The New Health Economy

We are entering the most significant re-engineering of our health system since employers began covering workers in the 1930s. Market forces such as robust competition and the notion that the customer is king are disrupting the industry. Expertise in unconventional areas such as behavior change and social media have greater importance. As money flows from consumers to new players, the customer is taking control, talking about you, reviewing you, price checking you and recommending you (or not).

Major changes in behavior have been triggered and are fundamentally altering the business. In this unfolding world, individuals will be co-creators of their health decisions, spending more money on tools that help them live well. Healthcare companies must change with consumers or risk being left behind. It’s one giant inflection point. Those that catch the wave will reap the benefits.

KEY TRENDS DRIVING TRANSFORMATION

Over the next five years, it’s expected that 13 million wearable connected devices will be integrated into wellness plans. Even today roughly one third of patients use mobile devices daily for health research and/or to book appointments. Communication between patient and provider is no longer a one-way monologue, but rather a data-driven, personalized interactive dialogue that’s portable.

Retailization of Healthcare

The retailization of healthcare means consumers are in control: budgeting health benefits, choosing provider networks, navigating care delivery, and recommending preferred companies. Those that dominate will combine the art of marketing with the science of data analytics to find the right person at the right time. In this new age of customer personalization, marketing will rule like never before.

Hospitals Expanding Care Continuum

Continuing the trend over the past decade, hospitals are diversifying their delivery systems through ambulatory expansion and integrating into the post-acute care delivery continuum. They are assessing the need to repurpose facilities in the areas of skilled nursing, rehabilitation, step down units, and transitional care units. Consumers are facing a new world of choices — medical enterprises competing hard to keep them within their own continuum.

Newly Insured are a New Population

Enrollment in high deductible plans has tripled since 2009 bringing millions of inexperienced consumers who are brand new to health delivery. We are beginning to understand this new population, its health status and preferences. Of the 10 million+ newly insured about six million are young adults between age 19 and 34 — the largest increase of any age group.

Rise in the Self Insured 50 million+

Over 50 million Americans are paying their own way when it comes to healthcare and that number is growing. These “patients” are “consumers” first, making more decisions and spending their own money. They will demand a continuum of well being, and reward trusted advisers that help them achieve it. They will demand the same value experience they find elsewhere, and will adopt new products and practices that reduce cost, increase convenience, allow them to obtain information control over their own health.

Health Professionals Take Over Patient Interface

Physician “extenders” are becoming the first line of care for many patients, as doctors delegate tasks, monitor patients digitally and enter into risk-based payment models. Three-quarters of consumers say they would be comfortable seeing a nurse practitioner/physician assistant for physicals, prescriptions, treatment of minor injuries and ordering lab tests. Half would be comfortable seeing a pharmacist instead of a doctor for some services. The supply of primary care nurse practitioners and physician assistants is expected to increase by 30% and 58% respectively over the next five years. How often will anyone see the doctor?

Millennial Values Influence Choices and Delivery

The 80 million Millennials, born between the early 1980s and the early 2000s, are a force rapidly re-shaping culture and society. They are soon to represent a majority of the US workforce. Shaped by the Internet revolution, economic austerity, globalism and war, they are propelling a new health economy that supports a broader market of good health and well-being.

The Brand Battle is On

Health delivery institutions, recognizing the confusing sea of sameness for consumers are increasing their resources. They are using the power of name recognition, preference, expertise, and a distinct POV to grow critical mass, attract top talent and grow donor dollars. They seek to allow the public to experience their presence — everywhere. There is heavy and increasing use of digital marketing, broadcast marketing and specific target marketing as big names compete to achieve national awareness and establish local/regional dominance.

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