Sg2 Report Engaging the New Health Care Consumer · PDF fileENGAGING THE NEW HEALTH CARE...

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Sg2 INTELLIGENCE Engaging the New Health Care Consumer

Transcript of Sg2 Report Engaging the New Health Care Consumer · PDF fileENGAGING THE NEW HEALTH CARE...

Sg2 INTELLIGENCE

Engaging the New Health Care Consumer

Copyright © 2014 Sg2

Sg2 Staff

Project DirectorJoan Moss, RN, MSN

Project AssociatesMark LarsonRachel MorrisLinda O Prager

Editorial ReviewSteve LefarBill Woodson

Production TeamJulie BastianSuzanne Claussen

Copyright © 2014 Sg2

Sg2 Staff

Project DirectorJoan Moss, RN, MSN

Project AssociatesMark LarsonRachel MorrisLinda O Prager

Editorial ReviewSteve LefarBill Woodson

Production TeamJulie BastianSuzanne Claussen

17%employers offering a

high-deductible health plan as the only option for their

employees

38%workers covered

through their fi rms in 2013 enrolled in a plan with at least a $1,000

deductible

$768out-of-pocket expenses

per individual among those under age 65 with

employer-sponsored insurance in 2012

In health care there may be no Black Friday frenzy that epitomizes America’s shopping fervor. Yet there’s no denying provider systems face a wave of consumerism that is radically reshaping industry purchasing patterns.

Traditional transactions have been intermediated by payers and largely steered by physician referrals. Given this wholesale structure, individuals typically functioned as passive participants in their care. That’s changing due to new benefit designs, public and private exchanges, generational preference, and tools that democratize information for ongoing dialogue and enhanced performance transparency. These trends are shifting the balance of power, spurring “retailization” and challenging providers to meet consumers on their own terms.

Wholesale health care is not going away. Traditional channels still matter. But regardless of an organization’s business or payment model—transactionalist to population health manager—the rise of a concurrent retail marketplace demands a strategic shift. Systems must recalibrate to engage the new consumer. Only then will they be well-positioned to attract and activate individuals before, during and after they require clinical services, and then to execute a consumer-centric, end-to-end offering and overall experience.

There are multiple junctures in this emerging retail marketplace that serve as on- or off-ramps into ongoing relationships: an individual’s initial insurance coverage choice, payers’ crafting of narrow networks, as well as a prospective patient’s online information gathering, site selection for an unscheduled visit, or receipt of unsolicited price information for ongoing or future clinical needs.

Any of those junctures can redirect enough business to radically alter growth trajectories for provider systems that fail to properly position their products for the broad cross-section of health care consumers. The optimal health service looks different for individuals unfocused on the inevitability of future clinical need; vs occasional and elective patients seeking interactions as pleasing but short-lived as possible; vs patients with chronic or complex needs, for whom every interaction can make a difference in daily living and well-being.

This publication differentiates organizational goals across those utilization segments and details consumer-centric strategies. And for those unconvinced their future hinges on response to this retail shift, it offers reality checks—or in this case “Retail-ity Checks”—showcasing an industry trend or moves by new market entrants that are reshaping not only products and care delivery but consumer expectations as well.

ENGAGING THE NEW HEALTH CARE CONSUMER

© iStock/Zuki

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WHOLESALE RETAIL

Success in health care’s traditional business-to-business (B2B) marketplace centers on aggressive payer contracting and physician integration. In the emerging consumer-driven model (B2C), certain customer segments will make trade-offs based on price, access and convenience. Combinations of those variables will, over the long-term, become the determinants of each provider system’s brand identity and market relevance.

BALANCE OF POWER IN HEALTH CARE IS TILTING RAPIDLY TOWARD CONSUMERS

Providers sell themselves to physicians and insurers.

Employers make decisions on behalf of individuals and their families.

Providers sell themselves to consumers.

Individuals make decisions on benefits, providers and course of care.

Sources for Page 1: Kaiser Family Foundation/Health Research and Educational Trust (HRET). 2013 Employer Health Benefits Survey; Health Care Cost Institute. 2012 Health Care Cost and Utilization Report. September 2013; PricewaterhouseCoopers. 2013 Health and Well-being Touchstone Survey.

B2CB2B

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Consumer Focal Point Varies by Utilization…So Must Strategy

Retail-savvy provider systems learn how to attract and activate consumers before, during and after they access services. One end of the spectrum requires system focus on prevention and information sharing to reach healthy individuals who influence care for loved ones and inevitably become patients themselves. The other end demands assurance of caring, consistent outcomes for those facing serious health challenges. Throughout, the goal must be to understand consumer needs and position for key decision junctures across the full consumer life cycle.

“Know who I am and seem relevant to my needs” as I…

• Select my insurance coverage• Work to improve my overall well-being

• Research health conditions• Make choices for my family

“Offer services and providers on my terms” as I…

• Decide where to go for my low-acuity episodes

• Select a provider for routine exams

• Research the best value for care that I need

• Determine how to achieve an optimal outcome without breaking the bank

“Understand who I am… and my care” as I…

• Work to maintain a high quality of life despite this ongoing condition

• Face this serious medical crisis

PROSPECTIVE PATIENT OCCASIONAL/ELECTIVE PATIENT CHRONIC/COMPLEX PATIENT

MULTIPLE JUNCTURES AND DECISION POINTS MAKE CONSUMER CAPTURE COMPLEX

Although it falls short of a true statistical segmentation model, a use-based construct is a helpful starting point for differentiating consumer needs at the highest level. Within each patient type, numerous segments exist. Sg2 CARE Families enable such classification at the disease level. To learn more about Sg2’s proprietary CARE Families, see Inside the Impact of Change® Forecast or visit Sg2.com.

PayerBenefit Design

Initial Coverage Selection

Health Condition Research

Wellness Purchase

Physician Selection

Site Selection for Low-

Acuity Event

Active or Passive Access to Price Info

Rising Clinical Need

Acquisition and Retention

Potential Loss to Competitors

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COVERAGE STATUS

PROSPECTIVE PATIENTS

OCCASIONAL/ELECTIVE PATIENTS

CHRONIC/COMPLEX PATIENTS

AVAILABLE LIVES

• Influence narrow network selection

• Enhance value perception among diverse consumer segments

• Position as provider of choice

• Minimize sticker shock

• Capitalize on the acquisition potential of each encounter

• Build affinity with a superior patient experience and clinical product

• Funnel into population health management models

REALIZED LIVES

• Prevent switching

• Build affinity in advance of clinical need

• Create strong influencers

• Minimize network leakage

• Optimize utilization patterns

• Secure long-term loyalty

Branding Branding Branding

Provider System Goals by Consumer Type

UTILIZATION

Contracting p 8

Branding p 6 Branding Branding

Targeting p 11

Digital

Transparency

Upstream Products p 20

Convenience

Experience

Metrics p 29

Contracting

Targeting

Digital

Transparency

Upstream Products

Convenience p 22

Experience p 26

Metrics p 29

Contracting

Targeting p 11

Digital

Transparency p 14

Upstream Products

Convenience p 22

Experience p 26

Metrics p 29

See strategies on:

Contracting p 8

Targeting

Digital p 12

Transparency

Upstream Products p 20

Convenience

Experience

Metrics p 29

Contracting

Targeting

Digital p 12

Transparency

Upstream Products

Convenience p 22

Experience p 26

Metrics p 29

Contracting

Targeting

Digital p 12

Transparency p 14

Upstream Products

Convenience p 22

Experience p 26

Metrics p 29

See strategies on:

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Strategy 1ATTRACT...ACTIVATE...EXECUTE

Compared to companies in other sectors, many traditional acute care hospitals face an uphill climb to build relevance: few individuals want a relationship with them due to everything that connotes. And for many, brand remains inextricably linked to their physicians and clinical services.

Yet consumerism challenges provider systems to raise awareness among a much broader base of individuals than ever before, not just those currently seeking care or even a primary care relationship.

If brand is a key part of that, numerous organizations have determined theirs is outdated, in some cases including even the organization’s name. Some already have changed course, looking for a fresh brand to extend their relevance or better differentiate them from new market entrants.

Consider a Move From Illness to Wellness

At any of a number of the key junctures in a retail-oriented health care marketplace, particularly a consumer’s coverage selection, the facilities, technologies and specialists that may one day be needed to meet a clinical need may be far from an individual’s mind. Current health and vitality is another story. Some branding experts are challenging their system clients to make their offerings seem less complex, less scary and more relevant to a consumer’s daily life. Systems have various takes on this concept.

REASSESS BRANDING TO RESHAPESHOPPERS’ PERCEPTIONS

Any provider system that hasn’t already should take note of the high-profile rebranding of Walgreens. The nation’s largest drugstore chain is building far more on its “Corner of Happy and Healthy” than its original flu shot–focused retail clinics. The brand’s suggestion of an ongoing contribution to individuals’ well-being supports Walgreens’ ever-broadening array of services. This includes chronic disease management services and in-store diagnostic lab tests offered through a partnership with Theranos Inc, headquartered in Palo Alto, CA. (See page 23 for more on Theranos.) The clear encroachment over provider systems’ long-established property lines makes this chain, and others like it, a player to contend with in many systems’ backyards.

VIRTUA FOR LIFE

As part of a shift in focus to population health management, this four-hospital system headquartered in Marlton, NJ, redefined its overall mission as helping individuals in its community to “Be Well, Get Well, Stay Well.” To further build market awareness of that mission, it regularly uses its “Virtua for Life” tagline, which resonated well in consumer focus groups. Efforts to take health care “well beyond the hospitals’ walls, to where individuals are living, working and playing” is one way leaders say the organization is delivering on that brand. Employee “change teams” and benefits instill the mission throughout the corporate culture.

Sources: Sg2 Interview, 2013; Walgreens. Theranos selects Walgreens as a long-term partner through which to offer its new clinical laboratory service [press release]. September 9, 2013.

Retail-ity

Check

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Strategy 5ATTRACT...ACTIVATE...EXECUTE

POSITION FOR PERFORMANCE TRANSPARENCY

Health care’s answer to Orbitz is taking off slowly but surely. Convenient care clinics, public and private payers as well as a whole new breed of independent firms buoyed by substantial venture capital are beginning to post—and in some cases actively push—prices and other information to guide consumer shopping. Typically, however, the view of health care product value afforded by these web-based systems is largely one-dimensional, weighted heavily toward price without integrating quality metrics.

Explore Proactive Solutions

With such potential for their products’ value to be defined for them by this litany of outsiders, providers have a lot at stake if they stand in the wings. Public pricing data may be incorrect. And consumer confusion over financial responsibility easily turns co-pays and deductibles into bad debt.

At a minimum, organizations must prepare to monitor the release of any data, validate it and correct it when needed. Some providers are going further to try to take control. But commitment must extend beyond offering a “list price” view into their chargemaster.

Some of the proactive solutions gaining in popularity among provider systems include:

• A centralized pricing function, or an added component to a traditional call center, in which a dedicated team of service representatives are available by live web chat, phone or email to calculate OOP costs for an individual

• Mobile apps that calculate any curious customer’s OOP costs based on insurance information

• Automated provider price comparisons within an integrated delivery system’s network

Sources: Sg2 Interviews, 2014; Catalyst for Payment Reform and Health Care Incentives Improvement Institute. Report Card on State Price Transparency Laws. March 25, 2014.

PAYER PROVIDED

The Blues’ Highmark Health Services’ Care Cost Estimator and United Healthcare’s myEasyBook are among the growing number of tools that sync price and benefit design. They enable insureds to see how their out-of-pocket (OOP) costs for countless procedures would vary based on provider choice. Some versions add an access variable, even offering a discount for utilization at off-peak times.

THIRD PARTY

Change Healthcare (see next page), Compass Healthcare Marketers and Castlight Health are among those aiming to help employers optimize their consumer-driven health plans and even reference pricing strategies. As quality data continue to lag and remain an enigma to most consumers, however, some experts caution many individuals may continue to equate high cost with high quality.

STATE MANDATED

Maine, Massachusetts, Colorado, Vermont and Virginia ranked highest in a 2014 report card on state price transparency laws. In many states with robust laws, lack of effective web access limits consumer usability; disclosure also is often limited to chargemaster list price. Thus 45 states earned an “F.” The Carolinas were commended for major progress, but that was not reflected in the states’ grades since their websites are pending.

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Retail-ity

Check

As evidence of growing consumer price sensitivity, executives from Change Healthcare (an organization that offers cost transparency and engagement solutions) note that even consumers loyal to their primary care physicians (PCPs), are willing to independently shop and switch for a host of big-ticket items. These services (see list below) are entry points for budding consumerism aided by the firm’s price transparency tools. Once hooked on price variation data, many began shopping for additional types of services and elective surgeries. They also became more receptive to advice on alternate care sites for routine care, which the company pushes out in the form of its “Ways to Save” alerts generated based on users’ demographics, preferences and utilization patterns.

Change Healthcare found that eight services fall into a high-cost/high-variability top box category on its Transparency Matrix:

CT scans

MRI scans

Colonoscopies* and upper gastrointestinal endoscopies

Mammograms*

Ultrasounds

C-sections

Office visits with lipid screening*

Office visits with diabetes screening*

*Mandated preventive care under the Patient Protection and Affordable Care Act.Source: Sg2 Interview, 2014.

472%variability$100–$572

Ultrasound

794%variability

$300–$2,681

CT Scan

“ For providers who say, ‘I don’t compete on price,’ the question becomes, ‘How do you make additional data available to showcase your quality? What else are you willing to provide to enable informed decisions?’ ”

—Doug Ghertner, President and CEO, Change Healthcare Corporation

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Ensure Consumers Gain a More Well-rounded View of Current Value

A proactive approach to transparency also enables provider systems to ensure equal status for the other side of the cost/quality equation. Alongside cost calculators, some are posting scorecards showcasing not only their own results but head-to-head performance across multiple metrics.

EXAMPLE: Baptist Health South Florida Manages Transparency Balancing Act

View OOP Costs as a Valid Part of Informed Decision Making

A posted price list may easily drive service selection for something as straightforward as a discrete retail clinic exam or diagnostic test. But such a list falls short of the true cost/benefit analyses increasingly savvy consumers ultimately will demand for elective services or to support treatment planning options for complex care needs. That level of transparency can only come at the point of care and will require ongoing training for those on the front lines.

Test Discounts on Select Services

A true retail view of pricing also may necessitate service-specific strategy based on market position: a category driver competitively priced to attract new customers, a crucial margin enhancer, a premium product for which market position can command top dollar.

NSQIP = National Surgical Quality Improvement Program; OP = outpatient.Sources: Keeley BE. From the President—Baptist Health: A Leader in Hospital Pricing Transparency. June 2013; Baptist Health South Florida. Quality, Safety and Service: How Baptist Health Performs. September 2013.

COST

This multihospital system launched its Central Pricing Office over a decade ago. Office staff field questions from individuals seeking their OOP liability for specific services. But for scheduled services, the system doesn’t wait for patient pricing requests. Standard protocol requires that all patients receive a custom cost estimate in advance. It’s working to further simplify price discussions with a broader range of IP and OP services for which all payment is bundled.

QUALITY

The system’s Quality, Safety and Service report compiles Hospital Compare, Leapfrog Group, NSQIP and other outcomes data into an in-depth chart pack (and eye-catching companion infographic) available online. Going beyond a common approach of posting strictly an organization’s own data in the best possible light, graphics enable at-a-glance comparisons to local competitors on safety, experience and best-practice adherence.

“In no other industry do you go into a store and ask how much something costs and they say, ‘I don’t know.’ Any provider that makes a treatment recommendation better well know what the downstream and out-of-pocket implications are for that patient, lay out options based on different

price points, and develop a care plan that reflects what the customer wants to do.” —Jim Matheson, Vice President of Marketing and Communications, ThedaCare

Strategy 5ATTRACT...ACTIVATE...EXECUTE

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TRANSPARENCY CHECKLIST

Growing transparency can be a competitive weapon for those with a strong value proposition in their markets. Others must be prepared to play defense as performance data increasingly shape both service selection and ongoing loyalty. Decisions to match market pricing or not require careful consideration.

Be prepared to:

Stay abreast of transparency tools available to consumers in the market.

Identify services with highest price sensitivity in the market. Simplify, where possible, by offering a bundled episode price.

Ensure the current cost accounting system offers a complete view of direct and indirect costs for services.

Leverage EMR alerts for expensive tests and medications to help clinicians factor pocketbook impact into their clinical decision making.

Devise a pricing strategy that supports both channel vitality and broad margin management.

Microtarget to less–price-sensitive market segments when unit price exceeds the market’s prevailing rate, or look to justify the higher price with proof of fewer total units.

Understand new market entrants’ pricing tactics, such as selling under consumers’ co-pays/deductibles.

Examine pricing strategy of other industries to better anticipate where health care pricing is going.

Loop marketing leaders into strategic product positioning.

Counter price confusion that may drive potential new or existing patients to competitors with a well-articulated message on system value. Use Sg2’s Market Performance Ranking app to gain clarity.

“ The area in which we’re feeling the most pricing impact is imaging. Our physician liaisons keep us informed. That’s why we know marketing has to get at the table on pricing to ensure we’re more flexible and responsive to the consumer.”

— Kellie Spellman, Director of Customer Relationship Management, CHRISTUS Health

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ATTRACT...ACTIVATE...EXECUTE

ENSURE CONVENIENCE FOR CONSUMERS WHEN THEIR SERVICE NEEDS ESCALATE

Recognize that, until performance transparency fully takes hold, access likely will still reign as the prime competitive differentiator in many markets. This applies not just across provider systems but between these systems and the burgeoning array of new market entrants. The point at which any individual (or an individual’s prime caregiver) seeks care is another moment of truth that shapes the provider/consumer relationship. Serving patients where they are, when they want care is imperative for success in any retail marketplace.

Optimize Front End of the System of CARE to Accelerate Access

Meeting patients’ amplified calls for convenience starts with stellar channel strategy, in both the footprint of diverse ambulatory sites and the consumer focus of their operations. The physician as both brand and system gatekeeper remains integral to success. Yet a multichannel approach will be needed to fuel sustainable growth and mitigate the potential for disintermediation by new market entrants.

Strategy 7

Community-Based Care

Sources: Sg2 Interview, 2011 (Updated 2014); Sg2 Webinar With Franciscan Health System, March 2014.

E-Visits

Retail Pharmacy

Physician Clinic

Diagnostic/Imaging Center

Retail Pharmacy

By 2020, pharmacy-based clinics will constitute the nation’s largest provider of primary care services. Sites owned by drugstore behemoths are surging. Whether they partner with these chains or go it alone, most provider systems should see this access point as a must-have for retail success. Those that operate their own may leverage superior EMR integration and cross-referral (eg, to higher-acuity sites, their full physician enterprise) to hold their own against chain-based rivals. But they should prepare to go head-to-head on pricing and convenience.

EXAMPLE: Sutter Express Care clinics co-located in Rite Aid pharmacies throughout Sacramento, CA, redirect patients to the health system’s physician practices, urgent care centers, specialty practices or EDs when needed. Community physicians off-load volumes at peak times to the clinics; the clinics refer back to PCPs for follow-up care.

E-Visits

Provision of nonemergent services via computers, tablets or smartphones is gaining momentum. In fact, Sg2 anticipates that 15% of evaluation and management visits will occur virtually by 2024. Strong branding, integration into the enterprise-wide website and loyalty established by existing PCP relationships can give provider systems’ virtual offerings an edge over the host of new market entrants in this arena looking to deliver on consumers’ expectations for anytime, anywhere care.

EXAMPLE: Franciscan Health System was first to market in the Pacific Northwest with a 24/7 virtual medicine offering. The eight-hospital system, part of Catholic Health Initiatives, sought to improve the patient experience and drive patient volumes without the capital investment typically required for market expansion. The $35 service—accessible via computer, mobile device or phone—builds upon the system’s existing suite of consumer-centric primary care options. Satisfaction has been high among the 2,000+ patients served in its first few months. The vast majority of those patients have commercial insurance but no PCP. Almost half subsequently scheduled an in-person appointment.

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Retail-ity

Check

Theranos Inc, based in Palo Alto, CA, is revolutionizing laboratory testing. It’s quickly converting its micro samples, micro costs and micro turnaround times into macro competitive advantage. For example, Theranos lab tests require blood samples 1/1,000 the size of a typical blood draw, and the company promises its pricing to never exceed 50% of the Medicare reimbursement rate…and to always be transparent to the consumer. Physicians can receive results in a matter of hours. If you can bottle “quick and painless” as a magic elixir for consumer happiness, Theranos seems confident it will need only a tiny test tube to do so. This same technology long-term could add virtual phlebotomy to the growing list of services that don’t require a face-to-face visit.

Robust channel strategy is not strictly the domain of the largest multihospital systems. Jupiter (FL) Medical Center is a prime example of an independent hospital that has fully embraced the concept. It has built an impressive front end to its System of CARE that includes a rehab and wellness center, mobile wellness van, off-campus urgent care, and amenity-rich diagnostic center.

Sg2 Resources

For more in-depth guidance on linking community-based care to the broader continuum, please refer to the Sg2 resource kit Building a System of CARE. For more on telehealth see the Sg2 report Virtual Health: Aligning Solutions With Enterprise-Wide Priorities.

Sources: OhioHealth, 2010; ThedaCare, 2012; Theranos Inc. Theranos and Walgreens expand diagnostic lab testing to the Phoenix metropolitan area [press release]. November 13, 2013; Theranos Our Solution webpage. Accessed April 2014.

Acute Care

Post-Acute Care

Diagnostic/Imaging Center

Faced with fierce competition from independent centers and regional chains, many systems are reinventing their imaging offerings. Successful systems site centers in high–foot traffic locations, offer services 16 hours per day, maintain wait times below five minutes, and competitively price by site and service. Co-location with other core services also has worked as a convenience differentiator not feasible for imaging-only competitors.

EXAMPLE: OhioHealth used a three-tier imaging services model: tier 1 includes imaging and rehab; tier 2 additionally covers urgent care and lab; tier 3 offers complete ambulatory services.

Physician Clinic

Savvy systems now ensure their owned or affiliated physician clinics meet consumer demand for extended appointment hours, unscheduled visits and a one-stop-shop opportunity similar to the consumer appeal of the local mall.

EXAMPLE: ThedaCare and partner physicians created Encircle Health, a 150,000-sq-ft ambulatory campus that co-locates PCPs, specialists and ancillary services such as MRI, CT, laboratory, mammography and endoscopy suites. A single registration point and immediate referrals optimize patient flow.

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Retail-ity

Check

TRANSFORM THE PATIENT EXPERIENCE

Health care’s been losing ground in consumers’ ratings of experience across industries. Better execution ultimately comes down to an organization’s ability to rally every individual within the organization behind a stronger consumer-centric mission.

Round Out the Senior Leadership Team With a Chief Experience Officer

Advanced organizations are putting their money where their word of mouth is. This includes an enterprise-level executive positioned to expand the concept of experience well beyond HCAHPS scores. Chief experience officer (CXO) keys to success include:

• Clear positioning of experience as an organizational chief priority

• Reporting relationships, often matrixed, that back a cross-continuum function

• Dedicated staff and a well-rounded committee with representatives from diverse sites and service areas within the organization who can elevate issues and translate high-level goals into unit-level tactics

• Access to ongoing market research as well as internal survey data to remain attuned to the voice of the customer

• Close alignment with business development and marketing executives to ensure follow-through on product positioning, collaboration on specific tactics to meet identified consumer expectations, and ongoing remedies to gaps surfaced through service recovery episodes

• Knowledge building and dissemination of industry best practices

ATTRACT...ACTIVATE...EXECUTEStrategy 8

HCAHPS = Hospital Consumer Assessment of Healthcare Providers and Systems.Source: PricewaterhouseCoopers. HRI Consumer Survey, 2013. www.pwc.com/us/tophealthissues. Accessed April 2014.

A recent survey shows customer experience is slipping in health care. The sector dropped behind the automotive industry among respondents who were asked to rank industries based on how well they were served as customers.

Hospitals/Health Care

6 5 2013 2012

Retail

Banking

Utilities

Hospitality/Hotel

Automotive

Hospitals/Health Care

Entertainment

Airline

1 4

2 1

3 3

4 2

5 6

7

6

7

5

8 8

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Reorient the Culture

Keeping consumer needs front and center in any interaction will require extensive time and resources to ensure that goal becomes a guidepost for how each employee operates.

SERVICE: Like most other implementation efforts, incentives help; leading organizations already are linking broad experience measures to employee evaluations and compensation. Targeted training and collaboratives, like Virtua’s “change teams,” enable organizations to roll out and deliver on an existing or recalibrated brand. Under leadership of a new CXO, Southcoast launched an extensive PRIDE (Personal Responsibility in Delivering Excellence) campaign to underscore the role every employee plays in its goal.

AMENITIES: Some organizations have taken a page from obstetrics’ playbook and aimed to add amenities to help patients feel pampered and create a more restful, less clinical ambience within their facilities. The hospital architecture boom in the middle of this decade was the result of this early thinking. Regardless, streamlined, well-coordinated care and personalized communication will continue to trump any window dressing of an inferior offering.

TRANSLATE BEST-IN-CLASS EXPERIENCE OF OTHER INDUSTRIES TO HEALTH CARE

Company Consumer-Focused Solution Health Care Translation

United Airlines

Flyer FriendlyThe airline’s latest app enables travelers to book, board and rebook all from their mobile phones, “like carrying an airline in your hand.” Check-in procedures are significantly more streamlined.

Expedited Admission ProcessCurrent state: Patients arriving for everything from a chemo infu-sion to a major surgery commonly wait in line at an admissions desk.

Consider: Online admission forms with ability to upload an insurance card image and self-service kiosks that print patient wristbands based on a scannable code sent to the patient’s mobile phone could enable health care to emulate the “proceed directly to gate” goal.

Zappos WOW for WOMA core value for the company is to WOW customers with service and experience, not discounts and promo-tions, as the best recipe for positive word of mouth (WOM). Fast-tracked (and free) delivery is a chief compo-nent of that mission.

Immediate Test ResultsCurrent state: Turnaround times of 10+ days on screening and diagnostic tests persist despite the often high stakes of these results.

Consider: Leading organizations now promote their ability to give patients results before they leave the clinic or guarantee same-day results for certain imaging and lab work, even if it requires extended hours of operation or partnerships with external firms.

TaxiTreats Backseat ConvenienceCharging stations and TVs have made their way into cabs. Vending machines offering drinks, snacks and sundries appear to be the next innovation the industry will use to enhance the customer experience.

Automated Meds DispensingCurrent state: ED patients and inpatients often must head to the local drugstore postdischarge to obtain necessary medications.

Consider: Hospitals and urgent care centers increasingly are installing vending machines to provide patients instant access to commonly pre-scribed medications for injuries or low-acuity conditions (eg, antibiotics, inhalers). A physician-provided security code authorizes dispensing.

Mint.com Virtual Piggy BankThis online tool integrates consum-ers’ accounts (eg, savings, investments, checking, mortgage) to enable “your financial life, all in one place.” Stream-lining is touted as key for budgeting and goal setting.

Integrated EHRCurrent state: Systems today typically capture only a single provider’s encounter data and lack interoperability with other IT systems and across care sites.

Consider: Rich data repositories, especially those already in place in other countries, work as decision support and patient registries beyond a single system’s data bank.

Sources: United Airlines. United Hub webpage; Zappos.com Inc, Code of Business Conduct and Ethics. Revised May 1, 2010; Garun N. New Orleans becomes the first city to offer cabs with built-in vending machines. Digital Trends. March 23, 2013; Mint website; All websites accessed April 2014.

ATTRACT...ACTIVATE...EXECUTEStrategy 8

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ACTION PLAN

REASSESS BRANDING TO RESHAPE SHOPPERS’ PERCEPTIONS

• Consider a move from illness to wellness.

• Promote a comprehensive solution.

• Understand importance of follow-through.

REBALANCE CONTRACTING STRATEGY

• Consider payer rate cuts based on narrow network impact.

• Explore employer partnerships.

• Lock in loyalty of system employees.

• Weigh health plan development options.

ROUND OUT TARGETING STRATEGY

• Leverage robust market view to hone acquisition targets.

OPTIMIZE DIGITAL STRATEGY

• Use technology to step up research, outreach.

• Enhance loyalty through ongoing connectivity.

POSITION FOR PERFORMANCE TRANSPARENCY

• View out-of-pocket costs as a valid part of informed decision making.

• Test discounts on select services.

• Ensure consumers gain a more well-rounded view of current value.

DEPLOY NEW, EXTEND EXISTING PRODUCTS TO HOOK CONSUMERS WELL UPSTREAM

• Activate individuals apart from their clinical events.

ENSURE CONVENIENCE FOR CONSUMERS WHEN THEIR SERVICE NEEDS ESCALATE

• Optimize front end of the System of CARE to accelerate access.

• Aim for expedited, system-wide triage.

• Avoid lapsed patients with ongoing connectivity, proactive outreach.

TRANSFORM THE PATIENT EXPERIENCE

• Round out the senior leadership team with a CXO.

• See services as patients do.

• Reorient the culture.

MONITOR CONSUMER STRATEGY SUCCESS WITH A FRESH SET OF METRICS

• Combine advanced growth and performance metrics.

FROM THE Sg2 CENTERS OF IMPACT

Anticipate the Impact of Change

Sg2 is the health care industry’s premier provider of market data and information. Our analytics and expertise help hospitals and health systems understand market dynamics and capitalize on opportunities for growth.

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