Healthcare Consumerism and What it Means for Medical Practices in 2022 • ConsumerLink

INTRODUCTION

Over the last decade, the Affordable Care Act and the growth of high deductible health insurance plans have given rise to healthcare consumerism. But what exactly does that mean? Healthcare consumerism is “the personal choice and responsibility in paying for and managing one’s own health.”¹ It means that in addition to becoming more involved in their own healthcare decisions, patients are becoming more focused on the cost of healthcare. They understand that they have a choice in providers and that not all providers have the same rates. Patients are also using their wallets to inform their healthcare decisions, just like they would for any other service or goods. And they are often choosing to save money over loyalty to a provider.

THE ORIGINS OF HEALTHCARE CONSUMERISM

Healthcare consumerism isn’t a new topic, although conversations about it have increased as of late. In 2010, the Affordable Care Act was signed into law, providing millions of Americans options for their healthcare. Patients were able to shop for insurance and find different rates for different plans. But lower rates often left patients with higher deductibles that needed to be paid for out of pocket. That trend has not stopped, and insurance companies have continued to push high deductible plans. These plans shift the responsibility of payment from the insurance companies to the patients.

In addition, the COVID-19 pandemic has caused many people to lose their jobs and, consequently, their health insurance. These people must now pay 100% of their medical bills out of pocket. “Patients have increasingly been on the hook for a considerable bulk of their medical costs. Because of higher deductibles, patient financial responsibility has gone up. … More recently, the Centers for Disease Control & Prevention (CDC) reported that 14 percent of patients struggle with their own financial responsibility.”¹ Owing more money for their healthcare bills has caused many Americans to look at pricing before scheduling an appointment or procedure.

HEALTHCARE CONSUMERISM’S EFFECT ON HEALTHCARE PROVIDERS

Healthcare consumerism has required healthcare providers to focus on the complete patient experience. Providers need to realize that patients are now consumers. As such, providers must adjust how they engage with them. Patients want a positive patient experience. They want to know what they are being charged and that it is a fair, competitive price. In addition, they want a smooth and easy experience making an appointment, seeing the provider, and paying for services. Providers need to spend time and money on technology that makes it easier and more convenient for their patients. Telehealth visits, virtual waiting rooms, online bill pay, and price transparency should all be top priorities for healthcare providers in 2022.

Price transparency is especially important to patients. And if it’s important to patients, it must be important to providers. Cost of services and the burden of paying high deductibles weigh heavily on patients’ minds. It also impacts their decisions. According to a TransUnion Healthcare survey, 47% of patients surveyed said they chose their healthcare provider based on cost. Another 80% of those surveyed said they used a healthcare provider or insurance website to research healthcare costs before making appointments and choosing a provider.²

CONCLUSION

While healthcare consumerism is not a new concept, it has definitely received a boost during the COVID pandemic. Patients are now consumers when it comes to their healthcare and providers need to begin to look at them as such. Patient experience and price transparency is as important as ever. In a CVS Health study, 85% of those surveyed said “health care costs are very/somewhat important when it comes to their health.” And an additional 42% said they did not visit a doctor when they had a minor illness or injury because of the cost.³ Healthcare providers need to invest in technology and services that make it easy for patients to engage with their office. These investments are the best way to retain patients and grow a medical practice in today’s climate.