Healthcare System Stakeholders Presentation

MGMT E -5520, Fall 2010Instructors: Prof. David A. Shore & Prof. Eric D. Kupferberg Presented by: Timir Prabhakar

Consumers

Contents

• Healthcare Consumers• Consumers:

– Interactions with other stakeholders– Their view of the Healthcare System– What Consumers want

• Consumer sub-categories• Different zones of activities• Shift in Consumer groups size• Observation about Consumer stakeholder group• Impact of Consumers behavior to other stakeholders• Conclusions

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Consumers as Stakeholder in the Healthcare System

• Actual or potential recipient of health care

• Consumers and Patients– Healthy people who “consume”

certain health offerings (Consumers)– People with chronic health conditions

(Patients)

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Consumers in the “tragedy of the commons”

No-control - At the mercy of

the Insurance companies

Complex Healthcare

System

Biased –Poor have no access to proper services

No Trust, system not transparent

Poor service,

high costs and

frustration

Consumer sub-categories

• Content & Compliant • Sick & Savvy• Online & Onboard• Shop & Save• Out & About• Casual & Cautious

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Source - The Deloitte Center for Health Solutions

Consumer Activities in the Healthcare market qhperform.com

Source - The Deloitte Center for Health Solutions

Profiles of the Six Healthcare Consumer Segments qhperform.com

Source - The Deloitte Center for Health Solutions

Profiles of the Six Healthcare Consumer Segments… qhperform.com

Source - The Deloitte Center for Health Solutions

Shift in Consumer groups size

• Most traditional segment (Content & Compliant), the most alternative-leaning segment (Out & About), and the least engaged segment (Casual & Cautious) have declined slightly in size,

• Small increases in the segments that are most active with respect to various reflections of consumerism (Sick & Savvy, Online & Onboard, Shop & Save)

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Source - The Deloitte Center for Health Solutions

Observations

• Consumers compare services, quality and costs.• The health care market is not homogeneous – – Market is comprised of six unique segments

28%

44%

28%

Traditionalists(Content & Compliant)

Activists (Sick & Savvy, Online & Onboard, Shop & Save, and Out & About)

Disengaged (Casual & Cautious)

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Source - The Deloitte Center for Health Solutions

Observations….

• Cost concerns change consumer behaviors• Consumers want holistic care & resources• Consumers embrace innovations that

enhance self-care, convenience, personalization & control of their personal health information

qhperform.com

Source - The Deloitte Center for Health Solutions

Consumerism & key challenges for stakeholders in the system: Hospitals

• Adapt to consumer demand for improved service, price transparency, integration of holistic care with conventional services, and demonstrated quality via publicly-reported outcomes

• Transition from patient-oriented clinical models to consumer-focused models

• Clinical services, deliver value to consumers • Price transparency• Transparency about quality, outcomes, adherence to

evidence-based practices

qhperform.com

Source - The Deloitte Center for Health Solutions

Consumerism and key challenges for stakeholders in the system: Payers

• Develop health plans and balance enrollees’ preferences for wide networks

• Features like: lower premiums and out-of-pocket costs• Assist consumers in navigating the health system • Encourage healthy behaviors as a means of reducing costs • Focus on quality, cost and service• Satisfy price-driven segments, those looking basic coverage• Engage health plans with employers• Assist individuals in making clinical decisions, selections of

providers and self-care

qhperform.com

Source - The Deloitte Center for Health Solutions

Consumerism and key challenges for stakeholders in the system: Companies

• Assist consumers in medical adherence and healthier lifestyles

• Create and sustain brand loyalty among users• Modify products according to consumer

preferences• Innovative channels, and offer increased

access

qhperform.com

Source - The Deloitte Center for Health Solutions

Consumerism and key challenges for stakeholders in the system: Govt

• March 5, 2009, White House for efforts to rein in health care costs and expanding access to uninsured 46 million Americans

• Help shift responsibility to consumers for self-care and adherence to treatment plans to reduce avoidable costs

• Encourage consumer-centric innovations via oversight policies and regulations

• Incentives to encourage healthy living for enrollees in government-sponsored programs

• Make available tools and resources enrollees to assist in self-care, provider selection, health plan selection or use of monies for products and services

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Source - The Deloitte Center for Health Solutions

Conclusions

• Consumers view Healthcare as poor, complex, and costly – in a way biased towards riches

• Consumerism in health care is not a threat to stakeholders– only when stakeholders conclude that consumers

are incapable of acting responsibly• Growing numbers of consumers want to be

actively engaged

qhperform.com

Source - The Deloitte Center for Health Solutions

References• Medical Dictionary

– http://medical-dictionary.thefreedictionary.com/health+care+consumer

• Merriam-Webster Medical Dictionary

• How do healthcare consumers process and evaluate comparative healthcare information? A qualitative study using cognitive interviews– Olga C Damman, Michelle Hendriks , Jany Rademakers, Diana MJ Delnoij and Peter P Groenewegen– http://www.biomedcentral.com/1471-2458/9/423

• 2009 Survey of Health Care Consumers: Key Findings, Strategic Implications– The Deloitte Center for Health Solutions– www.deloitte.com/centerforhealthsolutions

• http://mi-10.com/

• The Other $700 Billion QuestionCan behavioral economics bail out the problems with healthcare spending?by Jennifer Robison http://gmj.gallup.com/content/111778/other-700-billion-question.aspx