John T. Bigalke
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More than 750,000 Americans sought less-expensive medical treatments in other countries, a number projected to grow to 6 million
by 2010. This is potentially costing the U.S. healthcare system billions. Hospitals, physicians and plans will need to quickly
adapt to such competition from non-traditional players and develop long-term strategies.
The emergence of disruptive healthcare innovations—medical tourism, retail clinics, technology-enabled care at home, and cyber
visits—presents a new paradigm that suggests partnering with new players outside traditional healthcare sectors will lead
to new models of delivery and new ways to operate more efficiently.
PLACES FOR CARE
Paul H. Keckley
|
The impact of rising U.S. healthcare costs is felt in every household and by every company. Consumers with employer-sponsored
health insurance are increasingly considering medical tourism, retail clinics and other innovations as viable care options.
The Deloitte 2008 Survey of Health Care Consumers, a nationally representative survey of more than 3,000 Americans, found that two in five respondents said they would be interested
in pursuing treatment abroad if quality were comparable and the savings were 50% or more. By contrast, inbound medical tourism
and medical tourism across state lines will continue to be an opportunity for specialty hubs offering treatments unavailable
elsewhere in the world or in other states.
Retail clinics—another non-traditional competitor—have increased by 220%, from just 250 clinics in 2006 to more than 800 in
2007, and close to 1,000 in 2008.
These trends are not fads. While traditional roles in the healthcare delivery system are being threatened by these innovations—creating
initial worries for physicians, hospitals and allied health professionals—they may also provide new and rewarding opportunities,
particularly for health plans.
NEW SERVICES
Long-term strategies to manage this non-traditional competition may include creating new services or service areas through
mergers and acquisitions and partnerships.
Examples of what some health plans are already doing, or are thinking about doing, to capture value from these innovations
include:
- Creating more convenient and flexible options for point of care for consumers and incorporating them into benefit plans;
- Working with providers domestically and internationally to develop networks and package pricing to cover patients who want
to travel for care within the United States or overseas;
- Partnering with DM companies to offer services at retail pharmacy settings;
- Developing innovative approaches to pay providers episode-based payments that reward the coordination of care and outcomes
versus a patchwork of volume-based payments;
- Covering cyber visits and/or medical home technology to combat issues such as chronic care;
- Working with technology companies to implement electronic health records and other innovative technologies to enhance consumers'
ability to research treatment options online; and
- Exploring how "greening" or sustainability plans will maximize opportunities to reduce costs.
John T. Bigalke is vice chairman and U.S. industry leader, Deloitte's Health Sciences & Government industry group.
Paul H. Keckley, PhD, is executive director of the Deloitte Center for Health Solutions.
