Consumerism: Strategies to
Meet New Market Demands and
Rising Expectations
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Speaker Introduction
Add Speaker
Douglas Ivan Thompson, MBA, FHIMSS
Photo Here
Senior Research Director
The Advisory Board
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Conflict of Interest
Douglas Ivan Thompson, MBA, FHIMSS
I receive a salary from The Advisory Board
Other divisions of The Advisory Board sell software products that address
consumer needs.
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Agenda
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The Times They Are A-Changing – What’s New
The Business Case for Consumerism in Healthcare
Four Imperatives for Consumer Success – Lessons from Amazon
Meeting the New Performance Standard – How IT Can Help
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Learning Objectives
• Describe the behavioral and health care patterns of passive and active
healthcare consumers
• Address how expectations differ by patient archetypes
• Discuss a business case for competing on the basis of consumer experience
• Share strategic imperatives to establish a consumer-focused value
proposition, set a high standard of transparency and increase consumer
loyalty, including the consumers point of view
• Highlight new and established technologies required to support these
strategic imperatives
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Benefits of Using IT to Meet Consumer Needs
Increase
Improve
Consumer
Patient
Loyalty
Engagement
By delivering excellent
Through better
service that exceeds
information, service,
patient expectations
and responsiveness
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The Times They Are A-Changing
The doctor-patient relationship has evolved since Marcus Welby, M.D.
IMAGE CREDIT: PER WIKIPEDIA THIS IMAGE IS IN THE PUBLIC DOMAIN
The Old Reality
Now you
listen to me!
New Consumer Expectations
Three forces are driving increased healthcare consumerism
More Skin
in the Game
More Choices
for Care Delivery
Increased
Transparency
High-deductible health
plans, increasing copayments, employers
dropping coverage
Standalone ambulatory
care centers, retail clinics,
concierge medicine, etc.
Improved information
about cost, quality,
convenience of
individual providers
Source: Advisory Board research and analysis.
Loyalty vs. Satisfaction
Patient satisfaction is a low bar to clear, and doesn’t guarantee loyalty
Why Doesn’t Patient
Satisfaction = Loyalty?
• Patient satisfaction is gained
when expectations are met for a
given transaction or encounter
• Patients generally have low
expectations of provider service
levels—satisfaction is far from
“delight”
?
• Many patients don’t perceive a
real difference between their
health care providers
• So it doesn’t take much to
convince a patient to switch
providers
Source: Advisory Board research and analysis.
A Tale of Two Consumers
A new type of healthcare consumer is emerging
Traditional Consumer
New Consumer
• I’m loyal to my long-time PCP
• I pick specialists and hospitals
based on my PCP’s referral
and my payer’s coverage
• I trust the doctor to decide the
best care for me
• Medical professionals are
responsible for my health
• Medicine is a mystery to me
• I change doctors based on
convenience and price
• I do my own research on-line
• I pick providers based on
convenience, price and service
• I make my own care decisions
• I am responsible for my health
• I am educated about my
conditions and treatments
65+ the Most Promising to Be Loyal
70%
21%
of 65+ respondents
definitely staying with
their current PCP
Avoiding travel was 21%
more important to
consumers ages 65+1
1. Compared to millennials when deciding where to get surgery.
2. Hospital Outpatient Department and inpatient payments.
Source: Advisory Board research and analysis.
Consumer Archetypes
Different types of consumers want different things from their providers
PwC’s “Experience Segments”
Brand-Aware
Brenda Boomer
(>50), income
>$100K, mostly
female, lives in
suburb of mediumsized city. Top
wants: accurate
claims payment,
extensive provider
network.
Full-Service Frank
Gen X and Y (18-49),
income $50 - $75K,
both genders, lives in
suburb of major city.
Top wants: hasslefree issue resolution,
good website
content.
On-the-Go
Gina Gen X (3349), income
>$100K, mostly
female, lives in
medium/
metropolitan
city. Top wants:
accurate claims
payment.
Traditional Tom
Retirees (66+),
income $25 - $50K
and >$150K, mostly
male, lives in small
city or town. Top
wants: extensive
provider network,
accurate billing.
Budget Brad
Boomer (>50),
income <$50K,
both genders,
lives in suburb of
major city. Top
wants: accurate
claims payment,
extensive
provider network.
Sources: Experience Radar 2012, PwC; art credit: Doug Thompson.
Market Postures
Different types of consumers require different value propositions
Community Pillar
• Most systems act as the
community pillar today
• Strategy capitalizes on
existing familial connections
and a long-standing history in
market
• Consumers typically see the
community pillar as the default
option, selecting a provider on
preexisting use and trust
Blue Chip Quality
Showcase reputation, clinical
outcomes to win most complex
business
Solutions-Focused
Defend premium price through
product and service
enhancements
Purchasing Ease
Simplify health care
purchase and use of care
Bargain-Basement Pricing
Win ultra price-sensitive consumer
through rock-bottom pricing
Status Quo
New Consumer-Oriented Value Propositions
Source: Advisory Board research and analysis.
What Would You Build?
Disconnect Between Historical Investments and Patient Problems
Source: Advisory Board research and analysis.
A New Delivery System
Starting from scratch provides opportunity to re-imagine system
Beginning with Patient-Centric
Primary Care Offerings
Adding Key Specialties to the
Service Mix Over Time
GI1
Orthopedics
Cardiology
Dermatology
Women’s
Services
Pain
Management
Key Features of Kansas City Locations
Clinics without
waiting rooms
Portal access to visit
notes, lab results
Same-day, walkin appointments
On-site healthy
cooking demos
E-visit
availability
Access to life
coaches
1) GI = Gastroenterology; 2) RVU = Relative value unit.
Establishing a Consistent Physician Culture
• Clinicians are mix of former St. Joseph
practitioners and new hires
• Salaried model for two years, then transitioned
to RVU2-based model with quality incentives
Source: Advisory Board research and analysis.
Traditional Providers Also Responding
Geisinger CEO: We want to be Uber, not Blockbuster
Case in Brief
• Physician-led integrated health system based out
of Pennsylvania
• Geisinger gives money-back guarantees to
dissatisfied patients
• 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
• 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
"If we can get that Amazon connection to people we have the chance to
be the next Uber. If we don’t, I think
we become Blockbuster."
David Feinberg, Geisinger CEO, MD
Source: Advisory Board research and analysis.
Loyalty - The Ultimate Consumer Goal
Experience key to driving repeat business
Source: Advisory Board research and analysis.
The Business Case for Loyalty
Opportunity for repeat business overshadows value-based purchasing
Source: Advisory Board research and analysis.
Earth’s Most Customer-Centric Company
Amazon’s focus remains unchanged
Source: Advisory Board research and analysis.
How They Do It
Four imperatives drive Amazon’s success
Source: Advisory Board research and analysis.
Playbook for a Consumer-Focused Health System
How IT can help meet the new performance standard
Source: Advisory Board research and analysis.
1. Embed and Customize Provider Search
All roads lead back to your health system
Source: Advisory Board research and analysis.
Embedded Where?
Start with Google and WebMD and go from there
2015 Search Share by Provider
2015 Ad Revenue by Search Engine
Google
Google
How WebMD Wins Big in the
Consumer Space
High-Ranking SEO3 Results
Trusted Information Source
Streamlined Online Experience
The WebMD Audience is Highly Engaged…
9.8
10
9/10
Average number Average number of
of minutes spent pages viewed per
on WebMD2
visitor to WebMD
Health Searches
Lead to WebMD
Source: Advisory Board research and analysis.
Provider Search in WebMD
Providers shown based on search terms
Source: Advisory Board research and analysis.
The Rich Getting Richer
Spotlight initiative expands WedMD value to providers
Source: Advisory Board research and analysis.
Customize Local Provider Search
Differentiate based on coordination, integration, depth of knowledge
Source: Advisory Board research and analysis.
Pardee Select Customizes Provider Search
Online dating comes to healthcare!
Source: Advisory Board research and analysis.
2. Automate Price Estimates
Lack of information loses patients even if your price is cheaper
Source: Advisory Board research and analysis.
Pricing Information Consumers Want
Estimates growing more common, guarantees desired but unusual
Source: Advisory Board research and analysis.
It’s Harder Than It Looks
Requirements complex for out-of-pocket payment estimation
Sample Vendors
Offer a Wide Range of Functionality,
Including Turn-Key Solutions
EMR vendors
Clear IQ™
Payment Navigation Compass™
SurePayHealth™
Source: Advisory Board research and analysis.
3. Expose Digital Self-Scheduling Platform
Let patients buy healthcare when they are ready
Source: Advisory Board research and analysis.
Realistic Future Vision
Integrated search, price estimation and scheduling
Source: Advisory Board research and analysis.
4. Continue to Advance Virtual Care
Technology improving patient access, convenience
Source: Advisory Board research and analysis.
5. Enable Hospital Way-Finding
Beacons keep patients from getting lost in the hospital
Source: Advisory Board research and analysis.
Key Takeaways
Improve patient access for greater convenience
Source: Advisory Board research and analysis.
6. Standardize Processes
Geisinger standardizing care delivery…and now the patient experience
Source: Advisory Board research and analysis.
IT Infrastructure for a Reliable Experience
EMR, BI, BPM/workflow, CRM, point applications
Source: Advisory Board research and analysis.
7. Report Quality from a Consumer Perspective
Assess whether the consumer’s problem was solved
Source: Advisory Board research and analysis.
Key Takeaways
Commit to process reliability through automation and measurement
Source: Advisory Board research and analysis.
8. Upgrade Cost Accounting System
Needs for cost data growing with consumerism
Source: Advisory Board research and analysis.
What Should You Charge?
New market postures require new information
Source: Advisory Board research and analysis.
One of These Things Is Not Like the Others
Activity-based costing the gold standard – for now
Source: Advisory Board research and analysis.
Key Takeaways
Cost accounting a key to affordability
Source: Advisory Board research and analysis.
Building a Longitudinal Relationship
Develop services, capabilities that drive loyalty to the health system
Source: Advisory Board research and analysis.
9. Gather and Use Real-Time Patient Feedback
Serve patients better, fix problems before they leave the hospital
Source: Advisory Board research and analysis.
A Call Button In Every Patient’s Hand
App Offers Instant Opportunity for Feedback and Recovery
Source: Advisory Board research and analysis.
Acute Care Patient Portals
Real-time patient feedback just one capability
Source: Advisory Board research and analysis.
Staff Operated Feedback Systems
Support service recovery and systematic process improvement
*Pseudonym
Source: Advisory Board research and analysis.
Participating In The Conversation
Social media monitoring brings new opportunities…and risks
Source: Advisory Board research and analysis.
10. Integrate Portal Capabilities With Apps
Loyalty drives portal use, not the other way ‘round
Source: Advisory Board research and analysis.
Kaiser Integrates Portals and Apps
Multiple data inputs, multiple user options
Source: Advisory Board research and analysis.
11. Boost Retention With Loyalty Programs
Healthcare payers and providers learning from other industries
Source: Advisory Board research and analysis.
12. Improve the Billing and Payment Experience
The last impression is the lasting impression
Source: Advisory Board research and analysis.
Moving to Patient-Centered Billing
St. Luke’s overhauls billing and payment process
Source: Advisory Board research and analysis.
Key Takeaways
Focus on making it easier to stay, and harder to leave
Source: Advisory Board research and analysis.
Playbook for a Consumer-Focused Health System
How IT can help meet the new performance standard
Source: Advisory Board research and analysis.
Playbook for a Consumer-Focused Health System
How IT can help meet the new performance standard
Source: Advisory Board research and analysis.
Benefits of Using IT to Meet Consumer Needs
Increase
Improve
Consumer
Patient
Loyalty
Engagement
By delivering excellent
Through better
service that exceeds
information, service,
patient expectations
and responsiveness
57
Questions
• Contact: Douglas Ivan Thompson – [email protected]
• Please complete the online session evaluation
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