The Case for Loyalty in Healthcare

For health organizations, earning the loyalty of patients and their families), providers, and staff presents an essential competitive advantage. National Research Corporation enables our partners to leverage ingenuity and resources—in ways they never have before—to improve the wellbeing of those they serve—and in turn, build lasting trust.

A recent JAMA perspective on loyalty found that in the Pioneer ACO program, which included 806,258 patients, only 62 percent of patients remained in the ACO at the end of year one—a 38 percent patient turnover rate. And the experience is not limited to geographic regions or patient sub-groups. In the Physician Group Practice Demonstration—a precursor of the ACO program—60 percent of 836,072 patients moved between practices and care settings during the first year of the program. Most patients are simply not loyal; but why does that matter?

Loyalty for Health

Patient loyalty is fundamental to managing costs and building healthy populations. Research from the Patient Centered Primary Care Collaborative in 2008 shows that those who have a regular relationship with a primary care doctor or “healer” cost the health system one-third less and experience a 19 percent lower mortality rate over a 15-year window than those who can’t name their primary care doctor. A similar, post-ACA study by UCLA in 2015 found similar outcomes: patients who are treated by the same doctor on a regular basis go to the emergency room/are hospitalized less frequently than those who bounce between multiple providers.

And thus, loyalty—the enduring bond between the customer, patient, provider, and health system, this sacred relationship built on trust, shared understanding, mutual respect, and the desire to help—is one of the greatest opportunities for health organizations and the communities they serve.

Loyalty for Growth

Additionally, expanding loyalty and trust, between patient and provider is good for business. Improving customer-centricity in a fee-for-service environment has the potential to increase market share, earn repeat business, and, improve regulatory reimbursement.

As explored by the Advisory Board Company, the average hospital can generate more than $22M in revenue through a 10 percent increase in patient loyalty. And, the same hospital stands to gain approximately $424K by moving from worst to best performance for HCAHPS measures.

How does NRC enable its partners to overcome barriers to loyalty?

What is keeping health organizations from building strong relationships with those they serve and earning their trust? A lack of information ¬– not knowing what it takes to deliver an exceptional experience to those they serve; not understanding what matters most to each person—or when. NRC’s solutions provide insight into the key moments when health organizations can earn this trust and drive loyalty.

By capturing longitudinal and deeply personal experiences, perceptions, and insights related to care, NRC powers a new benchmark (and the only one that matters), N=1, to help our clients exceed the expectations of each person they serve.

By translating data into insights that illuminate the full journey, we believe our partners will be positioned to ensure each individual receives the care, respect, and experience he or she deserves. By developing a longitudinal profile of our customer’s healthcare needs, experiences, and gaps along the journey—before, during, and after each experience—we believe better insight can not only coach organizational improvement and improved provider and staff engagement but also result in the lasting relationships required to build healthier communities.