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.
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
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
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
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