Payers' digital transformation hindered by lack of vision, says Deloitte

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Health plans are revamping their digital offerings in a bid to please consumers, but these efforts are complicated, finds a new Deloitte survey. Many plans are struggling to properly prioritize projects, suggesting a lack of clear vision.

In fact, about half of the 35 technology leaders surveyed identified this lack of vision as an impediment to these ongoing digital transformation initiatives. 

Consumers are the ones largely affected, as consumer-facing platforms have made the least progress. A little over half of respondents, 57%, said they're still in the process of advancing these programs, while the remainder haven't yet started but say they'll do so within the next two years.

There are other areas that are lagging as well. The survey focused on modernization efforts of five technology platforms – administrative, analytics, clinical, core, customer service and engagement – and only two respondents said they had modernized one of those platforms.

Those surveyed identified cyber and information security as the number two investment priority after business intelligence. But they warned it could be expensive to correct cyber-related mistakes, particularly ones having to do with cloud configuration. Baking in cybersecurity in DevOps from the outset could make for a more efficient and resilient process.

WHAT'S THE IMPACT?

The respondents spoke of several challenges. Two-thirds identified lack of requisite expertise (69%), such as cloud engineering and software architecture, and an incremental investment approach (66%) as their main challenges. Half said disparate systems and businesses from merger and acquisition activity (54%) and the lack of defined vision (49%) have challenged their digital transformation agenda.

One of the main issues, Deloitte found, is that digital transformation calls for a different set of skills from technology professionals and executives. Respondents called it "systems thinking," "engineering mindset" or "end-to-end planning." It involves understanding the whole system, the overall goals, its various subsystems and the recurring patterns in the relationships between the subsystems.

To achieve systems thinking, said Deloitte, technology teams should work closely with the business and bring in experts with human-centered design and user experience, whereas technology leaders should be part of strategy planning and execution.

The news wasn't entirely dire. Even health plans that are at the beginning of their digital transformation initiatives have found little ways to enhance digital engagement, such as implementing data analytics tools that address potential gaps in care, thereby improving the overall member experience.

Some have also found success using text messages to connect with members. The practice echoes the multi-channel communications that members are likely accustomed to from similar strategies employed by the retail industry.

THE LARGER TREND

The findings speak to the broader problem of patient engagement, which has been an ongoing issue for health plans and insurers. A J.D. Power 2020 U.S. Commercial Member Health Plan study found that 60% of privately insured U.S. health plan members said they had not been contacted by their health plan with guidance or information related to COVID-19, and nearly half (48%) said their health plan has not shown concern for their health since the pandemic began.

Health plans have not gained customer centricity, as just 36% of commercial health plan members said their health plan acts in their best interest "always" or "most of the time," and just 25% said they view their health plan as a trusted partner in their health and wellness.

This lack of customer-centric positioning resulted in an overall satisfaction score last year for commercial health plans of 719 on a 1,000-point scale, among the lowest of all industries evaluated, according to J.D. Power.
 

Twitter: @JELagasse
Email the writer: jeff.lagasse@himssmedia.com