Seven Ways Healthcare Organizations Can Innovate the Patient Experience

www.prophet.com/expertise/healthcare

Webinar presented by

• Paul Schrimpf

• Josh Epperson

April 2015

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Industries across the board are upgrading the customer experience—it’s time for healthcare to catch up

Today you can…

…browse real estate online,

compare prices, and analyze

lending rates in seconds

…book an entire vacation in

minutes, and instantly download

boarding passes to your phone

…easily return almost anything

in any condition to several

retailers

Yet, in healthcare you…

…have to decode insurance

plans to determine the best one

for you and your family

…wait days, weeks, and even

months to have certain

procedures done

…receive bills months after a

visit, explaining what didn’t

get covered

The patient experience demands transformation. It calls for disruptive innovation. But to innovate we need to inspire. We need to challenge the way we think about the patient experience, and look beyond healthcare to see the way forward. Today is all about inspiration. So that tomorrow we can transform how we care for patients.

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Healthcare, like all industries, must innovate to respond to deep consumer needs

1

Patients are people,

not objects with

conditions and

associated

reimbursement rates.

2

The healthcare

industry knows how to

solve consumers’

physical needs.

Now is the time to look

to their deeper human

needs.

3

Healthcare

organizations must

constantly innovate to

respond to a rapidly

changing regulatory

and competitive

environment.

4

The healthcare

industry must draw

inspiration from the

most innovative

companies in the

world, both in and

out of category.

Proprietary and confidential. Do not distribute.

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Prophet conducted a nation-wide survey to better understand key needs in healthcare

35%

40%

41%

feel “doctors largely provide an impersonal service

and have no time for their patients.”

fear the lack of clarity and transparency in healthcare.

believe the healthcare system is more concerned

about money than people’s well-being.

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We found that the needs we see at a societal level are also felt deeply in the ever-changing healthcare industry

Consumer Needs

Convenience Ease

Connectivity

Empathy

Motivation Empowerment

Convenience Customization

Convenience With increasingly hectic lives and demands on their time, consumers won’t tolerate frustration and inconvenience. They expect brands to anticipate and accommodate their needs when and where they want them.

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The diverse needs of consumers require healthcare that is easy, flexible and convenient

The need for convenience in healthcare

• On average, two new urgent care centers

open every day.1

• The number of visits to retail clinics grew

fourfold between 2007 and 2009.2

• With virtual care, diagnosis and treatment

time can be compressed by a factor of 10

or more.3

Innovations such as Amazon Mom and Amazon Prime Air

provide greater ease and speed for online shopping than

ever thought possible.

Implication: With logistical innovation, there are always ways to make services more convenient.

Pager is a mobile app that helps consumers request a

house call at the tap of a button. Doctors will come to you,

eliminating waiting room hassles.

Implication: Bring care to consumers, rather than trying to bring them to you.

Sources: 1) Galewitz, Phil. "Urgent Care Centers Are Booming, Which Worries Some Doctors." Kaiser Health News, 17 Sept. 2012. Web. 15 Apr. 2015. 2) "Medicine at the Mall." The Economist Newspaper, 06 Apr. 2013. Web. 15 Apr. 2015. 3) "The Virtual Primary Healthcare Revolution: What

Health Systems Need To Know." Becker's Hospital Review, 03 Feb. 2013. Web. 15 Apr. 2015.

Customization With technology providing more control at our fingertips than ever before, consumers want to customize products and services according to their own terms. They need brands to help them design and personalize an experience all their own.

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Healthcare companies should allow consumers to customize elements of their offerings and experience wherever possible

The need for customization in healthcare

• In a recent study conducted by Prophet, 35%

of patients surveyed said that they feel

“doctors largely provide an impersonal

service and have no time for their patients.”1

• By the end of the decade, genetic testing in

the US is predicted to grow 150%, allowing

for highly personalized treatment.

• Employers that utilize customized healthcare

benefits can save as much as 10-20%

in costs.

UPS now lets customers choose exactly where and when

their package is delivered, and even reroute package

deliveries on the fly.

Implication: Provide consumers with flexibility wherever and whenever possible.

Benecure designs personalized nutrition and fitness

programs using data captured by mobile health devices and

applications to help chronic patients manage their condition.

Implication: Every individual is unique, and so should be their treatment programs.

Sources: 1) Prophet’s 2014 Consumer Healthcare Exchange Survey: Lessons From Year One & Opportunities For Year Two (1,000 person survey).

Ease Our world today can be complicated and overwhelming, and we are seeing an increasing trend toward minimalism. Consumers need brands to streamline processes and eliminate anything that is cumbersome and unnecessary—less is more.

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Healthcare can be confusing and intimidating—it is time to streamline

The need for ease in healthcare

• In a recent survey conducted by Prophet,

40% of participants said they fear the lack of

clarity and transparency in healthcare.1

• By 2030, one in five Americans will be over

the age of 65. There will be an increasing

need to simplify the complexities of

healthcare for non-tech savvy seniors.2

• Specialized health coaches are on the rise,

helping consumers understand how to better

take care of themselves and their loved

ones. With the feedback of these coaches,

providers are developing more customer-

centric solutions aimed at simplifying

healthcare delivery.

Turbo Tax’s easy, beginner-friendly online platform for

filing tax returns has simplified an industry traditionally defined

by complexity.

Implication: The scarier the industry is to consumers, the greater the opportunity for innovation.

Oscar is an online and mobile healthcare search engine

that brings a simple design and interface to healthcare

and insurance.

Implication: Human-centered design can make healthcare seem simpler and more approachable.

Sources: 1) Prophet’s 2014 Consumer Healthcare Exchange Survey: Lessons From Year One & Opportunities For Year Two (1,000 person survey). 2) “The State of Aging and Health in America 2013.” Centers for Disease Control and Prevention, US Dept of Health and Human Services, 2013.

Web. 14 Apr. 2015.

Connectivity Consumers are more inter-connected with one another than ever before, redefining the notion of friendship and community. There is a deep need for consumers to connect and stay connected with those who share similar needs, hopes and ideas.

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Healthcare companies have the opportunity to serve as hubs to nurture and facilitate increased connectivity

The need for connectivity in healthcare

• 39% of US physicians communicate online

with patients via email, secure messaging,

instant messaging, or online video

conferencing.1

• 18% of internet users have gone online to

find others with health concerns similar to

theirs.2

• Last year, the biggest companies formed

over 70 distinct healthcare partnerships in 9

different categories.

Meetup is an online service that helps groups of people

with shared interests plan events and facilitates offline

group meetings around the world.

Implication: Establish an ongoing relationship with your consumers by helping them form ongoing relationships with one another.

MyCareText is a messaging tool for connecting patients

and family members with their healthcare providers

throughout the entire cycle of care.

Implication: Facilitating the connection between consumer, provider and loved ones results in better, more informed outcomes.

Sources: 1) “Digital Health: A Way for Pharma Companies to Be More Relevant in Healthcare.” Booz & Company, 2013. Web. 15 Apr. 2015. 2) "Peer-to-peer Health Care." Pew Research Centers, 27 Feb. 2011. Web. 15 Apr. 2015.

Empathy Consumers are increasingly viewing their interactions with brands as a relationship rather than just a transaction. Companies that treat consumers like human beings with respect, understanding and delight will forge strong and loyal relationships.

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There is a need to put the “care” back in healthcare with experiences that feel accessible, authentic and human

The need for empathy in healthcare

• In a recent study conducted by Prophet, 41%

of U.S. citizens said they believed the

healthcare system is more concerned about

money than people’s well-being.1

• When selecting the most important qualities

in a hospital, consumers cared almost twice

as much that they were “treated like a

person” than the “strongest clinical

outcomes”.

• Healthcare systems are making empathy

part of employee training, including

Cleveland Clinic’s series of videos that

encourages doctors, staff and patients walk

in the shoes of others.

CarMax is the largest used car retailer in the US, and the

empathetic service they provide puts car-buyers at ease, such

as their no-haggling policy.

Implication: Uncover and challenge assumptions about how business can and should be conducted in your industry.

GE Healthcare’s Adventure Series made medical imaging

less scary for pediatric patients with themed rooms and fun

characters, reducing the need for repeat procedures.

Implication: Learning to walk in your consumers’ shoes yields benefits to both patient and provider.

Sources: 1) Prophet’s 2014 Consumer Healthcare Exchange Survey: Lessons From Year One & Opportunities For Year Two (1,000 person survey).

Motivation Consumers seek motivation to engage with brands or services, especially for self-improvement. They value brands that acknowledge their efforts, surprise them with relevant and exciting rewards, and make them feel like a valued customer.

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Healthcare companies must create compelling and unique ways to motivate healthier consumer behavior

The need for motivation in healthcare

• Failure to comply with prescriptions is costing

the U.S. health system between $100 billion

and $289 billion annually.1

• A recent study found that up to 50% of

medications for chronic disease are not

taken as prescribed.1

• 46% of those with trackers say monitoring

behavior has changed their overall approach

to maintaining their health or the health of

someone for whom they provide care.2

CrossFit is a brand of gyms and fitness programs with a

community-driven approach.

Implication: Harness the power of community for motivation through encouragement and accountability.

Keas is an employee health and wellness program

combining social media and online games to create

happier, healthier, and lower-cost workforces.

Implication: Fun and games can motivate consumers and produce serious results.

Sources: 1) "The Mobile Gaming Industry Could Have The Answer To This Expensive Health Challenge." TheHuffingtonPost.com, 15 Oct. 2014. Web. 15 Apr. 2015. 2) "Tracking for Health." Pew Research Centers, 27 Jan. 2013. Web. 15 Apr. 2015.

Empowerment Knowledge is power, and consumers know it. They are seeking greater empowerment and control over every aspect of their lives, and information enables them to do so. Consumers expect brands to empower them with data and information that is centralized, secure, and at their fingertips.

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Knowledge can empower consumers to take greater control of their healthcare

The need for empowerment in healthcare

• 60% of U.S. adults say they track their

weight, diet, or exercise routine.1

• 33% of U.S. adults track health indicators or

symptoms, like blood pressure, blood sugar,

headaches, or sleep patterns.1

• The #1 barrier preventing consumers from

managing their own health is inadequate

access to health knowledge and education

tools.2

Nest is a customizable, smart thermostat system that learns

users’ needs and coordinates an entire system

to their lifestyle, along with further optimization suggestions.

Implication: It’s not enough to just provide consumers with data and information—make it actionable with smart suggestions.

Healow is an online platform that serves as a one-stop info hub

for users, providers, and loved ones. Doctors can keep patients

up to date on all their health stats.

Implication: Information becomes more empowering when it is shared with both consumers and providers.

Sources: 1) "Health Fact Sheet." Pew Research Centers, 16 Dec. 2013. Web. 15 Apr. 2015. 2) "Customizing Healthcare: How a New Approach to Diagnosis, Care, and Cure Could Transform Employer Benefits in a Postreform World." PricewaterhouseCoopers, n.d. Web. 15 Apr. 2015.

It is no longer just about what you sell, and how-and-where it is delivered…

…it also has to addresses consumer needs and how it

makes them feel

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• Convenience

• Customization

• Ease

• Connectivity

• Empathy

• Motivation

• Empowerment

What is your organization doing to provide?…

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Questions?

Let us know!

Paul Schrimpf

Associate Partner – Healthcare

p_schrimpf@prophet.com