Executives have yet to fully commit to digital, consumer-centric care, Kaufman Hall finds
Hospitals need to focus on digital investment to compete with other hospitals and retail and technology companies.
Photo: Tom Werner/Getty Images
Hospitals and health systems that launched or accelerated digital health capabilities during the outset of the COVID-19 pandemic are failing to commit fully to the digital and consumer-centered transformation required to deliver care when, where and how consumers want to receive it, according to Kaufman Hall's 2021 Healthcare Consumerism Survey.
The survey found only 7% of the 100 healthcare organizations that responded had a dedicated focus and the resources for building a consumer-centric infrastructure. Yet, the same percentage, only 7%, indicated they were not working on consumer-oriented strategies.
The vast majority are in Kaufman Hall's Healthcare Consumerism Index Tier 2, investing in infrastructure and initiatives that are being expanded system-wide (46%), or in Tier 3, indicating they have begun to target specific consumer-oriented strategies, but are not yet building an infrastructure for sustained success (39%).
WHY THIS MATTERS
The report found that most of the 110 healthcare executives surveyed are trying to meet the heightened consumer demand for the kind of digital service offered by retail and other companies.
Competitive threats from health insurers, retail and technology companies are a growing concern to hospitals and health systems, the report said.
For example, 76% percent of respondents said Optum, the business intelligence arm of UnitedHealth Group, was a strong or extreme competitive threat, up from 67% in 2019 when Kaufman Hall released its last report.
More retail companies such as Amazon, WalMart and CVS are offering primary and other care.
Amazon is reportedly looking to expand the in-home option of its app-based primary care service, Amazon Care, to 20 major U.S. cities through 2022.
THE FINDINGS
While 90% of organizations surveyed offer telehealth services and 73% provide walk-in clinics, only 37% offer in-home monitoring, and only 22% offer home-based primary care, the survey found.
Many organizations developed new buildings or sites of care without researching consumers' needs first to determine how to provide services.
Hospitals' strategic priorities for consumer-centric care are not always translating to improved capabilities. While 66% of organizations place a high or extreme priority on redesigning and expanding digital capabilities and physical facilities, only 11% are best in class for providing those services, a gap of more than 55%.
Similar gaps persist in implementing innovative care models (55%), partnering with outside organizations to redesign care delivery (34%) and developing consumer-focused pricing strategies (39%).
The outlook for long-term volume at hospitals and health systems in the wake of COVID-19 is mixed. Two-thirds of survey respondents indicated they are somewhat or moderately concerned about volume recovery. Only 12% of respondents are very or extremely concerned about volume recovery.
The most common pricing transparency offerings for consumers are online price estimators (63%) and online forms for receiving out-of-pocket cost estimates (63%), followed by staff answering price questions in person (49%) and offering out-of-price guarantees for select services (23%).
THE LARGER TREND
Though organizations have improved their basic consumer-focused capabilities since the last survey was published in 2019, greater focus and investment is needed for hospitals to compete with heightened consumer expectations, hospital competitors, and a growing list of retail and technology companies entering healthcare businesses.
ON THE RECORD
"While hospitals and health systems rallied to meet the challenges of the pandemic in 2020 with new virtual care options, momentum has stalled," said Kaufman Hall managing director Paul Crnkovich, who leads the firm's consumer practice.
"Today's healthcare consumer is digitally savvy, and new competitors are offering innovative alternatives to hospitals and health systems, especially in primary care. Winning over consumers requires regaining momentum – and pushing beyond virtual visits, and truly prioritizing digital capabilities that enhance the consumer experience."
Twitter: @SusanJMorse
Email the writer: susan.morse@himssmedia.com
