Health IT, Hospitals, Policy, Startups

Amid consumer-driven care, a lesson for health systems: ‘Don’t rely on your brand’

Health systems had better get used to new entrants, particularly telemedicne companies and retail giants […]

Health systems had better get used to new entrants, particularly telemedicne companies and retail giants like Walmart and Walgreens, in the healthcare sector, bringing with them the ability to offer far more convenience than traditional models.

So said Wes Valdes, medical director of Healthcare Transformation Lab and Telehealth Services at Intermountain Healthcare, speaking at IHT’s conference in San Francisco.

In particular, the retail and telehealth elements of the emerging healthcare economy will be especially challenging for systems that don’t adapt and instead wait for patients to come to them.

“Healthcare is undergoing a paradigm shift,” he said. “By 2017, eight out of 10 office visits will be done virtually. How is that going to affect your business model, if you don’t have a virtual way for visits?”

He noted startups like Doctor on Demand and Teladoc are increasing in popularity, and consumers are likely to leave the old models in the dust if systems don’t factor in the changes. Accordingly, Intermountain is in the process of outfitting all hospital rooms to be equipped with virtual visit capabilities, as a means to increase efficiency and convenience within a hospital setting.

The notion of consumer-driven healthcare isn’t new, but the response is, especially after the ACA spurred a great need for patient engagement strategies, Valdes said. But big systems were behind and didn’t have time to backtrack, opening the gates for Silicon Valley and retail to seize upon an easier market share. And that, in turn, will leave hospitals and traditional practices with the more difficult elements of healthcare.

“How consumers think of consumerism in healthcare versus how health systems think about it is very different,” he said. “For example, choice of where the provider is. If you’re not responding to that, well ….

“Convenience is key,” he added. “That’s why people like Doctor on Demand, Teladoc, or Walgreen’s. It’s convenient. When you have alternatives and convenience is king, that’s what really drives consumers.”

While urging systems to adapt, Valdes offered a word of caution that may run counter to a big health system.

“Don’t rely on your brand,” he said. “The corporate graveyard is filled with companies we never thought would be there.”

Large employers are likewise resorting to options like Teladoc for 24-7 services at low price points for workers.

“They are singing up with online care providers. Why? Because they’re getting a much better return on investment,” he said.

It’s not all bad news for health systems, but partnership models and incorporation of telehealth and other convenient measures need to be embraced sooner, not later. Kaiser Permanente’s partnership with Target in Southern California is a good example, as is Sutter Health’s sophisticated call center that helps streamline matters for patients, Valdes said.

“There is no monopoly in healthcare, especially in digital health,” he said. “Walmart is not going to open hospitals, but anything they can peel off, they will. The partnership will be ‘We’ll take what we want and leave you with want we don’t.’ But the people who partner with them will get the referrals.

“The culture is going to change, but it’s not going to be changed by healthcare systems,” he added.

Shares0
Shares0