The Rise of Consumerism Health Care Industry Committee The Rise of Consumerism Ready-to-Use Presentation Slides

Characteristics of a Traditional vs. Retail Market Patients 2 Market Forces Turning Patients into Consumers Catalyzing a Shift in Network Demands Characteristics of a Traditional vs. Retail Market Traditional Market Retail Market Growing number of buyers 1 Passive employer, price-insulated employee Activist employer, price-sensitive individual Proliferation of product options 2 Broad, open networks Narrow, custom networks Increased transparency 3 No platform for apples-to- apples plan comparison Clear plan comparison on exchange platforms Reduced switching costs 4 Disruptive for employers to change benefit options Easy for individuals to switch plans annually Constant employee premium contribution, low deductibles Greater consumer cost exposure 5 Variable individual premium contribution, high deductibles Source: Health Care Advisory Board interviews and analysis.

Finding Care the Way You Find Dinner Suddenly Subject to the Marketplace of Opinion Wave of Tools to Search Health Care Consumer Ratings Consumer Willingness to Spend Out-of-Pocket for Health-Related Tools Marcus Welby, MD Health Apps or Programs General Practice Resources That Rate Physicians and Hospitals 497 reviews (read below) Other available apps, websites: Health-Related Video Games Consumer Reports HealthGrades RateMDs Vitals ZocDoc PatientsLikeMe Consumers reading health-related reviews online Consumers using health-related online reviews to decide where to get care 48% 33% 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: www.pwc.com; Advisory Board research and analysis.

Consumers’ Top 10 Primary Care Clinic Attributes 4 Consumers’ Top 10 Primary Care Clinic Attributes Prioritizing Convenience and Affordability Average Utilities for Top Ten Preferred Primary Care Clinic Attributes n=3,873 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 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 Source: 2014 Primary Care Consumer Choice Survey, Marketing and Planning Leadership Council interviews and analysis.

Patient Preferences for Online Care Growing 5 Patient Preferences for Online Care Growing Survey Finds Email Visits Preferred to Clinic Near Errands or Work Preference for Location of Services Clinic located near work Clinic located near errands Emailing provider with symptoms Clinic located near the home Increasing Consumer Preference Young, Wealthy, Busy—Strongest Potential Telehealth Targets1 54% 49% 53% Of 18-29 yrs olds Of those making >$71K per year Of those working >35 hours per week Based on proportions of respondents interested in teleheatlh. Source: 2014 Primary Care Consumer Choice Survey, Marketing and Planning Leadership Council interviews and analysis.

Price Shopping Abetted by Transparency Free Apps, Tools Offer Platform for Comparison Shopping Taking “Consumer-Driven” to the Next Level Innovation in Brief: PokitDok Service: Carpal Tunnel Surgery Location: TravelSurgeryUSA, Charleston, SC Website, mobile app marketed to individuals with high-deductible health plans Offers database of over three million providers Budget: $ 4,000 Negotiate Payment Type: Cash HSA Insurance Request Quote ” “What Castlight Health is to people with employer-provided health insurance, PokitDok is to people with high-deductible plans. The new ‘set your price’ service for basic healthcare services may be what ‘consumer-driven healthcare’ needs to become a realistic option.” MedCity News Source: MedCityNews, “PokitDok Makes Cash Payments Easier for Doctors and Patients,” April 17, 2013, available at: www.medcitynews.com; Advisory Board research and analysis.