Attracting the Digital Health Care Consumer
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- Reynold Copeland
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1 HealthPost Attracting the Digital Health Care Consumer Innovations in Real-time Online Search and Appointment Scheduling
2 2 Meet Today s Panel Shay Pratt Executive Director, Research and Insights Tracy Borkowski Director, Business Unit Marketing Tess Niehaus Executive Partner, Performance Technology Omar Alvi Managing Director, HealthPost
3 Road Map The New Logic of Choice 3 Memorial Hermann Meets Patients Where They Are - Online Questions and Discussion
4 4 Nearing the Limits of Extractive Growth Strategies Legacy Growth Levers Increasingly Time-Limited Traditional Hospital Growth Strategy Consolidate Market Position Lock Up Referral Streams Demand Price Increases Emerging Limitations: High degree of existing consolidation in major markets Heightened scrutiny of hospital mergers Limited appetite for full acquisitions Emerging Limitations: Increasingly competitive battlefield for physician affiliations Physician cost accountability calling historical system loyalties into question Languid overall demand Rise of disruptive competition Emerging Limitations: Dilution of traditional commercial coverage Market pressures intensifying price competition Direct, indirect cuts to public payer reimbursement widening gap to goal Source: Health Care Advisory Board interviews and analysis.
5 5 Tomorrow s Growth All About Winning Share Securing Preference from Purchasers, Physicians, Patients Three Key Decision-Makers Wholesale Purchasers (Payers, Employers) Referring Providers Consumers System Growth Source: Health Care Advisory Board interviews and analysis.
6 6 Understanding the New Logic of Choice Three Groups Responsible for Allocating Market Share Decision Makers and Their Priorities Wholesale Purchasers (Payers, Employers) Referring Providers Consumers Today s Priority: Low total cost of care for entire populations Provider Wishlist: Comprehensive network Proven population health management capabilities Today s Priority: High-quality, low-cost episodic care Provider Wishlist: Best-in-class outcomes Data access, connectivity Cross-continuum collaboration Today s Priority: Affordability, on-demand access, and tailored service Provider Wishlist: Multifunctional range of access options Appropriate match of price level to service quality Source: Health Care Advisory Board interviews and analysis.
7 Results From Our Primary Care Consumer Choice Survey 7 Key Drivers of Value, Ranked by Consumers Prioritizing Convenience and Affordability Most Preferred Primary Care Clinic Attributes 1 I can walk in without an appointment, and I m guaranteed to be seen within 30 minutes If I need lab tests or x-rays, I can get them done at the clinic instead of going to another location The provider is in-network for my insurer The visit will be free n=3, Show Me the Data 89% Of patients want to know their medical costs in advance 68% 1) Average utilities reported. The clinic is open 24 hours a day, 7 days a week I can get an appointment for later today The provider explains possible causes of my illness and helps me plan ways to stay healthy in the future Each time I visit the clinic, the same provider will treat me If I need a prescription, I can get it filled at the clinic instead of going to another location The clinic is located near my home Of consumers say providers quality ratings are an important factor in their choice 69% Of respondents believe they have a right to access all of their healthcare data Source: 2014 Primary Care Consumer Choice Survey, Survey: 89% of Patients Want to Know Medical Costs in Advance, Beckers Hospital Review, available at accessed August 2014; Finding Quality Doctors: How Americans Evaluate Provider Quality in the US, AP-NORC, available at accessed July 2014; Patients want more access to their health data, survey finds, Modern Healthcare, available at accessed August 2014; Marketing and Planning Leadership Council interviews and analysis
8 Consumers 8 Anticipating the Activated Patient Consumer Role in Decision Making Increasingly Important High-Deductible Health Plan Enrollment Individuals with Deductible of $1000 or More Consumer Viewpoint on Role in Care Decision Making n=2,071 25% Doctor is completely in charge of treatment decisions 0% 18% Doctor makes the decisions with some input from patient 6% 7% 10% Doctor and patient make a join treatment decision Patient makes final decision with some input from their doctor 29% 38% Patient is completely in charge of treatment decisions 26% 33% 43% with a deductible under $500 1 fully active role in care decision making Decline in proportion of individuals Respondents age 25 to 34 preferring 1) From 2003 to Source: Collins R, et al., Insuring the Future, The Commonwealth Fund, April 2013, available at: Altarum Institute, Altarum Institute Survey of Consumer Health Care Opinions, Fall 2012, available at: Health Care Advisory Board interviews and analysis.
9 9 Convenience a Critical Element of Choice Patients Seeking Alternatives to the Standard Office Visit Rising Popularity of Retail Clinic Visits On-Demand Services Attracting Patients 1.5M 6.0M 42% Consumers age 18 to 24 preferring independent, retail pharmacy for primary care Same-day appointment booking online, through mobile app Physician consultations for minor illnesses, ongoing management Top Reasons for Increase in Retail Clinic Use Coordinated tests, treatments, specialist referrals, hospitalizations Case in Brief: One Medical Group Nearby Location Reduced Wait Times Service, Price Transparency 90-physician network based in San Francisco, California Patients pay $149 to $199 for annual membership Source: The Advisory Board Company Daily Briefing, Retail clinic visits soar, especially after hours, August 17,2012, Washington, DC; PwC Health Research Institute, The new gold rush: Prospectors are hoping to mine opportunities from the health industry, available at: One Medical Group, Our Services, available at: Health Care Advisory Board interviews and analysis.
10 10 Finding Care the Way You Find Dinner Suddenly Subject to the Marketplace of Opinion Wave of Tools to Search Health Care Consumer Ratings Marcus Welby, MD General Practice Consumer Willingness to Spend Out-of-Pocket for Health-Related Tools Health Apps or Programs $0.7B 497 reviews (read below) $4.0B $8.9B Resources That Rate Physicians and Hospitals Other available apps, websites: Consumer Reports Vitals HealthGrades PatientsLikeMe Health-Related Video Games 48% Consumers reading health-related reviews online 33% Consumers using healthrelated online reviews to decide where to get care Source: PwC, Scoring Healthcare: Navigating Customer Experience Ratings, The New Gold Rush: Prospectors are Hoping to Mine Opportunities from the Health Industry, both available at: Health Care Advisory Board interviews and analysis.
11 Road Map The New Logic of Choice 3 Memorial Hermann Meets Patients Where They Are - Online Questions and Discussion
12 12 An Introduction to Memorial Hermann Health System Largest not-for-profit health system in Southeast Texas 12 hospitals 5,500 affiliated, 2,600 clinically integrated, and approx. 200 employed physicians Specialty programs and services across over 200 care delivery sites 4.7% per year average growth in adjusted admission for last 9 years Market share leader at 23.4% Market leader in awareness and preference When you think of hospital systems in the area, which one comes to mind first? 69% 62% 58% % 39% 31% 31% 28% 26% 15% 11% 13% 13% 8% 6% Memorial Hermann Methodist St. Luke's MD Anderson Don't Know/ No Others * 2013 & 2014 data reflects phone and online survey
13 13 Why Choose Online Scheduling? Achieving Growth in a Zero-Sum Market Online Scheduling Requirements Memorial Hermann Goals Increase market share and revenue Improve referral management to drive: Reduced leakage Increased physician alignment Increased patient satisfaction Create a platform to reduce cost of care Hospital-centric product offering Easy and quick to deploy Single, integrated platform Private-label experience Extendable to 3 rd -party sites Ability to integrate with existing programs Affordable pricing Support care coordination needs of value-based reimbursement models 83% Patients who visit hospital websites before selecting a provider 1 81% Patients interested in booking appointments online 2 40% Patients who would switch providers for online access 3 1) Google survey 2) Intuit Health, Annual Health Care Check-Up Survey, ) Intuit Health Survey, age weighted average of 59% Generation Y and 29% Baby Boomers
14 14 Hallmarks of Best Practice for Online Scheduling To Get it Right, You Must Account for Patient AND Physician Needs Maximize Web Traffic to Your Physicians Patient-Provider Matching Across Entire Ambulatory Network Customizable Appointment Rules to Meet Physician Requirements One-Click Booking Confirmation
15 15 The Health Care Eco-System, Powered by HealthPost Bringing Convenience, Efficiency, and Satisfaction to Patients and Providers
16 16 From Pilot to Major Business Impact First Hospital to Offer Real-Time Scheduling Across Outpatient Network 2011 Pilot Deployed 56 Physicians 1 ED 16 Imaging / breast center (mammography) $16M 32,500 + HealthPost Partnership 2013 Overview Downstream contribution margin resulting from imaging and ED 1 Appointments booked online annually 2013 Program Scaled 300+ Physicians 10 EDs 20+ Imaging centers Colonoscopy OT/PT Wound care Sleep lab Screenings Call center integration Discharge integration Employer integration HealthGrades/Vitals integration 10x 50% + 90% + Booked by new patients Return on investment Booked by commercially insured patients 1) Member calculations do not include bookings with specialists and primary care physicians, which represent significant portion of online bookings
17 Road Map The New Logic of Choice Memorial Hermann Meets Patients Where They Are - Online 3 Questions and Discussion
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