Healthcare Consumerism and ‘Quantified-Self’ Mark the Arrival of Patient Engagement 2.0 A Frost & Sullivan White Paper

CONTENTS

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Introduction: Bringing a Consumer Mindset to Healthcare Interaction .............................................................3

Future Opportunities for Vendors: Partnership is the Key to Success ...............................................................4

Conclusion ........................................................................................................................................................................6

References ........................................................................................................................................................................6

3All rights reserved © 2016 Frost & Sullivan

Healthcare Consumerism and ‘Quantified-Self’ Mark the Arrival of Patient Engagement 2.0

One of the most transformative shifts we are seeing in healthcare is the rise of a concept called “Quantified-Self”; the digitization of products, services, and commerce models are democratizing current healthcare systems, manifesting a new era of healthcare consumerism. This consumer or patient engagement movement entails broad cultural and economic shifts that motivate people to take a more proactive role in all aspects of their healthcare, including the selection of health plans, providers, and treatment options; tracking their health status via personal health records, wearable sensors, and in-home monitors; and directly contributing to and/or accessing personal health data from providers, payers, testing labs, pharmacies, and other organizations. In addition, health consumer or patient engagement is related to the concept of “accountability,” which is growing and extending across the healthcare ecosystem, including to patients, who increasingly need to do more and pay more to ensure more positive health outcomes.

Figure 1: The consumer engagement movement is shaping up to be a significant cultural shift impacting stakeholders at every level of the healthcare system, driven by the transformation of the way we deliver and pay for health services.

FAMILIES

EMPLOYERS PAYERS

COMMUNITIES

PROVIDERSINDUSTRY

Strongest center ofinfluence–most impactful

for changing behavior

Driving innovation andbuilding technologysolutions designed to improve outcomes

Supporting providers andconsumers with accessto health IT solutionsand data

New emphasis onwellness programs anddesigning incentives to

improve compliance

Expanding circle ofsocial influence changesattitudes, perceptions,expectations

New era of collaborationand communication–the

patient is a member ofthe care team

INTRODUCTION: BRINGING A CONSUMER MINDSET TO HEALTHCARE INTERACTION

Over the past decade, the concept of consumerism has made inroads into the healthcare industry and is advancing proportionally with the shifting industry focus from volume-based to value-based care delivery models. Technology is playing a pivotal role in this paradigm shift, where an evolving ecosystem of connected health technologies such as wearables, telehealth, artificial intelligence, and virtual reality are empowering consumers to be the new king of their healthcare decision-making process. With the thriving consumer engagement movement today, consumers are more receptive to healthcare information, and they want to actively participate in healthcare during all stages of care. For example, a recent Frost & Sullivan survey revealed that about 69% of consumers in the US track their health symptoms, 41% will definitely change their physicians if they are not allowed to access their health records, and 74% of patients appreciate receiving customized alerts and newsfeeds post-care. However, a majority of health consumers acknowledge that the existing patient engagement initiatives of major healthcare enterprises fail to effectively activate them during their experience in primary care. They seldom receive access to personalized treatment options, referral support, or adherence alerts in real time outside physician offices.

4 All rights reserved © 2016 Frost & Sullivan

Healthcare Consumerism and ‘Quantified-Self’ Mark the Arrival of Patient Engagement 2.0

Figure 2: Healthcare must enable a higher level of customer experience that people have come to expect based on interactions with other industries.

ConsumerExpectations

Entertainment, Media &Telecommunications

Transportation &Distribution

• Customer service focus• Comparison shopping• Self-service, online shopping• Special offers

• Real-time info at point of use• Info comes to consumer • High levels of interaction and

Q&A online and in person

• Ability to control and customize• Flexibility and convenience• Anytime, anywhere options

• 24/7/365 support via phone, chat, etc.

• Direct outreach to consumers based on consumer preferences

• One-stop resolution or call back

• Customized products• At-home service• Variety • Engaging interface

• Proactive outreach to stimulate consumer response

• One-stop shop• Anytime, anywhere service

Retail & Finance

Source: Frost & Sullivan

The successful evolution of passive patients to proactive health consumers requires all healthcare stakeholders to develop knowledge on health-related attitudes, behaviors, and motivations among various consumer population segments so that they can design products, programs, and services that reward healthy behaviors. For example, recently Apple struck its first US insurer deal with Aetna insurance company, under which Athena will give some customers and employees discounts on the Apple smartwatch. During 2014, Misfit entered into a similar deal with Oscar Health Insurance to implement incentive-based plans. Fitbit is also working with 30 of the Fortune 500 on their wellness programs by providing subsidized wearable programs for health and productivity measures. Emerging patient engagement technologies and services or solutions will play an important role for payers and providers trying to optimize population health management initiatives. For example, our research suggests that health systems that have successfully stratified at-risk patients and given them patient engagement tools and personalized wellness content often report improved performance outcomes in regards to first-time admissions, readmissions, in-patient clinical utilizations, average length of patient stay, and A/R durations.

FUTURE OPPORTUNITIES FOR VENDORS: PARTNERSHIP IS THE KEY TO SUCCESS

Industry convergence and technological innovations are giving rise to a new era of healthcare consumerism called “Patient engagement 2.0” that signifies a shift from manual, paper-based patient communication activities to a digitally supported process that helps providers, payers and all those involved in value-based care to communicate with patients at every stage of their healthcare journey. As a result, payers and providers are investing heavily on next-generation patient engagement solutions. Recognizing this lucrative opportunity, providers are keen to deploy solutions that promote self-care, facilitate preventive screening, allow appointment management, and power remote monitoring. Payers and employers are also driving wellness and educational programs to encourage compliance among employees and members.

5All rights reserved © 2016 Frost & Sullivan

Healthcare Consumerism and ‘Quantified-Self’ Mark the Arrival of Patient Engagement 2.0Healthcare Consumerism and ‘Quantified-Self’ Mark the Arrival of Patient Engagement 2.0

In this multilayered patient engagement space, partnerships will play an important role in patient engagement capability transformation for participating vendors. Cognizant of this fact, many leading EHR and PHM players such as Allscripts, Cerner, Optum, and athenahealth have entered into multiple third-party alliances with complementing technology and digital health solution providers to broaden their patient engagement capabilities. For example, Allscripts makes its APIs available for any external developer that is looking to build integrated patient engagement applications; currently, about 40 companies have developed patient engagement features around Allscripts’s core platform. Similarly, Cerner enables providers to completely re-brand their HealtheLife platform, and Qualcomm Life helped UHG roll out nationwide wellness campaigns that promote preventive health measures and usage of wearable devices. From an opportunity standpoint, mHealth solutions appear to be the lowest hanging fruits and are poised to unlock the greatest growth opportunity for health enterprises as more consumers are expected to utilize mHealth solutions tied to consumer-facing wearable devices and telehealth systems for personal health information access, remote patient monitoring, e-screening and chronic condition management. Leading vendors will collaborate with large providers, government agencies and commercial payers to co-build solutions that can best match national interests, patient requirements and physician preferences. For example, leading consumer wearables companies and tech giants such as Apple, Google, and Samsung are aiming their future focus and investments toward more actionable patient engagement solutions. Also, the influx of intelligent data aggregation platforms such as VALIDIC, medidata and Apple HealthKit/ResearchKit is helping the healthcare provider community address the existing platform and service gaps around clinical uses for wearable-generated data. For example, Apple HealthKit is now being adopted by major US hospitals to help doctors track patients’ medical histories.

Figure 3: The future patient engagement market will embrace mobile apps, wireless technologies and EHR integration, which allow patients to securely communicate with stakeholders, including payers, providers, and pharmacists.

Tracking of health & wellness content through traditional and digital means, US, 2020

Digital health-enabled health information tracking will be the new normal for consumers

Mobile

Apps

Wea

rable

Sens

ors EH

RPa

per

Recor

ds

42 47 46

27

0%

20%

40%

60%

80%

100%

To complywith physician- recommendedcare pathways

To track and report vital signs

in real time

To access and update health

records

To validate healthcare

reimbursement

Traditional Means Digital Means

Tracking of health & wellness content through traditional and digital means, US, 2015

Paper records were the preferred medium for health information tracking by consumers

24

Mobile

Apps

Wea

rable

Sens

ors EH

RPa

per

Recor

ds

1629

50

0%

20%

40%

60%

80%

100%

To receive and share wellness and

preventive healthcare content

To track vital signs in real time

To access a consolidated health record

To keep track of health

information

LIK

ELY

PU

RP

OSE

S

Source: Frost & Sullivan

In the future, the patient engagement market is going to characterize proactive outreach to providers by patients as part of self-diagnosis and condition awareness. Multi-modal patient instructions, enabling virtual tours of health systems through bedside monitors, would allow providers to receive patient feedback in real time and centrally access personalized care support in multiple care settings. Employee health management will be a key agenda of major payer organizations in the US.

6 All rights reserved © 2016 Frost & Sullivan

Healthcare Consumerism and ‘Quantified-Self’ Mark the Arrival of Patient Engagement 2.0

CONCLUSION

The burden of effective chronic disease management strategies is becoming ever more critical for care providers as they seek to transition to outcomes dependent on compensation structures. The ability to accurately predict and prevent adverse events is an essential component of modernizing outdated care models. As they strive to prepare patients well before visits and provide minimal intervention from operating staff, emerging patient engagement initiatives, technologies and solutions promise to bridge this gap by empowering care providers to expedite recovery and avoid readmissions through the enablement of preventive screening, self-care and reinforcing population health management initiatives.

A truly rewarding patient engagement approach that improves patient outcomes and secures regulatory incentives mandates patient-centric collaboration between all stakeholders. Government entities, payers and pharma companies should help providers effectively leverage IT and service solutions, which empower every patient to pursue self-care and seek personalized support from anywhere through any devices. Providers are required to invest in patient engagement solutions that facilitate personalized interventions, drive access and enable collaborative decision making. Patients need to be connected with their full care team across any healthcare setting through a combination of online tools, integrated patient portals, medical devices and interactive advisory programs to enable chronic disease management and improve an individual’s overall wellbeing.

REFERENCES

https://www.theguardian.com/julius-baer-partner-zone/2016/jan/15/wearable-technology-frivolous-gadget-or-valuable-medical-tool

http://www.thelancet.com/journals/landia/article/PIIS2213-8587(16)30264-9/references

http://www.apple.com/apple-watch-series-2/

http://www.cnbc.com/2016/05/23/study-shows-fitbit-trackers-highly-inaccurate.html

http://www.itproportal.com/features/wearable-tech-and-the-privacy-issue/

http://www.telegraph.co.uk/technology/news/12012430/Health-data-from-wearable-devices-could-be-restricted-under-new-EU-regulation.html

https://www.bloomberg.com/news/articles/2016-09-27/aetna-to-make-apple-watch-available-in-health-monitoring-push

http://www.cnbc.com/2014/01/08/wearables-at-work-mean-big-business-says-fitbit-ceo.html

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