Becker's Hospital Review

74 Executive Briefing: Health System Strategy they can't have it their way, they will find al- ternatives. Just in the field of primary care, urgent care, retail and virtual primary care are all growing at many multiples of the tra- ditional, scheduled primary care clinics. 6 What this means for your health system As new players enter the provider space traditionally occupied by hospitals or work to drive health system pricing down, there are several key questions that can shed light on the avenues health systems can take to strengthen their market relevance: • Are the new entrants truly organizing the patient care delivery or simply a cog in the gear? • Can the alternatives care for patients across their lives or only in the here and now? • Do the new players connect with pa- tients such that they will turn to these alternatives when the patient feels sick and truly vulnerable? To build market relevance, health systems must reinvent themselves without losing their core strengths of care organization, long-term relationships and community trust. Where reinvention is needed is where the informed consumer demands have shifted, technology has created viable sub- stitutes and accepted reimbursement mod- els shift toward pricing transparency. The areas at the center of this tripartite are the primary care patient relationship and ambu- latory care delivery models. Any health system not actively engaged in successfully reinventing its ambulatory care position is at risk of having new com- petitors dilute its long-standing market rel- evant position. n Endnotes: 1 Abelson, R. "More Insured, but the Choices Are Nar- rowing." NYTimes, May 12, 2014 2 "Walgreens Brings Big Data Analytics to Healthcare Clinics Through Expanded Relationship with Innova- tion." Walgreens Corporate News Release, January 14, 2014 3 Budryk, Z. "3 Trends Driving Retail Expansion." Fierce Healthcare, April 3, 2014. 4 Lovrien, K. and Peterson, L. "The Virtual Primary Healthcare Revolution: What Health Systems Need To Know." Becker's Hospital Review, February 3. 2014 5 Ginsburg, P. & Pawlson, G. "Seeking Lower Prices Where Providers Are Consolidated: An Examination Of Market And Policy Strategies." Health Affairs. June 2014 Vol. 33 No. 6 1067-1075. 6 J Heidenreich and L. Peterson; "Health System Strat- egy: Remaining Relevant By Building Primary Care Beyond Physician Employment.", Becker's Hospital Review, March 19, 2013 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 THE EMPOWERED PATIENT CHANGING THE WAY CARE IS DELIVERED Primary ambulatory care is undergoing a transformation. Information empowered consumers are demanding an unprecedented level of access and convenience as millions of newly insured populations are driving increased demand for health services. Yet hospitals and health systems often look only to traditional employed primary care clinics to remain relevant outside the hospital and are missing the ambulatory care revolution ON-DEMAND CARE Care available ANY TIME PATIENTS are seeking care CONSUMER RECOMMENDED AVERAGE USER OF VIRTUAL CARE REFFERS 3 FRIENDS ON-DEMAND CARE GROWING AT 9% ANNUALLY URGENT CARE GROWTH SCHEDULED CARE GROWING AT 0.5% ANNUALLY 18% 82% URGENT CARE VOLUMES have grown 6-8% ANNUALLY since 2000 DOMINANT RETAIL CLINICS of RETAIL VISITS are at CVS or WALGREENS 71% LOWER COST Physician Clinic Urgent Care Retail Clinic Virtual Care $$$$$ $$$$$$ $$$ $ LOWER Cost of Care 35% 30% 29% 1% Urgent Care Primary Care Retail Clinic Other $99 SAVINGS PER VISIT 5% ER Instead of a VIRTUAL VISIT, patients would have visited: BETTER QUALITY BETTER ADHERENCE to National Treatment Standards Guideline Adherence for Sinusitis VIRTUAL PHYSICIAN CLINIC 93% 20% 40% 60% 80% 100% 36% HIGHER SATISFACTION Patients Prefer Care WHEN and HOW THEY WANT IT Retail Virtual Urgent Care 98% 93% 89% Patient Satisfaction Rates Health System Advisors delivers INNOVATIVE and ACTIONABLE STRATEGIC ADVICE to the nation's leading hospitals and health systems NEW AMBULATORY CARE OPTIONS

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