After decades of demanding more from healthcare, most consumers are at a tipping point. With the pandemic changing how they interact with healthcare organizations, consumers are making more active choices about where they go, what they want, and what they are willing to pay for.
The industry is also struggling to catch up to basic consumer requirements which may not be enough to win consumer choice — providers have to think about how to meaningfully differentiate given more intense competition.
PwC conducted a survey of over 1,000 consumers across the nation to help better understand their needs, motivations, and engagement preferences, and willingness to pay for different healthcare products and services. The following themes from the survey highlight what consumers are looking for and how health systems can respond.
1. Consumers’ holistic health needs are not being met today
More than one third of consumers are not satisfied with their ability to manage critical aspects of health. 50% of consumers are dissatisfied with weight management, and over 40% are dissatisfied with managing both exercise and diet/nutrition. Managing chronic illnesses, stress, and sleep also rank high, with over 40% of consumers expressing dissatisfaction in these areas.
2. Nearly half of consumers are not loyal to their current providers
Over 40% of consumers indicate willingness to switch from their current providers; even half of those that indicate high satisfaction with providers are not loyal, telling us they are looking for alternative choices. Current metrics of HCAHPS and Net Promoter Scores are no longer enough to understand how consumer experience translates to retention. Providers will likely need to differentiate more significantly and become more integrated in consumers’ journeys across the healthcare ecosystem to increase engagement and improve retention.
3. List of must-haves is growing
Consumers increasingly expect health systems to offer certain services that make their lives easier. These must-haves include price-comparison tools, digitally consolidated health information, and a single location for appointments and labs. For example, over one-third of consumers surveyed prioritized a single location for appointments and labs in the top three services they would expect from their healthcare provider. Health systems that meet expectations by offering these basics — and at no extra charge — set themselves apart from competitors, help improve satisfaction, and retain patients.
4. Demand for virtual care persists and remains unmet
Providers have an opportunity to scale virtual offerings to retain patients and expand reach. With the pandemic making consumers more comfortable with trusting and using virtual and digital options, now is the time to refine and expand virtual care models and healthcare apps to help meet consumer expectations for quality, convenience, and ease of access.
Greater than 65% of consumers using virtual care want to increase or maintain current usage, and approximately 90% of consumers are satisfied or highly satisfied with virtual providers. Additionally, consumers trust medical advice from healthcare apps about as much as friends and family (52% have a high level of trust in healthcare apps, compared with 51% in family/friends).
5. Consumers want providers to meet them where they are
Healthcare is at a turning point where systems that truly embrace the “care everywhere” and “smart care” concepts will be rewarded with consumer loyalty and increased share of spending. In the past year, over 30% of consumers received care more than three times at alternative sites of care (i.e., fitness center, retail clinic, workplace, alternative clinic, or home), and >40% of consumers who used these alternative sites want to increase utilization.
Developing a broad ecosystem of care through partnerships and alliances with these emerging players is essential to thrive in an environment where everyone from consumer goods to tech organizations are vying for healthcare dollars. In the process, health systems should obtain data about consumer preferences and lifestyles to develop custom offerings, thus becoming the ‘go to’ quarterback for care, gaining consumer trust, and expanding access to a broad consumer base with limited investment in ownership of physical assets.
6. Consumers have demonstrated real willingness to pay for differentiated services
Health systems are leaving revenue on the table by failing to invest in on-demand and personalized services, such as taking care of aging family members, managing critical illnesses, and offering all family planning services in one place. Consumers expressed an average willingness to pay $400 to $600 per year for these services, despite rising deductibles and premiums. Providers can capture the growth in consumer healthcare spending in three main ways: (1) improving experience of services offered today through new tools, partnerships or alliances with additional care venues, etc. (2) expanding to adjacent health and wellness offerings e.g., health and nutrition coaching, caregiver services, etc., and (3) expanding who they serve by targeting new consumer segments or geographies.
With new consumer expectations post COVID-19, this is the time to make significant bets on how to transform into a consumer-oriented provider. For more insights from this survey or for information about how consumerism fits into the PwC vision of emerging new health ecosystems, contact us - US_healthindustries@pwc.com
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