new paradigm of health
A healthy shade of green: why a commitment to sustainability can help your healthcare brand mean more.
Fall 2009
A HEALTHY SHADE OF GREEN Something is happening. With the way we live, work and interact with the world around us. We are starting to look deeper into our everyday activities for greater value and meaning. We are paying greater attention to the organizations behind the products we buy and looking to understand what they stand for – what they mean to their stakeholders, their consumers and our world. As a collective, our health and wellbeing is moving to center stage, and it is taking on a new meaning for us all. This new meaning doesn’t just come from an understanding of personal health or an appreciation for environmental sustainability. It comes from the intersection of the two, and how that intersection can and should be sought, promoted and championed at every turn. This is a call to action being heard by groups and corporations across the globe.
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Health is about more than the prevention of illness or the avoidance of disaster. It is about sustaining and proactively pursuing a better quality of life. There is, then, a strong correlation between those efforts devoted to health, and those devoted to sustainability – both seek to preserve and protect the people and the resources that contribute to the overall wellbeing of the world. Indeed, sustainability as a concept has moved rapidly in the past two decades from being the mantra of a small, devoted group of environmentalists, to being the buzzword that is catapulting businesses in every sector into the sights of the 21st century consumer. Where once the term connoted only efforts to balance consumption and replenishment of the earth’s resources, it is now the purview of any organization striving to maintain the wellbeing of the planet and its inhabitants through a mindful and responsible reduction of harmful consumption habits. As a company focused on cultivating the brands that endeavor to change the health of the world, we wanted to know how the “green movement” impacts the delivery of healthcare. What does it mean for a health provider to pursue sustainability? Is it a natural outgrowth of their commitment to the physical health of the community? Is it an ethical responsibility that should be at the foundation of their brand strategy? If so, why? Where, amidst the clinical commitment to provide care, does the more global imperative to take care of the health of the world fall? In early 2009, HBG Health surveyed providers and consumers from around the country to gauge how those in the healthcare space are – or should be – thinking about sustainability, and how it connects to who they are as organizations and what they want to mean to their communities. The findings from the online survey, combined with our own observations of the healthcare space and insights from conversations with
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clients, informed our perspective on this important topic. The discussion that follows illustrates that sustainability and health are inextricably linked, and to form a commitment to one as part of your inherent identity as an organization suggests an obligation to form a commitment to the other.
A new paradigm of health Today more than ever before, people are focused on wellbeing, new paradigm of health from a personal, environmental and even corporate standpoint. As we move closer and closer to a tipping point in our collective welfare, there is emerging an unprecedented sense of urgency to be responsible citizens of our world. From the cars we buy, to the food we eat, consumers are increasingly attuned to the repercussions of their actions and their inherent responsibility to preserve and protect both themselves and the world around them. Such a mindset naturally, and perhaps inevitably, has given way to a change in the meaning of health. Health is no longer understood simply as the absence of illness, but also as the presence of wellness. In this sense, health has become a more macroscopic term, and pursuing it means cultivating the wellbeing of the whole rather than troubleshooting the issues of one. In the same vein, sustainability now means something more than just environmental stewardship. It is more comprehensive. More relevant. It calls upon individuals and organizations alike to understand their place in the bigger picture, and to recognize that their actions need to communicate a responsible and proactive participation in a more robust, healthier value proposition. For there is a clear thread that connects our passion for health with our obligation for sustainability: caring for the environment is inextricably linked to caring for human life, so efforts directed at protecting the planet ultimately benefit and support all those who inhabit it. And so a new paradigm of health emerges, and with it a new opportunity for connecting with the masses. Companies, products and services that connect to this umbrella of health are able to resonate with consumers in a more lasting and ultimately a more meaningful way than ever before. Indeed, those organizations that exhibit a sense of responsibility for their consumers are establishing themselves as the cornerstones of a greater collective movement toward meaning something more. Business is already taking notice of this reality. From consumer products to manufacturing, greater attention is being paid to what a company stands for, rather than to what it sells. From corporate social responsibility departments to products that offer health benefits, from sustainable materials to philanthropic missions; there is an overwhelming cadre of support for this movement. But where do providers of healthcare stand?
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DO HOSPITALS HAVE AN ETHICAL RESPONSIBILITY TO CARE FOR THE HEALTH OF THE PLANET? Organizations of all kinds are embracing an ethical imperative to consider their impact on a much larger scale. But what about the most obvious of organizations? What does it really mean to pursue sustainability in healthcare? In our survey, over 65% of consumers indicated that it was “important” to “very important” that healthcare providers pursue sustainable initiatives. More than that, 40% believe that healthcare providers have an ethical obligation to be sustainable in their practices. Such results indicate that consumers understand that when making a commitment to health, healthcare providers are de facto making a commitment to care – for the body, the community and, ideally, the planet. And providers themselves are taking note. Of the providers surveyed, 77% believe that it is “important” to “very important” that healthcare providers pursue sustainability. They believe it isn’t just about responsible waste management, or sustainable facility standards (though those are recognized initiatives across the board). To pursue sustainability means to pursue a greater level of accountability across the entire organization – from patient care, to employee satisfaction, to the use of resources. In fact, 75% of those providers who feel strongly about the responsibility of healthcare providers to maintain a sustainable organization believe that employee health initiatives should be included as one way to become more sustainable. There is, then, an inherent and underlying recognition that to pursue sustainability requires reaching out to people in multiple ways to prevent the deterioration of not only the planet, but of the quality of human life that is so frequently impacted by lack of good health. Providers and consumers agree on the five most important sustainability initiatives for healthcare providers to implement.
Recycling programs
59%
Efficient energy use
56%
Employee health initiatives and programs
40%
Use of technology to reduce consumption
67%
54%
44% 49%
Pollution reduction programs
33% 10%
20%
30%
46% 40%
50%
Consumers
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69%
60%
70%
Providers
Realistically, of course, there are a myriad of stumbling blocks for any organization in the pursuit of sustainability, especially in the healthcare space where patient safety, satisfaction and outcomes are king. Nevertheless, it is apparent that organizations are beginning to overcome those obstacles and are trying to practice what they preach: 68% are actively pursuing up to six of the 12 initiatives listed in our survey, and 27% are pursuing seven or more. Representing organizations of every shape and size, our provider group demonstrated a firm commitment not only to the idea, but also to the practice of sustainability in their field. Furthermore, they reinforced that sustainability is a universal and comprehensive undertaking that should be treated as a mission, rather than as an isolated initiative. The paradigm of care has changed, and with it the breadth and depth of the responsibility healthcare providers take on as part of their commitment to all of their stakeholders has changed as well.
CHOOSING TO CARE MORE COMPLETELY For every organization, whether or not to actively pursue sustainability is a strategic decision. It is a much larger endeavor, as our respondents proved, and to take it on requires the buy-in and support of those at the top. Fortunately, there are some compelling reasons to embrace sustainability from a business perspective, not the least of which are the proven long-term cost savings to be garnered by streamlining operations and creating more efficient, more effective healthcare entities. Beyond the financial feasibility, however, for leaders the efforts reflect a deeper commitment to the consumer experience on every level. Not only does the pursuit of this new paradigm of health create more relevance for providers, it begets a more complete, more impactful patient experience – a key driver in customer loyalty. Indeed, 40% of consumers surveyed said a provider’s commitment to sustainability would positively impact where they choose to receive medical care. There is, then, a powerful opportunity to connect with this sentiment, and recognize the implications of a better and more meaningful relationship with consumers. Of course, patient experience and satisfaction are already on the top of the priority list for providers. In fact, 76% of surveyed providers indicated that patient experience was “very important,” in numbers that out-rank innovation, research, community outreach, accessibility and even sustainability in that category. However, the findings suggest that the patient experience is about more than superior quality of care. It is about care that transcends medical attention and encompasses the wellbeing of all stakeholders through the actions and values of the organization as a whole, and how they impact the community in which they reside. We believe there is a powerful connection between
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the desire to deliver an outstanding patient experience and the role sustainability can play in supporting the core mission of the healthcare provider. Both are, fundamentally, a pledge to care more completely. Because sustainability is clearly, at its heart, about the overall contribution that any healthcare organization is making toward the betterment of the health of the world, the responsibility for such initiatives must lie at the top. In our survey, when asked who was most proactive in pursuing sustainability initiatives, most of the results pointed to facilities management, rather than the executive team. However, to pursue and promote sustainability is not an operational decision. Rather, it is one that should take into account the mission and value proposition of the organization. Therefore the onus is, and should always be, on the leadership team to drive this new dimension of care.
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MEANING SOMETHING MORE These findings suggest that every healthcare provider has the opportunity to resonate with audiences in new ways when they commit to sustainability, but in order to do so they must take the steps to integrate their efforts into the very DNA of their organization. A brand for any healthcare organization is not simply a tagline. It is the very essence of the promise to care. It is the embodiment of all those elements of mission, vision and value proposition. And a commitment to sustainability on any level is a significant dimension of each of these elements. Such a commitment could positively influence consumers in their choice of where they receive care; clearly it needs to be an integral part of the brand story. Indeed, sustainability should become part of the organization’s identity and integrated into messaging at every touch point. Connecting to the new model of health outlined here is no small task. It means re-evaluating a brand’s position not only in the competitive landscape but within the organization as well. Brand is an ideal vehicle for such a transformative process and should be tailored and nurtured to express in a clear, concise and powerful way those attributes and initiatives that are fundamental to differentiating the organization. In the increasingly competitive, complex and commercial world of healthcare, organizations that want to take a leadership position on sustainability have the opportunity to mean something more. Connecting the importance that consumers place on the protection of the planet with the ability healthcare providers have to protect health in a broad sense is a powerful platform that should be embraced fully. And whether only some providers embrace this thinking – or they all do – as citizens of the world, we will all come out winners. new paradigm of health
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How providers are bringing sustainability to the forefront. Throughout the US, there are numerous provider organizations that have embraced a commitment to sustainability. But when asked to grade themselves in our survey on how successfully they were executing a sustainable agenda, providers who were doing the most still only gave themselves a “C” on average. Interestingly, only one respondent then indicated that their initiatives were very connected to their brand. Clearly, there is an opportunity to better integrate sustainable efforts with how an organization goes to market. The following best practices from the front lines of healthcare demonstrate how two providers are using sustainable business practices to help differentiate their brands.
Legacy Health, a five-hospital system based in Portland, Oregon, has always strived to reflect the values of the citizens it serves. And being in one of the “greenest” states in the US, it is only natural that this healthcare system has taken a sustainability leadership position. For the second year in a row it has received the prestigious System for Change award from Practice Greenhealth for 2009. This award recognized only six health systems nationwide for working cohesively to gather data, set system goals, benchmark and share successes in environmental performance. Legacy has also recycled 53% of its waste and works with local farmers to serve locally grown and organic foods. But, perhaps the greatest success is how the system has connected this important operational pillar with its brand. When it adopted “Our Legacy Is Yours” as its brand strategy, it reinforced the organization’s commitment to more than just personal health, but to preserving our planet for generations to come. Visit legacyhealth.org
Sherman Health, Sherman Health’s new hospital in Elgin, Illinois, is set to open in December 2009. With it, Sherman will be one of only two US medical centers that is heated and cooled using geothermal energy, one of the cleanest and most efficient energy resources around. But Sherman’s commitment to green healthcare goes beyond its 15-acre lake. It has also focused on the small things, such as using ARAMARK Healthcare’s “Green Threads” program that leverages reusable carry-out bags and mugs and fair trade and organic shade-grown coffee. From a brand standpoint, Sherman’s identity is refreshing coming from a healthcare provider, and perhaps not coincidentally, the bright sun, blue water and green landscape in its logo speak more to the health of the planet than to the health of patients. Visit shermanhealth.org
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ABOUT HBG HEALTH At HBG Health, we cultivate the brands that endeavor to change the health of the world. For more than 25 years, we have been privileged to experience firsthand the changing health paradigm and its impact on how leaders of healthcare enterprises pursue new thinking as they shape their organizations for future success. As brand innovators, we have helped leading health organizations develop new strategies for their brands that allow them to mean something more in the world. Sustainability, and its pursuit, can only enhance this mission, and will inevitably work to create a more resounding, more loyal and ultimately more involved community of support. How do you see sustainability transforming health brands?
Jeffrey A. Nemetz Founder, HBG Health 312 646 7004 jnemetz@thinkhbg.com 10 W. Hubbard Suite 5W Chicago, IL 60654 web blog
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