Data Shows Executives’ Main Concern Is New Entrants Disrupting Healthcare Status Quo
A third of executives responding to Change Healthcare’s annual survey believe that new entrants will disrupt current healthcare business models. Placing second and third in terms of the anticipated impact of new entrants were innovations in care delivery (13.3 percent), and refinement of consumer experience (11.1 percent), which aligns with the inherent strengths of retail and technology market entrants. Despite the concern, less than 20 percent of respondents identified any of the member/patient-engagement strategies their organizations were taking, which were offered as choices to a subsequent survey question. For example, only 10 percent of respondents were offering services via telehealth currently.
My guess is “disrupt the business model” would have garnered more votes, however components of disruption like “introduce innovations in care delivery,” “refine consumer experiences,” and “launching all in one vertical companies” were also separate choices in the response to the question about the impact of new entrants.
While cost is the current pain point most felt by most Americans in relation to health care, the poor patient/consumer experience provided by many incumbent healthcare providers is what will cause many to consider receiving care from non-traditional care providers. And, as discussed in a recent HFMA podcast, many of those models have the potential to disrupt referral patterns. In terms of health system responses to the threat of disruption, it was interesting to see an article this week about Mount Sinai partnering with One Medical and integrating them into their Clinically Integrated Network. This is a great example of a health system partnering with a more consumer-centric provider organization to secure referrals and improve the customer/patient care experience. One Medical provides same-day appointments and virtual visits. Although this seems to be a good fit for both parties, the challenge Mount Sinai will face is ensuring One Medical patients quickly get an appointment to see a specialist when they are referred. If not, then the overall experience of care will be disjointed and unsatisfactory, which will work at cross-purposes for Mount Sinai.