Kendrick Colon & Rectal Associates, an out-patient, group practice with offices in Mooresville, Kokomo and Muncie Ind., had recently begun doing laser surgery for its patients who suffer from hemorrhoid problems. The technique is state-of-the-art and has tremendously decreased the amount of pain traditionally associated with this type of surgery. Unfortunately, many people who could benefit from this new surgery technique were unaware KC&RA provided the service.


With market research and advertising, however, the group has been able to increase its patient load considerably. In fact, after the group began running print advertising in December, 1986, through February, 1987, it attracted 100 more patients each month between January and March than it did last year and, within 60 days, recouped the entire cost of the market research project.

Prior to embarking on its market research campaign in the fall, 1986, the clinic wasn't bringing in as many patients as it wanted for several reasons. Even though the group has 6,000 patients, its 15-member staff (five physicians and 10 support staff) never advertised and thus were virtually "unknown." Instead, the group relied heavily on the way many physicians and group practices have traditionally attracted more patients - from patient referrals and word-of-mouth. According to Sally Stellhorn, office manager at KC&RA, 98% of its business is gotten this way. Furthermore, the physicians were leery of advertising because the medical community has "just never done it. Besides," adds Stellhorn, "how do you advertise something like hemorrhoids?"

There was yet another reason why the patient load wasn't increasing: Physicians outside of the practice were unaware of the services KC&RA provided and thus were not referring any new patients.

Market opportunities

Although KC&RA believed patients would utilize this type of surgery, the group wanted to find out if there were market opportunities for the product, how big those opportunities were and if there were any weaknesses in the product. It was also interested in finding out if any competitors were offering the same type of service. Moreover, it wanted to find out how it could improve any service weaknesses with its current patients, such as long waiting periods and, improve its information channels to other physicians and the public so as to attract more patients.

To get some answers to these questions, the group sought the help and advice of a Michigan-based market research firm. Prior to the group's initial contact with the firm, the physicians and support staff got together and outlined their marketing goals:

(1) Increase the number of patients the group was currently seeing by 10%;

(2) Direct information to the referring patients to let them know what the group does and what it specializes in;

(3) Change the atmosphere of the office to let patients know that the physicians and support staff have a sincere concern for them.

Preliminary research

Stellhorn says initially, the researchers interviewed the support staff and physicians to find out what they do, what the group was like and what they wanted the referring physicians to know about the group. The researchers also contacted some referring physicians to find out what they wanted to know about KC&RA.

Next, the researchers conducted a patient satisfaction survey to find out from the group's patients if there were any service problems, any sensitivity to going to a hemorrhoid physician and in recommending a hemorrhoid physician to the patient's family or friends.

From the physicians, the researchers wanted to find out what their goals were, how many hours they were willing to work, what kind of patient inquiries they were getting, how they were following up on those inquiries and, what their patient-relationship skills were like.

Next, using the group's patient list, the researchers conducted a telephone survey of 400 KC&RA patients to get their impressions of the group and their satisfaction with the kind of service the group provided.

The types of questions the researchers asked the patients were: How did you learn about the group? What were your impressions of it? How do you feel about the physicians? What procedures were performed? What kind of service and care did you receive?

Stellhorn says the patients did not give the group any negative comments but said they needed information about the group's laser surgery technique, what the technique was about and what it was capable of doing. The patients also wanted to be reassured that the surgery was less painful than other traditional hemorrhoid surgery procedures.

Print advertising

For the first time, from December, 1986, through February, 1987, the group began running ads in suburban newspapers, union publications and trade magazines. The ads explained the laser surgery technique and reassured people that it's a less painful, easier and more comfortable surgery today compared with what it used to be. Some of the ads also pointed out that the surgery is something that many times may be performed on an out-patient basis, thus eliminating the need for a lengthy hospital stay and, that other non?surgical alternatives to hemorrhoid care are available.

One ad which appeared in the Indianapolis Star and News and the city's suburban newspapers read: "Advanced techniques, modern equipment, skilled physicians and the miracle of laser now make hemorrhoid treatment easier and more comfortable than ever before.

"There are several types of hemorrhoids, but they all have one thing in common: they can be treated..." "Now painful hemorrhoids can be cured with brief, comfortable treatments..." "Don't suffer needlessly..." The ad ends with "KENDRICK COLON AND RECTAL ASSOCIATES, Advanced technology...with a human touch."

Patient brochures

In addition, the group mailed out patient information brochures which explained the technique and even installed an "800" number so people outside the city, where many of the group's patients are from, could call for more information.

The number of calls the group has received with the "800" number is "overwhelming," says Stellhorn. The group has attempted to track all the telephone calls to find out where people have seen or heard about KC&RA but at times the lines have become so jammed that they have been unable to question each and every caller.

Stellhorn says the referrals from other patients have also improved, probably because of the visibility of the ads. To continue to boost referrals and to improve communications, KC&RA has started a newsletter which is sent regularly to outside physicians with information about the group and what it does.

KC&RA has been treating patients with hemorrhoids and other colon-rectal problems for several decades. According to one KC&RA physician, "Today, we are seeing the sons and daughters of patients we treated 20 years ago. They are understandably surprised that we offer laser and other advanced treatments, because they remember coming to see us with their parents. We feel that it is our responsibility to offer the most advanced and comfortable treatment alternatives."

Editor's note: The consultant for Kendrick Colon & Rectal Associates referred to in this article is Professional Practice Builders, a Farmington Hills, Mich., firm.