2. Consumer Behavior
• Consumers are beginning to use the same value
criteria for healthcare decisions as they do with
other purchasing decisions:
• Service
• Price
• Experience
• Brand equity…
• However we cannot see a widespread change in
consumer behavior
3. Consumer Behavior
• With the adoption of consumer-driven plans and
the current crisis, change is coming:
• Many predict adoption of consumer-driven plans will
rise to 15% in 2009, 50% in 2013 and 90% by 2016.
• Crisis is causing more employers to drop health
insurance altogether: 19% of employers are planning
to stop offering health benefits over the next three to
five years (five times higher than the previous year)
• With a growing unemployment, the number of
uninsured and underinsured increases
4. Consumer Behavior
• 53% of the households said they had cut back on
healthcare in the previous year due to cost
concerns (Kaiser Family Foundation Health
Tracking Poll)
• Retailer CVS is closing 90 MinuteClinics for the
reason to “align with consumer demand” (Wall
Street Journal)
• “We are seeing that demand is far more elastic
than it was in other years” (CEO of Park Nicollet
Health Services in Minneapolis)
5. Consumer Behavior
• New consumer habits impact on healthcare providers:
• The decrease in volume may be a permanent reduction of
utilization stretch out physician visits and customer find
lower-cost alternative (“home made”)
• Price shopping will become the norm, as consumers
carefully consider their alternatives and negotiate for lower
costs
• Convenience, experience and service will become the
new value driver, relative to clinical quality, as patient
demand more for their money
• Competition in the healthcare market will become even
more intense
12. Some data from the USA…
(2011)
• 16.5% of Americans are not covered by a
healthcare plan
• 46% of all personal bankruptcies are related to
healthcare costs
• US spends 15.9% of GDP or $6,657 per capita on
healthcare (twice that of the next most expensive
national expenditure ranking)
13. Some data from the USA…
(2011)
• 20% of US healthcare
dollars are lost to health
insurance companies in
the form of profits, and
similar wastage numbers
apply to big
pharmaceutical companies
• American life expectancy
at birth ranks 50th in the
world
• American overall level of
health ranks 72nd in the
world
14. Britain preventive
medicine
Negative (why it should
Positive (for the US):
not work in the US):
• System covers everybody • Long waiting list for
• Never have to pay a patients
medical bill • Hospitals compete to
• Financed from the general survive and not to make
taxation profits
• No medical bankruptcy • Too much government for
the US
• Physicians are encouraged
to keep people healthy • Brits are much more taxed
(bonus)
• World leader in preventive
medicine
15. Britain Healthcare statistics vs
USA
• Expenditure on health %
GDP: 8.4%/ 16%
• Expenditure on health per
capita: $2,992/ $7,290
• Expenditure from private
sector: 12.9%/ 52.8%
• Infant mortality per 1,000
births: 4.8/ 6.7
• Life expectancy at birth:
79.1 years/ 78.1 years
16. Japan: No Gatekeepers
Negative (why it should
Positive (for the US):
not work in the US):
• Spend half as much as the US on
healthcare per capita • Doctors can’t get rich:
• Longest life expectancy all over the world undervalued and underpaid
• Everybody has to sign up for a health
insurance policy at work or through
community (for jobless)
• Too much control by the
• Japan’s system is largely private (80% of government for prices
hospitals)
regulation (“Big Brother”)
• All citizens are covered and it is very cheap
(fairness) • Insurance companies are
• Price regulation by the government to keep
prices low not allowed to make profits
• Same prices everywhere in the country
• 50% of hospital are in
• High tech system of healthcare
• Patients can see any specialists they want financial deficits
• Competition between doctors, clinics and
hospitals is fierce
• Japanese system spend
too little
17. Japanese healthcare statistics
vs USA
• Expenditure on health %
GDP: 7.1% / 16%
• Expenditure on health per
capita: $2,373/ $7,290
• Life expectancy: 82.25
years/ 78.1 years
• Infant mortality per 1,000
births: 5/ 6.7
18. Germany: a market-based
system
Negative (why it should
Positive (for the US):
not work in the US):
• 90 % of the population • Rich pay for the poor and the
covered by the system
ill are covered by the healthy
• German pay premium based
on their income
• Population is highly satisfied
• Sickness funds (1,100)
compete among themselves
but are not allowed to make
profits
• Sickness funds negotiate
with drug companies and
medical providers to keep
prices low
• Excellent quality and
efficiency of the system
19. German healthcare statistics vs
USA
• Expenditure on health %
GDP: 10.4% / 16%
• Expenditure on health per
capita: $3,588/ $7,290
• Life expectancy: 80.07
years/ 78.1 years
• Infant mortality per 1,000
births: 3.54/ 6.7
20. Taiwan: a new system
Negative (why it should
Positive (for the US):
not work in the US):
• A mix of all the best ideas • Government spend too little
for healthcare of all around and is borrowing from banks
the world to pay the providers (solution:
• Equal access to healthcare increase the part of
healthcare in the GDP)
• Free choice of doctors
• No waiting time
• Encourage lots of
competition among medical
providers
• Smart card
21. Taiwanese healthcare statistics
vs USA
• Expenditure on health %
GDP: 5.8% / 16%
• Expenditure on health per
capita: $752/ $7,290
• Life expectancy: 78.32
years/ 78.1 years
• Infant mortality per 1,000
births: 5.18/ 6.7
22. Switzerland: a familiar
system
Negative (why it should
Positive (for the US):
not work in the US):
• It is possible to fix the • How much people are
healthcare system willing to pay the premium?
• Low administrative costs • Switzerland average cost
• Keep cheap universal of the premium:$750/month
coverage
23. Switzerland healthcare
statistics vs USA
• Expenditure on health %
GDP: 11.8% / 16%
• Expenditure on health per
capita: $4,500/ $7,290
• Life expectancy: 81.07
years/ 78.1 years
• Infant mortality per 1,000
births: 4.08/ 6.7
25. Profits are dangerous for our
health
• ”We should not allow the medical-industrial
complex to distort our health care system to its
own entrepreneurial ends, medicine must serve
patients first and stockholders second. We are in
a market-oriented health care system spinning out
of control’ with commercial forces influencing
doctors’ judgments and manipulating a credulous
public.’” Arnold Relman (editors of the New
England Journal of medicine)
26. Sources
• 2010 Global Survey of healthcare consumers
behaviors
• Sick around the world (movie)
• The economic crisis: tipping point for healthcare
consumer behavior
• Yahoo finance