In our latest report, “Making the Shift: Healthcare’s Transformation to Consumer-Centricity” Prophet interviewed more than 50 executives across the U.S., Europe and Asia, from healthcare organizations including hospital systems, payers, pharmaceutical companies and digital health companies to identify the five keys shifts that healthcare organizations need to make to become more consumer-centric. Learn key findings from each of the five shifts including the challenges and solutions organizations face to become more consumer-centric.

1. Proprietary and confidential. Do not distribute.
August 15, 2017
Making the Shift:
Healthcare’s
Transformation to
Consumer-Centricity

2. Welcome and thank you for joining!
SCOTT DAVIS
sdavis@prophet.com
@scottdavisshift
JEFF GOURDJI
jgourdji@prophet.com
@JeffGourdji

3. Prophet is a management consultancy dedicated to the belief that
there is a better way to grow
Our expertise spans three key areas:
BRAND &
CUSTOMER EXPERIENCE
DIGITAL
TRANSFORMATION
GROWTH
ACCELERATION
Strategy Design Digital Insights and
Analytics
Innovation and
Creative
Concepting
Deep Capabilities + Multidisciplinary Approach

4. LIFE SCIENCES
Pharmaceuticals
Devices & Diagnostics
HEALTHCARE PROVIDERS
Health Systems and IDNs
Related Healthcare Providers
PAYERS & ADMINISTRATORS
Insurance Carriers
Other Third-Party Payers
TECHNOLOGY & OPERATIONS
Information & Technology
Distribution & Operations
We have helped companies across the healthcare ecosystem

5. Agenda
• Why do healthcare organizations need to
become consumer-centric?
• What practical steps can healthcare
organizations take to become more
consumer-centric?
• How far along is your organization in
making the shift?

6. Why do healthcare organizations need
to become consumer-centric?

7. HCV Consumerism Study 7Proprietary and confidential. Do not distribute.
Healthcare organizations are facing pressure from various stakeholders
and new competitors
Providers
Payers
Pharma
Companies
New competitors are
responding to
consumer needs…
Governments and
employers are putting
pressure on healthcare
organizations…
Consumers are putting
pressure on healthcare
organizations…

8. HCV Consumerism Study 8Proprietary and confidential. Do not distribute.
There is pressure from consumers to improve the healthcare experience
and increase engagement due to…
RISING COSTS RISING EXPECTATIONS INCREASED ACCESS TO
INFORMATION
65%
increase in employee deductibles
2010 - 2015
3.3X
Chinese insurance premium
revenue from 2014
1.5X
increase of mandatory health insurance
costs per capita in Germany from 2006-
2016

9. HCV Consumerism Study 9Proprietary and confidential. Do not distribute.
There is pressure from governments and employers to lower costs and
improve outcomes
As healthcare costs rise across the world, governments and employers who ultimately pay for healthcare are being
squeezed. As resources dwindle, healthcare organizations are considering different business models
59% 25% 30%
Of all payment models by 2021
will be a mix of capitation, pay-
for-performance, and episodic
payment, all various forms of
value-based care.
Of health plans already
have at least one outcomes-
based contract with a drug
manufacturer
Of health plans are
currently negotiating one
or more such contracts.

10. HCV Consumerism Study 10Proprietary and confidential. Do not distribute.
Consumer-centricity in healthcare is having a consumer-first mindset to meet the
changing needs of consumers while lowering costs and improving outcomes
Providers
Payers
Pharma
Companies
New competitors
are responding to
consumer needs…
Governments and
employers are
putting pressure
on healthcare
organizations…
Consumers are
putting pressure
on healthcare
organizations…
Consumer-centricity in healthcare is
having a consumer-first mindset in order to
create relevant products, services, and
experiences to:
• Win with those who are shopping
• Lower costs by making it easier for
consumers to take greater ownership of
their health

11. Despite the need for healthcare organizations to shift, the path
to success is unclear
Prophet interviewed over 50 healthcare executives to provide practical guidance on how healthcare
organizations can become more consumer-centric

12. From
Tactical
Fixes to an
Experience
Strategy
From
Fragmented
Care To
Connected
Ecosystems
From
Population-
Centric To
Person-
Centered
From
Incremental
Improvements
to Pervasive
Innovation
From Insights
as a Function
to a Culture
of Consumer
Obsession
Based on these conversations, we identified five key shifts that healthcare
organizations need to make to become more consumer-centric
FIFTH SHIFTFOURTH SHIFTTHIRD SHIFTSECOND SHIFTFIRST SHIFT

13. HCV Consumerism Study 13Proprietary and confidential. Do not distribute.
A cultural and digital transformation are present throughout all five shifts and are the
foundation of organizations’ ability to change
CULTURAL
TRANSFORMATION
DIGITAL
TRANSFORMATION

14. What shifts do healthcare
organizations need to make?

15. From Tactical Fixes
To an Experience Strategy
"At Novant Health, consumer experience is approached
holistically. It is built into every strategic element we have.”
CARL ARMATO, CEO, NOVANT HEALTH
FIRST SHIFT

16. By considering the entire health journey, healthcare organizations can elevate
CX to a strategic priority
FROM TO
CX as a ‘To-Do’ item CX as something the
business organizes around
Touchpoints Oriented Relationship Oriented
Fixing what is broken A brand experience

17. HCV Consumerism Study 17Proprietary and confidential. Do not distribute.
How to Make the Shift
Geisinger Health
• Hire the Right Leader
Florida Blue, Aetna,
Mayo Clinic
Set a bold
vision that
inspires and
guides the org
Build CX
capabilities
• Bold Declaration
from the CEO
Build
internal
momentum
EXAMPLE EXAMPLE

18. “When you go into a Starbucks and
you don't like the coffee, I've never
heard a barista say, 'No, we made it
the right way, you have to drink it.’
They just take care of you. This is
about patient care, people taking
care of people. We want to get it
right every time with every patient.”
DR. DAVID FEINBERG
CEO, GEISINGER HEALTH SYSTEM
Geisinger’s bold announcement to issue refunds to dissatisfied patients was a big
step to becoming a consumer-centric system

19. $500,000
REFUNDED
WITHIN FIRST YEAR
Within a year of launching ProvenExperience, the program is already producing
positive results
Better Relationships
with Patients
Understanding of
Experience Pain-points
Publicity and Media
Coverage

20. PRAKASH PATEL
M.D., COO
DAVE EDELMAN
Chief Marketing Officer
JILL CHANDOR
Senior Administrator
We found that successful CX leaders have a blend of experience in healthcare,
strategy and other consumer-centric industries
THE HEALER THE STRATEGIST THE CONSUMERIST
Background in consulting,
where he or she has
solved business problems
across various industries
Background in clinical
medicine with a deep
understanding of
patients’ needs in the
delivery of healthcare
Background in
consumer-centric
industries and views
patients as consumers

21. “The system is so fragmented. It is a burden on patients and it
is incredibly disempowering.”
JEFF DACHIS, CEO, ONE DROP
From Fragmented Care to
Connected Ecosystems
SECOND SHIFT

22. The healthcare industry is so fragmented among the various players, putting
undue burden on patients who must manage these stakeholders without guidance
FROM TO
Discrete responsibilities Empowered problem solvers
Exclusive in-house design External collaboration and
partnership
Owning your piece Owning the entire journey

23. HCV Consumerism Study 23Proprietary and confidential. Do not distribute.
How to Make the Shift
STAGE 1
Product
STAGE 2
Product Plus
STAGE 3
Plus Product
Drug, service or plan is
the primary product
Drug, service or plan
comes with “wrap
around” services
Drug, service or plan is
part of a “solution”
ecosystem package
Move from Product to Product Plus to Plus Product…

24. HCV Consumerism Study 24Proprietary and confidential. Do not distribute.
Non-healthcare companies like Nike have developed Plus
Product offerings
Product
MANUFACTURE ATHLETIC SHOES
Product Plus
RETAIL EXPERIENCE
Plus Product
NIKE+ MEMBERSHIP

25. Mount Sinai Health System partnered with 32BJ’s health fund to
co-design a plus product total joint replacement program
TOTAL JOINT
REPLACEMENT
TRANSPORTATION
CARE NAVIGATOR
FOOD DELIVERY

26. Within a year of launching the program, Mount Sinai, the employer, and
patients are all experiencing improved outcomes
4X
INCREASE IN
NUMBER OF TJR
SURGERIES AT
MOUNT SINAI
>$8K
SAVINGS PER
OPERATION
>93%
PATIENT
SATISFACTION

27. “We feel much more patient-
focused because we know we
developed the medications to
avoid costly events that no patient
would desire for themselves.”
PAUL FONTEYNE
CEO, USA, BOEHRINGER INGELHEIM
Boehringer Ingelheim partnered with Propeller Health
to create a Plus Product inhaler to help increase
adherence and lower readmission of COPD

28. "People define value differently. For someone like myself who
is healthy and busy, high-value care is all about convenience
and access. And that's very different from someone who has
two different chronic diseases and moves in out and out of
homelessness.”
NIYUM GANDHI, EVP AND CHIEF POPULATION HEALTH OFFICER, MOUNT
SINAI HEALTH SYSTEM
From Population-Centric to
Person-Centered
THIRD SHIFT

29. Healthcare organizations typically paint patients with a broad brush when it
comes to experience design and should consider greater customization
FROM TO
Disconnected
collections of data
Data that tell a patient’s
story
A demographical view of
patients
A multidimensional view of
patients
Universal experiences Customizable experiences

30. HCV Consumerism Study 30Proprietary and confidential. Do not distribute.
Novant Health Tonic Health
How to Make the Shift
Move from
populations
to groups
Move from
groups to
individuals
• Revolutionizing
data collection
• Managing and activating
a segmentation
EXAMPLE EXAMPLE

31. Novant Health conducted a rigorous segmentation that uncovered six
distinct segments

32. Novant Health didn’t stop at the segmentation, the system continues to use the
segmentation as the foundation for delivering a remarkable experience
PROVIDER-PATIENT
COMMUNICATIONS
TAILORED MESSAGING
STRATEGIES
COST CLARITY
Novant Health has activated the segmentation to improve…

33. As healthcare organizations move from groups to individuals, they begin to
leverage data for customization
Communication
Channel
Customization
Content
Customization
Experience
Customization
YESTERDAY
TODAY
TOMORROW
THE PROGRESSION OF CUSTOMIZATION

34. HCV Consumerism Study 34Proprietary and confidential. Do not distribute.
Since customization requires data, healthcare organizations need to be clear on
their Customer Data Value Exchange to gather the data they need
CDVE INPUTS
ORGANIZATION VALUE CONSUMER VALUE
DATA REQUIREMENTS
What data is required to create value for
the organization and the consumers?
How does data create value
for the organization?
How does data create value
for the consumer?
OPT-IN CHOICES
What data is required to create value for the organization and the consumers?
What touchpoints What data What process What experience
DATA FOR GOOD
PatientsLikeMe helps life
science companies collect
patient data and in exchange
promises to improve the care
of future patients with similar
conditions

35. Tonic Health’s engaging platform has
revolutionized data collection at
MedStar Health
Tonic Health’s cloud based platform, which acts as
a sort of EHR for the patient voice, has produced
great outcomes for MedStar Health:
• Increase in average appointment slots per hour
• 25% increase in Revenue Carrying Capacity
• Better patient and staff experience

36. “You fight the hesitation by innovating in small ways and
proving yourself. You fight it by proving a positive ROI and
always bringing the customer voice to the table.”
MARGARET COUGHLIN, SENIOR VICE PRESIDENT, MOUNT SINAI HEALTH
SYSTEM
From Incremental Improvements
to Pervasive Innovation
FOURTH SHIFT

37. Healthcare organizations need to create a culture in which commercial innovation
isn’t stifled by scientific methods
FROM TO
Optimizing irrelevant
experiences
Launching new ideas that
resonate
Perfection on the first time Test and learns that evolve
overtime
A culture modeled
after the lab
A culture modeled after a
start-up

38. HCV Consumerism Study 38Proprietary and confidential. Do not distribute.
How to Make the Shift
Advocate Health
Apply minimum
viable product
approach
Create a
start-up
Look outside
for innovation
inspiration
• Same day
mammogram
scheduling
EXAMPLE

39. Version 1.0
CALL TODAY, BE SEEN TODAY IN
MAMMOGRAPHY
Version 2.0
CALL TODAY, BE SEEN TODAY, GET
YOUR RESULTS TODAY IN
MAMMOGRAPHY
Goal
CALL TODAY, BE SEEN TODAY FOR
ALL APPOINTMENTS
Advocate Healthcare started offering same day scheduling in mammography and
continued to improve the offering and expand it across the system

40. From Insights as a Function to a
Culture of Consumer Obsession
“We have to put ourselves in the shoes of patients and make
sure that everything we are doing from drug development
through market launch is with the patient front and center.
From the differences between medical needs to the differences
between how each patient receives information, this deep
understanding is key”
ANGELA HWANG, GLOBAL PRESIDENT INFLAMMATION AND
IMMUNOLOGY, PFIZER
FIFTH SHIFT

41. Healthcare organizations have an opportunity to use insights to create products,
services, and offerings that are better tailored to consumers’ needs
FROM TO
Insights that influence
marketing decisions
Insights that influence a
range of business decisions
Asking consumers Asking, observing and
analyzing them
How we are doing What we should be doing

42. To get to the rich insights needed to tailor products, offerings, and services
healthcare organizations need an Insights Operating System
Consumer
Intelligence
Engine
Repeatable
Processes
A Culture of
Consumer
Obsession

43. While no healthcare organization we spoke to has achieved a culture of consumer
obsession, many are taking steps to get there
Some companies pay for employees to spend
time with patients to better understand their
conditions and needs
Consumer
Intelligence
Engine
Repeatable
Processes
A Culture of
Consumer
Obsession
Some organizations pair insights leaders with
BU leads, others establish problem solving tools
that require consumer insights
Some organizations expand the perspective of
their insights teams to include behavioral
economists and other expertise

44. HCV Consumerism Study 44Proprietary and confidential. Do not distribute.
Our study includes additional examples of healthcare organizations that are
making progress on each of the five shifts
FIRST SHIFT SECOND SHIFT THIRD SHIFT FOURTH SHIFT FIFTH SHIFT
From Tactical Fixes
to an Experience
Strategy
From Fragmented
Care to Connected
Ecosystems
From Population-
centric to Person-
centered
From Incremental
Improvements
to Pervasive
Innovation
From Insights as a
Function to an
Insights Operating
System

45. How far along is your organization in
making the shift?

46. Healthcare organizations fall across a
typical progression when it comes to
consumer centricity.

47. Q&A

48. These five shifts will have great payoffs
MORE ENGAGED
CONSUMERS
LOWER COSTS GREATER OUTCOMES

49. HCV Consumerism Study 49Proprietary and confidential. Do not distribute.
Thank you!
Look for new content coming this Fall
Contact Us:
jgourdji@prophet.com or sdavis@prophet.com