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The Dbriefs Health Sciences series presents:
The rise of the empowered health care consumer
Jason Wainstein, Principal, Deloitte Consulting LLP David Betts, Principal, Deloitte Consulting LLP Sarah Thomas, Research Director, Deloitte Center for Health Solutions, Deloitte Services LP Harry Greenspun, MD, Director, Deloitte Center for Health Solutions, Deloitte Services LP June 23, 2015
Copyright © 2015 Deloitte Development LLC. All rights reserved.
Meet the new health care consumer
Engage the new health care consumer
Collaborate in the new age of consumerism
Agenda
Meet the new health care consumer
Copyright © 2015 Deloitte Development LLC. All rights reserved.
Health care has historically been controlled by physicians and payers with incentives aligned to a fee-for-service model
• Engagement with system only when sick
• Overuse of medical services
• Frustration over complexity of information sharing
• Lack of incentives and tools for interaction
• Misalignment of incentives
Health care consumer of the past:
Focus on sick care
over wellness and
prevention
Little transparency
and collaboration
Success based on
rates, volume, and market share
Consolidated and complex
long-term contracting
Aggressive growth in services
Complex regulatory
environment
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Copyright © 2015 Deloitte Development LLC. All rights reserved.
Three shifts setting the scene for greater consumer involvement
Market dynamics and financial risk turn to the consumer
Consumer desires and expectations are changing
New entrants view health care through a different lens
1 2 3
Source: Deloitte University Press: Rising consumerism: Winning the hearts and minds of health care consumers
The new health care consumer
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Poll question #1
• When considering the overall population, I believe most health care consumers are: • Cautious about cost, but are not overly engaged in
their own health care • Independent and have the desire to customize with
alternatives to traditional care • Interested in digital and seeking information from
online sources • Actively seeking options for better value • Trusting of providers and content with the health care
they receive • Not sure or no opinion
Copyright © 2015 Deloitte Development LLC. All rights reserved. Source: Deloitte Center for Health Solutions: 2015 Survey of US Health Care Consumers
Casual & Cautious • Light users of health care • Not engaged (no need) • Cost-conscious, but least
prepared financially to handle future health costs
• Least compliant
Content & Compliant • Happy with plan and providers
• Trusting of information sources
• Rely on physician to make decisions
• Follow care plans
56 percent are passive health care consumers
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Sick & Savvy • Heavy users of health care
• Partner with doctors to make treatment decisions
• Most prepared financially to handle future health costs
• Want quality and price info
Shop & Save • Actively seek options for better value • Highest use of retail clinics • Save for future costs
Out & About • Independent and prefer providers
who use or integrate alternative medicine and treatment approaches
• Want to customize plan benefits
Online & Onboard • Online learner – use online information
sources and tools • Happy with care, but want to
understand options • Interested in using digital
• Want quality and price info
34%
22%
19%
11%
8% 6%
Copyright © 2015 Deloitte Development LLC. All rights reserved.
Technology New entrants Other industries
Structural changes and new dynamics are changing how the consumer makes health care decisions
New technology to interact with consumers
• Rise of digital communication is causing interactions between stakeholders to proliferate
• Emerging mobile apps tailored to health care/health management
Non-traditional players are disrupting
the marketplace
• Provision of services is shifting to unconventional domains (e.g., retail clinics, online health plans, etc.)
• New entrants are technologically nimble
Consumer desires influenced by other
industries
• Consumers are surrounded by personalized and data-driven tools that enhance their experience
• High levels of engagement in other industries are setting a high bar
Public and private exchanges
Consumers pushed to make choices
• Some employers have shifted costs to employees
• Plans available via public and private exchanges often involve more cost-sharing
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Copyright © 2015 Deloitte Development LLC. All rights reserved.
The new health care consumer is more informed and involved
report looking online for information related to health and treatment
40%
prefer to partner with physicians to make treatment decisions
47%
with chronic illnesses say discounts, rewards, and alerts could help modify health behaviors
40% The new
health care consumer
Demand for real-time
interaction
Making economically
rational health care
choices
Demand for self-service and digital interaction
Increased touch points and omni-channel
Increased access to
information
Increased consumer
choice
say they use a scorecard or report card to compare doctors, hospitals, and plans
25%
are interested in using technology to actively interact with their doctors
33%
Source: Deloitte Center for Health Solutions: 2015 Survey of US Health Care Consumers
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Copyright © 2015 Deloitte Development LLC. All rights reserved.
Poll question #2
In my opinion, consumerism in health care is:
• Just another trend: There is a lot of noise about this idea, but another trend will come along to displace it
• A driving force that industry is ready for: The industry is making important strides forward to meet the new demands
• Happening, but industry is unprepared: Despite the importance of this trend, the industry is not ready to adapt
• Not sure or no opinion
Engage the new health care consumer
Copyright © 2015 Deloitte Development LLC. All rights reserved.
Understanding customer wants and needs is key in developing a customer-focused strategy
Personalization. Consumer research and segmentation uncovers essential information for market and individual needs, enabling direct and customized interactions.
Simplicity. The development of streamlined experiences by eliminating silos and barriers increases customer satisfaction by reducing their efforts for interaction.
Efficiency. Maximize consumer value across service lines by aligning assets optimizing organizational efforts which address customer needs and preferences.
Transparency. Consumers want an experience which matches their perceptions and expectations; transparency in pricing and services offered supports this goal.
Security. The assurance that financial and health information are securely stored and transmitted is critical for the new health care consumer.
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Copyright © 2015 Deloitte Development LLC. All rights reserved.
Challenges to engaging the new health care consumer
THE EXPERIENCE Delivering an exceptional experience has long since outgrown the jurisdiction of outreach alone
INFORMATION OVERLOAD Customers have increasing access to outside information about the providers they seek CUSTOMER TOUCH POINTS The number of customer touch points has exploded in recent years—organizations need to prioritize which to manage
EMPLOYEE ENGAGEMENT Customer orientation is best delivered by highly engaged employees
CUSTOMER HABITS Customers are shifting and modifying their habits, preferences, and tastes at lightning speed
Customer engagement
Employee engagement
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The new consumer health care journey extends beyond clinical services
Pre-visit Service delivery Post-visit
• Difficult to identify the “right” provider or service(s)
• Central communications lacking
• Lack of proactive engagement with patients
• Lack of visibility into procedure or care
• Lack of transparency for out-of-pocket costs
• Lack of personalized goals
Research providers/ services
Check coverage
Obtain prior authorization
Schedule visit
Arrive & check In
Receive care
Register Discharge/ counseling
Obtain referral
Check out
Pay for care
Plan for follow-up
Home care/ monitoring
Follow up with
provider
Barriers to an exception consumer experience:
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Copyright © 2015 Deloitte Development LLC. All rights reserved.
Poll question #3
What do you think is the biggest barrier to consumer engagement?
• Lack of communication and information exchange among providers, plans, and patients
• Lack of transparency/availability of cost information and service options
• Keeping up with shifting consumer habits, preferences, and tastes
• Not sure or no opinion
Collaborate in the new age of consumerism
Copyright © 2015 Deloitte Development LLC. All rights reserved.
Building a consumer-driven health care system
Fix near-term pain points that create consumer dissatisfaction
Prioritize
Develop a strategy and vision for the consumer experience aligned to your brand promise and addressed to your customer segments
Design
Implement Configure the tools, processes, structures, and incentives necessary to deliver against the vision
Measure & refine Continue to listen to the voice of the customer and refine the experience to meet changing demands
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Copyright © 2015 Deloitte Development LLC. All rights reserved.
Companies see profitability, stronger relationships, and brand equity
Sources: "Extreme Management," Mark Stevens; Deloitte Research, 2006; International Customer Service Association 2010; Forrester 2009
Profitability
Patient/ \member loyalty and retention
Brand equity
Return on sales for companies with customer service focus vs. those with low emphasis on service More member retention can increase profits by 25% to 125% Cost to attract a new customer vs. cost of retaining existing customer
Of consumers stop doing business with a company due to poor customer service
Of dissatisfied customers would continue doing business with such companies if their problem was solved quickly and satisfactorily
People will hear about a happy customer’s positive experience with a company
People will hear about a dissatisfied customer’s negative experience with a company
12x
5%
>6x
68%
95%
>4
>9
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Poll question #4
• Is your organization planning to implement a consumer-oriented strategy? • Yes, we already have a consumer-oriented strategy in
place • We have started planning, but it’s too early to say we
have anything in place • No, we have not refined our strategy in light of rising
consumerism • Not sure or no opinion
Copyright © 2015 Deloitte Development LLC. All rights reserved.
Considerations moving forward
Life sciences
Consumers Health plans
Health care providers Technology
companies
Government
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Join us July 14 at 1 PM ET as our Health Sciences series presents: Managing cyber risk: Essential enabler of health care transformation
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Contact info
David Betts Principal US Life Sciences and Health Care Deloitte Consulting LLP [email protected] @dabetts_burgh Harry Greenspun, MD Director Deloitte Services LP Deloitte Center for Health Solutions [email protected]
@HarryGreenspun
Jason Wainstein Principal US Life Sciences and Health Care Deloitte Consulting LLP [email protected] Sarah Thomas Research Director Deloitte Services LP Deloitte Center for Health Solutions [email protected]
@ssthomas2010
Copyright © 2015 Deloitte Development LLC. All rights reserved.
This presentation contains general information only and Deloitte is not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this presentation.
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