Saturday, February 4, 2012

Should Patients Be Rewarded For Visiting A Hospital?

In my past life as a consultant, I was a slave to reward points. I would make every effort to fly a certain airline or stay at a particular hotel, even if it was completely illogical.

This is why my ears perked up when NPR highlighted efforts by hospitals to reward frequent customers. The article describes how these hospitals provide valued customers with perks ranging from free parking to gift shop discounts to exclusive classes on healthy living.

Their efforts seem well meaning. In an environment where hospitals are fighting to fill beds, it makes sense to build loyalty and relationships with people who they frequently see. The “rewards” themselves also sound worthwhile – educational programs and social events can be positive reinforcements for this at-risk population.

Despite these benefits, something doesn’t sit right with me. It is one thing to reward people for choosing to use a certain product or fly a particular airline, but it’s another to reward them for something they have limited control over. Patients want to avoid the hospital as much as possible, but these programs send mixed signals, i.e., we’ll teach you how to avoid hospitals, but when you need one, come to us (almost like the ‘Most Interesting Man in the World’ commercials – “I don’t drink beer, but when I do…”).

On top of that, I’m not sure how much choice a patient has in where they can be treated – the patient may be limited by either geography or insurance. Maybe this is a differentiator that can be applied to highly competitive geographies, but I see limited real-world application for this type of program.

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