The article highlights how the information posted by the hospitals is inadequate and not actionable. All true, but you have to start somewhere.

Posting prices is a step in the right direction…but not enough

By requiring hospitals to post their prices, we finally have a chance to shed some light on how opaque their pricing is.

Hospitals have resisted posting prices for years because they know the prices on their chargemaster (menu of services) is simply a game of chicken they play with insurance companies. No one expects to pay those chargemaster rates. It’s only a dollar figure the hospital submits to the insurer before the hospital and insurance company negotiate and agree to a lower rate. That’s why the chargemaster rates are so high. The hospital doesn’t want to accidentally start the bidding too low.

That’s also why the prices hospitals post are so irrelevant. They’re not meant to reflect the cost of services. But that’s ok. With more consumer awareness of the nonsensical pricing posted by hospitals, comes increased pressure to make the pricing more accurate.

However, at this point, the hospital has no reason to make the pricing actionable other than meeting the minimum requirements of the law. They need a reason for greater buy-in. Something in return.

They need to use a Price Estimator like this surgery center. In this scenario, the consumer chooses procedures or services of interest from a menu. But before they see the pricing, they have to enter their contact info.

The consumer gets pricing information instantly and automatically and the healthcare provider receives the consumers’ contact info for future remarketing. Both sides win!

With the ability to provide consumers with pricing information they’re so desperately searching for, hospitals can generate a huge consumer database in the process and provide an unprecedented level of customer service. Sounds like price transCAREncy to me!

Click here for the original blog post written by Dr. Kaplan for BuildMyBod.

The post Hospitals posting prices. A good start. first appeared on Plastic Surgeon San Francisco | Pacific Heights Plastic Surgery.

Starting today, Dr. Jonathan Kaplan, Founder/CEO of BuildMyBod Health is giving four lectures over the course of two days at the AACS Annual Meeting in Orlando.

BuildMyBod Health: A primer

For those of you not familiar, BuildMyBod Health allows consumers to check pricing on healthcare services that are typically paid out of pocket. They are paid out of pocket because 1) you haven’t met your deductible for a medically necessary service (think colonoscopy, lab test or X-ray) or 2) because the procedure is considered cosmetic and insurance doesn’t cover it anyway. Consumers interested in pricing can visit BuildMyBod.com or download the BuildMyBod iPhone app. Even more user friendly, consumers can utilize the BuildMyBod Price Estimator on a doctor’s website.

Regardless of how you find the doctor, you add procedures or services of interest to your “wishlist.” Then submit your wishlist along with your contact info. After that, you’ll instantly get an email with a breakdown of the costs and the doctor’s contact info. The doctor’s office will also receive your contact info for follow up. By receiving your contact info, the doctor’s office can help you navigate through the healthcare process.

What presentations are on tap at the AACS?!

On Thursday, Dr. Kaplan will speak on utilizing social media influencers in your practice. What’s the difference between influencer pages on Instagram and social media influencers? How can you tell if a social media influencer that wants free product to promote your practice has a legitimate following? Dr. Kaplan will provide the attendees with the tools and knowledge to answer these questions.

Twenty minutes later he’ll talk about the necklift technique he developed as a board certified plastic surgeon. His paper on the Single Incision Minimally Invasive (SIMI) necklift was recently accepted for publication in a peer-reviewed journal.

To round out the day, Dr. Kaplan will discuss generating leads through social media. Physician practices produce so much content for social media but what do they get in return? Dr. Kaplan will explain how funneling all inquiries on pricing (the most common question on a doctor’s Instagram page) will leverage the consumer’s need for price transparency with the doctor’s ability to generate leads.

Finally on Friday, he’ll give a presentation on weeding out price shoppers and finding serious patients in the process. This is similar to the topic he discussed at the Nazarian Institute last weekend.

If you’re in Orlando for the AACS, be sure and attend one of his lectures. It’s not everyday you hear something new!

To check pricing on healthcare services through the BuildMyBod Health platform from a doctor near you, click here. Or to sign up as a provider and offer pricing information to consumers in an automated way and generate leads, click here.

Click here for the original blog post written by Dr. Kaplan for BuildMyBod.

The post Dr. Kaplan speaking at AACS in Orlando first appeared on Plastic Surgeon San Francisco | Pacific Heights Plastic Surgery.

What’s in store at the MAX Expo?

Dr. Kaplan’s TED-style talk at the MAX Expo will be about customer service in healthcare. The premise is based on words of wisdom from John DiJulius, the customer service guru at the DiJulius Group of Ohio.

Mr. DiJulius states that your business should strive to provide such excellent customer service that the price will be irrelevant. In other words, the cost is not a primary concern because the product or customer service are so worth it.

As Dr. Kaplan argues here, this is true when it comes to a cup of coffee because the consumer has a general baseline understanding of the cost of coffee. Maybe it’s $1.50 in a diner, $5 at Starbucks and maybe the greatest coffee ever is $10. So while price may be irrelevant, the consumer still has a basic idea of their potential out-of-pocket expense.

Not so with healthcare. The consumer has no baseline understanding of cost. Sure there are online sites that provide averages but when it comes down to it, that’s not helpful or actionable. Dr. Kaplan will show how a Price Estimator (like the one from BuildMyBod Health), allows the healthcare provider to provide accurate pricing to the consumer based on their insurance plan through what’s called an allowable. This is the out-of-pocket amount the facility is allowed to charge the patient.

During Dr. Kaplan’s talk, he’ll explain that in fields other than healthcare, great customer service can make pricing irrelevant. When it comes to healthcare, it’s actually price transparency that leads to a patient experiencing great customer service. Through price transparency, the consumer isn’t confronted with surprise bills or learning how much they owe after a procedure. Now how’s that for customer service!

Click here for the original blog post written by Dr. Kaplan for BuildMyBod.

The post Dr. Kaplan & BuildMyBod Health speaking at MAX! first appeared on Plastic Surgeon San Francisco | Pacific Heights Plastic Surgery.

Price is part of the customer service package

Within healthcare, good customer service is evident in several ways: the front office staff that quickly says hello to the patient walking in the door, offering them something to drink, returning their calls, bringing them back to see the doctor as soon as possible. But part of customer service in healthcare is also answering the patient’s questions about their treatment plan or diagnosis.

A patient would never return to a doctor that avoids the tough questions. How can I get my blood pressure under control? What are my treatment options? Well, in many cases, the toughest question a patient asks a doctor or doctor’s staff is avoided. How much will this cost?! It’s unacceptable that a patient is expected to undergo a treatment without knowing the cost.

Getting a surprise bill should qualify as bad customer service. If you’re upset that the front office staff was rude to you, you should be equally or more upset that they just screwed you by sending you to the hospital for an X-ray that could have been done for a third of the price at an outpatient facility. You paid more because the office didn’t take the time to see if a less expensive facility accepted your insurance. Or maybe it was less expensive just paying cash irregardless of insurance status.

Not assisting patients with determining their out of pocket expense is bad customer service, plain and simply. Granted, determining that cost is not always plain and simple but that’s becoming easier with online resource for price transparency.

Price is irrelevant, until it’s not!

As John DiJulius enjoys saying, if customer service is excellent, price becomes irrelevant. This is true in most cases because the consumer has an idea of what the expense will be for poor and great customer service. They have a baseline. They have a comparison. Not in healthcare. The out of pocket costs can vary widely. The consumer must do their research or better yet, enlist the help of an office staff that provides great customer service to determine their out of pocket cost.

Click here for the original blog post written by Dr. Kaplan for BuildMyBod.

The post Price should be part of the customer service package in healthcare first appeared on Plastic Surgeon San Francisco | Pacific Heights Plastic Surgery.

Sales funnels: a review

As any business that works directly with consumers knows, much of your time is spent online, generating leads. When a consumer arrives to your website, we rely on buttons or links – a call to action – to galvanize the consumer to give us their contact info (a lead) in exchange for more information.

If you imagine a sales funnel like the one above, your business can potentially gather many leads and nurture their passage from the top to the bottom of the sales funnel. They may enter your sales funnel at any point from top to bottom. However, initially, everyone starts at the top of the sales funnel. But maybe they started in someone else’s sales funnel before finding your site? Let me explain.

Every consumer initially recognizes a problem they have and then starts looking for an answer to that problem. In a very general sense, they’re already progressing through a sales funnel without even knowing it. A commercial or ad makes them realize there’s a solution to their problem. This is when they start their research phase (at the top of the funnel). As they do more research, hopefully they find your website. By then, they may be ready to commit to a medical or cosmetic treatment. So while they initially entered the funnel at the top, they could be entering your funnel towards the bottom, ready to “request a specialist” or “book online” as in the funnel diagram below. In other words, by the time they “meet” you or your facility online, they could be ready to make a decision.

And that’s great when someone enters your office or facility ready to book a procedure. That means you caught them at just the right time, towards the bottom of the funnel. But what about everyone else within that sales funnel (as denoted by the ‘?’)? They’re still interested in your services. They’re still a potential client. So don’t dismiss them just because they’re not as ready to book at the moment. Eventually they will be.

It’s a marathon, not a sprint

There’s no better feeling than someone responding to your call to action and booking immediately. But not everyone is there. So even though it may take a consumer longer to make a decision to move forward with treatment at your facility, it’s still worthwhile capturing them as early as possible in their journey. As I stated, everyone initially enters the funnel towards the top, at the beginning of their research process. Therefore, it would behoove you to ensure they’re entering your funnel at the top, not some other provider. A lead is important, no matter where they are in the funnel. Better to capture and nurture as many leads as possible because eventually, statistically, they’ll be paying patients.

So what’s the best call to action to capture everyone from the top to the bottom of your funnel? A call to action that taps into everyone’s curiosity: how much the procedure costs! That’s right. Price transparency, as embodied by a “Get a Quote Now” button ensures that you’ll generate a ton of leads for your practice. With this Price Estimator type of call to action, the consumer submits a “wishlist” containing their procedures-of-interest along with their contact info. The consumer immediately receives a cost estimate and the provider receives the consumer’s contact info – the lead.

Again, they may not all be ready to book at that very moment. But as I said before, they’ll eventually get to the bottom of that funnel so best to know who they are early on. If you have a consumer’s email address early in their research phase, you can remarket to them via an email marketing campaign.

Those that need time to decide will eventually move forward. Chances are they’ll take the path of least resistance and go to the doctor (you!) whose email newsletter is sitting in their inbox. And even if they still don’t come in for treatment, they could forward your email to a family member or friend that’s looking for a doctor.

How long will it take to convert a lead?

You have to be willing to capture leads and wait. Certainly some will convert quickly but most will take time. A recent review of leads from our price transparency website revealed something very interesting. Consumers that submitted three or more “wishlists” to a doctor  waited 41.4 days on average between submitting each of their wishlists. Keep in mind, that’s the average. The minimum time between pricing inquiries was 10 seconds, while the longest was 3.6 years!

Regardless, don’t kid yourself. Healthcare is more competitive than ever. Resting on your laurels waiting for referrals isn’t good enough. More consumers are going out of network and shopping around. Capturing leads is critical to provider success. And hopefully, by now, you’ll agree there’s no better way to capture leads than through price transparency!

Click here for the original blog post written by Dr. Kaplan for BuildMyBod.

The post Price transparency and sales funnels first appeared on Plastic Surgeon San Francisco | Pacific Heights Plastic Surgery.

The knowledge gap in healthcare

The article above tells the story of a family taking their 3-year old to get an MRI for a new-onset illness. They did some cursory work to determine their out-of-pocket cost for this service. They thought they had a general idea of the cost beforehand. A few thousand dollars probably. Their bill ended up being $25,000. This was partly because they chose to go outside of their Obamacare-exchange insurance network.

Yes, this is expensive and yes, there are hidden fees at some facilities. That was the point of the article. But there is an underlying knowledge gap that led to the decisions on the part of the family, and even the facility, where the MRI was done. That was not the intent of the Vox article. Let me explain.

Extending bad insurance to more people isn’t the answer

First, Obamacare exchanges provide insurance for more of the population that what was available pre-ACA. The article correctly points out that it made insurance more affordable to the consumer. But did didn’t change the underlying cost of healthcare. But what is also missed by the consumer is that you can’t solve the healthcare crisis by extending bad insurance to more consumers. Not everyone takes these Obamacare exchange insurance plans because they reimburse so poorly. As in this example, Stanford Hospital didn’t accept the family’s plan because of low reimbursement from the insurance company. So the family was forced to pay the costs out of pocket. This leads to another example of a knowledge gap.

Don’t go out of network for standard procedures

While the family was forced to pay out of pocket because they went out of network, going out of network wasn’t necessary in the first place! The family thought that they should get the MRI at a hospital that specializes in that particular disease process. What they didn’t understand is that an MRI is an MRI is an MRI. No matter where you get it. An MRI is a commodity which means it’s essentially the same test no matter where it is performed. So best to get it in-network and avoid the costly out-of-network rate.

Sometimes, even the facility doesn’t know what they’re talking about

The next example of a knowledge gap was on the part of the facility. When the family called around asking about pricing, my guess is they “simply” asked about the cost of an MRI or more specifically, the cost of an MRI for a 3-year old. The distinction is critical and I would argue the facility didn’t appreciate this distinction when providing an estimate beforehand. You see, an MRI requires the patient to stay perfectly still for the better part of an hour. While some adults may be able to do this, clearly a 3-year old child can not. So part of the $25,000 bill from Stanford was for an anesthesiologist and placing the child under general anesthesia for the MRI. Placing a child under general anesthesia for an MRI may sound unusual but it is necessary for a study (MRI) of this nature.

Yes, the cost of healthcare is critically important. While checking pricing on healthcare services is easier than ever, it can’t completely fill the knowledge gap. Parents will continue to think they’re doing the right thing by getting insurance, even if, unbeknownst to them, few facilities will accept it due to poor reimbursement. Consumers will still think they have to go to the most well known institution for a test that can be done anywhere (and probably for less). And ultimately, the consumer’s knowledge gap is no match for knowledge gap exhibited by the facility for their own services!

Click here for the original blog post written by Dr. Kaplan for BuildMyBod.

The post The knowledge gap in healthcare is wider than I realized first appeared on Plastic Surgeon San Francisco | Pacific Heights Plastic Surgery.

What’s the difference between the free market rate and the negotiated rate

The negotiated rate is the amount the insurance company “negotiates” on your behalf as a consumer. They negotiate the amount they will pay the doctor or the hospital or X-ray facility for example. How they arrive at these negotiated rates? We may never know!

But here’s the interesting thing. Even if you’re paying for a service out of pocket to an in-network doctor or facility, you would still pay the negotiated rate. Again, the insurance company negotiates this rate for you even if they themselves don’t end up paying for it. We’ve come to expect that the negotiated rate is the best rate, but it’s not. And that’s what brings us to the concept of the free market rate.

The Free Market Rate

The free market rate is what some doctors and facilities (like this one and this one) charge for services. The facility has left the insurance company out of this discussion. They come up with a charge that covers their expenses for whatever services they’re providing, plus a reasonable profit margin. Yes, that’s right, it’s still ok to make a profit without sticking it to the consumer. But at the end of the day, the free market rate will be less expensive than the negotiated rate. Why? Because the insurance company’s bureaucracy has been left out of the decision-making process.

The facility doesn’t submit your claim to the insurance company for payment when you pay the free market rate. The idea is that if you have a high deductible, you’re paying for the service out of pocket no matter what. Might as well pay the most affordable rate – the free market rate. While the facility or doctor doesn’t submit this for insurance, you can still send your receipt to the insurance company so that it counts towards your deductible.

Now, you may be thinking, let’s just submit it to insurance to see if they cover it. Don’t do that! If you try to submit something to the insurance company and they don’t cover it because you haven’t met your deductible, then you’re stuck with the negotiated rate. You can’t go back and ask for the free market, or cash-pay, rate because the facility has already gone through the process of submitting your claim to the insurance company.

Now that you’re armed with this knowledge, your next step is to check pricing from a facility near you, which you can do by clicking here.

Click here for the original blog post written by Dr. Kaplan for BuildMyBod.

The post Free market rate vs the negotiated rate first appeared on Plastic Surgeon San Francisco | Pacific Heights Plastic Surgery.

MGMA 2017: Empower

According to the MGMA website,

Medical Group Management Association (MGMA) is the premier association for professionals who lead medical practice. Since 1926, through data, people, insights, and advocacy, MGMA empowers medical group practices to innovate and create meaningful change in healthcare. With a membership of more than 40,000 medical practice administrators, executives, and leaders, MGMA represents more than 12,500 organizations of all sizes, types, structures and specialties that deliver almost half of the healthcare in the United States.

Price Transparency and Lead Generation

Price transparency is one of the biggest buzzwords in healthcare these days. Dr. Kaplan’s talk is, “Build your practice through price transparency and lead generation” 

He’ll start with a discussion of the new healthcare consumer. This new consumer is less beholden to their healthcare plan. They’re paying more out of pocket and therefore want the most affordable option. Surprisingly, their in-network negotiated rate isn’t always the least expensive. With a more inquisitive consumer, they search out the best option, taking quality and cost into account. They figure, “if I have to pay out of pocket because my deductible hasn’t been met, then I need to find the best price for my budget.”

With this understanding, Dr. Kaplan will point out that the cosmetic surgery patient has thought like this for years! Aside from checking reviews and other quality measures, they’re curious about price since they’re paying out of pocket.

Similarly, the cosmetic plastic surgeon has been navigating this type of consumer-driven marketplace for years as well. For that reason, plastic surgeons dealing with cosmetic, cash-pay patients can offer guidance to doctors offering medically necessary services that are typically paid out of pocket because a deductible hasn’t been met within a high-deductible health plan.

To capture and retain these cash-pay patients, Dr. Kaplan has developed a platform to allow consumers to check pricing automatically on the doctor’s website but only after the consumer provides their contact info. This way, everyone wins. The consumer gets pricing information they’re so desperately seeking and the healthcare provider generates a lead for patient follow up.

To check pricing from Dr. Kaplan, use the BuildMyBod Health platform here.

Click here for the original blog post written by Dr. Kaplan for BuildMyBod.

The post Dr. Kaplan speaking at MGMA 2017 first appeared on Plastic Surgeon San Francisco | Pacific Heights Plastic Surgery.

FMMA: Join the Healthcare Revolution

According to the FMMA website,

“The Free Market Medical Association’s goal is to Unite and strengthen the benefits of free market healthcare.

We facilitate and assist:

• Patients finding free market doctors.
• Free market physicians growing their practice.
• Facilities being able to run their businesses like a business.
• Business owners who want to provide quality affordable healthcare for their employees.

Our mission is to unite all of the “Islands of Excellence” in healthcare and accelerate the speed and growth of the free market healthcare revolution.”

Price Transparency and Lead Generation

Price transparency is one of the pillars of the FMMA, which is the topic on which Dr. Kaplan will be speaking. His talk, entitled, “Think like a Plastic Surgeon: Combine Price Transparency with Lead Generation!” will take the audience through a journey.

He’ll start with a discussion of the new healthcare consumer. This new consumer is less beholden to their healthcare plan. They’re paying more out of pocket and therefore want the most affordable option. Surprisingly, their in-network negotiated rate isn’t always the least expensive. With a more inquisitive consumer, they search out the best option, taking quality and cost into account. They figure, “if I have to pay out of pocket because my deductible hasn’t been met, then I need to find the best price for my budget.”

With this understanding, Dr. Kaplan will point out that the cosmetic surgery patient has thought like this for years! Aside from checking reviews and other quality measures, they’re curious about price since they’re paying out of pocket.

Similarly, the cosmetic plastic surgeon has been navigating this type of consumer-driven marketplace for years as well. For that reason, plastic surgeons dealing with cosmetic, cash-pay patients can offer guidance to doctors offering medically necessary services that are typically paid out of pocket because a deductible hasn’t been met within a high-deductible health plan.

To capture and retain these cash-pay patients, Dr. Kaplan has developed a platform to allow consumers to check pricing automatically on the doctor’s website but only after the consumer provides their contact info. This way, everyone wins. The consumer gets pricing information they’re so desperately looking for and the healthcare provider generates a lead for patient follow up.

To check pricing from a doctor in your area, use the BuildMyBod Health platform here.

Click here for the original blog post written by Dr. Kaplan for BuildMyBod.

The post BuildMyBod Founder Speaking at FMMA Annual Meeting first appeared on Plastic Surgeon San Francisco | Pacific Heights Plastic Surgery.

The consumer then checks pricing specific to that doctor when they submit a “wishlist” along with their contact info. The prospective patient gets pricing info and the doctor receives their contact information to navigate them through the healthcare process. The beta test will run over 6 months.

The American Society for Aesthetic Plastic Surgery is always looking for new ways to educate patients. And price transparency is a critical part of that education. At the same time, the Price Estimator allows ASAPS to support their member surgeons through lead generation.

While having a Price Estimator on the ASAPS site is only for ASAPS members, any type of doctor or facility that offers medically necessary services paid out of pocket because a deductible hasn’t been met can have a Price Estimator on their own site. Just click here and create a provider account. If you’re a consumer and looking for pricing info from Dr. Kaplan, click here.

Watch the BuildMyBod Health Price Estimator in action on the ASAPS website

Click here for the original blog post written by Dr. Jonathan Kaplan for BuildMyBod.

The post ASAPS beta testing the BuildMyBod Health Price Estimator first appeared on Plastic Surgeon San Francisco | Pacific Heights Plastic Surgery.

Click here for the original blog post written by Dr. Jonathan Kaplan for Medical Economics magazine.

The post Attention healthcare providers: You all need to think like a plastic surgeon! first appeared on Plastic Surgeon San Francisco | Pacific Heights Plastic Surgery.