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The Future of Healthcare in Consumerism World

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The Future of Healthcare in Consumerism World

The main aim of this document is to provide an overview of healthcare consumerism, its growth drivers and challenges / barriers providers and payers face while adopting it. The document provides insights on how providers and payers can tackle the rising wave of consumerism in healthcare industry. The document also provides some real-life examples on market trends which emphasize the need to brace consumerism in healthcare

The main aim of this document is to provide an overview of healthcare consumerism, its growth drivers and challenges / barriers providers and payers face while adopting it. The document provides insights on how providers and payers can tackle the rising wave of consumerism in healthcare industry. The document also provides some real-life examples on market trends which emphasize the need to brace consumerism in healthcare

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The Future of Healthcare in Consumerism World

  1. 1. This document is confidential and contains proprietary information, including trade secrets of CitiusTech. Neither the document nor any of the information contained in it may be reproduced or disclosed to any unauthorized person under any circumstances without the express written permission of CitiusTech. 27 October, 2017| Author : Hemangi Hanote, Varun Agarwal, Tanay Agarwal| Healthcare Business Analyst The Future of Healthcare in the Consumerism World CitiusTech Thought Leadership
  2. 2. 2 Objective  The main aim of this document is to provide an overview of healthcare consumerism, its growth drivers and challenges / barriers providers and payers face while adopting it  The document provides insights on how providers and payers can tackle the rising wave of consumerism in healthcare industry  The document also provides some real-life examples on market trends which emphasize the need to brace consumerism in healthcare  At the end of this document readers shall be able to: • Recognize the current market trends on consumerism prevailing in the healthcare sector • Identify areas where they can gain competitive advantage by acting early • Understand the process of adopting consumerism in healthcare
  3. 3. 3 Agenda  Introduction to Healthcare Consumerism  Key Drivers of Consumerism  Key Challenges  Consumer Access Points  Current Market Trends  Opportunities to Leverage  Technology Enablers  5 Step Approach to Consumerism  References
  4. 4. 4 Introduction to Healthcare Consumerism What is Healthcare Consumerism? Consumers are taking an increasingly active role in healthcare decision making. Healthcare Consumerism is defined as the actions individuals take to become better informed and more directly and proactively involved in decisions and behaviors that affect their health, insurance coverage, and health care. These actions may include:  Researching for information about health concerns and compare treatment options  Taking deliberate steps to monitor and improve their health  Cooperating with physicians to make treatment decisions  Sharing information with doctors  Taking cost and quality aspects into consideration in their decision making  Adhering to recommended treatment plans Key Stakeholders Providers PayersConsumers/Patients
  5. 5. 5 Key Drivers for Consumerism Regulatory reforms (ex. ACA) Market for private HIX solutions deployed by U.S. employers will grow at a CAGR of 41.9% between 2016 and 2020 – Frost & Sullivan Growth in co-pays - Individuals as biggest payers >35% of total healthcare payments were out of pocket in 2015 and the trend is only increasing – HIMSS Shift to value-based care models Healthcare transformation task force is working on a plan to shift 75% of members’ contracts to VBPs by 2020 Focus on wellness and prevention 91% of consumers want to be more proactive in managing their health – A Xerox survey More expectations - Access to digital tools / info By 2022, 20% population with chronic health conditions will rely on virtual health assistants
  6. 6. 6 Key ChallengesConsumerExpectations More for less Quality vs. Price On demand access Information and care Continuous engagement Communication and loyalty Self help / timely resolution Automation and integrated customer service Customized care Tailored solutions Key Technology Considerations User Experience Data security and privacy Integration and Interoperability Scalability / Cloud HIPAA / PHI compliance Enterprise Mobility CRM / Web enablement Internet of Things Enterprise BI and Analytics Providing a simple and effective consumer experience is hard! It needs organization to connect various disparate data sources and work across many different technologies.
  7. 7. 7 Consumer Access Points 47% 15% 27% 27% 34% 37% 38% 50% 19% 48% 35% 23% Retail Clinics Urgent Care Centers Freestanding Imaging Sites Virtual Visits Not Available Limited Access Significant Usage Patient Engagement initiatives Source: Kaufman Hall 2017 Healthcare Consumerism Survey Enhancing access with a variety of entry points is a must for legacy healthcare providers to enrich consumer experience. Availability of Innovative MethodsTraditional Methods for Consumer Access 4% 11% 13% 18% 23% 6% 34% 30% 26% 42% 69% 43% 48% 41% 27% Online Patient Portal Message between Patient and Providers Extended hours of dignostic services Extended hours of primary care Virtual Visits Its Available We are working on it Not available and not working It’s available
  8. 8. 8 Current Market Trends (1/3) Retail Clinics A retail clinic is a category of walk-in clinic located in retail stores, supermarkets and pharmacies that treat uncomplicated minor illnesses and provide preventative health care services  Memorial Hermann has partnered with RediClinic to provide 22+ retail clinics in Houston area  RediClinic operates quick-care clinics in grocery stores, to offer convenient, low-cost access to consumers who need minor care Enhancing access to quick care at convenient location at right time through retail clinics, providers are taking the right step in transitioning to customer-centric model .  Renton-based provider has teamed up with Walgreens to offer 25 walk-in clinics  The clinics will bridge the gap between hospital-based urgent care and coordinated primary care  Retail health clinic offers transparent pricing, no pre-appointment and extended hours  Arizona's largest healthcare provider  Partner with Safeway grocery stores to open retail-based clinics at 3 different locations  All 3 locations will have a nurse practitioner on site and will be open 365 days per year  The objective is to provide patients with the same level of care as in an emergency department but with less waiting time and cost Banner Health Providence Health Memorial Hermann Source: Banner Health | Providence Health | Memorial Hermann
  9. 9. 9 Current Market Trends (2/3) Patient Engagement Initiatives A concept that combines a patient's knowledge, skills, ability and willingness to manage his own health and care with interventions designed to increase activation and promote positive patient behavior  The project provides a way for providers to share patient-centric information directly with the patients  Instigates communication and engagement between patient and provider by making physician notes available via a secure online portal  Patients feel more empowered in their healthcare, and have reported that having access to their notes would influence their decision to choose the provider  Physician-led integrated health system based out of Pennsylvania  Its ProvenCare model offers money-back guarantees for care experiences that don’t meet patients’ expectations. The patients decide how much they get back—no questions asked. In six months just 74 patients asked for their money back, totaling about $80,000  It has launched an innovative CRM program in collaboration with GH’s Fresh Food Pharmacy which brings medical, dietary and social care to families struggling with food insecurity and diabetes. 50% of nearby Shamokin city residents are diabetic and 30% don’t know where their next meal is coming from. When diabetic patients order insulin from a Geisinger pharmacy, they also get a week’s worth of tasty, diabetic-safe food delivered. OpenNotes Geisinger Source: Open Notes | Geisinger
  10. 10. 10 Current Market Trends (3/3) Healthcare consumerism and digital patient engagement are becoming the new norm to meet the challenge of the patient-consumer’s service expectation, convenience and value.  Leading insurance company, serving approximately 46.7 million people  Teamed up with the Financial Planning Association for a public education campaign dedicated to helping patients navigate the financial aspects of their health benefits  "Find a Doctor & Estimate Costs" tool provides members with cost and quality data  The tool provides searching doctor by location, cost estimates for procedures, the amount members would have to pay and read and write doctor reviews  Members can also check quality data of doctors and compare doctors side-by-side  Pardee is a non-for profit hospital managed by UNC healthcare  They have customized search on their portal wherein patient can select the doctor by selecting up to 14 personality characteristics  Algorithms also list doctors based on compatibility, distance and location  The largest integrated health system in New York state  Developed a mobile app that offer instant feedback options for patients  Any “unsatisfied” result trigger, alerts to appropriate physician / staff who then attend to patient need within 15 minutes  Satisfied patients prompted to identify staff people for recognition as well Aetna BlueCross BlueShield Pardee Health Care Northwell Health Source: Aetna| BCBS | Pardee Health Care | Northwell Health
  11. 11. 11 Opportunities to Leverage  360-degree customer view  Consumer analytics  Segmentation analytics  Real-Time patient Feedback system  Staff operated feedback system  Enterprise application framework to support apps across care continuum  Build Advance Virtual Care  Multichannel Navigation Platform  Application integration and interoperability using EAI platforms  Data integration support for care coordination and patient engagement use cases  Uncover points of frictions between patient and provider  Discover digitalization / transformation opportunities  Integrated search, price estimation and scheduling  Externally embedded provider search  Automated price estimates  Hospital locator and way finding inside hospital  Online scheduling  Integrate portals and apps  Consumer-driven personalized healthcare plans  Bargain-base pricing  Simplified billing & payments eHealth Platform / Mobile Support Data Intelligence and Analytics Device / Data Source Interoperability Consumer Journey Mapping / UX Consumerism Purchasing Ease Reconfigure Access Channels
  12. 12. 12 Technology Enablers  E-visits  Personal analytics  Patient Portals  Digital care coordination  Omnichannel experience  Digital care records  Virtual health  Telehealth  Remote patient monitoring system  Patient Wearables  Real-time health systems  Sensors and host boards  IoT enabled medical devices (including OS, firmware, drivers)  EHRs / EMRs  CRM  ERP  EDW  Cognitive HIS / RIS Consumer Ecosystem Devices IT Systems Consumerism Platform Intelligence  Population Health Management  Precision Medicines  Genomics  Real-time Analytics Key Enablers User Experience Artificial Intelligence & Machine Learning Integration and Interoperability Scalability / Cloud Enterprise Mobility CRM / Web enablement Internet of Things Enterprise BI and Analytics
  13. 13. 13 5 Step Approach to Consumerism Establish vision and governance Discovery and current state assessments Strategic blue print and gap assessment Reprioritization Execution blue print and kickoff  Clearly articulated strategy around consumerism with key outcome expectations  An empowered team structure to drive integrated consumer centric initiatives  Current state assessment through interviews and focus group discussions, discovery workshops, asset inventory exercises, document reviews and observation and analysis  Current state customer journey maps  Draw a strategic blueprint that is aligned to the vision with a detailed gap analysis  Rethink the initiatives based on current state assessment  Reprioritize the initiatives after detailed considerations on multiple dimensions - investment vs. returns; impact vs. complexity; tactical vs. strategic etc.  Consider impacts like change management, process re- engineering and enterprise architectural adjustments  Finalize the phases and sprints for prioritized initiatives  Come up with clearly articulated key success factors for each of the initiatives  Define fail fast and fail safe expectations; leverage tools and methodologies like design thinking, rapid prototyping and journey mapping
  14. 14. 14 Summary  Consumerism will reshape the healthcare industry in the coming years  The age of consumerism will be even more profound in 2018-2020 as more choices and information will be available to the consumers for decision making due to advancement of technology  Use of alternative care options for example retail clinics will grow substantially in the few years  The key to survive for healthcare organizations is loyalty  Healthcare organizations who will be able to understand, guide and engage consumers will have a significant opportunity to make difference and earn the loyalty  Healthcare organization should also think about the role of new healthcare technologies in understanding consumerism to gain competitive advantages
  15. 15. 15 References  The Reality of Consumerism on healthcare https://www.td.org/Publications/Blogs/Healthcare-Blog/2016/07/The-Reality-of-Consumerism-on-Healthcare  2017 state of consumerism in healthcare https://www.kaufmanhall.com/sites/default/files/2017-State-of-Consumerism-in-Healthcare.pdf  HFMA report on Health Care 2020 - Part 2: Consumerism http://www.hfma.org/Content.aspx?id=49983  Banner Health opens 3 clinics at Arizona grocery stores http://www.beckershospitalreview.com/facilities-management/banner-health-opens-3-clinics-at-arizona- grocery-stores.html  Providence to own healthcare clinics http://www.modernhealthcare.com/article/20150820/NEWS/150819875  Memorial Hermann Medical Group RediClinics http://mhmg.memorialhermann.org/doctors-specialties/rediclinic/  A $10 Million Victory for Patients https://gopvi.org/blog/a-10-million-victory-for-patients  Pardee Hospital & Northwell Health http://www.himssconference.org/sites/himssconference/files/pdf/INV5.pdf  Blue Cross Blue Shield https://www.fiorente.tv/heath-care-consumerism/  Geisinger Health System http://www.pressganey.com/docs/default-source/industry-edge/issue-3/breaking-new-ground-in-the-era-of- health-care-consumerism.pdf?sfvrsn=2  Aetna http://investor.aetna.com/phoenix.zhtml?c=110617&p=irol-newsArticle_Print&ID=909224
  16. 16. 16 Thank You About CitiusTech 2,700+ Healthcare IT professionals worldwide 1,200+ Healthcare software engineers 700+ HL7 certified professionals 30%+ CAGR over last 5 years 80+ Healthcare customers  Healthcare technology companies  Hospitals, IDNs & medical groups  Payers and health plans  ACO, MCO, HIE, HIX, NHIN and RHIO  Pharma & Life Sciences companies Author: Hemangi Hanote Varun Agarwal Tanay Agarwal Healthcare Business Analyst thoughtleaders@citiustech.com

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