Will you stay true to your....hospital?

Via the Advisory Board, there is a new attempt to convince patients to stick with their chosen medical facility. JAMA recently published an article arguing that hospitals should institute loyalty programs for their patients. 

Here is their reasoning:

The benefits of loyalty programs, the authors argue, are two-fold: Customers benefit through the perks and rewards, and businesses benefit by strengthening relationships with patients.

The authors note that customers who feel positively toward their providers are more likely to keep coming back—and it's less expensive to retain a current patient than to market to new ones. Loyal customers also are more likely to overlook problems such as difficulty scheduling appointments, and they're more likely to tell friends about the business, the authors write.

Loyalty programs also can cut down on costs. Health care providers can partner with gyms, pharmacies, or other health organizations to provide loyalty rewards—incentivizing patients to focus on their health, which can lower the cost of care.

There is the obvious counter:

Some providers doubt the value of loyalty programs, believing that patients care more about clinical excellence than anything else. In this view, patients will wait in line, struggle to get an appointment, and endure subpar service if it means they can get great care.

But the authors argue that this "pervasive myth" overstates a "patient's ability to appreciate technical excellence," and that a combination of excellent care and quality customer service is a new way to attract and retain patients in a highly competitive market (Bird,FierceHealthcare, 3/1; McMahon Jr. et al., STAT News, 3/2; McJahon Jr. et al, Journal of the American Medical Association, 3/1).

What do you think? Would you be willing to institute a program if you were a hospital administrator? Do you think the existence of a program might influence your decision on which care provider to use?

In my own opinion, I think that the strategy might work if it's focused on the right group. In some cases, it may not be the patients themselves. It might actually be the family member(s) who have to shuttle their aging relatives to visits for chronic conditions. Since it's difficult to really judge the quality of the medical care, these additional perks may be enough to gain an extra percentage of patients.

Here is the link to the full article:  Is a Starbucks-style loyalty program right for hospitals? | The Advisory Board Daily Briefing