For CEOs of large health care organizations, accelerating change has become the norm for the industry. However, making progress to accommodate these changes has been harder than expected, as seen in new research from the Deloitte Center for Health Solutions.
The "Deloitte 2019 Health Care CEO Perspectives Study" includes interviews with 25 health system and six health plan CEOs about their changing responsibilities and the roles they will play in effecting change.
CEOs rated three top drivers of health care industry change within the next 10 years:
Shift in care settings.
Adoption of value-based payment models.
Increase in the demands of proactive consumers.
"The industry change that CEOs are witnessing firsthand reflects our predictions of a more consumer-centered future of health," said Michael Main, managing director, Deloitte Consulting LLP. "Consumers want to take control of their health — they have been responding well to virtual care visits and are interested in tools that make their experience personalized, affordable and convenient."
Due to slow progress adopting value-based care however, CEOs are shifting their focus and investments toward consumer engagement technologies, virtual health and care coordination models. CEOs that do so may put their organizations in a good place if and when reimbursements eventually change to value-based payment models, increasing competitive advantage and consumer loyalty.
Some of the most innovative CEOs are heavily invested in making the customer's health care experience seamless and personalized so it's convenient to access, lower in price and convenient through multiple access points — digital, personal and otherwise. They particularly want to engage and compete with those in the younger generation who are seeking alternative channels and sources for care and health. CEOs realize they have a lot of work to do in this area, as many health systems have yet to successfully complete digital transformations.
In addition to these key changes, CEOs are preparing to address disruption from competitors. Although many see the large retail consumer technology companies as only minor threats, many CEOs are still working to better position themselves to combat the risk of disruption. One way they are doing so is by reshaping their existing talent. They are retaining and training their current staff to better prepare them for the future. Others are looking externally to outside industries to bring in new ideas.
One thing all CEOs collectively agreed on is the need to expand and deepen partnerships. Working with the whole ecosystem — payers, providers, schools, public health organizations and community organizations — can help them expand reach and gain influence.
To review the full findings of the 2019 Health Care CEO Perspectives Study, please visit Deloitte Insights.
The source for fresh perspectives in health care: The Deloitte Center for Health Solutions (DCHS), part of Deloitte LLP's life sciences and health care practice, looks deeper at the biggest industry issues and provides new thinking around complex challenges. Cutting-edge research and thought-provoking analysis give our clients the insights they need to see things differently and address the changing landscape.