The State of Consumer Healthcare: A Study of Patient Experience

Proprietary and confidential. Do not distribute.

The State ofConsumer Healthcare:

A Study of Patient Experience

Webinar: March 30, 2016

GE Healthcare: Patient Experience Survey 2Proprietary and confidential. Do not distribute.

The State of Consumer Healthcare

The state of the patient experience is bad… and getting worse

The case for investment is clear–wait time is wasted time. Investments to improve the patient experience drive system-wide growth and translate into financial gain.

Providers must deliver a holistic experience that is very different from what patients encounter today.

Prophet and GE Healthcare Camden Group have teamed up to help organizations assess the patient experience they currently deliver and develop a plan to transform it.

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The Current State of the Patient Experience


Not surprisingly, the state of patient experience is bad… and likely to get worse before it improves

For decades, the U.S. healthcare industry has been based on a convoluted economic model, which has inhibited competition and real service innovation -- and consumers are frustrated.


The healthcare experience is not healthy

A1. The following statements describe different attitudes people may have towards healthcare. Using the scale below, please indicate how much you agree or disagree with each statement. (N=3,000)

A7.How frustrated were you with your experience at each of these stages? (N=3,000)

An alarming 81% of consumers are unsatisfied with their healthcare experience, and the happiest consumers are those who interact with the system the least.

Series1

75%48%

Frequent Healthcare Consumers All Other Healthcare Consumers

% of Consumers Frustrated


There is a gap in perception between providers and consumers on the quality of experience currently being provided

Providers underestimate the degree to which the patient experience fails to meet consumer expectations. This skewed perspective is creating a lack of urgency among providers to fix the problem. While providers are aware of patient dissatisfaction, they have many competing and changing initiatives, making it difficult to prioritize.


Providers overestimate the quality of their patient experience by over 20 percentage points

Providers misjudge the perception of their performance on elements that are most important to consumers

Providers give themselves too much credit on the elements that are most important to consumers

A3. How well do you feel providers are delivering on the entire PX? (N=3,000), Top 3 Box % shownA7. How well do you feel your organization is delivering on the entire PX? (N=300) , Top 3 Box % shown

A17. How well do you feel hospitals are delivering on each of these? (N=3000)A24. How well do you think your org. is performing on the aspects of the PX? (N=300)

Series1

63% 40%

Providers

Consumers

% Who Believe Providers are Delivering % Agreeing (Top 3 Box %)

51%

57%

34%

36%

Consumers Providers

Providers take the time to understand my needs and explain options

Providers have empa-thetic medical and ad-ministrative staff

23% Gap


…and the gaps exist on multiple aspects, some greater than others

C - A17. How well do you feel hospitals are delivering on each of these? (N=3000)P - A24. How well do you think your organization is performing on each of the following aspects of the patient experience? (N=300)

A. Has empathetic medical and administrative staffB. Has a great reputationC. Provides healthy and enticing food options within their facilityD. Takes the time to understand my needs and explain optionsE. Has quality and comfortable decor and furnitureF. Provides services to make visit more convenient and comfortableG. Offers ways for me to review my health records onlineH. Coordinates care for me with people outside the facilityI. Communicates results of diagnostic tests in a timely mannerJ. Has a transparent billing processK. Allows me to see the doctor I want, when I wantL. Makes scheduling appointments quick and easyM. Provides clear direction and support for care post-visitN. Uses state of the art devicesO. Has a simple billing processP. Uses state of the art software systems

Provider’s Perceptions of Themselves

Con

sum

ers’

Rat

ings

of P

rovi

der P

erfo

rman

ce

ALIGNMENT

“EXCEEDINGEXPECTATIONS”

“MISSINGEXPECTATIONS”

Clinical Experience and Reputation

BILLINGNon-ClinicalEnvironmen

t

Consumer vs. Provider Performance(Top 3 Box %)


Despite the best intentions to deliver a better patient experience, providers struggle to make it a priority among competing initiatives

Providers say… Providers do…

Priorities 75% believe PX is important to theirfuture success

On the list of hospital CEO’s top concerns, patient satisfaction is not in the top five*

Experience Strategy 90% claim to have a patient experience strategy 24% believe they are delivering extremely well

on the strategy

Investments 91% believe digital transformationis important

29% are investing in digital toolsand online presence

Customer Understanding

70% claim to have a holistic viewof their patient base 15% really understand patient needs

Technology42% believe technologies related topatient outreach and engagement are extremely important in driving experiences

26% actually deliver these patient outreach and engagement technologies today


While patient experience is important, finding the right merger partners is an existential issue. If we don’t acquire, we will eventually no longer exist as an independent entity.

“

”*Source: Prophet Interview conducted Sept 2015

–CFO of $2B Health System


If providers are under-delivering on patient experience today, it will only be harder with bigger and more complex operations

Sources: Knowledge at Wharton, “Hospital Consolidation: Can It Work This Time?”, Accessed 10/19/2015ACSI Benchmarks for Healthcare Industry, Accessed 10/19/2015

Hospitals are buying other hospitals, physician practices, and ancillary health care providers. These consolidations come in response to the need to connect care networks, and enable a more cohesive approach in managing patient experiences throughout their journey.

Hospital consolidation is rising as a result of The Affordable Care Act.

Increase in hospital consolidation, 2013-2014

14%+ 3%-Decrease in patient satisfaction scores, 2013-2014

The Case for Investment


Once consolidation is done, and the world of mega systems has arrived, winners and losers will be determined by their ability to deliver a positive, holistic consumer experienceWaiting to fix this will put systems behind in the race for building strong brands, delivering on their missions and achieving financial stability.


Investments to improve patient experience also improve an organization’s operational efficiencyThe priorities of health system leadership and their patients are not in conflict, in fact they are well aligned. For both parties, wait time is wasted time. Investing in an improved patient experience drives growth and reduces costs.


Patients, health systems and physicians value many of the same things

C - A16. How important are the following aspects of a hospital to you? Please select the top 5 and the bottom 5. (N=3,000)P - A23. Using the scale below, please indicate how much of a priority it is to you and your organization to provide these aspects to patients? Please select the top 5 and the bottom 5. (N=300), % Ranked Top 5

PATIENTS WANT… PHYSICIANS WANT…SYSTEMS WANT…

To spend more time with doctors and nurses who show they understand patient needs

To practice their craft and deliver care to patients

To deploy scarce clinician capacity in a way that drives patient outcomes

To easily schedule appointments and get in-and-out quickly

To maximize time with patients and minimize their frustrations

To serve as many patients as efficiently as possible

To receive simple bills that do not require follow-ups

To keep patient out-of-pocket costs in mind when developing a treatment plan

To reduce the costs associated with customer service and resolving issues


Providers are the most trusted by consumers and therefore are the best positioned to make integration possible

*Source: A6. Who or what influenced your actions / decisions at each stage? Select all that apply. (N=sample size listed above by stage based on # consumers experienced)

Strength of RelationshipsDepth of trust with consumers

ConnectednessAbility to get different organizations in the HC system working together

Payer Provider Life SciencesBRAND EXAMPLES

MeansResource availability and operational agility

Pharmacy Retailers


Providers can get ahead of other industry players by partnering with new market entrants to start improving the patient experience


Creating a great patient experience will do more than increase patient satisfaction…

Drive down operating costs and improve bottom lines

It Helps Organizations:

Help systems to deliver on the organizational mission to keep people and communities healthy

Drive increased capacity and access for consumers

Drive down operating costs and improve bottom lines

Improve employee satisfaction and retention

Build the brand and reputation to encourage consumers to consolidate care and increase leverage with payers

The Path to Success


The good news: Providers are starting to think about patient experience holistically; simultaneously focusing on people, investing in technology, and expanding the ways and places in which they deliver care.


At the moment, one third (36%) of providers designed their patient experience only within the four walls of their faculty

19%The experiences and

interactions from a patient's single visit

17%Any experiences the

patient haswithin our facilityover multiple visits

33%All experiencesthe patient has

with our system of care over multiple visits

31%All things related to a

patients health

19% 100%36% 69%CUMULATIVE

A3. How does your organization define patient experience? (N=252)


For providers to succeed in the long-term, the patient experiences they deliver must:

Be holistic in nature. Recognize the patient experience goes beyond just the clinical aspect.

Move beyond a “fixing what is broken” mentality and start embracing creation of a unique experience.

Develop merger, acquisition and partnership strategies around the patient experience.

Think differently about buying, integrating and enabling technology.

Empower healthcare professionals to do what they do best.

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1. Be holistic in nature. Recognize the patient experience goes beyond just

the clinical aspect.


A significant portion of consumers healthcare experiences are occurring beyond the four walls of the provider

3%10%

5%

9%7%

3%

9%

11%

7%

21%

11%

15%15%

6%

10%

14%37%

31%

28%

17%26%

17%

11%

16%

49%26%

53%40% 43%

70%

22%35%

5% 10% 5%

39%16%6%

9%4%

9%

8%

Not once

Once

Twice

Three Times

Four times

5+ Times

Frequency of Healthcare Interactions(% of respondents)

Obtained health insurance

Proactively managed health

Found a healthcare

facility/doctor

Visited a doctor (existing

condition)

Visited a doctor for tests

Received emergency health

services

Filled prescriptions

Handled payment for services

PRE-VISIT POST-VISIT


Frustrations generally stem from issues with coordination and the need to make things easier

Received emergency health services

• Took Too Much Time (45%)• Quality of Care (44%)• Too Expensive (43%)

Obtained health insurance

• Process Not Easy To Understand (57%) • Too Expensive (50%)• Took Too Much Time (44%)

Handled payment for any services received

• Too Expensive (56%)• Process Not Easy To Understand (40%)

Found a healthcare facility or doctor

• Difficult To Get Appointment (45%)• Took Too Much Time (41%)

Visited a doctor for any new sicknesses or tests

• Difficult To Get Appointment (42%)• Took Too Much Time (42%)• Quality of Care (39%)

Visited a doctor for any existing conditions

• Difficult To Get Appointment (42%)• Took Too Much Time (37%)• Quality of Care (36%)

A8. You indicated that you were frustrated with X. Why was that? Please select the top 3 reasons. (N=3,000)

Proactively managed health

• Difficult To Get Appointment (44%)• Took Too Much Time (36%)• Unknowledgeable Employees (34%)

Filled Prescriptions • Took Too Much Time (48%)• Too Expensive (41%)

Reasons for frustrations for each step of the journey(% Ranked Top 3)


The best providers—the ones focused on holistic patient experience—are seeing a strong return & increase in customer satisfaction scores

Kaiser Permanente has the highest customer loyalty ranking in the health insurance category with an NPS score 19 points higher than the industry average. Their satisfaction scores are on par with companies such as Apple, Amazon and Trader Joe’s.*

*Kaiser Permanente 2014 Annual Report


More than two thirds of providers are either offering or exploring offering health plans to consumers

Something we already offer A priority in the near term to develop

Noted as an interest, but not a priority in the near term

Not an interest

15%24%

31% 29%

Provider Interest in Offering Health Insurance(% of respondents)

70% of providers are –or have an interest in- offering health insurance


2. Empower healthcare professionals to do what

they do best.


People—staff and employees—need to feel empowered since they play a critical role with customers... When they are happy, so are patientsThe experience people have with healthcare staff has a very strong impact on the overall experience. Happy and engaged employees mean more satisfied patients and, ultimately, financial gain.

HOSPITALS WITH HIGHLY ENGAGED STAFF

10%Scored higher on “willingness to recommend” the hospital to family and friends

HIGHLY ENGAGED PHYSICIANS

51%26%

Receive more inpatient referrals by:

Are more productive by:

ENGAGED STAFF TRANSLATES TO

$460,000In average additional patient revenue per physician per year

Source: Watson Wyatt WorkUSA Survey, 2009


3. Think differently about buying, integrating and enabling technology.


Better buying and integrating of enabling technology will allow clinicians to spend more time focused on patients

Smarter use of enabling technology will improve processes and workforce productivity, and increase employee and patient satisfaction.

Happier children, greater throughput in magnetic resonance

By reducing pediatric patient anxiety and unnecessary movement, imaging accuracy is improved, leading to more accurate diagnosis and treatment.

Quicker patient assessments, shorter length of stay

Clinicians at UPMC Presbyterian Campus used VSCAN in their Cardiology service and saw a mean LOS reduction of 1.2 days.

Reducing alarm fatigue while providing greater reliability and fewer false alarms

Alarm management technologies enhance patient monitoring and alarm accuracy, reduce false alarms, and ensure that when alarms do sound they are clinically significant.


4. Think differently about buying, integrating and enabling technology.


Consumers are open to new healthcare experiences outside the traditional system

A18. Which of the following consultations/treatments would you consider from these types of settings? Select all that apply. (N=3,000)

Setting of Treatment Considered(% of respondents)

DISSATISFIEDMILLENNIALS

VIABLEALTERNATIVES

HEALTH SYSTEMVOLUME AT RISK

On Demand Medical Center

RetailClinic

Tele-medicine

73% 64% 52%


5. Move beyond a “fixing what is broken” mentality and start embracing creation of a unique experience.


Patient experience must go beyond fixing what’s broken and focus on building unique, brandable experiences

Systems transform when they aim for unique, branded experiences for their patients.

Phase 1

Fix What’s Broken

Fix organizational problems by addressing pain points, often utilizing a LEAN approach to incremental change

Phase 2

Surprise & Delight

Delight patients through unexpected and enjoyable experiences that create value and encourage preference

Phase 3

Brand It

Differentiate in the marketplace and build permanent patient relationships by delivering ownable experience elements that fit with a unique brand promise

It takes more than addressing pain points to deliver a unique experience.

Getting Started


Prophet and GE Healthcare Camden Group have identified a set of market archetypes for patient experience. Systems should seek to understand which they fit into, which is their “starting point” for improvement.


The following framework assesses your current state, and helps chart a path forward…


Which archetype best describes your organization?

Archetype Details

LAGGING INTERESTED COMMITTED EMBEDDED Establishing buy-in for patient experience

Identifying the patient experience north star

Developing a roadmap for effective implementation

Looking for opportunities to innovate and integrate

Leadership & Patient Exper. Definition

Lacks established patient experience business case, definition and leader to champion the cause

Leadership distracted by short-term priorities; definition limited to HCAHPS metrics

Leaders internally aligned around vision for patient experience with leader accountability; patients experience defined at a system-level rather than inclusive of patients' broader health

Broadly views patient experience as all interactions across the patients’ healthcare journey; patient experience embedded within all quality-improvement initiatives

Consumer Understanding

Patient needs not an input to experience design

Leverages basic understanding of consumers to inform marketing and communications

Collects patient feedback through a formalized process, struggles to prioritize initiatives due to financial and technology constraints

Patient needs and consumer-centric mindset drives experience design

People A lack of integrated people, tools, and technologies prevents employees from focusing on consumers

Employees do not fully understand the patient experience strategy or the importance of it

Employees understand the organization’s vision for patient experience but feel overwhelmed by the disconnected initiatives

Integrated people, operations, and technologies enabling clinicians to focus on consumers

Tech Slow to innovate and invest in new technologies, focuses on mandated technologies such as ICD-10 and EMR

Deploys technologies primarily with diagnostic and clinical use cases

Invests primarily in process-focused initiatives (e.g., billing, scheduling, workflow)

Leverages sophisticated clinical and consumer technologies to meet unmet patient needs across the holistic journey

Metrics Rarely tracks metrics beyond basic patient quality and safety metrics

Evaluates patient experience success solely based on HCAHPS metrics

Leverages HCAHPS yet has isolated metrics for specific issues and departments

Organizational metrics are inclusive of HCAHPS but also go beyond, looking at people, ops, and technology jointly

Operations & Implementation

Patient experience efforts happen in pockets and are either not measured or are assumed to be in HCAHPS scores

Patient experience efforts are aligned and deployed around a finite set of prioritized experiences and HCAHPS metrics

Patient experience efforts are aligned around an experience strategy with clearly defined KPIs that go beyond the system and HCAHPS scores

Patient experience efforts are embedded throughout the operations and culture and measured by KPIs that go beyond the system


Done correctly, improving the patient experience can also drive meaningful operational efficiency - it doesn’t have to be a tradeoff


Understanding patient expectations and designing holistic experiences that meet them will determine long-term success

The state of the patient experience is bad… and getting worse

The case for investment is clear–wait time is wasted time. Investments to improve the patient experience drive system-wide growth and translate into financial gain.

Providers must deliver a holistic experience that is very different from what patients encounter today.

Prophet and GE Healthcare Camden Group have teamed up to help organizations assess the patient experience they

currently deliver and develop a plan to transform it.

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Proprietary and confidential. Do not distribute.

For more information, visit:www.prophet.com/patientexperience

Or, contact:

Jeff [email protected]