Are Online Coupons a Marketing Bargain?

Discretionary services are an important source of income for many medical practices, and marketing is a key tool for bringing in new business.

However, you should be wary of marketing with online and email coupons from social media sites such as Groupon and LivingSocial, which could get your practice into trouble.

Social media coupon sites work by sending emails that entice customers to sign up for services — such as car detailing, photography sessions, or dermabrasion — at a reduced price. These sites receive payment based on the number of participants, bringing higher-than-normal customer volume for service providers.

Physicians are also using these sites to promote their services. A search on Groupon revealed coupons offering $4,200 of liposuction for $999 in Southern California; discounts on a dental package of exam, X-rays, cleaning, and whitening; and nearly 50 percent off ultrasound face-tightening therapy from a dermatologist.

Some elements of this type of marketing should raise red flags with medical practices:

• Exaggerated language in the offering — numerous sites use extreme exaggerations to garner attention.
• Lack of medical review — the only requirement for receiving the coupon is signing up, which means that services are offered to potential patients without regard to medical suitability.

The payment structure is the primary concern in California and many other states, where laws prevent payments to physicians based on patient volume. Disobeying these laws can be punishable by prison time and/or $50,000 in fines. In Oregon, two medical boards have banned dentists and chiropractors from giving Groupon-style discounts.

Before marketing your discretionary services, consider the following tips to help protect your practice:

• Negotiate your marketing agreements with web-based companies to make it clear that services delivered are dependent on evaluation of the medical suitability of the prospective patient.
• Review your marketing agreements to ensure that marketing services are not tied to patient volume.
• Carefully review any marketing materials representing your practice for exaggerations, distortions, guarantees, or promises that may be hard to fulfill.