1. Healthcare System Stakeholders Presentation MGMT E -5520, Fall 2010 Instructors: Prof. David A. Shore & Prof. Eric D. Kupferberg Presented by: Timir Prabhakar Consumers

2. 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 qhperform.com

3. 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) qhperform.com

5. 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

8. Consumer sub-categories Content & Compliant Sick & Savvy Online & Onboard Shop & Save Out & About Casual & Cautious qhperform.com Source - The Deloitte Center for Health Solutions

9. Consumer Activities in the Healthcare market qhperform.com Source - The Deloitte Center for Health Solutions

10. Profiles of the Six Healthcare Consumer Segments qhperform.com Source - The Deloitte Center for Health Solutions

11. Profiles of the Six Healthcare Consumer Segments… qhperform.com Source - The Deloitte Center for Health Solutions

12. 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) qhperform.com Source - The Deloitte Center for Health Solutions

13. Observations Consumers compare services, quality and costs. The health care market is not homogeneous – – Market is comprised of six unique segments qhperform.com Source - The Deloitte Center for Health Solutions

14. 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

15. 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

16. 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

17. 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

18. 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 qhperform.com Source - The Deloitte Center for Health Solutions

19. 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

20. References Medical Dictionary – http://medical-dictionary.thefreedictionary.com/health+care+consumer 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 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 www.deloitte.com/centerforhealthsolutions http://mi-10.com/ The Other $700 Billion Question Can behavioral economics bail out the problems with healthcare spending? by Jennifer Robison http://gmj.gallup.com/content/111778/other-700-billion-question.aspx