Case History: Upscale Dermatology Practice Carves Its Niche In Cosmetic Marketplace
Dermatologist Bonnie Furner had been in practice in San Antonio, TX for many years when she decided to stop accepting all insurances except Medicare. Although her schedule was booked out a few days in advance, Medicare was becoming an ever-larger percentage of the business. It had grown from 10% to 25% in the past two years and that trend was likely to continue unless Dr. Furner created more demand from cash patients. Dr. Furner also wanted to generate more revenue by growing the cosmetic side of her practice.
With over 10,000 patient charts, a loyal patient base and an excellent reputation as a clinician, Dr. Furner should have been busier. But few referrals were coming from other physicians because she did not accept insurance. Practice Builders recommended a strategy that focused on branding Dr. Furner as the clinician of choice for “beautiful skin” procedures, generating word of mouth referrals, and reactivation of former patients. Because 80% of Dr. Furner’s patients had private insurance but would have to pay cash upfront and most likely higher deductibles if they were reimbursed, marketing focused on the highly affluent patient willing to pay a premium for an elite physician and an exclusive in-office experience. Cross-selling new services to existing patients was an important strategy for building the cosmetic surgery side of the practice.
Elements of the campaign included:
Promotional Practice Brochure
A full-color tri-panel brochure that details all the services available in the practice, this piece became a cornerstone in both cross-selling services to existing patients and attracting new patients.
Reactivation package
Sent to former or inactive patients, the reactivation package included a letter from Dr. Furner, the practice brochure and a special call to action with a time-sensitive offer. It also included an incentive to share the materials with a friend.
Message on hold
Callers to the office heard on-hold messages that described the cosmetic procedures performed in the office and the results that could be achieved as part of the boutique experience.
Posters
Full-color posters gave a visual of the results that could be achieved from those targeted cosmetic procedures that Dr. Furner wanted to grow in her practice.
Staff Training
Underscored the importance of delivering a high-end experience, enhancing the perceived value of every visit. Cross-selling was also an important concept for staff.
Results
Through application of the above strategies, Dr. Furner doubled her revenue on the cash-pay side of her practice. And although cosmetic procedures are only 25 percent of the services she performs, they account for 50% of her income. Word of mouth referrals generate 90% of her new patients. She notes that her practice is as busy as she wants it to be, in a highly competitive marketplace.
Dr. Furner has been so pleased with her results, she is once again turning to Practice Builders to assist her with building her website. Her primary goal is to establish a web presence that maximizes exposure for her boutique practice and grows it to the point where she takes on a partner.