The Rise of the Health Care Consumer

The intersection between rising consumerism and a growing retail orientation in the health care sector presents challenges, some unprecedented, for existing players. We explore three shifts that health industry players should respond to, and that can set the scene for greater consumer involvement. Explore more on the rise of consumerism in the health care industry from Deloitte University Press: http://dupress.com/articles/consumerism-health-care/

Published in: Healthcare

The Rise of the Health Care Consumer from Deloitte United States

Transcript

• 1. 2 Deloitte University Press | The rise of the health care consumer | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. The US health care system is edging toward a recalibration. Existing business models are being challenged to find and deliver new sources of value, develop approaches to make health care less complicated, and improve outcomes. An active and engaged consumer is implicit at the core of the health industry of the future—a value-oriented market-like system. Upcoming generations may well be expected to approach health care just as they do other services. new entrants traditional players volume to value better outcomes consumers
• 2. 3 Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | The rise of the health care consumer | @DU_Press #DeloitteReview In the health care industry of the future, winning the hearts and minds of consumers will be critical.
• 3. 4 Deloitte University Press | The rise of the health care consumer | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. Health care industry players should be prepared to respond to three shifts fueling rising consumerism 01 Market dynamics turn to the consumer New entrants view health care through a different lens On the demand side, what people want is changing 02 03
• 4. 5 Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | The rise of the health care consumer | @DU_Press #DeloitteReview Adopting a more retail mindset and approach will be important for many health care organizations. Health care organizations will need to re-orient themselves around greater transparency—of costs, quality, processes, and services. As more financial risk migrates to individuals, consumers are quickly becoming comparison shoppers using online tools to compare and select health plan products. They are looking toward their retail experiences to help guide them through this unfamiliar territory. Market dynamics are turning to the consumer service convenience support transparency 01
• 5. 6 Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | The rise of the health care consumer | @DU_Press #DeloitteReview Private health insurance marketplaces Relatively new competitive online platforms, private health insurance marketplaces provide options for active as well as retired employees. Several large companies have announced major shifts in benefits strategies to move workers or retirees to defined contribution models through private health insurance exchanges. Public health insurance marketplaces Many in the public marketplaces have been drawn to packages with lower premiums, which feature large deductibles even though benefit packages with lower cost sharing are available. Market dynamics are turning to the consumer 01
• 6. 7 Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | The rise of the health care consumer | @DU_Press #DeloitteReview A deep understanding of the consumer’s attitudes and behaviors is vital in an environment that places patients at the center. At the same time that consumers are being asked to take on more of the health care cost burden, they are also being inundated with new choices and options. As they interact with the health care system more, their expectations of what experiences and services they receive are changing. What consumers want is changing better services better experiences changing expectations 02
• 7. 8 Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | The rise of the health care consumer | @DU_Press #DeloitteReview Deloitte has identified two domains—passive and active—and six unique consumer health care segments that navigate the health care system. What consumers want is changing02 passiveactive Shop and save Sick and savvy Out and about Online and onboard Casual and cautious Content and compliant
• 8. 9 Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | The rise of the health care consumer | @DU_Press #DeloitteReview Examples abound of new entrants into the health care industry targeting improving value, or re-combination of an organization’s capabilities or by engaging consumers differently. New entrants are flooding into health care riding the waves of innovation, technical capabilities, and scientific discoveries. They are redefining traditional value chains and challenging the status quo. New entrants view health care through a different lens clinical delivery health and wellness population health management analytics data 03
• 9. 10 Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | The rise of the health care consumer | @DU_Press #DeloitteReview New entrants view health care through a different lens 03 There is strong venture capital interest in enabling technologies. Investment in life sciences (medical services, biotech, pharma, medical devices, and medical therapeutics) was 23.6 percent of the total dollars invested in 2013. Several start-ups aim to optimize patient engagement and support and sustain health status through carrots and sticks of motivational and behavioral change levers. Others concentrate upon smoothing the interface between patients and the health care system. 23.6%
• 10. 11 Deloitte University Press | The rise of the health care consumer | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. As consumers become more engaged in managing their health care, seeking value will likely become a driving force shaping their perceptions, decision-making, and the long-term relationships they form with players in the industry. Building lifetime relationships that resonate with people in a consumer-friendly, retail-oriented, and technology-driven system – that’s the new road ahead.
• 11. 12 Deloitte University Press | The rise of the health care consumer | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. Share your thoughts with the hashtag #DeloitteReview Follow @DU_Press on Twitter Explore the rise of consumerism in the health care industry For more, download the Deloitte Review article Download
• 12. 13 Deloitte University Press | The rise of the health care consumer | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved. Meet the authors BEN JONASH principal with Deloitte Consulting LLP in the Monitor Deloitte Strategy & Operations practice. JEFF WORDHAM principal with Deloitte Consulting LLP in the Monitor Deloitte Strategy & Operations practice.
• 13. Follow @DU_Press Sign up for Deloitte University Press updates at www.dupress.com. About Deloitte University Press Deloitte University Press publishes original articles, reports and periodicals that provide insights for businesses, the public sector and NGOs. Our goal is to draw upon research and experience from throughout our professional services organization, and that of coauthors in academia and business, to advance the conversation on a broad spectrum of topics of interest to executives and government leaders. Deloitte University Press is an imprint of Deloitte Development LLC. This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or its and their affiliates are, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication 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 finances or your business. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. None of Deloitte Touche Tohmatsu Limited, its member firms, or its and their respective affiliates shall be responsible for any loss whatsoever sustained by any person who relies on this publication. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited 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. Member of Deloitte Touche Tohmatsu Limited