Retail Healthcare in America: Where it’s Going June 2015 Image Area Walmart Health & Wellness - Confidential

Retail Healthcare in America: Where it’s Going

June 2015 Image Area

Walmart Health & Wellness - Confidential

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Agenda

• Introduction & Overview•Retail Healthcare•Consumer Buying Decisions•Summary, Q&A

Walmart Health & Wellness -

These are the thoughts of the Health & Wellness group. These are NOT the

thoughts or programs of Walmart Human Resources.

Retail Healthcare


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Retail Healthcare:

Trends in Healthcare:• Cost sharing increasing• Alternative delivery models • Chronic care management• Personal accountability (do it

yourself)• Shopping (Mobile Apps)• Patient Centered Medical Home

(PCMH)• Quality measures• Value based reimbursement• Practice to the highest level of

licensure• Convenience • Population health

(get into the system)


Trends in Healthcare (cont.):• Transparency• Cost containment• Competition between Health

Systems• HDHP account for >20%• Deductibles up 150% since

2010

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Retail Healthcare:


Discretionary spending in Health Care is relatively new

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Retail Healthcare:


• Recognize health related spending “choices” will be guided by consumers– Deductibles– Where the consumer is comfortable– Healthcare providers do NOT know

consumers– “Shopping” experience– Options for “dollars” – “mobile bill

or…?”• Different demographics behave

differently• Brand recognition and “comfort” play a

role in decision making• Location and convenience play a role in

selecting health care services

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Retail Healthcare:


The birth of the healthcare consumer, 2014, pwc

Consumers perceptions & beliefs are changing:

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Retail Healthcare:


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Retail Healthcare:


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Retail Healthcare:

Retail clinic expansion:• Health systems moving in this

direction– Patient capture– Low cost treatment site– Convenience– ACO asset

• Major retailers – Discounters– Grocery– Drug stores

• Urgent care companies• Tele-health options in clinics• Narrow-Preferred networks


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Retail Healthcare

Conditions commonly treated:• State dependent• Acute conditions• Chronic disease management• Cold & Flu symptoms• Dermatological conditions• Conjunctivitis: “Pink eye”• Ear irritations• Sore throat• Urinary tract infections (not

sexually transmitted)• Vaccinations


More than 10 million retail clinic visits in 2014!

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Retail Healthcare:


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Retail Healthcare:


Provide care for “out of system” population

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Retail Healthcare:


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Retail Healthcare


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Retail Healthcare:

Consumer perspective:

– Widespread dissatisfaction with HC system

– Concerns over

• Costs & Cost trends

• Value

• Engagement– Changing expectations:

• Younger consumers: “Isn’t this a digital marketplace?”

• Trust issues– Employer opportunity to “leave”

market


What is our role?

Consumer Buying Decisions


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Address how members feel

Add comfort into the decision making process

United Hopeful

Empowered Savvy

Passive Consumers Confident Consumers

Adapted from: 2015 Consumer Mindset Survey, Aon, NBGH 2015

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Consumer Frustrations:• Complexity• Competing life priorities

• $’s• Time

• Clear information• Terminology• Inconsistencies across

offerings• Expectations• Lack of experience• Simplicity of Amazon,

Walmart.com, others• Change!!


Respond to consumer wants:• Simple choices & process• Comprehensive

communication• Incentives• Personalized & relevant• Third party trust with

recognizable brands!• Customizable• Peer interaction

• Chat features• Forums

• Brand recognition within offering

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The birth of the healthcare consumer, 2014, pwc

Know your population

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• Bigger is not always better– Retail healthcare is acceptable– Networks need to be adequate– Appropriate facility care is a must

• Employer decision points do not reflect consumer decision points– Cost is an issue based on income & disposable income– X does NOT equal y– Consumerism can work

• Tools and modeling are a “Must have!”– Transparency – Cost sharing& Total costs– Access modeling– Terminology and dictionary

• Trusted brand recognition is relevant– Providers– Carriers


Questions

Michael S Jacobs [email protected]


mailto:[email protected]

Documents

Retail Healthcare in America: Where it’s Going June 2015 Image Area Walmart Health & Wellness - Confidential