to a report released this month by Landmark Healthcare, a national alternative healthcare company that provides managed care programs in Sacramento, Calif. Alternative therapies also are becoming increasingly mainstream; 34 of the nation's 125 medical schools offer programs in alternative therapies and the National Institutes of Health (NIH) and the Office of Alternative Medicine (OAM) granted more than $10 million in research funds on alternative therapies in 1997.
In spite of soaring consumer demand for these treatments, the major barriers to marketing complementary services for hospitals is medical staff resistance. Many physicians aren't sold on the effectiveness of alternative care and how it could and should be incorporated into traditional care.
For hospital-based complementary programs to succeed, they have to achieve physician buy-in from the planning phase to execution, says Leah Kliger, principal with The Lakes Group, an alternative care consulting firm in Lake Stevens, Wash. Kliger provided marketing strategies for creating alternative medicine programs at The Alliance for Healthcare Strategy and Marketing conference earlier this month in San Francisco.
Her advice includes:
- Identify a physician "champion" or leader who has influence among your medical staff and getting administrative support from the board.
- Develop a well-defined mission statement and agenda.
- Involve non-traditional practitioners in the decision-making process.
East Meets West
In an "East meets West" case study, Kliger profiled how Valley Medical Center (VMC) in Renton, Wash., first assessed community interest for alternative care and then developed marketing plans for an herbal pharmacy to open in May 1999.
VMC found that more than 50 percent of those surveyed would consider purchasing herbal supplements from the hospital's pharmacy and a similar number said they thought the supplements were a "good idea."
Although VMC's medical director is a proponent of alternative medicine, there is a strong degree of physician skepticism about non-traditional healthcare practices. That distrust is being addressed with ongoing educational classes and seminars, says Terry Pile, VMC's director of marketing and PR. So far, Pile estimates that about a quarter of VMC's 400-plus physicians support the herbal pharmacy.
To help doctors become more comfortable, VMC is providing the information that is most compelling - statistics on how many of their patients already are using supplements and methods of integrating herbs with prescription drugs.
The pharmacy will be promoted externally through two of VMC's community magazines: a quarterly that reaches 120,000 area households and a bi-monthly senior magazine. The biggest marketing challenge is convincing the community to spend a little more for the herbal supplements offered by the pharmacy than they would pay at other retail outlets. The 25-plus herbal supplements that the pharmacy will sell will be pricier than supplements sold elsewhere because the hospital is using suppliers that work exclusively with healthcare providers.
So far, VMC has spent at least $15,000 on its herbal pharmacy and expects to make at least $30,000 within the first year.
(The Lakes Group, Leah Kliger, 425/334-5926; VMC, Terry Piles, 425/228-3450; Landmark Healthcare, Jana Saastad, 916/569-3326)