OPPORTUNITY

Losing patients (and revenue) due to competition and consumerization

Since 2010, insurance deductibles have risen over 67%, while premiums are up more than 25%. Today, patients are paying more out of pocket for healthcare than ever before, leading them to feel more like paying customers. In turn, they expect the same engaging and convenient customer experiences they have grown accustomed to in other commoditized industries, like retail and banking.

Now, patients are taking control by shopping around for the best experience, as witnessed by the 20% of patients that switched to a new provider last year due to low satisfaction. This trend is expected to grow sharply in the coming years as 60% of patients are still dissatisfied with their overall healthcare experiences.

OPPORTUNITY

Traditional feedback processes bottleneck service recovery

In today’s healthcare landscape, patients come first. Clearly, patient satisfaction and online reputation are defining factors in boosting patient acquisition and creating a great brand experience. Although most healthcare organizations have tools in place to gather patient feedback, the vast majority of these solutions are inconvenient to patients, plagued by low response rates and feedback data that is neither timely nor actionable.

Traditional surveys (often paper-based) are expensive and typically take weeks to administer, making it impossible to perform timely service recovery with frustrated patients. Needless to say, healthcare organizations can’t solve current problems with out-of-date data.

OPPORTUNITY

30% of provider capacity goes unused

At least $50,000 of net revenue per provider is lost each year due to unfilled appointments resulting from cancellations, no-shows, and scheduling errors. In fact, reports show that the underutilization of provider capacity costs the U.S. healthcare industry over $100 billion annually.

More important than the revenue loss is the impact to patient health, as this problem comes at a time when patients are waiting longer than ever—an average of 24 days—to schedule an appointment with a doctor. Unfortunately, a projected shortage of 105,000 doctors will only increase appointment wait times over the next decade.

OPPORTUNITY

Emergence of value-based payment models

Healthcare providers face additional complexity when you consider the emergence of value-based payment models, which links provider revenue to the ability to maintain patient loyalty and to engage patients in health improvement.

In order to get paid, providers must move away from fee-for-service payment models and, instead, adopt alternative payment models for Value-Based Reimbursement (VBR), and also risk-sharing models like the Merit-based Incentive Payment System (MIPS).