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Originally Published IVD Technology January/February 2005

Commentary

The diagnostics industry challenge: Telling our story

Jim Reid-Anderson
Jim Reid-Anderson is the chairman, president, and chief executive officer at Dade Behring Inc. (Deerfield, IL). He can be reached at james_reid-anderson@dadebehring.com.

As healthcare issues continue to take center stage around the world, those of us in the diagnostics industry are becoming increasingly cognizant of our critical role and potential in the healthcare system. We know that early and accurate diagnosis can reduce hospitalization times, support physician decisions, and help to prevent long-term illnesses. We know that diagnostics can have a significant impact on healthcare costs and saving lives. We understand our responsibility to design products that help our customers in the lab operate more efficiently and effectively so that they in turn can help control healthcare costs. However, we are also aware that our contributions and potential are largely unacknowledged outside the diagnostics industry.

We have come to recognize that we share a difficult challenge: raising the profile of the diagnostics industry and creating an appreciation of what we do—and of what we are capable of doing. Without an appropriate level of understanding and recognition, our impact may be significantly limited. With increased understanding and recognition, we can become an even more effective force in improving the global healthcare system and supporting physicians and lab professionals in saving patients’ lives and controlling healthcare costs.

Industry Perception Research

Figure 1. Consumer familiarity with diagnostics. Positive association with the terms “blood tests” does not carry over to “diagnostics (click to enlarge).”

Dade Behring Inc. (Deerfield, IL) has taken an initial look at the profile and reputation of the diagnostics industry. The company has sponsored global research to begin identifying and quantifying the size, scope, and nature of the industry’s challenge. Beginning with initial research in the United States, Germany, and France, the survey chose to ask questions first of consumers and physicians, since they are the ultimate users of diagnostics products, and physicians serve as important gatekeepers. In partnership with industry colleagues and organizations supporting the diagnostics industry, this research will hopefully be used in beginning to change current perceptions of diagnostics.

What the research found was perhaps not a complete surprise. However, it was nonetheless eye opening.

The research quickly revealed that using the right language is critical in building understanding, and that the word “diagnostics” does not resonate at all with consumers. However, when the term “blood testing” was substituted, consumers exhibited a great deal more enthusiasm, personal interest, and buy-in.

In fact, the survey data showed that approximately one-third of consumers in the United States either had heard of diagnostics but did not understand the term, or had never heard the term at all (see Figure 1). In Germany, the results were even more surprising, with more than half of those surveyed falling into one of the two categories previously mentioned and only 40% indicating that they had any real familiarity with diagnostics. Those who associate blood tests with “diagnostics” constituted only 6% in the United States and approximately 1% each in Germany and France.

Figure 2. Physician perceptions of blood testing. The vast majority of physicians believe that blood testing can save lives (click to enlarge).

On the basis of that evidence, the term “blood testing” was used as appropriate in the research to create more-accurate associations in the minds of consumers and physicians surveyed. The relevance of this finding is that setting the right context and using the right words can make a profound difference in the ability to communicate about the diagnostics industry.

The survey found that consumers and physicians have positive associations with blood testing or with diagnostics when deliberately connected to blood testing, in spite of the lack of understanding. Physicians in all three countries felt strongly that blood tests could help save lives, with an almost 100% positive response rate in the United States, followed closely by Germany and France (see Figure 2). A similar number of physicians in the United States, but far lower numbers in Germany and France, felt that laboratory blood testing would become more important in the future. And almost 100% of physicians in the United States and a significant majority in Germany and France felt that lab diagnostics are indispensable for physicians’ work.

Meanwhile, approximately 90% of consumers in all three countries felt that blood tests have value and contribute to ensuring the maximum health of the population (see Figure 3). In addition, consumers and physicians see accurate and early diagnosis in the context of blood testing to be important (see Figure 4). This store of goodwill among consumers and physicians is an incredible advantage that should be leveraged deliberately and strategically.

Figure 3. Perceived value of blood testing. Consumers see value in blood testing and want to be better informed (click to enlarge).

In spite of these positives, there is a significant, and potentially problematic, negative in the way that consumers and physicians view diagnostics: perceived costs (see Figure 5). The survey found that consumers in particular see blood tests and diagnostics as being expensive. Physicians and consumers in the United States felt that costs for blood tests were high, with approximately three-quarters of consumers tested in all three countries sharing concerns about the expense of diagnostics and blood tests.

Consumers and physicians also felt that while the value of diagnostics was high in relation to costs, high costs nonetheless were a reason for concern. In addition to building on the natural positive associations that consumers and physicians have for diagnostics’ role in saving lives, the diagnostics industry should be equally as strategic and assertive about correcting the misimpression of high costs.

The survey also found that among physicians, the diagnostics industry is seen as weak in certain key areas. Physicians were asked a particular set of questions regarding the strengths of the diagnostics industry compared with other related industries. The questions asked, among lab diagnostics, imaging, and pharmaceuticals, which industry is perceived as influential with a strong lobby, suffering from recent healthcare reforms, profitable, innovative, and research driven.

Figure 4. Belief in the value of diagnosis. “Diagnosis” becomes more meaningful and relevant in the context of blood testing—early and accurate diagnoses are very important to both consumers and physicians (click to enlarge).

As might be expected, pharmaceuticals ranked highest by a wide margin in all three countries in the categories of being profitable, research driven, and influential with a strong lobby. Imaging was seen as being most innovative in all three countries, followed closely by pharmaceuticals. Only in the category of perceived as suffering from recent healthcare reforms, and only in the United States, did diagnostics rank highest.

The conclusion is that the diagnostics industry is easily overshadowed by the sheer magnitude of pharmaceuticals and the widely recognized advances in imaging, such as the advent of MRIs. Left unaddressed, this weak perceived position could do long-term harm to the diagnostics industry, as all involved in healthcare face reimbursement issues across the world.

Summary of Findings

The survey found that, in spite of some differences between countries, consumer perceptions and experiences were remarkably consistent across the globe. Although consumers are more comfortable with the term “blood testing” and do not necessarily understand “diagnostics,” they do feel that blood tests have value, and they want to be better educated about them. While there is bad news in that consumers have profound misperceptions regarding the cost of testing, there is good news in that they have a store of goodwill about the diagnostics industry and are open to the message the industry needs to send regarding diagnostics: that testing can save both lives and costs.

Figure 5. Consumer perception of costs. Consumers see both blood tests and diagnostics as expensive (though blood testing has corresponding value) (click to enlarge).

While physicians vary more widely, from country to country as well as between hospitals and private-care physicians, they also see value in blood testing diagnostics. However, physicians believe that the costs of diagnostics are high and that not all tests are necessary. When they compared diagnostics companies with pharmaceutical companies in terms of innovation, profitability, and legislative impact, diagnostics companies scored far lower than pharmaceutical companies. Such information should cause diagnostics companies to look hard at their image and at the need to manage perceptions.

This research is only a beginning. The highlights discussed in this article are indicators of the need for additional examination and analysis, rather than a series of answers. We know that the store of goodwill identified among consumers and physicians opens doors for us. However, we have to decide together which doors to walk through, what image we want to build for our industry, and how best to build it.

Conclusion

Those of us in the diagnostics industry have a shared challenge and an incredible opportunity. Few industries have the potential as we do for making a positive impact on the worldwide economy and human life. This is a significant responsibility, as well as the chance to accomplish great good. After all, what we do is simple and powerful: saving lives while simultaneously reducing costs in the healthcare system and for our customers.

We need to make sure that the world knows this—and knows us. While it will be up to the diagnostics industry to determine the best approach to solving this challenge, we will also need to find a way to tell our story to customers, physicians, legislators, and all who have a stake in the long-term health and vitality of the diagnostics industry. While we could be content to let current perceptions stand, reimbursement pressures in many areas of the world demand that we examine the sources of our problems and seek appropriate ways to create change together.

With industrywide collaboration, we can correct misconceptions and better manage perceptions of what we do and what we contribute to healthcare. Clearly, we can better explain what good our industry does by utilizing simple messaging. We need to demonstrate the value of diagnostics and communicate that we are part of the solution to the current crisis in healthcare. With so much at stake, it is time that we begin addressing these issues directly.

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