Sick around the world

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Sick Around The World

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Transcript of Sick around the world

Page 1: Sick around the world

Sick Around The World

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Consumer Behavior

• Consumers are beginning to use the same value criteria for healthcare decisions as they do with other purchasing decisions:• Service • Price• Experience• Brand equity…

• However we cannot see a widespread change in consumer behavior

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Consumer Behavior

• With the adoption of consumer-driven plans and the current crisis, change is coming:• Many predict adoption of consumer-driven

plans will rise to 15% in 2009, 50% in 2013 and 90% by 2016.

• Crisis is causing more employers to drop health insurance altogether: 19% of employers are planning to stop offering health benefits over the next three to five years (five times higher than the previous year)

• With a growing unemployment, the number of uninsured and underinsured increases

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Consumer Behavior

• 53% of the households said they had cut back on healthcare in the previous year due to cost concerns (Kaiser Family Foundation Health Tracking Poll)

• Retailer CVS is closing 90 MinuteClinics for the reason to “align with consumer demand” (Wall Street Journal)

• “We are seeing that demand is far more elastic than it was in other years” (CEO of Park Nicollet Health Services in Minneapolis)

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Consumer Behavior

• New consumer habits impact on healthcare providers:• The decrease in volume may be a permanent reduction

of utilization stretch out physician visits and customer find lower-cost alternative (“home made”)

• Price shopping will become the norm, as consumers carefully consider their alternatives and negotiate for lower costs

• Convenience, experience and service will become the new value driver, relative to clinical quality, as patient demand more for their money

• Competition in the healthcare market will become even more intense

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Consumer Behavior

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Financial Analysis

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Healthcare cost

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Healthcare cost

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Job opportunities

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Job opportunities

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Some data from the USA… (2011)

• 16.5% of Americans are not covered by a healthcare plan

• 46% of all personal bankruptcies are related to healthcare costs

• US spends 15.9% of GDP or $6,657 per capita on healthcare (twice that of the next most expensive national expenditure ranking)

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Some data from the USA… (2011)

• 20% of US healthcare dollars are lost to health insurance companies in the form of profits, and similar wastage numbers apply to big pharmaceutical companies

• American life expectancy at birth ranks 50th in the world

• American overall level of health ranks 72nd in the world

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Britain preventive medicine

Positive (for the US):

• System covers everybody

• Never have to pay a medical bill

• Financed from the general taxation

• No medical bankruptcy

• Physicians are encouraged to keep people healthy (bonus)

• World leader in preventive medicine

Negative (why it should not work in

the US):• Long waiting list for

patients

• Hospitals compete to survive and not to make profits

• Too much government for the US

• Brits are much more taxed

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Britain Healthcare statistics vs USA

• Expenditure on health % GDP: 8.4%/ 16%

• Expenditure on health per capita: $2,992/ $7,290

• Expenditure from private sector: 12.9%/ 52.8%

• Infant mortality per 1,000 births: 4.8/ 6.7

• Life expectancy at birth: 79.1 years/ 78.1 years

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Japan: No Gatekeepers

Positive (for the US):

• Spend half as much as the US on healthcare per capita

• Longest life expectancy all over the world• Everybody has to sign up for a health

insurance policy at work or through community (for jobless)

• Japan’s system is largely private (80% of hospitals)

• All citizens are covered and it is very cheap (fairness)

• Price regulation by the government to keep prices low

• Same prices everywhere in the country• High tech system of healthcare• Patients can see any specialists they want• Competition between doctors, clinics and

hospitals is fierce

Negative (why it should not work in

the US):• Doctors can’t get rich:

undervalued and underpaid

• Too much control by the government for prices regulation (“Big Brother”)

• Insurance companies are not allowed to make profits

• 50% of hospital are in financial deficits

• Japanese system spend too little

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Japanese healthcare statistics vs USA

• Expenditure on health % GDP: 7.1% / 16%

• Expenditure on health per capita: $2,373/ $7,290

• Life expectancy: 82.25 years/ 78.1 years

• Infant mortality per 1,000 births: 5/ 6.7

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Germany: a market-based system

Positive (for the US):

• 90 % of the population covered by the system

• German pay premium based on their income

• Population is highly satisfied

• Sickness funds (1,100) compete among themselves but are not allowed to make profits

• Sickness funds negotiate with drug companies and medical providers to keep prices low

• Excellent quality and efficiency of the system

Negative (why it should not work in

the US):• Rich pay for the poor and

the ill are covered by the healthy

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German healthcare statistics vs USA

• Expenditure on health % GDP: 10.4% / 16%

• Expenditure on health per capita: $3,588/ $7,290

• Life expectancy: 80.07 years/ 78.1 years

• Infant mortality per 1,000 births: 3.54/ 6.7

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Taiwan: a new system

Positive (for the US):

• A mix of all the best ideas for healthcare of all around the world

• Equal access to healthcare

• Free choice of doctors

• No waiting time

• Encourage lots of competition among medical providers

• Smart card

Negative (why it should not work in

the US):• Government spend too

little and is borrowing from banks to pay the providers (solution: increase the part of healthcare in the GDP)

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Taiwanese healthcare statistics vs USA

• Expenditure on health % GDP: 5.8% / 16%

• Expenditure on health per capita: $752/ $7,290

• Life expectancy: 78.32 years/ 78.1 years

• Infant mortality per 1,000 births: 5.18/ 6.7

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Switzerland: a familiar system

Positive (for the US):

• It is possible to fix the healthcare system

• Low administrative costs

• Keep cheap universal coverage

Negative (why it should not work in

the US):• How much people are

willing to pay the premium?

• Switzerland average cost of the premium:$750/month

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Switzerland healthcare statistics vs USA

• Expenditure on health % GDP: 11.8% / 16%

• Expenditure on health per capita: $4,500/ $7,290

• Life expectancy: 81.07 years/ 78.1 years

• Infant mortality per 1,000 births: 4.08/ 6.7

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Healthcare around the world

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Profits are dangerous for our health

• ”We should not allow the medical-industrial complex to distort our health care system to its own entrepreneurial ends, medicine must serve patients first and stockholders second. We are in a market-oriented health care system spinning out of control’ with commercial forces influencing doctors’ judgments and manipulating a credulous public.’” Arnold Relman (editors of the New England Journal of medicine)

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Sources

• 2010 Global Survey of healthcare consumers behaviors

• Sick around the world (movie)

• The economic crisis: tipping point for healthcare consumer behavior

• Yahoo finance