The Business Case for Patient-Centricity

Christopher Lis leads the overall strategy, growth, operations and client management for the Global Healthcare Intelligence practice at J.D. Power.

Michael Vermillion is vice president and general manager of insurance and healthcare intelligence at J.D. Power, where he is responsible for leading growth initiatives, key capability development and new market entry.

What is driving the rise in healthcare consumerism?

Lis: First, the asymmetry in information among healthcare providers and consumers has significantly narrowed over the last decade and will continue with the advancement of technology, particularly generative AI. Consumers can go online to evaluate information about their diagnosis, treatment options, emerging technologies, off-label treatment innovations, cost of care options, the reputation of institutions, and consumer reviews on healthcare providers, doctors, pharmacies, payers and more. For example, our research demonstrates that nearly 20% of consumers in the Medicare Advantage space use online plan comparison tools, and many consumers are voting with their feet by switching plans that offer more value. Consumers are increasingly using publicly available information sources to make more informed healthcare decisions. Second, patients are also getting more exposure to what a great customer experience looks like. Remember that healthcare consumers are also customers of retailers, banks and other institutions with high-scoring customer experiences. Finally, consumers and stakeholders across the healthcare ecosystem are taking a deeper look at value, especially in our current economic climate. More patients are taking a closer look at the perceived value (in quality, patient outcomes, satisfaction, and costs) in relation to traveling to the top-ranked healthcare institutions versus seeking nearby care. Many consumer segments are closely examining these tradeoffs, especially in specialty care. Together, these factors are shaping and advancing healthcare consumerism at unprecedented rates.

What are the implications for hospitals and health systems?

Vermillion: Patients are becoming astute consumers in many cases, shopping for the best care and treatment options at costs aligned to their insurance coverage and budget, especially in nonemergency care, with notable trends of increasing care being sought after in the ambulatory care setting. To maintain strong patient retention, loyalty and advocacy as patients become more empowered with choice, hospitals and health systems need to find ways to meaningfully distinguish themselves from the competition—quickly.

Who are going to be the winners in this new battleground?

Lis: In the battle for healthcare consumers, winners are putting the patient at the center of everything they do. Hospitals and healthcare organizations with stellar reputations and a focus on meeting and exceeding patient and family expectations will win. Agile systems embracing best practices from outside of healthcare will be particularly well-suited to compete in the future ahead.

How can hospitals and health systems achieve patient-centricity?

Vermillion: To achieve patient-centricity, providers will need to better understand what patients and families value most, and then deliver on those expectations. We have met numerous organizations who state that they know what the customer values, only to find out that they do not frequently gather customer feedback and act on emerging consumer trends, which in the case of healthcare, includes both patient and family expectations and preferences. To illustrate some of the key opportunities to advance patient-centric care, our national research shows that 45% of patients said the area around their room was always quiet at night. While some noises and interruptions are unavoidable, this represents an opportunity to enhance satisfaction.

What’s the business case for becoming patient-centric?

Lis: Creating excellence in patient-centric care generates word-of-mouth recommendations from patients and families that will ultimately help healthcare providers grow market share in a more efficient way. Additionally, a focus on patient-centered excellence improves culture, making organizations a more attractive place to work, with consequent improvements in team member retention.

Investing in patient-centricity isn't just the right thing to do, it makes good business sense. When organizations are mission-driven, focusing on patient-centered care and innovation that aligns to patient and family values and expectations, while striving for excellence in satisfaction, the right business results will follow.

For more information, visit: jdpower.com/business/hospital-patient-satisfaction-program