Which brings us to the core of the issue, and one we all understand only too well: when patient experience falls short, ROI will invariably follow suit. In our survey, more than four-fifths of the respondents said they were willing to receive care at a retail clinic. We use cookies essential for this site to function well. Something went wrong. Consumer-Driven Healthcare: A subset of healthcare consumerism has a similar name, Consumer Driven Healthcare (CDH.) Among the new individual market enrollees we surveyed, two-thirds had transitioned from group insurance. Infographics; Videos; Activities & Initiatives. Cordina J, Kumar R, Moss C. Debunking common myths about healthcare consumerism. Consumers often use healthcare inefficiently, which drives up costs. A Troubling Combination Her client work has focused on helping Chief Marketing Officers, Chief Strategy Officers, Chief Customer Officers, and other health plan and provider sector leaders to develop innovative programs that transform their organizations to be more consumer … our use of cookies, and Organizations that respond to the growing trend of consumerism in healthcare will be … Never miss an insight. According to their creator, … Digital upends old models. Learn more about cookies, Opens in new Health plans work hard to provide the products, programs and services that consumers are looking for, but one thing is missing: relevant information about the cost … Our findings indicate that consumers want the same qualities in healthcare companies that they value in non-healthcare settings. Because over half of consumers wish to receive all healthcare from a single brand, and 9 in 10 want a guiding force to help them in their decisions. The affordability of healthcare matters a lot to consumers, and this concern shows up in many ways. Given how personal health is, healthcare organizations are uniquely positioned to become the companies consumers identify as the leading consumer enterprises. The impact of consumerism on healthcare has been studied and debated for decades. No longer content to let others make their decisions, and emboldened by the freedom of choice they enjoy in an ever more consumer-centric economy, consumers have emerged as the fastest growing payer in the industry. Now, if that’s not a recipe for frustration, then one hasn’t been written yet. Consumers want in-network and convenient health care providers. The respondents also selected many digitally advanced companies as the ones the healthcare industry should emulate, as we mentioned earlier. Consumerism in Healthcare—What it Means for Your Organization | 6 healthcare consumerism.”8 While millennials were most likely to schedule an appointment online, check their health information … For example, they can help consumers understand how their own actions contribute to healthcare costs and help correct mistaken perceptions. Unlike other industries where side-by-side comparisons of features, benefits, and costs are commonplace, the healthcare industry is a maze of choices, contact points, service flows and ambiguity – all with no upfront pricing. This group was only slightly more likely than older respondents were to be heavy healthcare utilizers (Exhibit 7).5 However, of the young-adult heavy utilizers, 67% had visited the ED more than once in the past year. But they are also confused and frustrated, creating one of the major issues in healthcare today. Many consumers do not have continuity in their healthcare ecosystem, whether the ecosystem is defined as insurance coverage or care provision (where or from whom they receive care). The Good News? PCE was $14.4 trillion in the … In our survey, respondents—even those with good insurance coverage—repeatedly indicated that they want to be good healthcare consumers who can make informed choices about the care they receive. A heavy utilizer was defined as someone in the 10% of consumers who had reported the highest healthcare costs in each age bracket. Use was highest (62%) among those ages 18 to 34 and lowest (39%) among those ages 65 to 84. By Stewart Gandolf Chief Executive Officer. Learn about A change is underway that’s reshaping the landscape of the industry: rapid rise of consumerism in healthcare. The era of consumerism in health care has arrived. Press enter to select and open the results on a new page. Consumers without health insurance were included, but those with “niche” types of coverage (e.g., TriCare or Indian Health Services) were excluded because of small sample sizes. The key is loyalty. Similarly, continuity in care delivery is declining—the percentage of respondents who reported having primary care providers has been gradually dropping, from 87% in 2011 (when we first asked this question) to 79% in 2017. 25 Health Care Facts and Statistics Discount Health Plans More than 30 million Americans are members of discount health plans through a variety of entities, including: associations, senior … National healthcare spending 1. And that’s a situation we can’t afford to ignore. By addressing the 3E’s of healthcare consumerism: The types of interactions and relationships consumers have with these companies strongly suggest what they want from healthcare organizations. Paul Crnkovich. We talk about how to capitalize on your unique value and keep consumers loyal to your organization. Home » Blog » Hospital Marketing » 7 Absolute Musts for Hospitals in the Age of Consumerism. Such basic “asks” would be unheard of in most industries. Incumbents will need to think through how to engage with consumers at the location and time of their choice to maintain the continuity of relationship. Consumers are actively demanding better access and more information so they can make informed decisions. The insights from our 2017 CHI survey can help health insurers and providers better engage with consumers and offer them the services they need. 2017 healthcare to feature increased consumerism, transparency. originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better … (Primarily because we’re the ones who created it.). reflects patients assuming roles closer to how consumers behave in other sectors The young-adult heavy utilizers could be further split into two groups: those who reported using EDs for nonemergent conditions and those who did not use EDs that way. Overall, 72% of the respondents expressed concern about at least one type of healthcare expense (Exhibit 1). We supplement the information from the CHI with data from other sources, such as information on a consumer’s estimated lifetime value to a health insurer, consumer behavior, and marketplace conditions, as well as other proprietary surveys (e.g., our McKinsey annual survey to understand the preferences, intended actions, shopping, and purchasing behavior of consumers who are eligible to purchase individual coverage on the ACA exchanges or elsewhere, which included 3,000 individuals in 2017). Please try again later. Indeed, consumerism is an example of an area where psychology needs to stretch from its focus on the individual and examine the wider impact of the phenomenon, Kanner believes. How should Pharma respond? 11. We strive to provide individuals with disabilities equal access to our website. Health insurers and providers have multiple opportunities to engage consumers and help them manage their health, healthcare, and healthcare costs. As more information on healthcare consumerism emerges, the gulf between consumer and providers’ expectations will inevitably close as supply and demand overlap. Many consumers don’t understand healthcare costs, leading to uninformed decision making (Exhibit 5). More details about the survey itself can be found in the appendix. A new Definitive Healthcare survey polled healthcare leaders on the most important trends of the year. Collaboration will be crucial. It is also clear that today’s consumers expect better digital engagement. The seeds are there to turn this situation to your advantage. The survey of 1,000 healthcare … Please click "Accept" to help us improve its usefulness with additional cookies. Healthcare digital advertising spend will overtake healthcare … As of today, however, these organizations have a long way to go. The affordability of healthcare matters a lot to consumers, and this concern shows up in many ways. We found that concerns about general healthcare expenses have decreased since we asked this question in 2009. The new healthcare consumer is here. Delivering a high-quality, consistent consumer experience is key to increasing revenue in the new healthcare economy. Get the Report. But what will be the impact of consumerism on the healthcare industry? … A growing number of consumers think that healthcare organizations should offer them digital tools at par with those offered by companies in other industries. "Corporate-driven consumerism … For example, when respondents were asked what frustrates them most in healthcare, the top three answers related to affordability—the difficulties they faced in understanding basic medical costs (29%), determining whether a treatment would be covered (28%), and comprehending their bill (25%). Consumers don’t bring the same expectations about customer experience to healthcare that they bring to retail or technology companies. This combination of data provides a holistic view of healthcare consumers that is not available through other means. Our flagship business publication has been defining and informing the senior-management agenda since 1964. McKinsey’s annual Consumer Health Insights (CHI) Survey provides information on the opinions, preferences, and behaviors of thousands of US consumers, as well as the environmental factors that influence their healthcare choices. OTC Use Statistics; Consumer Medical Device Statistics; Research Reports; Consumer Information. 2019 State of Consumerism in Healthcare: The Bar is Rising. Similarly, in a separate 2017 survey we conducted among consumers with individual insurance, respondents were asked to identify the three factors that were most important to them when choosing a health plan. Increasingly, this is occurring outside the typical hospital or clinic healthcare … At the same time, the use of retail clinics has steadily grown (Exhibit 3). (Source) The latest consumer discretionary … (In contrast, the rate of repeat ED visits was 59% among all heavy utilizers.) McKinsey … We have used CHI data in a range of customized analyses. Leslie Read is a Principal and leader of Deloitte’s Health Plans Customer Transformation practice. In 2017 alone, more than 4,250 consumers participated. Gone are the days of a one-way monologue sufficing for patients. The first group was three times more likely than the second to not have a primary care physician. Of those, 60% cited cost as the prohibitive factor. Per capita national health expenditures: $10,739 (2017) Total national health expenditures: $3.5 trillion (2017) Total national health expenditures as a percent of Gross Domestic Product: 17.9% (2017) Source: Health, United States, 2018, table 42 pdf icon [PDF – 9.8 MB] Percent of national health … If you would like information about this content we will be happy to work with you. In the CHI survey, hospitalization and emergency department (ED) care were chosen most often as the features that should be retained in a health plan; coverage for pregnancy and childbirth was chosen least often by the respondents as a whole (Exhibit 2).2 Dental care was the service selected most often as something the consumers wanted added to their plans. Increasingly, consumers expect digital tools to be a core part of healthcare delivery. The primary ways the consumers have been using health insurers’ technologies were to update personal information (17%), find out what benefits are included in their plan (15%), and identify the physicians and hospitals in their plan (13%). Most transformations fail. Add to that the fact that technology and social media have conditioned them to expect more—and more tailored—information, and you have a situation for which traditional healthcare approaches are ill equipped. The remaining 8% had been uninsured. Twenty-five percent had transitioned from Medicaid, and 24% from the individual market. April 23, 2019 - Healthcare consumerism and patient empowerment are top healthcare industry trends, slated to change the way medical professionals approach their jobs in the near future, according to Definitive Healthcare’s 2019 Annual Healthcare Trends Survey.. What are the biggest consumerization trends in healthcare? Introduction Consumer engagement with health care continues to grow, from searching for care and accessing new channels of care to tracking and sharing health … We expect that health insurers and others will primarily use the information in applications that assist with product design, marketing strategies, consumer segmentation, consumer targeting, network configuration design, and assessment of new channel opportunities. However, concerns about non-routine expenses—such as those related to end-of-life and long-term care—have increased. For example, only 43% of the new Medicare enrollees in our survey had previously had commercial group insurance. June 28, 2019 - Providers and other major healthcare stakeholders are increasingly investing in outpatient services and centers in response to new technologies and healthcare consumerism, according to a recent survey of 188 healthcare leaders.. For example, many of the concerns about affordability raised in our survey relate to a lack of transparency or understanding. Start your consumer-centric journey. Younger consumers are not satisfied with healthcare’s status quo and consumers of all generations are more willing to try non-traditional … As awareness of other digital tools increases, adoption is likely to rise. Unleash their potential. Andrew Ibbotson, Vice President & General Manager, NRC Health This blog features insights from the Governance Institute article, “Forecast 2017: Top Trends Driving Board Strategic Priorities” written by Steven T. Valentine, M.P.A. Frequent ED use was particularly common among young adults (ages 18 to 34). When survey respondents were asked what would make a healthcare company “the best,” coverage was ranked as most important (23%), followed by customer service (11%), cost (7%), and access (6%). Learn how Mission Health preserved employee morale in the middle of a pandemic.... →, Check out this healthcare panel discussion on September 23, 2020... →, (US) 1.800.388.4264 It’s important to know that the right combination of all of these features can be a big driver for consumer loyalty. About Consumer Healthcare. 88 percent of U.S. hospital and health system executives agree that their organizations are vulnerable to consumer-friendly offerings from non-hospital competitors, such as Optum, CVS Health… In addition, healthcare organizations should take steps to better inform consumers about the digital tools already available, since awareness correlates with use. Finally, collaboration with consumers is crucial for controlling healthcare spending. Consumer spending statistics help provide a picture of the financial health of the economy at large, so businesses that monitor them can better predict consumer behavior. For example, 89% of the respondents said they were aware of digital appointment reminders; 55% said they had used them. Health insurers and providers have an opportunity to better inform patients about the potential cost of care. Most of them prioritized affordability. It’s about supplying the information and decision support tools they need, along with financial incentives, rewards, and other benefits that encourage personal involvement in altering health and healthcare purchasing behaviors.”. & Guy M. Masters, M.P.A. Direct-to-consumer advertising of pharmaceuticals, health newsletters from leading hospitals and medical schools, and, most importantly, the near-ubiquity of the Internet have made it easy for consumers to obtain information about their medical conditions and possible treatments. And National Research can help create it. As far back as the 1970s, the RAND Corporation was randomly tinkering with health insurance … Vision and, especially, dental care were cited much more often than routine medical care as the types of services the consumers had not received. (212) 419-8286. hadley.ward@statista.com. Consumers are, however, willing to make trade-offs between what must be included in health insurance and what they might have to give up to obtain the features they want most. By learning from the top tech companies, healthcare organizations will be better positioned to design digital tools that consumers want and use—and to understand how those tools should be used to ensure that engagement occurs when consumers want and need it. And, they define “healthcare” more broadly than most health insurers and providers currently do, which gives insurers the chance to move closer to creating personalized, value-based products that address the needs of individual consumers (e.g., narrow or tiered networks, supplemental insurance products). Most of the respondents said that they do not believe they can do that today. The healthcare industry has an opportunity to address the concerns of, and engage with, consumers in a way that is win-win for both consumers and the industry. The new portfolio of products should be flexible enough to account for the fact that consumers’ needs change as their lives evolve, and that consumers will often require help as they transition from one form of insurance to another. Improving engagement at three key touchpoints in a consumer's health care journey could help health care stakeholders improve patient outcomes and reduce the cost of care. For 43 percent, a convenient location was important. Capture consumerism. McKinsey’s 2017 Consumer Health Insights (CHI) Survey yielded several findings with important implications for health insurers, providers, and other industry stakeholders.1 Four important themes emerged: These findings and their implications are discussed in detail below. 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