The consumerization of healthcare​

Bifurcation of care

The hospital-centric model still holds for acute care, but ambulatory care providers want to be near customers.​

The rise of data

From price transparency to sharing patient records across providers, data availability is empowering consumers.​

Physician economics

Employment and reimbursement models continue to shift, changing incentives for providers​

Customer experience is the future of healthcare.

Market forces drive new, more convenient modes of healthcare delivery.


The Affordable Care Act has added 20 million Americans to insurance rolls.*​ The recently passed American Rescue Plan will add 2.5 million more by 2023.**​ First-dollar coverage for preventive care has brought new consumers into the system.​

*Source: Kaiser Family Foundation​

**Source: CBO​


Competition for new consumers across specialties​ Bifurcation of acute- vs. non-acute delivery platforms (especially on- vs. off-campus)​ Focus on customer experience, including telehealth

Data conquers all

Dual Forces: Interoperability and transparency ​

Interoperability means seamless information sharing among providers with patient consent*​​

Anticipated effect: More coordination across specialties, better outcomes​


Transparency means hospitals must publish pricing for services**

Anticipated effect: Cost control, competitive pressure to differentiate

*Source: CMS

Profitable practices​

The business environment for providers is challenging:​

  • Spending on physician services has lagged hospital/clinical spending.​
  • Med school is expensive, leading to high student debt
  • Per-patient reimbursements are slowly replacing fee-for-service model.​
Impact: In 2018, more docs were employees than practice owners.*

*Source: American Medical Association

(Re)tailoring care​

Per IFMA, 85% of healthcare facilities were constructed in the second half of the 20th century.*

  • Location strategy was driven by provider convenience.​
  • Providers (especially ambulatory) now prioritize consumer convenience.​
  • Retail conversions are appealing, but challenging (buildouts, lease structure, tenant mix…)

*Source: IFMA FM Research & Benchmarking Institute Operations and Maintenance Healthcare Benchmark Report, July 2020​


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