6/18/2018

1

Patients as Consumers Customers of Healthcare

What’s happening to healthcare …What is moving us along this paradigm…

6/18/2018

2

2018 Trends

• New…now fear of regulatory changes

• Retail clinics

• ACA…and all its confusion and impacts

• Narrow networks

• Data and actually using it

• Extenders… Opportunity or Threat

• Practice Acquisitions

• How to prove quality

• Cyber security

• Telemedicine

• Private Equity entering healthcare space

Other Trends in Healthcare (just a few)

1. Network development (IPA, group practice without walls, supergroups)

2. “Real” competition

3. Consumerism

4. Bundled Payments

5. Downward pressure on reimbursement

6. Commoditization of healthcare

6/18/2018

3

Knowledge is power….only if you use it

Let’s tackle a few….first up

6/18/2018

4

MACRA and Value-Based Care

• CMS modifications and shift to value based care

• MIPS and APM

• Bundled Payment Arrangements

• ACO’s and Clinically Integrated Networks

Capitalism at its finest …other ways value can be used…

6/18/2018

5

http://www.milliman.com/uploadedFiles/insight/Periodicals/mmi/2017-milliman-medical-index.pdf

Employees are paying more…

Source: http://www.mercer.com/newsroom/modest-health-benefit-cost-growth-continues-as-consumerism-kicks-into-high-gear.html#5

Movement is occurring…

6/18/2018

6

Movement is occurring …

• Consumerism taking hold as enrollment in CDHPs jumps to 23%

• High deductibles are meant to give employees a financial incentive to shop more carefully for health services

• Cigna Spokesperson Joseph Mondy told Workforce. "Why? Because they work. CDHPs will cost you less as an employee and as an employer, but you'll see improvements in health outcomes. We have seven years of data to support that."

conꞏsumꞏer n.

One that consumes, especially one that acquires goods or services for direct use or ownership rather than for resale or use in

production and manufacturing

6/18/2018

7

Definition of a Customercusꞏtomꞏer noun \’kәs-tә-mәr\

Definition of CUSTOMER

1: one that purchases a commodity or service

2: an individual usually having some specified distinctive trait <a real tough customer>

Examples of CUSTOMER

She is one of our best customers.

She's a pretty cool customer.

Origin of CUSTOMER

Middle English custumer, from custume First Known Use: 15th century

*http://www.merriam-webster.com/dictionary/customer

What is a customer?

Advocate

Apathetic

Assassin

*Satisfaction: How Every Great Company Listens to the Voice of the Customer, 2006, Chris Denove and James D. Power IV

6/18/2018

8

Why are customers important?

• It costs 5 times as much to attract a new customer than to keep an existing one. (Source: seohosting.com)

• 68% leave because they are upset with the treatment they’ve received. (Source: U.S. Small Business Administration)

• On average, loyal customers are worth up to 10 times as much as their first purchase. (Source: White House Office of Consumer Affairs)

• 48% of customers who had a negative experience told 10 or more others. (Source: Harvard Business Review)

Why are customers important?• 64% of customers cited shared values as the primary

reason for a strong brand relationship. – Source: Corporate Executive Board

• 68% quit because of the attitude of indifference toward the customer by the owner, manager or some employee. – Source: Michael LeBoeuf, "How to Win Customers and Keep them

for Life"

• 3 in 5 Americans (59%) would try a new brand or company for a better service experience. – Source: American Express

• 89% of consumers began doing business with a competitor following a poor customer experience. – Source: RightNow

6/18/2018

9

Most important reason …

• I believe that the customer pathway will drive quality and value at a faster pace than the government or employers can.

• Let’s explore my basis for this…

6/18/2018

10

What do customers want?

• A novel question asked by other industries … does healthcare ask that question?

Healthcare is lagging.

Media

Social Media

Travel

Retail Finance

Real Estate

HealthcareConnectivity

6/18/2018

11

The Consumerism Beast

Agenda –A Few Customer Expectations

• Telemedicine

• Easy, Simple Access– Online Scheduling

– On time appointments – informed appointments

– Efficient patient portals – access to information

• Online reviews – Social Media Evolving

• Artificial Intelligence – Next Wave of Change?

6/18/2018

12

Telemedicine

Speed and Convenience:Telemedicine

6/18/2018

13

Telemedicine Usage and Preferences

64% 70% 67%

Source: Centric Digital LLC 2015

of Americans would bewilling to have a video

visit with a doctor

of consumers wouldprefer an online videovisit to a physical one in

order to obtain aprescription

of medical professionalsare either using some

form of telemedicine now,or are planning to in the

coming years

6/18/2018

14

Marketing Concepts

• Complementary Service – Enhancing what the practice has to offer

• Patient Engagement – Give them what they want

• Technology Edge

• Not consumer…CUSTOMER

6/18/2018

15

Easy Simple Access

Patients are demanding more convenient access to care.

Urgent Care Providers

Virtual Acute Care

Providers

Retail Health Clinics

9,000 urgent care centers 1,743 retail health clinics >20 virtual acute care companies

6/18/2018

16

https://www.forbes.com/sites/brucejapsen/2017/01/18/retail-clinic-use-soars-but-not-for-obamacare-patients/#ccd432b62a8a

Did you know that I text?

6/18/2018

17

Is there a wait?

Okay…how does this work in healthcare?

6/18/2018

18

Rethinking your front desk …

Use Technology Efficiently …

6/18/2018

19

Online Reviews

Still want to be involved …

6/18/2018

20

Welcome to the new word of mouth

How many patients use online reviews?

• A whopping 84% of patients surveyed use online review sites to evaluate physicians

• 59% report using online reviews “often” or “sometimes”

• Only 16% of patients report never using online review sites

According to a 2015 study conducted by Software Advice:

6/18/2018

21

And there’s the millennial factor

• Millennials will be the most sought-after patients of the near future

• They will drive sweeping changes in healthcare

• More than half of millennials and Generation-Xers incorporate healthcare providers' online reviews into their shopping process

• If you’re a physician and you don’t show up in the first five results of a Google search, you might as well not exist with millennials

Reports in Physicians Practice and Fierce Healthcare say …

Are patients ready for different …

http://www.oliverwyman.com/insights/publications/2014/apr/are-consumers-ready-for-retail-healthcare-.html#.VcKdPU174qQ

6/18/2018

22

Why do all of this …The landscape is changing fast! We have to keep up …

IBM Watson – Artificial Intelligence

http://mashable.com/2017/03/22/detecting-skin-cancer-computers/#vcnEbyicgsq7

6/18/2018

23

Amazon - 1492

Keep it simple …

6/18/2018

24

Jumping the curve …

Connect with us

www.facebook.com/MSOCHealth

www.linkedin.com/company/MSOC-Health

http://www.msochealth.com/blog/

6/18/2018

25

Thank You

MSOC Healthwww.msochealth.com

Cameron M. Cox, III

Cameron.Cox@msochealth.com

919-960-0336

Thank You