Consumerism has taken over healthcare. Patients are in the driver's seat, and they are demanding high-quality customer service and more personalized experiences aided by digital tools.
During a workshop at Becker's Hospital Review's 13th Annual Meeting, sponsored by MDVIP — the country’s leader in affordable, membership-based, preventive care — John E. Schmidt, MDVIP’s executive director of health systems, discussed major consumerism trends and innovative ways that hospital organizations can better align their existing primary care offerings with community needs.
Five key takeaways were:
1. In 2023, patients are expecting a customer-centric experience on par with what they get from other service industries. They are actively engaged in their healthcare and searching for more conveniences and provider availability. During the pandemic, patients lost confidence in their physicians due to limited communication. There is now a heightened desire for a relationship with a doctor who has time to listen and help prevent disease. "Roughly one in four patients do not think they received care they needed during COVID," Mr. Schmidt said. "This has resulted in a level of distrust, and 17 percent of patients are considering changing their primary care physician.”
Other consumerism shifts include more patients controlling their healthcare dollars using HSAs and FSAs and being empowered with more information to make spending decisions. Patients also want technologies that make it easier to interact with providers. And they are investing in unique models that go beyond the status quo of traditional practices.
2. To meet patients' evolving needs, providers must transform primary care. Volume medicine is a one-size-fits-all approach that is not keeping pace with what patients want. Today’s discerning healthcare consumers have choices and are provider “shopping.” Factors they are comparing include time spent sitting in waiting rooms, ability to get same- or next-day appointments and to reach their physician when necessary, access to their EHR.
To attract and retain patients, Mr. Schmidt said physicians need more time, digital tools and importantly, support from hospital organizations who are prioritizing their response to healthcare consumerism.
3. Integrating a concierge medicine offering can be a win/win/win for patients, physicians and health systems. Many patients are seeking greater connection with their physicians. Many physicians — especially those nearing retirement age — are seeking greater flexibility to practice differently.
According to Mr. Schmidt, over 30 percent of U.S. physicians are in their 60s or older and in danger of retiring. "They are facing burnout and looking for a sustainable way to continue practicing," he stated. "This is a gap that concierge medicine can fill enabling these doctors to see a smaller panel and redistributing patients to other employed physicians who have capacity."
However, health systems — that are often focused on increasing revenue by increasing throughput — may be overlooking the subset of consumers willing to pay a little more for concierge medicine. By enhancing service offerings, a health system can better satisfy this segment of patients, extend physician careers and capture a reliable revenue source that supplements insurance reimbursements.
4. Strategic partnerships can help health systems cost-effectively implement new services to address community demand. A barrier to diversifying is sometimes overcoming fear that a new service line won't work financially. Mr. Schmidt advised, "Joint ventures with organizations that have the expertise you need and mutually aligned incentives for success can save you money and time."
MDVIP has over 20 years of experience in membership-based models with nearly 400,000 patients paying $1,800 - $2,500 a year for a comprehensive, executive-style exam and wellness program and renewals consistently exceeding 90 percent. As part of an MDVIP partnership, Mr. Schmidt added, "Patients benefit from our national network of almost 1,200 affiliated physicians in 45 states if a medical concern arises when they are traveling."
5. An emerging gateway for health system expansion is better serving the LGBTQ community. Schmidt described the LGBTQ population as a $1.4 trillion opportunity and the fastest growing sector in healthcare. "They see their physicians over four times a year because they are interested in prevention. These visits can translate into downstream revenue from labs and ancillary services; this is a patient you want," he said. "The challenge is trust," he continued. "They're afraid of being judged. Are we supporting these patients? I believe this is the best untapped market you could take advantage of now."
Primary care is often the entry point for patients’ healthcare journey and where customer loyalty starts. By thinking creatively about innovative models for delivering personalized care, health systems can better meet both consumers' and physicians’ needs, generate a predictable, currently unrealized revenue stream and improve their competitive position. MDVIP is a proven solution driving measurable value that strengthens network integrity.