In coming years, consumers will move billions of dollars to businesses offering more affordable, simpler and more convenient care. Health organizations also will have to compete with industries such as travel, entertainment and retail for consumers’ discretionary dollars.
Here’s how to ensure your business takes advantage of these opportunities.
Start with the consumer and work backwards. Consumers will abandon companies unable to deliver care on their terms. Health organizations must understand consumers’ needs and desires, creating new options for access, information and products and services. Consider rethinking operating hours, availability of clinicians via digital devices and transparency of pricing and quality.
As Nasrin Dayani, Executive Director for AT&T ForHealth Solutions, told HRI, “We believe the ultimate jury of that game-changing app and that game-changing device are the consumers themselves. It will not be decided by the providers or payers.”
Yet regulatory risks are real. 23andMe, a genetic testing service, learned this last year when it received a warning letter from the U.S. Food and Drug Administration (FDA). The agency cited an alleged lack of communication from the company over how it marketed its saliva collection kit and personal genome service.The company stopped offering its health-related genetic tests to new customers.
Traditional health players should consider strategic partnerships with new entrants, which also may possess broad distribution networks. Aligning with new entrants may transform a potential competitor into a future collaborator.
Newer players can also benefit from smart alliances. As partners, traditional healthcare companies can serve as guides to the regulatory and payment maze.
Mobile will be crucial in the New Health Economy. All players must understand how to create new value propositions based on social, mobile, analytic and cloud technology, generating positive customer experiences.
The digital world has trained consumers to believe they don’t need to pay much for many online services, such as content and social media. Companies must be creative in designing business models that hook others into paying for value.
Business model innovation is a complex process with no single recipe for success. Companies should create a defined business innovation process first, using business model simulation as a tool. Simulations can help fine-tune projects before they are tested in the real world, allowing for rapid, low-cost, low-risk iteration.
Dr. Bob Kocher
PwC Principal, US Health Industries
Co-founder, Oscar Health Insurance
Chief Strategy Officer
PwC US Health Industries Leader
Kleiner, Perkins, Caufield & Byers