The Rise of the Health Care Consumer
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Transcript of The Rise of the Health Care Consumer
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
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In the health care industry of the future, winning the hearts and minds of consumers will be critical.
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
01Market 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
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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
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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
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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
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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
Casualand cautious
Contentand compliant
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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
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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%
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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.
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Meet the authors
BEN JONASHprincipal with Deloitte Consulting LLP in the Monitor Deloitte Strategy & Operations practice.
JEFF WORDHAMprincipal with Deloitte Consulting LLP in the Monitor Deloitte Strategy & Operations practice.
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About Deloitte University PressDeloitte 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.
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