If physicians are not yet comfortable with the idea of using the Internet as a marketing tool to attract new patients, the controversy surrounding two online surgery auction
sites will more than likely exacerbate their Web phobia.
The sites allow consumers to gather information about a host of medical procedures, from elective surgeries to complex medical procedures, and negotiate the best prices for
them. Those in the medical industry who take issue with the bidding approach denounce the services as promoting medical blue light specials and encouraging an irresponsibly
competitive online healthcare environment.
In March, MedicineOnline.com in Huntington Beach, Calif., launched its "Bid for Surgery" service that allows consumers to bid on 36 elective surgical services, that range from
breast augmentation and liposuction to hair replacement and LASIK vision correction. Another service, PatientWise.net in Kenosha, Wis., is expected to expand on this concept by
allowing consumers to purchase and schedule services for close to 100 procedures, including hip replacement, brain surgery and heart surgery, that are typically covered by health
insurance. It is expected to be fully operational by the beginning of next year.
Bid for Surgery does not sit well with the American Society for Aesthetic Plastic Surgery (ASAPS) which accuses the service of being fraught with possibilities for abuse and
has become the most vocal industry critic. It claims the service provides no way to verify physician credentials, competency or patient satisfaction with the services offered. It
further claims that the online bidding process treats plastic surgeons like commodities who can be purchased like airline tickets.
There also are concerns that these services won't be able to deliver long-term results. "The fascinating thing about the Web is that it is always challenging the status quo and
it is a great place for experimentation. However, [MedicineOnline's] experiment won't go too far," says Thomas Lawry, president of Verus, an online consulting firm that works with
healthcare organizations.
Lawry highlights three barriers to the service's long-term success - the narrow focus on elective procedures, the inability to provide consumers with the best local options and
consumers' growing skepticism of healthcare services being delivered online.
He instead believes that the real potential for physicians to expand their patient draw is through high-value physician Web sites that educate consumers about medical
procedures and physician expertise and allow patients to easily schedule appointments online.
Ethical concerns aside, these bidding services are tapping into a distinct consumer desire to shop the Web for healthcare services which should not go unnoticed by healthcare
marketers.
Empowering Consumers
The medical industry's focus on Bid for Surgery's online price-haggling is being blown out of proportion, says Kevin Moshayedi, MedicineOnline's CEO. "The service brings buyers
and sellers together saving time, effort and money." In addition to allowing consumers to get pricing information on surgical procedures, the service encourages consumers to
educate themselves on physician credentials and requires a face-to-face consultation with the physician before making a decision. Key information risk factors and possible
complications are featured on the Web site.
For physicians, the service is free and allows them to expand their patient base, says Moshayedi. This is a major draw for physicians who are finding it increasingly difficult
to attract new patients in the fiercely competitive but lucrative elective surgery market.
So far, MedicineOnline's bidding service is showing promise as an effective marketing tool for physicians. As of its launch on March 6, consumers have scheduled more than 400
surgical procedures via the site's bidding service and more than 170 physicians are registered. There are 270 procedures currently being bid on.
PatientWise.net will take this bidding model a step further by allowing consumers to seek financial proposals for more complex care involving chronic conditions and serious
illnesses. If it catches on, it could drastically change how referring physicians select specialists for high-level medical services and how patients perceive value for these
services, says Brad Engel, PatientWise's chairman. "There is no current link between price and [achieving] high-quality medical care. This service seeks to establish this
relationship." Instead of solely relying on the traditional methods of word-of-mouth recommendations and who a referring physician personally knows to find a medical specialist,
sites like PatientWise encourage physicians and patients to make this decision with a stronger focus on healthcare performance and quality data, says Engel. The site will provide
data on a healthcare organization's morbidity statistics, average lengths of stay and patient volume for specific procedures. Its biggest marketing hurdles are getting healthcare
organizations to feel comfortable disclosing sensitive pricing information on medical procedures online and overcoming the managed care barriers of limited consumer choice. To
address the pricing issues, PatientWise will consult with healthcare organizations on developing the most effective administrative pricing strategies. And as for the HMO
obstacles, Engel says that the site will initially avoid this market and focus on targeting the 20 million Americans who are either uninsured with high incomes or participate in
indemnity plans. Eventually, however, Engel believes that HMOs will become less restrictive and allow members to make more independent decisions - a trend that will work to the
Web site's advantage.
(MedicineOnline.com, Kevin Moshayedi, 714/848-0444; PatientWise, Brad Engel, 262/656-9750; Verus, Thomas Lawry, 425/643-7117; American Society for Aesthetic Plastic Surgery,
212/921-0500)
Getting The Price Right
Here's how MedicineOnline's Bid for Surgery works:
- The patient posts the elective surgery he or she is interested in, including key information on age, sex, occupation and location.
- Surgeons respond within 72 hours, providing physician credentials and patient history in the given surgical area.
- The patient selects a surgeon within the next 72 hours and schedules a face-to-face consultation, (required by Medicine Online).