Issue link: https://beckershealthcare.uberflip.com/i/717576
52 Executive Briefing Sponsored by: The Next Generation of Healthcare for the Next Generation T echnology and market conditions are changing consum- ers' expectations in ways that will force health systems to approach patients as customers — or risk losing market share to their more progressive competitors. Most patients lack the scientific expertise to recognize exceptional clinical care; they only know whether their health improved after treatment. In fact, patients' chief frustration with care providers centers around their experience visiting or communicating with them. According to a study published in the Journal of Medical Practice Management, 96 percent of patient complaints men- tioned negative customer interactions during medical encounters, including inadequate physician communication, disaffected staff and disorganized administrative operations. Informed by their experience in commercial retail, patients view healthcare through the lens of the individual consumer as king. Further, younger consumers expect healthcare to work the way other markets do — in a user-friendly manner, lush with options designed to meet their needs. Until recently, customer experience was downplayed in health- care. However, a combination of economic and commercial trends — ranging from the popularity of high-deductible health plans to the ubiquity of digital communication — is altering how the customer experience is perceived and implemented in pro- vider organizations. Today, top-of-the-line customer service is not an option but a necessity. Providers that effectively engage patients through consum- er-focused strategies stand to thrive in a value-based industry. Before hospitals and health systems invest in expensive tech- nology or marketing solutions, however, their key administra- tors and physicians must understand what the new generation of patients expects. Technology and Expanded Access to Information A person's familiarity and comfort with modern technology large- ly informs his or her behavior in today's healthcare market, says Mary Heymans, managing director and senior advisor of client services for Gallagher Integrated. Empowered by computers, smartphones and the internet, Americans increasingly seek to control both the financial and wellness aspects of their health- care. Digital innovations have made it possible for consumers to use portable devices to access their medical records, diag- nose their symptoms and determine treatment options. Publicly accessible websites detail medical costs and physician reviews by geographic location and specialty. Increasingly, patients will have an idea of what care they need and how much it will cost before walking through a practice's doors. This level of engagement is a significant departure from what physicians experienced 10 years ago. "Physicians aren't direct- ing patient care nearly as much as they have in the past," said Ms. Heymans, meaning that patients-as-consumers are more interested in curating their own healthcare experiences than adhering to one physician's advice. In some ways, increased access to data and information has di- minished the authoritative symbol of the clinician's white coat among younger generations of patients. Popular consumer re- view website Yelp, for instance, embodies the millennial value of crowd-sourced customer feedback. Armed with more infor- mation than ever before, patients have the resources to make decisions about care providers based on criteria such as prox- imity, quality ratings, reputation or convenience, rather than simply defaulting to their parent's physician. Generational Differences Affect Technological Preferences Technology has also impacted how different generations ap- proach healthcare. Generally, elderly patients are less comfort- able using technology than their younger counterparts, said Kathy Hall, managing director and senior advisor of executive search for Gallagher Integrated. A study published in JAMA found just 5 to 8 percent of Medicare beneficiaries used a digital medium to fill prescriptions, manage health insurance matters and communicate with their physician in 2011. That figure pales in comparison to the nearly 60 percent of adults ages 18 and older who told Pew Research Center they consult Dr. Google at least once a year, including the 35 percent of respondents who said they regularly use online resources to di- agnose their own ailments. This means providers must prepare to engage a patient population in which a majority rely extensively on technology for healthcare-related tasks. Core tenets of "millennial-ism" include values of transparency, patient-centeredness and data-driven approaches to problem solving. This new generation of healthcare patients is poised to embrace more digitized forms of healthcare and wellness that prioritize convenience and economy, Ms. Heymans and Ms. Hall agreed. A 2015 Salesforce survey found nearly 60 percent of millennials said they would use telehealth services if offered by their physician. Almost 71 percent said they prefer to use an app to schedule healthcare appointments, share health data and manage preventive care. Electronic healthcare tools like telehealth and e-visits have been slow to gain momentum in the healthcare space thus far, but the new generation of patients-as-consumers will continue to demand user experiences and employee benefits that re- semble Amazon or Google. Changing Economic Conditions Produce More Discerning Consumers As healthcare costs continue to rise, consumers who face in- creasing out-of-pocket costs are highly motivated to find ways to better manage their healthcare. According to Pricewaterhouse-