Consumerism Will Transform the Healthcare Industry
At a time when consumers are responsible for a greater portion of their healthcare costs, providers must take bolder steps to address consumers’ growing expectations and demands, Steve Case, cofounder of America Online (AOL) and chairman and CEO of Revolution Health Group, told healthcare finance professionals Tuesday morning.
Case outlined his vision of the consumer’s role in healthcare transformation during Tuesday’s keynote address at ANI: The Healthcare Finance Conference in Las Vegas.
Case’s work with Revolution Health Group, a consumer-centric health company designed to transform how people approach their overall health and wellness, has helped to propel the company’s web site to one of the most viewed healthcare web sites in the nation in its first year of existence, with 3 billion page views projected in 2008 alone. The cornerstone of Revolution Health Group is RevolutionHealth.com, a free, comprehensive health and medical information site that offers up-to-date health information as well as more than 125 online tools aimed at helping individuals take control of their well being.
As consumers become more cost-conscious regarding the care they receive, they’ve also come to expect more from providers, such as greater customer service and tools to help manage their care. But health care lags behind other industries, such as retail, in engaging consumers, and the healthcare industry as a whole has been slow to giving consumers a sense of power over their care.
Today, the rise in chronic conditions such as obesity and diabetes — conditions that contribute to $2 trillion in healthcare spending annually in the United States — suggests that consumers need to become more active participants in managing their health. But for too long, providers have been reluctant to give consumers the tools they need to manage their own health or to encourage consumers to use such tools.
“I do not know when it was decided that consumers were not smart enough to make their own decisions regarding health care, but it happened, and now, we have a lot of work to do,” Case says.
“Consumers are, for the most part, disengaged in managing their own health,” he said. “We are so far from consumerism in (the healthcare) industry, it’s unbelievable.”
"It’s time to refocus the healthcare industry back on the consumer," Case told ANI attendees.
He pointed to his company’s experience with CarePages, a community of free web pages that allow patients to keep their families and friends updated regarding their progress while they are in the hospital. More than 3 million consumers have used this feature so far. Services such as CarePages “empower and give a little bit of control to people at a time when they feel powerless,” he says.
Redi-clinics are another example of a healthcare service that was created to provide convenience for the consumer.The clinics, which are staffed by nurse practitioners, are often able to treat walk-in patients within 15 minutes. Revolution Health Group expects to open hundreds of these clinics within the next few years. By partnering with these types of clinics, hospitals can provide greater convenience for consumers while establishing a base for referrals to their own facilities.
Case told healthcare finance professionals he’s concerned that too many discussions about our nation’s healthcare system focus on who pays, rather than the system itself. “We’re at the point where people are frustrated, and health care is getting worse, not better,” he told attendees at ANI.
Case was asked what healthcare policy changes he would support, based on his experience with Revolution Health Group. “It’s way too premature (for Revolution Health) to be actively involved in the policy process,” he says. “In fact, we’ve chosen to stay out of the fray.” He readily admits he’s still learning about the healthcare industry, and told ANI attendees, “You’ve probably forgotten more than I already know. I believe the trends are in our favor, and I know that by empowering consumers and putting them in charge of their healthcare decisions, significant change is bound to happen,” he says.
One HFMA member asked, “How do you incentivize employees to take greater charge of their own health?” “It’s a huge challenge,” Case responded. He suggested that the healthcare industry focus on putting together the best set of tools to help consumers manage their care and integrate these tools in a friendly, easy-to-use manner. “We’ve got to get consumers in the mix,” he says, "but in order to do that, we have to give consumers the tools to manage their own health and encourage consumers to use these tools."
Another member expressed concern regarding forums that allow consumers to post their feedback regarding experiencs with providers and physicians. Another member expressed concern regarding forums that with providers and physicians. Some of the comments posted are not fair to providers or physicians, and the ability of providers and physicians to respond to such comments is often limited. “People are going to say crazy things,” Case says, "but that doesn’t mean that consumers shouldn’t have tools such as this to provide feedback on their experiences."
“I would just encourage you to think of (consumerism) as an opportunity rather than a threat,” Case told healthcare finance professionals: "Imagine that consumers have more of a say in their healthcare decisions, he said.
"How would you redesign your systems to encourage consumers to become partners in their care? From a consumer standpoint, it should feel a little more welcoming when you enter a hospital, much like when you enter a retail store,” he says. "Consider, too, how you would run your organization differently in a more market-based environment for health care."