Issue link: https://beckershealthcare.uberflip.com/i/267523
46 Executive Briefing: Primary Care to upload an image for dermatology conditions — and treatment for kids as young as two years old. In 2014, Zipnosis will launch another 20 acute conditions, and more tellingly, a fully virtual screening and management service for its first major chronic dis- ease. Unlike other primary healthcare delivery channels that must make massive capital and human/process investments to change or add new modes of care, Zipnosis' technology-driven approach allows it to rapidly add new service lines. Learning 6: Positioned for the future and experiencing rapid growth Virtual primary healthcare delivery model is projected to grow nearly 35 percent per year over the next several years. 9 The market leaders are seeing many times this growth. For instance, Zipnosis has seen three times the growth in volume in its major markets the past three years, as more as more consumers be- come aware of the service. Moreover, under a population health reimbursement environment, virtual primary healthcare is poised to grow even faster as the model is proven to reduce the cost of care. Both the direct cost and the total cost of care, including follow-up care is significantly lower than the alternative primary healthcare delivery channels. For the typical Zipnosis patient the total cost of care is reduced by nearly $100. As a result, virtual care models can be used to effectively triage populations for which health systems have taken healthcare fi- nancial risk. Using different co-pay levels or other incentives to move patients to a virtual care model can keep a portion of the population out of more expensive treatment environments. Health systems must be involved to remain relevant A growing segment of the population is turning to nontraditional models of healthcare. In primary healthcare this is most apparent in the growth of the unscheduled/on-demand care models. Vir- tual primary healthcare represents the fastest growing of these, and one in which health systems must quickly figure out how to participate. Those systems that do embrace these alternative channels stand to gain new populations and build capabilities to increase their market relevance. Those that ignore the channel are destined to spend more and more resources trying compete directly for a declining market of traditional primary care delivery channels. Fortunately for the health systems, the current virtual primary healthcare market leaders appear to be content to stay technology and service companies, leaving an opening for tradi- tional health systems to partner in the virtual care delivery mod- els. But health systems must act fast. n Health System Checklist for Getting Started o Define the motivation for adding a virtual care model o Consider competitive environment o Understand the state regulatory structures o Define the metrics to select the right partner opportunities for both volume growth and long-term population management o Develop the financial case 3 Direct costs and revenues 3 Direct downstream contribution margin 3 New patient value 3 Investment avoidance including reduced costs to enter new markets and add primary healthcare access o Detail the clinical, information system, and operational requirements to implement o Consider starting complementary projects to create "stickiness" (central scheduling, preferred providers, etc.) now o Develop a communication and marketing strategy o Get ready to move fast — consumer-focused technology companies move at a different pace than traditional health systems Health System Advisors combines thought leadership, research, and rigorous analytics to advise health systems on their market, partnership, and corporate strategies. We advise leaders seeking to advance their organizations and transform the healthcare delivery industry. www.healthsystemadvisors.com