Keynote Presentation: The Affordable Care Act Challenge: Marketing Strategies For Success Presented by: Paul Matsen, Chief Marketing & Communications Officer, Cleveland Clinic www.bdionline.com

1. The ACA Challenge
Marketing Strategies for Success
Paul G. Matsen
July 2013

2. Introductory Video

3. The ACA Challenge: Environment
• Slowing revenue growth
• Shift to outpatient care
• Purchasers demanding greater value
• Cost shifting to consumers
• Financial pressure and transparency

4. The ACA Challenge: Environment
• Shift to value-based care and ACOs
• Coverage expansion
• Physician alignment
• Constrained resources
• Rising competitive intensity
Uncertainty

5. Cleveland Clinic Imperatives
• Patients First
• Caregiver engagement
• Innovate the care and business model
• Financial
Readiness in Challenging Times

6. Strategic Direction
Striving to be the world’s leader in patient experience,
clinical outcomes, research and education
• Referral center
• Regional provider
• Academic center
• New models of value-based care

7. Marketing Strategies for the ACA Future
• Access
• Alliances
• Targeting: know your patients
• Engagement
• Brand/Patient Experience

8. Access

9. “We believe that every life deserves world
class care today, not a month from now.”
2010 Patient Experience Summit
Delos M. Cosgrove, MD
Cleveland Clinic CEO and President

10. Value Proposition
• Cleveland Clinic delivers superior total patient
experience in the form of outstanding clinical
outcomes, innovative treatments and access
(including same-day appointments), all in an
integrated delivery system.
Cleveland Clinic provides world class care
that is accessible to everyone in Northeast Ohio.

11. Situation: Early 2011
• Cleveland Clinic has universal brand awareness and
strong preference versus key competitors
• Experiencing slight erosion in market share
• Known for Clinical Excellence, but not considered
approachable or accessible

13. +30%
Unaided Ad
Awareness
ResultsResults
+60%
Same-Day Access
Awareness

14. 0
250
500
750
1000
1250
2008 2009 2010 2011 2012
0
250
500
750
1000
1250
2008 2009 2010 2011 2012
Same Day Visits
4%
#
Thousands
#
Thousands
988988

15. Alliances

16. Alliances
• Leverage our core capabilities
- Clinical care
- Intellectual property – innovation
- Consulting and management
• National reach

17. • First heart surgery affiliation in 1994
• 15* affiliations across the U.S. past 18 years
• Designed to improve quality of care, provide
access to advanced research and technologies
• Foster communication among caregivers
• Provide unique market differentiator
HVI Affiliate Program Overview

18. 1994: EMH Regional Medical Center
1997: LakeWest Hospital
1998: Hillcrest Hospital
MetroHealth Medical Center
2001: Cleveland Clinic Florida
2004: Fairview Hospital
Rochester General Hospital
2006: Chester County Hospital
2007: Cape Fear Valley Medical
2010: Cadence (2 hospitals)
2011: Novant (2 hospitals)
2012: MedStar (5 hospitals)
Saint Vincent
2013: Fisher Titus Medical Center
Bellevue Hospital
Cleveland Clinic Affiliation Growth

19. Cleveland Clinic National Network

20. Direct contract between large, self-funded employer and Cleveland Clinic
Program for Advanced Medical Care - Overview
Cleveland Clinic
Contracting directly with Cleveland Clinic allows you to:
Realize Efficiencies and
Savings
Avoid Variability in
Outcomes
AND
Offer #1 Heart
Care* to
Employees
*Additional services available
Employer

21. Current Relationships

22. Current Innovation Alliance Partners

23. Targeting: Know Your Patients

24. Advice
Givers*
43.7MM
Age 45+,
HHI $100,000+
55.4 MM
Source: Nielsen Media Research, Net Ratings @Plan.
Affluent Advice Givers
17.1MM - 8% of adults, 12% of Internet users
• Active networkers
• Detail lovers
• Opinion sharers
The Alpha Influencer

25. Why is Al Important
Patients and Contribution Margin from Outside Ohio
6%
21%
0%
5%
10%
15%
20%
25%
N of Patients Contribution Margin

26. Why is Al Important
Percent of Patients Admitted to Hospital

27. Where Does Al Live
CM per Patient by Region Indexed to Ohio

28. Engagement

29. Brand is Important
to Prospective Patients
Source: 2012 Google/Compete Hospital Study. Q: “How important were each of the following features to you when researching facilities?” A: For each choose
from 5 (extremely important) to 1 (not important at All). Percentage represents top two box responses.

30. “we need to make our brand experience
– its message, actions and services-
TRUSTED, REMARKABLE,
UNMISTAKABLE, AND ESSENTIAL”

31. Patient
Experience
Brand Promise
Clinical
Excellence
Innovation Wellness

32. How to Engage Al
Owned | Earned| Paid

33. Digital Ecosystem

35. Social Media Ecosystem

36. Updated mobile
site scheduled for
April

37. Cleveland Clinic Today iPad App
Launched in March
Daily interactive iPad source for the latest health and
wellness tips to read, save, and share from the experts at
Cleveland Clinic.
• Updated Daily with new Health & Wellness Content
• Access to Health Hub
• Interactive 3D Human Body
• Interactive Timeline
• Request Appointments
• Find a Doctor
• Find Locations
• Access MyChart

38. Reaching Al Through
Earned Media

39. • State of the Clinic –
Media Highlights

40. Reach Al Through
Paid Media

41. Content Strategy | Paid
Sea of Sameness

43. Paid Media
Digital
• Leveraging owned assets (clevelandclinic.org +
landing pages) in display advertising
• “Reframed” concept focuses on three content
areas: Innovation, Outcomes and Patient
Experience with new calls-to-action

44. Service Line
In-Banner Search

45. Brand/Patient Experience

46. “Providing the highest quality
patient experience is a
primary goal of the Cleveland
Clinic Organization.”
-Delos “Toby” Cosgrove, MD

48. • Safe Care
• High Quality Care
• Patient Satisfaction
• High-Value Care
Patients First ...

49. Role of Leadership
Institutes
HospitalsOperations / Administration
Executive Team
Caregivers
Caregivers
Caregivers
Caregivers
Patient
Experience

50. Home
Wellness / Fitness
Center
Retail Pharmacy
Physician
Clinics
Diagnostic /
Imaging Center
Urgent Care
Family Health & Surgery Center
Community-Based Care
Continuum of Care
Acute Care
Hospital
Recovery and
Rehab Care
Inpatient Rehab
Skilled Nursing
Facility
Outpatient Rehab
Home Care

51. Patients Choose Experience
“What factors are the influence on your choice of hospitals?”

52. Creating Caregivers
• Firing of all Our Employees

53. PatientExperience
CaregiverExperience
Cleveland Clinic Experience

54. Cleveland Clinic
Experience Training

55. 0
10
20
30
40
50
60
70
2008 2009 2010 2011
Percentile
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Complaints
Gallup Engagement HCAHPS Rating
HCAHPS Recommend Complaints
CCHS
More Engaged Caregivers…
More Satisfied Patients

56. Closing Thoughts
• Decisive Strategies
• Responsiveness to Change
• Trusted Brand