"A very delicate balance"

The healthcare industry has been consolidating rapidly for several years now. Companies increase in size, re-invent their business focus and change their branding. Some of them all at the same time.  Professional communication is the key to remaining successful as a healthcare company in the context of transformation and restructuring. Robert Ashby has been part of the worldwide marketing team steering the communication activities of Carestream Health - formerly the Health Group of Eastman Kodak Company - through exciting times.

Published: 01/22/2009

Consolidation and restructuring seem natural processes in a globalized economy. But what does it actually mean? It means that, by taking over struggling iSoft, a local and virtually unknown Australian IT company called IBA Health suddenly becomes one of the big health IT players in Europe. It means that companies that have spent decades in a comfortable niche market – such as the vendors of laboratory equipment – suddenly feel the wind of change when multinationals like Siemens knock on their doors, ready to pay billions of dollars in a bid to turn the bold vision of an integrated diagnostics market into reality. It can also mean that a leading American healthcare solutions provider such as Nuance feels the need to gain a foothold on the European market by paying US$ 96.1 mln for a highly specialized IT company like Philips Speech Recognition Systems. Transactions like this require a willingness to adapt on both sides, so that synergies and new products can be created to expand the business opportunities both for the buyer and the acquiree.

Which PR strategy is right when a company is reinvented?

One of the most intriguing examples of such a metamorphosis was the multi-billion dollar purchase of the Health Group of Eastman Kodak Company by the Onex Corporation of Toronto, Canada. Following acquisition the group began operating as a standalone company, completely rebranded as Carestream Health. Prior to becoming Carestream Health, the Health Group posted revenues of more than $2.5 billion in 2006. The company now has more than 8,100 employees and customers in more than 150 countries.

"Following closure, it was important for us to immediately execute a communications plan to generate awareness for our new company," says Robert Ashby, manager of pan-European media relations at Carestream Health. The acquisition and rebranding, Ashby says, was communicated as a tremendous opportunity to meet the growing medical imaging and information technology needs of the healthcare community: "We rolled out a comprehensive global communications program on Day 1 of operations. Our plan focused on instilling our core values and company vision and positioning the company as a proven, trusted resource for medical imaging and healthcare IT solutions." Vehicles for communicating these messages included a steady flow of newsworthy information to the media and a continuous presence at important trade shows such as ECR, RSNA and HIMSS.

A multi-channel approach helps to reach both customers and the public

In order to reach both media and customers, Carestream Health used various channels for the different target groups rather than rely on a single communication channel. To reach customers, for example, the sales force was an obvious choice as a communication medium. "We relied heavily on the experience of our global sales force," says Ashby. "Our sales professionals were the ideal resource to connect with current and potential customers and spread the news about Carestream Health – and they did a great job!"

News media, too, were targeted intensively: "Healthcare providers rely upon them for up-to-date information about products, technologies and new developments,” says Ashby. Consequently, during the transformation period, a lot of information regarding the formation of the new company was being distributed to help people understand what the "new old company" represented. Finally, to better inform customers and journalists, a new website was launched. Besides the usual product information and brand messaging, the portal also includes country-specific content in local languages to convey the message that, whatever its name, the company always focuses on the customer.

Don’t underestimate the power of internal communication!

Obviously, a large-scale communication campaign and rebranding initiative doesn't come cheap. "Budget planning for introducing a new company name goes above and beyond traditional product marketing. You obviously need a healthy communication budget to develop and grow any brand," says Ashby. At the same time, however, operations had to be cost-effective. "It is a very delicate balance, but a challenge we feel we managed appropriately."

To colleagues who are in a similar situation, Robert Ashby advises focusing on key messages and portraying the company as customer-driven and ever aware of its customers' needs: "We reach out to healthcare providers with the message that we understand the challenges facing their facilities and the entire profession, and we can help them succeed during these difficult times." Ashby also warns against underestimating the importance of internal communication: "Employees are ambassadors for the company, so they have to be involved every step of the way."

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