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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


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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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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http://dupress.com/articles/consumerism-health-care/?id=us:2el:3dc:dup996:eng:dup:dr16:dcpromo


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%


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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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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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


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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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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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


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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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


Considerations moving forward

Life sciences

Consumers Health plans

Health care providers Technology

companies

Government

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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

mailto:[email protected]

https://twitter.com/Dabetts_burgh


http://www.twitter.com/harrygreenspun



http://www.twitter.com/ssthomas2010


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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About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a detailed description of DTTL and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. Copyright © 2015 Deloitte Development LLC. All rights reserved. 36 USC 220506 Member of Deloitte Touche Tohmatsu Limited

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