We’re living in a time where we have access to more information than ever. We can research anything we want, at any time, from anywhere. This has led to an influx of data educating healthcare consumers to become information-savvy with more expectations and evolved approaches. And it has paved the way for the rise of consumerism in the healthcare industry.
The Rise of Consumerism in Healthcare
In the United States, there are close to 300 million people who have at least some kind of health insurance. With this many people having access to healthcare, it is only natural that the industry would begin to shift from a provider-focused, brick-and-mortar model to a consumer-focused one.
The result of this shift has been the upsurge in consumerism. In healthcare, consumerism refers to patients’ ability to make decisions about their care and treatment. Patients have the right to know what treatments are available and what they involve before agreeing to have them done. They also have the right to choose which hospitals and doctors they want for their treatment.
This has led to consumers paying more attention to the healthcare services they receive and the choices they can make. This increased awareness has led to a greater demand for services and products that look appealing to consumers.
In fact, many are turning to telehealth solutions, with around 95% of physicians providing a telehealth solution due to the patient expectations from the COVID-19 pandemic. Also, people have started adopting digital-first healthcare solutions using tools and technology that can give them a broader idea of the services they require and help them make informed decisions.
Patients’ Expectations from the Healthcare Industry
The growth of consumerism in healthcare represents a major evolution in how patients interact with providers and vice versa. It has potential implications for how healthcare organizations deliver care.
Patients want their healthcare to be convenient, affordable, and personalized. There are two primary factors that have driven this trend toward consumerism: increased competition within the industry and an increase in patient expectations.
Healthcare providers have long competed with one another for patients by offering better service or lower prices — or both. But as more players entered the market over time, it became harder for any single provider to stand out from the crowd. The result is an increasingly complex system of insurance and payment arrangements, many of which are designed to cover the cost of specific procedures.
However, providers found themselves having to compete on other fronts: coverage, cost and convenience. Patients expect their healthcare services to be covered under insurance with transparent pricing and to get the treatment in a way that’s convenient and accessible.
While these are just the basic expectations of the patients and once fulfilled, the focus turns to additional tools and access that will empower them to find better treatment for chronic diseases or to stay healthy through preventive support.
While promoting consumerism looks bright on one side, the patient’s financial experience also plays an equal — if not a more important role — in helping patients make their healthcare choices.
Importance of Patient’s Financial Experience
The rise of consumerism has led to an increased demand for transparency and cost-effectiveness in healthcare. Patients want to know what they’re paying for, where their money is going, and whether or not they are getting what they paid for. In fact, 24% of healthcare consumers are looking up the cost details of their services, which has nearly doubled from 2016, with 40% requesting a quote before taking advantage of a healthcare service.
When consumers struggle with financial responsibility, it can impact their willingness to engage in preventive care or even seek treatment at all. 14% of Americans report struggling with the financial responsibility that comes with healthcare services. And nearly 15% of the people are ready to skip treatments due to the high healthcare costs.
The rise in healthcare costs is affecting many Americans, with many threatened about the out-of-pocket payments — despite having insurance coverage. 47% of the people with healthcare insurance coverage still feel that affording healthcare costs is difficult.
This has contributed to the next link in the chain effect: an increase in medical debt. Almost four in ten adults have some medical or dental debt. And 51% of those with healthcare debt are skipping a treatment or a test recommended by a doctor, and skipping doses or obtaining leftover medicines prescribed to another patient, according to the recent findings by KFF.
This is an alarming and risky situation that patients find themselves in due to rising healthcare costs. And this isn’t helping to further the transparent and cost-efficient healthcare consumerism that all Americans eagerly await.
The Way to Go Forward
The best way to encourage consumerism in healthcare while focusing on the patient experience is to find a middle ground between two extremes: the hospitals that overwhelm patients with lots of options and high-cost bills and the patients making decisions with the little data they have.
Healthcare providers need to educate consumers about what is covered under their insurance plans and the cost of treatment so there are no surprises later down the road. Focusing on the patient’s experience with transparent and mindful practices should take center stage. The key is not merely offering more data but implementing technologies that will help patients make educated decisions.
As far as dealing with patients already under medical debt, healthcare establishments can provide flexible payment plans and discount options to encourage patients to settle debts. This can go a long way in redefining how they approach healthcare services and improving the organization’s reputation.
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