SOURCE: BDC Advisors

BDC Advisors

November 18, 2014 11:56 ET

BDC Advisors Questions if Organizations Are Ready for The Thing That Ate Healthcare

National Healthcare Consulting Firm Highlights for the First Time Consumers Are Behaving Like Real Customers in the Marketplace

MIAMI, FL--(Marketwired - November 18, 2014) - In the BDC Insights, "The Thing That Ate Healthcare," released today by BDC Advisors, Neal Hogan, firm Senior Advisor, writes that health care systems are ill prepared for the powerful shift that is in the hands of retail "health care" customers. "The well-informed retail customer whose own money is on the line in every transaction is a 'frightening monster' for an industry that has not really had to contend with it before," said Hogan. 

"That customer shops with a constant, never-ending, relentless focus on price, and expects value for that price," said Hogan. "We are starting to see a shift to that customer shopping for individual insurance products, and then shopping for his or her needs at the deductible level, and finally shopping even for acute care products. Far more than the weak ideas of 'consumerism' that have been discussed in health care in the past, this is the rise of a retail market that affects every aspect of healthcare. It will transform the industry."

This transformation is the result of four forces:

  • A Laser-like Focus on Total Medical Expense
  • Pricing Transparency for Health Insurance Products and Each Offered Service
  • Wider Adoption of plans with Health Savings Accounts (HSA)s and High Deductible Health Plans (HDHPs)
  • Wide Adoption of Reference Pricing

Hogan continues, "As these forces come together, they will transform our pricing model, our care model, and how 'customers' consume our product. Informed, price sensitive customers will drive the industry to greater efficiency, lower prices, and improved customer service and delivery of care." Learn more about this topic by downloading the full article here.

BDC Advisors is a national healthcare consulting firm headquartered in Miami, which specializes in strategic business planning and business diversification for large integrated healthcare delivery systems, academic medical centers, and managed care organizations. For more information visit www.bdcadvisors.com. Follow us on Twitter @BDCAdvisors.

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