The Rise of the Health Care Consumer

2 Deloitte University Press | The rise of the health care consumer | @DU_Press #DeloitteReview Copyright © 2015 Deloitte Development LLC. All rights reserved.
The US health care system is edging toward a recalibration. Existing business
models are being challenged to find and deliver new sources of value, develop
approaches to make health care less complicated, and improve outcomes.
An active and engaged consumer is implicit at the core of the health industry of
the future—a value-oriented market-like system. Upcoming generations may
well be expected to approach health care just as they do other services.
new
entrants
traditional
players
volume
to value
better
outcomes
consumers

3 Copyright © 2015 Deloitte Development LLC. All rights reserved.Deloitte University Press | The rise of the health care consumer | @DU_Press #DeloitteReview
In the health care industry
of the future, winning the
hearts and minds of
consumers will be critical.

Health care industry players should be prepared to
respond to three shifts fueling rising consumerism
01
Market
dynamics turn
to the
consumer
New entrants
view health care
through a
different lens
On the demand
side, what
people want is
changing
02
03

Adopting a more retail mindset and approach will be important for many health
care organizations. Health care organizations will need to re-orient themselves
around greater transparency—of costs, quality, processes, and services.
As more financial risk migrates to individuals, consumers are quickly becoming
comparison shoppers using online tools to compare and select health plan
products. They are looking toward their retail experiences to help guide them
through this unfamiliar territory.
Market dynamics are turning to
the consumer
service
convenience
support
transparency
01

Private health insurance
marketplaces
Relatively new competitive
online platforms, private
health insurance
marketplaces provide
options for active as well
as retired employees. Several large
companies have announced major
shifts in benefits strategies to move
workers or retirees to defined
contribution models through private
health insurance exchanges.
Public health insurance
marketplaces
Many in the public
marketplaces have
been drawn to
packages with
lower premiums,
which feature large deductibles
even though benefit packages with
lower cost sharing are available.
Market dynamics are turning to
the consumer
01

A deep understanding of the consumer’s attitudes and behaviors is vital in an
environment that places patients at the center.
At the same time that consumers are being asked to take on more of the health
care cost burden, they are also being inundated with new choices and options.
As they interact with the health care system more, their expectations of what
experiences and services they receive are changing.
What consumers want is changing
better
services
better
experiences
changing
expectations
02

Deloitte has identified two domains—passive and active—and six unique
consumer health care segments that navigate the health care system.
What consumers want is changing02
passiveactive
Shop
and save
Sick
and savvy
Out
and about
Online
and onboard
Casual
and cautious
Content
and compliant

Examples abound of new entrants into the health care industry targeting
improving value, or re-combination of an organization’s capabilities or by
engaging consumers differently.
New entrants are flooding into health care riding the waves of innovation,
technical capabilities, and scientific discoveries. They are redefining traditional
value chains and challenging the status quo.
New entrants view health care
through a different lens
clinical
delivery
health and
wellness
population health
management
analytics data
03

New entrants view health care
through a different lens
03
There is strong venture capital interest in enabling technologies. Investment
in life sciences (medical services, biotech, pharma, medical devices, and medical
therapeutics) was 23.6 percent of the total dollars invested in 2013.
Several start-ups aim to
optimize patient engagement
and support and sustain health status
through carrots and sticks of motivational
and behavioral change levers.
Others concentrate upon
smoothing the interface
between patients and the
health care system.
23.6%

As consumers become more engaged in managing their health
care, seeking value will likely become a driving force shaping
their perceptions, decision-making, and the long-term relationships
they form with players in the industry.
Building lifetime relationships that resonate with people in a
consumer-friendly, retail-oriented, and technology-driven system –
that’s the new road ahead.

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Explore the rise of consumerism in the health care industry
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Meet the authors
BEN JONASH
principal with Deloitte Consulting LLP in the Monitor
Deloitte Strategy & Operations practice.
JEFF WORDHAM
principal with Deloitte Consulting LLP in the Monitor
Deloitte Strategy & Operations practice.

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The Rise of the Health Care Consumer

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