Mystery shopping gaining popularity in health care sector

Leaders of mystery shopping companies -- which supply "customers" to visit businesses and report on the quality of service they receive -- report a significant increase in interest from the health care sector.

While it is still just a small sliver of the $600 million mystery shopping industry, health care made up 1.7% of those revenues in 2004, more than doubling its 2003 figure of 0.8%, according to the most recent data available from a Dallas-based trade organization. People within the health care industry say those numbers are likely to keep rising.

The surge in interest from managed care companies, hospitals and even some physician practices comes as patients are taking more control over how they spend their health care dollars, and demanding better service as they actively shop around.

Jodi Manfredi, president and founder of Examine Your Practice Inc., a Henderson, Nev.-based mystery shopping firm for medical, dental and veterinary practices, said the concept of spending money to retain customers and increase business has been established in retail for a long time, and is now migrating into health care.

"If you're treating patients with kindness and respect, you're going to have more referrals." And that is one of the reasons why physicians are seeking more information about how their patients feel when they leave the office, she said.

Earlier this year, James Loden, MD, an ophthalmologist in Nashville, Tenn., ordered eight "mystery shops" of two of his offices where refractive surgery is performed. He said the market for such procedures is so competitive, he wanted to take a close look at his practice to see if improvements could be made.

Dr. Loden said he discovered that nearly half of the patients had a hard time finding the offices based on Internet directions and other maps. He also learned that some of his technicians weren't wearing name tags, introducing themselves or thoroughly explaining what procedures would be performed. That led to a staff meeting.

Dr. Loden also learned that at initial consultations he was too quick to turn over the patient to the refractive surgery counselor. "We found that in this competitive environment, a lot of patients really have specific questions they want the doctor to answer," he said.

Overall, he said the experience helped provide reassurance that the practice was competitive. It also showed that the office looked fine, at least in the mystery shoppers' opinion, and it wasn't necessary to budget for redecorating.

"I do think it was money very well spent," he said. He did not say how much money it was.

The Mystery Shopping Providers Assn. reports 150 member companies worldwide. Doctors could hire one of those, or, in theory, could develop his or her own group of shoppers.