Market growth new customers versus new market share

MARKET GROWTH: NEW CUSTOMERS versus NEW

MARKET SHARE

Originally presented August 2010

WHY IS MARKET DATA IMPORTANT?Numbers are the “language of business”It forces definition and commitmentIt destroys “myths” & bases decisions on fact,

not perceptionIt gives a full perspective It becomes the basis of a sales plan

FOUR KEY QUESTIONSHow much time should I focus on finding new

customers versus trying to gain market share?

What is a realistic sales forecast and who is my real competition?

Which accounts should I be calling on and how frequently?

How can I gain additional business from my key hospital accounts?

NEW CUSTOMERS versus MARKET SHAREThe decision as to how much to focus on each

opportunity, should be based on the return of time invested.

Need to quantify the situationUtilization = Patients Served

Medicare Fee for Service Enrollees

NEW CUSTOMER OPPORTUNITY

*Weighted Utilization=Pts Served/Medicare FFS Eligible

NEW CUSTOMER OPPORTUNITY ANALYSIS• Highest state(FL) has a utilization rate that is

more than 6 times larger than the lowest state’s(HI)

• Variation at county level likely to be as large• As long as your geography is NOT in the

Quartile 1(below 10.3%), there is an opportunity to find new patients

• If it is easier for a referral source to give you a new patient than to take one away from another agency

POTENTIAL NEW CUSTOMERSHospital discharges going to facilities,

instead of homePatients going home without any supervisionUnderserved demographics, usually non-

whitesCommunity-based specialty programs, such

as low-vision and Anodyne therapy

HOME HEALTH UTILIZATION BY STATEEmail: rchesney@healthmr.com to request Home Health Utilization by State Chart

REALISTIC SALES FORECASTSTo grow by adding new customers, you need

to know how big the market is currentlyLook at other markets who have already

incorporated these new types of patientsEstimate what percentage of these new types

of patients currently and will make up of the market

Quantify the revenue potential of these new patients

REALISTIC SALES FORECASTS• Understand the seasonality of your agency

and market– Understand how much more or less than the

quarterly average that a given quarter represents. (Quarterly average = index of 100)

– Certain geographies(Florida) and certain types of agencies(hospital-based) have meaningful seasonal variations

– Reflect seasonality in monthly and quarterly forecasts

KEY ACCOUNT TARGETING• As a sales rep, time is your most valuable

resource• Your goal is to spend in ways which will give

you the highest return—highest commissions• Major tool is account targeting and territory

management—which accounts you call upon and how often. This is why you assign “A” & “B” accounts

• How often are these assignments based on the historical records of your agency?

KEY ACCOUNT TARGETING-HOSPITALSNeed to know which hospitals care for the

residents of your service area in what proportion

Need to know whether facilities have a length of stay issue

Are patients going out of your service area to receive hospital care?

Provider Name Provider Type Provider Address Provider City State DischargesDays per

DischargeCharges per

Discharge

WYOMING MEDICAL CENTER Acute Care 1233 EAST 2ND ST CASPER WY 311 4.9 20,473

PLATTE COUNTY MEMORIAL HOSPITAL - CAH Short Term Acute Care 201 14TH STREET WHEATLAND WY 310 2.8 5,839

MEMORIAL HOSP OF CONVERSE COUNTY - CAH Short Term Acute Care 111 SOUTH 5TH STREET PO BOX 1450 DOUGLAS WY 277 3.4 11,993

UNITED MEDICAL CENTER Acute Care 214 EAST 23RD STREET CHEYENNE WY 131 6.2 32,725

POUDRE VALLEY HOSPITAL Acute Care 1024 S LEMAY AVE FORT COLLINS CO 42 9.6 43,810

IVINSON MEMORIAL HOSPITAL Acute Care 255 N 30TH LARAMIE WY 26 6.3 32,339

REGIONAL WEST MED CENTER Acute Care 4021 AVE B SCOTTSBLUFF NE 16 5.4 14,877

UNIVERSITY OF COLORADO HOSP AUTHORITY Acute Care 4200 E 9TH AVE DENVER CO 6 5.7 38,645

RAPID CITY REGIONAL HOSPITAL Acute Care 353 FAIRMONT BLVD RAPID CITY SD 6 6.7 25,424

CAMPBELL COUNTY MEMORIAL HOSPITAL Acute Care 501 S BURMA AVE/PO BOX 3011 GILLETTE WY 5 4.2 8,323

BANNER BAYWOOD MEDICAL CENTER Acute Care 6644 BAYWOOD AVE MESA AZ 4 4.5 27,401

PRESBYTERIAN/ST LUKE'S MEDICAL CTR Acute Care 1719 E 19TH AVE DENVER CO 4 20.8 139,735

UNIVERSITY OF UTAH HOSPITAL Acute Care 50 N MEDICAL DR SALT LAKE CITY UT 4 11.0 44,709

Zip Codes: 82224; 82229; 82633; 82637; 82222; 82225; 82227; 82242; 82201; 82210; 82213; 82214; 82215

MEDICARE HOSPITAL DISCHARGESConverse, Platte & Nobriara Counties Wyoming

KEY ACCOUNT TARGETING –SNF’s• Understand which Skilled Nursing Facilities

have the greatest potential– Residential vs. Clinical Focus

• Longer Length of Stay means patients discharged further along in their recovery process, which means less opportunity for therapy visits

• More dollars per discharge means greater case complexity

Provider Name Provider Address Provider City State Zip Days Discharges Payment Days/Disch

WMC TRANSITIONAL CARE UNIT 1233 E 23RD STREET CASPER WY 82601 3,173 330 $882,442 9.6

LIFE CARE CENTER OF CHEYENNE 1330 PRAIRIE AVENUE CHEYENNE WY 82009 10,771 231 $2,474,461 46.6

UNITED MEDICAL CENTER/TCU EAST BUILDING, 2600 E 18TH STREET CHEYENNE WY 82001 3,048 165 $807,928 18.5

LIFE CARE CENTER OF CASPER 4041 SOUTH POPLAR STREET CASPER WY 82601 5,264 151 $1,412,294 34.9

SHEPHERD OF THE VALLEY 60 MAGNOLIA CASPER WY 82604 5,122 132 $1,202,761 38.8

IVINSON MEMORIAL HOSPITAL/EXTE 255 N 30TH AVE LARAMIE WY 82072 1,022 107 $264,392 9.6

PLATTE COUNTY MEMORIAL HOSPITAL - CAH 201 14TH STREET WHEATLAND WY 82201 1,091 106 $1,121,690 10.3

IVINSON MEMORIAL HOSPITAL 255 N 30TH LARAMIE WY 82070 924 105 $264,839 8.8

CHEYENNE HEALTH CARE CENTER 2700 E 12TH STREET CHEYENNE WY 82001 5,808 92 $1,307,604 63.1

MOUNTAIN TOWERS HEALTHCARE 3128 BOXELDER DRIVE CHEYENNE WY 82001 5,580 74 $1,268,265 75.4

POPLAR LIVING CENTER 4305 S POPLAR ST CASPER WY 82601 3,905 72 $932,589 54.2

MICHAEL MANOR 1108 BIRCH STREET DOUGLAS WY 82633 1,018 43 $216,377 23.7

LARAMIE CARE CENTER 503 S 18TH ST LARAMIE WY 82070 2,389 41 $515,821 58.3

MEMORIAL HOSP OF CONVERSE COUNTY - CAH 111 SOUTH 5TH STREET PO BOX 1450 DOUGLAS WY 82633 322 37 $49,343 8.7

Zip Codes: 82224; 82229; 82633; 82637; 82222; 82225; 82227; 82242; 82201; 82210; 82213; 82214; 82215; 82001; 82002; 82003; 82005; 82006; 82007; 82008; 82009; 82010; 82050; 82053; 82054; 82059; 82060; 82061; 82081; 82082; 82051; 82052; 82055; 82058; 82063; 82070; 82071; 82072; 82073; 82083; 82084; 82601; 82602; 82604; 82605; 82609; 82620; 82630; 82635; 82636; 82638; 82643; 82644; 82646; 82648

Medicare SNF Discharges Albany, Converse, Laramie, Natrona, Nobrara and Platte Counties Wyoming

HOSPITAL SPECIFIC DATA• Does the hospital have a Length of Stay issue,

particularly for Home Health referrals?• What is the potential for home care referrals

for my agency?• What is the discharge philosophy of the

facility?• How does this hospital’s home care referral

levels benchmark against industry “best practices”?

• How could my agency help this hospital prevent re-admissions?

HOSPITAL MARKET SHARE• Identify total Medicare referrals to home care• Identify total Medicare discharges• Identify Medicare discharges for your service area• Your market potential = Svc Area Discharges x Total Home

Care Discharges Total Discharges

• Your market share = Your Referrals

Your Market Potential

• Visit our Resource page for our article on “Getting a Bigger Share of Referrals”

PREVENT HOSPITAL RE-ADMISSIONS• “Top Performers” is median of 90th percentile

with highest % to home care• “Top Performers” are better are discharge

planning; lower % going to community care/no care

• Patients going home with no care are most vulnerable to re-admission

MINIMIZE NO CARE % = MINIMIZE RE-ADMISSION RISK

BONUS OFFERFor your CFO or Quality Improvement

Officer: FREE CUSTOMIZED HOME HEALTH OR

HOSPICE BENCHMARK REPORT FOR THE COUNTY OF YOUR CHOICE

Email: rchesney@healthmr.com

CONTACT INFORMATIONRich Chesney

President, Healthcare Market Resources

rchesney@healthmr.com

215.657.7373

215.657.0395(f)

www.healthmr.com