The Kitchen Sink: What consumers think about a variety of healthcare topics

1. The Kitchen Sink: What consumers think about a variety of healthcare topics Presented by: Klein & Partners, Inc. 1st Quarter, 2009

2. Introduction Background and Purpose • The purpose of this quantitative survey was to understand consumers’ current thinking on a wide range of healthcare-related topics. • Topics included: • Concerns with the healthcare system • Quality, Safety, and Going Green • Information seeking behavior • Transparency/Price shopping behavior • Retail medicine/New methods of delivery of care • Advertising Methodology • A national online survey was conducted among 435 heads of household, 21 or older who are involved in the healthcare decisions for the household. The interviewing was conducted from February 13-15, 2009 by our research partner The Dieringer Research Group (DRG) in Milwaukee. The sample frame used was e-Rewards’ online consumer panel. The final data set was weighted by age, education, and ethnicity. • The total sample size of 435 yields a sample error of +/-4% at the 90% Confidence Level (CL). For example, if this study were repeated 100 times, in 90 times out of that 100 (i.e., 90% confidence level) we would find a total sample statistic of 50% to fall within 46% and 54%. • In the charts, letters (e.g., A, B, C) and arrows indicate a statistically significant difference at the 90% Confidence Level. Colors and bolding are used to highlight interesting patterns and/or findings.

3. Is our healthcare system broken? In a national poll conducted over the past several years, desire to have the government step in and fix the system has steadily increased except recently! 26% in 2005 32% in 2006 39% in 2007 40% in 2008 28% in 2009 Our healthcare system needs corrections and improvements but the system can correct itself Our healthcare system is so broken the government needs to step in What’s going on with this drop? Are people so wrapped up in the economy and housing? Are they tired of bailouts already? Do they not understand the healthcare system? Not sure Our healthcare system is functioning just fine the way it is Q1: Which of the following statements best reflects how you feel about our entire healthcare system?

4. Change in health behaviors due to the economy People are delaying preventive and elective procedures due to the economy... especially Baby Boomers (and Gen Y’ers are skipping dental visits). Q2: Which of the following medical care, if any, have you either put off because of the current economic situation because you were concerned about spending money OR scheduled sooner than you might typically because you wanted to get it done while you still have health insurance?

5. Experienced financial hardship due to medical bills • One in five (20%) Americans feel painted into a corner financially by excessive medical bills. • Especially... • Baby Boomers (29%) • those with incomes under $65k (27%) • and the uninsured (36%) Q3: Have you experienced a significant financial hardship in the past year due to medical bills?

6. How do people feel about “green” hospitals? Very Green Not at all Green 0 1 2 3 4 5 6 7 8 9 10 Hospitals aren’t seen as very green (4.56)... ...and while there is decent support for going green... ...most people would NOT pay for “green” care: Would not pay more – 63% Would pay a little more – 22% Would pay a lot more – 2% Not sure – 13% Q4: “Going green” is the hot topic among people and companies. How important to you is it that hospitals “go green?” Q5: When you think of any companies that are very green compared to other companies that are not green at all, where do hospitals hit in along this green continuum? Q6: If you were choosing between two hospitals that were both equally appealing to you and convenient, and one was committed to being green while the other was not green at all, all else equal, would you pay more to be treated at the green hospital?

7. Patient safety in the hospital This level of perceived problems with patient safety is consistent across the country. Less than one in ten (8%) adults across the country is aware of CMS’ new HAC guidelines (but Seniors are – 27%). Q7: Do you perceive there to be a problem at hospitals today regarding patient safety in terms of preventable medical errors? Q8: {Describe CMS’ HAC guidelines} Are you aware of these patient safety guidelines outlined by the government?

8. Health-related information sources W-O-M While the Internet is growing exponentially as a source for healthcare information, good old-fashioned “word-of-mouth” still is going strong. Internet Organization Media Q9: Which of the following sources of health-related information have you ever sought information from?

9. Online activities participated in recently Q10: Which of the following healthcare-related online activities have you participated in over the past year?

10. Information source credibility for selecting a hospital Doctors and family/friends remain the most credible source of influence in choosing a hospital Q11: If you had to be hospitalized and you wanted to gather information about which hospital is the best quality and would be best for you to choose, how credible are the following sources of information to you?

11. Transparency/Price shopping More than a third (36%) of people across the US contacted a provider to ask about the price for a specific procedure. Q12: Within the past year, did you or did a member of your immediate household contact any healthcare organization, hospitals, or physician offices to ask about the price for a specific visit, test, treatment, or surgery?

12. New methods of care delivery Q13: Which of the following medical services/facilities have you used in the past year?

13. Advertising “trust” Q14: How much do you trust advertising from the following organizations?

14. TV and commercials Baby Boomers are most likely to have a TIVO-like device on their TV and skip TV commercials the most. Half (49%) of all households reportedly have TIVO or some other recording device and two thirds (66%) of these households reportedly skip past TV commercials every time or often. Q15: Do you have TIVO or some other TV recording device that allows you to control how you watch TV? Q16: [IF YES] How often do you skip past TV commercials?

15. Hospital advertising quality over time: improving? Your Ad Here Has hospital advertising gotten better or worse? Q17: In general, when you think about hospital advertising you see or read in your area, do you think hospital advertising has gotten better or worse over the past several years in terms of the quality and usefulness of the messages provided?

16. Usefulness of various advertising media Preferred most 12% 14% 14% 9% 12% 2% 2% 35% - None This is why we need a “campaign” not an “ad.” Q18: When you think of area hospital advertising that you may have seen or read over the past year, how useful to you are the following forms of hospital advertising in terms of you learning what a hospital has to offer? And which, if any, do you prefer most?

17. How do you remember ads? Women are significantly more likely to recall a hospital ad from just one source (32% vs. 15%), while men are significantly more likely to remember hospital ads from multiple sources (46% vs. 28%). Q20: When you think of area hospital advertising that you recall, do you tend to recall just one form of it or do you tend to remember seeing and hearing and reading ads for the same hospital from many different sources?

18. Radio listening habits Eight in ten (80%) listen to “free” radio Have satellite radio Total – 18% Gen Y - <1% Gen X – 27% Baby Boomers – 18% Seniors – 22% Satellite radio subscribers listen, on average, 10 hours a week. And it is typically for music: Music – 50% Talk – 16% Both equally – 33% Time listening to “free” radio is, on average, 9 hours a week. And it is typically for music: Music – 58% Talk – 16% Both equally – 26% Q19: Do you have satellite radio? Do you listen to regular radio? How many hours do you typically listen to the radio? Which type of format do you typically listen to on the radio?

19. Additional information If you would like additional information regarding this study, please contact: Rob Klein President Klein & Partners, Inc. 412 Ashbury Hinsdale, IL 60521 [630] 455-1773 rob@kleinandpartners.com

20. Demographic profile