Case History: Upscale Dermatology Practice Carves Cosmetic Niche
Dermatologist Bonnie Furner, MD, had been in practice in San Antonio, TX for many years when she decided to stop accepting all insurance except Medicare. Although her schedule was booked out a few days in advance, Medicare had become an ever-larger percentage of her practice. It had grown from 10% to 25% in just two years and that trend was likely to continue unless Dr. Furner attracted more cash-based patients. She 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 created a branding strategy that focused on Dr. Furner as the clinician of choice for “beautiful skin” procedures, and generated word of mouth patient referrals, and the reactivation of former patients. Over 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. Her strategic marketing plan focused on attracting affluent patients who were willing to pay a premium for an elite physician and an exclusive experience. Cross-selling new services to existing patients was a key strategy for building the cosmetic surgery side of the practice. Elements of Dr. Furner’s campaign included:
Promotional Practice Brochure
A full-color tri-panel brochure detailed all the services available in the practice. This piece became the cornerstone for cross-selling services to existing patients and attracting new patients.
A full-color tri-panel brochure detailed all the services available in the practice. This piece became the cornerstone for cross-selling services to existing patients and attracting new patients.
Reactivation packageSent 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 holdCallers 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.
PostersFramed, full-color posters provided brief messages and visuals focused on the results/benefits that could be achieved from those targeted cosmetic procedures that Dr. Furner wanted to attract to her practice.
Staff TrainingPractice Builders unique staff training program emphasized the importance of delivering a high-end patient experience and enhanced the perceived value of every visit. Learning how to cross-sell was also an important concept for Dr. Furner’s staff.
ResultsThrough the application and implementation of the above strategies, Dr. Furner doubled her revenue from the cash-pay side of her practice. And although cosmetic procedures represent only 25 percent of the services she performs, they now account for 50% of her income. Word-of mouth referrals are now generating 90% of her new patients. And her practice is as busy as she always wanted it to be in a highly competitive marketplace.
Dr. Furner has been so pleased with her results that she is once again turning to Practice Builders to assist her. This time, her primary goal is to establish an Internet presence with a similarly branded website that maximizes exposure for her boutique practice and grows it to the point where she can add a partner.