Not Yo Mamma’s Retirement Home

Why Kroger’s Has Better Technology Than Nursing Homes and Why It Matters

presented by Irving L. Stackpole

The Challenge of Occupancy

Why are occupancies poor?

What should be done?

What role can technology play?

Responding to a declining market

Defend, protect & fortify• Manage to Loyalty

Increase Productivity / Efficiency Innovate Differentiate

Myths

The aging population is growing

A rising tide “floats all boats”

People always get sick

Myth Buster

Occupancies are poor because the age qualified markets are declining

ALSO, occupancies are poor because of • Increased options / choices• Negative perception• The economy• “Intermediaries”

Kroger’s competes on ≤ 2% margins• Can retirement centers & nursing homes?

Stackpole & Associates, Inc.6

Population myth - headlines are not bottom lines

~6.4 mm @15%~ 960,000

What’s the problem?

Why are occupancies declining?

Is “Marketing” that bad? Is “Sales” that bad?

Stackpole & Associates, Inc.12

2014Born 1928

85 yoa

2020Born 1934

85 yoa

2017Born 1931

85 yoa

Negativity

Sector NOT thought of as the valuable resource it is …

They are seen as prisons – awful places – The “F” word– “Don’t want to put / place mom in a nursing

home.”– “I’d rather be dead.”

Deep metaphor of negativity

Stackpole & Associates, Inc.13

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Responding to a declining market

Defend, protect & fortify• Manage to Loyalty

Increase Productivity / Efficiency Innovate Differentiate

Stackpole & Associates, Inc.16

Source of Efficiencies

Employees– Key to costs / outputs

Are we getting more staff? Staff produce “patient / family experience”Staff produce Quality & Value

Stackpole & Associates, Inc.17

Stackpole & Associates, Inc.18

Productivity & Efficiency

Outputs for Inputs– Productivity ≠ Staff ReductionsSimple Efficiency– Purchase decision cycle – Time?Pull through

Case Managers, Consumers, Doctors“Actors”

Stackpole & Associates, Inc.19

EfficiencyTechnical, Productive, Allocative

–TechnicalMaximum improvement from resources

–ProductiveBest health outcome for given costs or

reduction in cost for the same outcome–Allocative

Best outcomes for society

Stackpole & Associates, Inc.20

Innovate / Add Efficiencies

Post Acute Care Transitions Hospitals

– Resident & Family satisfaction data– Transactional efficiency

Pharmacy & RehabHCBS

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Facts of Life The age qualified market is shrinking Continued pressure on payments Continued pressure on utilization Efficiencies & productivity are the

keys to effective differentiation

Responding to a declining market

Defend, protect & fortify• Manage to Loyalty

Increase Productivity / Efficiency Innovate Differentiate

Call or email Irving Stackpole+1-617-739-5900, Ext. 11

istackpole@StackpoleAssociates.comwww.StackpoleAssociates.com

Stackpole & Associates, Inc.

Bibliography

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Albrecht K. and Zemke, R. Service America. New York: Warner Books, Inc. 1985 Bruner II, G.C. , James, K.E., and Hansel, P.J. Marketing Scales Handbook: A compilation of multi-item measures, volume iii. Chicago: American Marketing Association. 2001 Chase, R & Dasu, S. Want to perfect your company’s services?: Use behavioral science. Harvard Business Review June, 2001. Cialdini, R. Influence: The psychology of persuasion. New York: Quill. 1993 Johnson, M & Gustafsson, A. Improving customer satisfaction, loyalty and profit: An integrated measurement and management system. San Francisco: Jossey-Bass. 2000

Parasuraman, Zeithaml and Berry. A conceptual model of service quality and its implications for future research. Journal of Marketing. 1985 Fall:41-50.

 

Bibliography

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Palmer, S and Torgerson, DJ. Economic Notes: Definitions of efficiency. BMJ VOLUME 318 24 APRIL 1999

Reichheld, F The Loyalty Effect: The hidden forces behind growth, profits, and lasting value. Boston: Harvard University Press. 1996

Stackpole. I. & Ziemba, E. Make Your Marketing P-P-P-P-Perfect, Care Management Matters, April 2008

Stackpole, I. & Ziemba, E. It’s Not What Your Say – It’s What People Hear!, Care Management Matters, June, 2008

Zaltman, G, Zaltman, L, Marketing Metaphoria: What deep metaphors reveal about the minds of consumers. Boston, Harvard Business Press 2008

Ziemba, E. Email Campaigns that Work. Care Management Matters, April, 2009

 

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