Tag Archives: Providers

The fight for customer: regional vs destination hospital

Years ago, men and women from all over the country flocked to Cleveland, OH, Baltimore, MD, and Rochester, Minnesota for the answer. Local hospitals were not equipped with the right tools to diagnose and treat serious medical conditions. Consumers were not willing to receive that kind of care in their hometowns. In fact, when consumers were asked about why they would go to Mayo Clinic, Cleveland Clinic, or Johns Hopkins, the answer was usually the same.  Hopeful consumers were frustrated with their experiences at local providers, and articulated the same hope for a better experience with greater access to the latest medical knowledge – essentially a different prognosis and a better chance, from those more qualified. When local providers left them wondering, consumers sought out these destination hospitals for the answer, or their last chance for a different answer.

Today, community hospitals are competing with destination centers for patients on the same playing field of high-touch and high-technology.

To further enable the decentralization of competition, many of these world-class hospitals are providing access expertise through local providers. Does this eliminate a need for these healthcare meccas or introduce an integrated pipeline to ensure the next generation of patient flow?

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Consumerism in healthcare

Healthcare has traditionally consisted of the patient-doctor relationship. A family member would provide a recommendation and hopefully the doctor was accepting new patients. The doctor was an authority figure, while the patient was indebted to his or her services. In most cases, one would maintain this relationship for decades, if not generations.  Today, a new healthcare system gives rise to a new type of relationship. In fact, the tables have turned: patients are no longer restricted accessing care, while physicians are looking for new ways to build their patient books.  Patients have greater expectations of physicians and are more discriminate in the selection of their care. They are no longer the subjects of medicine, but consumers of it.

Consumers are shopping for their healthcare more than ever before

The word “consumer” has not been historically accepted in the field of medicine, as it implies a sales process between the physician and his or her subject, and diminishes the relationship.  However, in today’s world of increasing options and educated consumerism, it is just that and ought to be embraced. This means, when we think about the experience, we need to stop thinking about it in terms of the patient experience and start talking about consumer loyalty. Treating patients as consumers acknowledges the scrupulous selection process and opens up an opportunity in the field of medicine.  From a clinical standpoint, care needs to meet a certain quality standard to be deemed acceptable; however, there are ways to create higher touch experiences for those that want it. In this choice model, a healthcare provider could create different levels of care for the open market – ranging from the Kia of healthcare, to the Mercedes. The opportunity is to capitalize on the choices consumers have in healthcare – to let them receive their care ‘a la carte’.

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Implications of the Supreme Court decision

Last week, the Supreme Court decided that it was constitutional for ObamaCare to require every American to have health insurance. Not in a while has a Supreme Court decision been able to impact every single American. While this ruling has a significant political impact, the impact on the healthcare system is more worrisome. Not only will this change healthcare consumption, but it will also create changes in the offer. Insurance companies will not be able to discriminate against high-risk consumers, and have to find ways to cover those that can not afford to pay. In order to meet market demands, payors will likely have to develop a set of products to meet emerging needs, undifferentiated from one another. As a result, it will be more important to optimize and differentiate on the customer experience to reach the expanding addressable market. What about the providers, that are already understaffed, and eating losses on charity care and declining reimbursement rates? Will universal coverage also change healthcare consumption, encouraging more people to seek care, and if so, can our system handle it?

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