While healthcare providers and insurers have long been associated with sports teams and various health-related community events, the ACA's push toward health engagement has shifted the focus for insurer's message from business-to-business (B2B) sponsorships toward more business-to-consumer (B2C) sponsorships.
“Basically with health insurance, the big buzzword is “consumerism”…where consumers play a much more active role in healthcare decisionmaking. As a result, we’re seeing health insurance companies and hospitals double-down on sponsorships to engage consumers and differentiate their products and services,” William Chipps, senior content editor for IEG Sponsorship Report at IEG, Inc., a sponsorship consulting group, told Healthcare Dive.
Promoting health and wellness is a primary driver for hospitals and health insurance companies, and a recent example is Sutter Health’s multi-year partnership with the Oakland Athletics. The organization announced it is the team’s preferred healthcare provider and will promote health initiatives such as sponsoring Breast Cancer Awareness Day, the 7th inning stretch, and a new youth wellness program, the Fitness Sluggers.
Sarah Krevans, Sutter Health president, and CEO said in a statement, “Healthcare is a team sport and partnering with the A’s gives us a special way to connect with fans and their families.” The amount of the sponsorship was not disclosed.
Hospitals and sports teams – a healthy fit
Healthcare providers have been proud sponsors of sports teams since the mid-1990s when the Carolina Panthers and Jacksonville Jaguars signed one of the first known medical/sports sponsorship deals. In fact, sports-related sponsorships are picking up steam as competition among hospitals increases, Chipps said.
There has been a slew of additional hospital/sports team sponsorships in the news lately, including the University of Colorado Health (UCHealth) and the Denver Broncos, Houston Methodist and the Houston Texans, and Children’s Mercy Hospital and the Sporting Kansas City, a major league soccer team.
In March, Barnabas Health, New Jersey’s largest healthcare provider, announced it is now the “Official Health Care Partner” of the New Jersey Devils, whose practice facility will be renamed the Barnabas Health Hockey House. Barry Ostrowsky, president and CEO of Barnabas Health, said in a statement the health system has shifted to promoting preventative health strategies rather than focusing on caring for the sick. “With the new Barnabas Health Hockey House serving as the home of grassroots hockey in New Jersey, we look forward to investing in health promotion, community outreach, and overall wellness programs.” The partnership also entails a rink-affiliate program to bring youth hockey clinics and wellness and nutrition education to players and coaches at rinks throughout the state.
Potential conflicts
Healthcare providers can spend millions over several years as a sports franchise’s top choice, but there may be some conflicts related to perceived benefits versus costs. A nonprofit hospital system, Parkview Health in Indiana, was criticized after it agreed to pay for naming rights of a local minor-league baseball stadium, according to a LinkedIn article by Steve Rivkin, a marketing consultant.
The organization agreed to pay $300,000 annually for 10 years to rename “Parkview Field” and promised community health events at the stadium such as blood drives and cholesterol screenings, with a portion of the money going towards stadium maintenance. The health system’s CEO said the decision was part of a larger economic development effort for Fort Wayne, IN. However, many in the community didn’t feel the $3 million investment was justified. Rivkin concluded, “The flap in Fort Wayne suggests that in today’s economic climate, you need a ready, credible explanation on tap for anything that could be characterized as a non-essential promotional expense.”
Conflicts related to patient welfare and financial gain can also occur. There have been a number of lawsuits filed by players against team physicians that shed light on how conflicts arise. An article in Slate described how Jeff Novak, a former Jaguars offensive lineman won a malpractice suit against the team’s physician, Stephen Lucie. Dr. Lucie was employed by the Jacksonville Orthopedic Institute – which is still the team’s exclusive medical partner. According to the lawsuit, Novak suffered a bone bruise that Lucie allegedly treated. However, Novak played while injured which led to an infection, and later to his retirement, according to Slate. Slate's Sam Eifling concluded players should have the ability to choose their own doctors and “leagues should bar sponsorships that allow hospitals to describe themselves as the 'official' healthcare provider for the team…such branding implies that players trust those doctors with the most vital service they can get in a high-risk occupation. The truth is something else.”
Reaching new audiences
Many health insurance companies are expanding their sponsorships to reach new audiences, including millennials. “With millions of consumers now required to buy health insurance, we’re seeing more health insurance companies use sponsorships to build preference and encourage healthy lifestyles. Consumers are taking a more active role in their care and that definitely applies to health insurance as well,” Chipps explained. Health insurers tend to be broad sponsors and Chipps said a shift in those sponsorships since the ACA “has been more why and how health insurance companies use sponsorships rather than the types of sponsorships.”
Kaiser Permanente uses its NBA partnership via NBA Fit clinics to reach millennials. Christine Paige, Kaiser Foundation SVP of marketing and digital services told IEG Sponsorship Report, “More young adults have access to coverage than ever before. The NBA is a very good partner given its tremendous reach, and is particularly effective in reaching young adults.”
One main sponsorship driver is to promote health and wellness messaging. Humana sponsorships include not only the PGA and the Grand Ole Opry, but also Dollywood, a theme park founded by country music star Dolly Parton, in Tennessee. “Humana sponsors Dollywood in part to strengthen business relations with the park owner, [Herschend Family Entertainment], which is a customer of Humana,” Chipps said. Then, Humana uses Dollywood to reach seniors to help promote its Medicare Advantage products in the late summer and early fall prior to the enrollment period.
BlueCross BlueShield of Vermont, the state’s largest insurer, focuses on community wellness events and local organizations. Megan Peek, community relations and health education manager, told Healthcare Dive via email, “We look for events and experiences that encourage and support healthy lifestyles and behaviors – activities and programs that help make the healthy choice the easy choice. We also look to partner with local organizations that focus on the unique health issues faced by our Vermont communities.” One such program is “Wellness Revolution,” an eight-week free program geared to get women cycling for better health. Incentives include free helmets and gift certificates. “Sponsorships allow us to create opportunities for our clients and communities. They also enable us to build relationships with like-minded organizations and have positive impacts on population health issues,” Peek summarized.
Geisinger Health, with 12 hospital campuses, also stays focused on the community with sponsorships ranging from free health clinics and athletic events to food banks and child advocacy centers, Geisinger public relations specialist Mike Ferlazzo, told Healthcare Dive. “Our ongoing commitment to our community won’t change, even with any potential consolidations…as new hospitals join the Geisinger family, their sponsorship budgets are maintained, and in some cases, expanded upon, based on the needs of the regional community.”
Pending health insurance mega-mergers (Anthem/Cigna, Aetna/Humana) and hundreds of hospital consolidations may ultimately affect sponsorships, but it’s unclear in what way. “That’s a tough question,” Chipps said. “It may result in more interest in national sponsorships such as pro-sports leagues that provide national coverage rather than sponsorship of a local team.” However, it’s clear that both healthcare providers and insurers will continue to invest in sponsorships as competition heats up and consumers continue their active role in healthcare decisions.