Healthcare in the Age of the Consumer University Hospitals Medicine Quality Summit November 22, 2014 Thomas F. Zenty III Chief Executive Officer Agenda • How we got here • Importance of social media • Increasing demands on physicians • Opportunity in a consumer directed market • Dialogue 4/13/2015 2 Healthcare Spending 2012 20% 33% 6% 4% 10% 3% 4/13/2015 3% 21% 3 4/13/2015 4 Enrollment in High-Deductible Plans has Tripled since 2009 4/13/2015 5 Growth in High Deductible Health Plans 2014 Data by State 1. Illinois 2. Texas 3. Ohio 4. Pennsylvania 5. Michigan 4/13/2015 Total Enrollment in High Deductible Health Plans 1,055,000 1,043,000 803,000 692,000 691,000 6 Consumer Paradigm: “Doctor, the patient will see you now” 4/13/2015 7 Change Imperatives • Increased competition • Increased cost-sharing • Consumerism and retail markets • Public and private exchanges • Social media and UH’s reputation • Medicare growth 4/13/2015 8 Change Imperatives • Give me choice and control • Keep it simple and personalized • Make it convenient, accessible and available • High quality is assumed 4/13/2015 9 Change Imperatives • Support sustainable growth • Improve efficiency and consistency • Increase affordability • Leverage technology investments to improve speed to market and member experience 4/13/2015 10 New Entrants Into Healthcare 4/13/2015 11 Importance of Social Media • Global penetration of cellular coverage is 92% as of 2013; – 25% of US smartphones have healthcare apps • 70% trust medical information shared by others on social media • 40% likely to share information about their health on social media • 50% use social media for health care decisions • More than 50% of health care reporters look to social media for information and medical experts 4/13/2015 12 2005 – Pope Benedict Inauguration 4/13/2015 13 2013 – Pope Francis Inauguration 4/13/2015 14 Importance of Social Media Consumers feel social media was built by consumers and trust the medium more than others 4/13/2015 15 ZocDoc – One example 4/13/2015 16 Increased Transparency – Univ. of Utah • Internal website shows all patient comments – both negative and positive – when patients search for a doctor 4/13/2015 17 UH Access Department • Central scheduling and physician referral services handle ~ 900,000 calls / year – 50% of calls lead to scheduled appointments – 30% of calls related to what it will cost the patient • Copay, deductible, facility fee, etc. • Physician A vs Physician B • Facility A vs Facility B 4/13/2015 18 UH Access Department • New system (Clear Quote) predicts what patients out of pocket costs will be – Expected go live Q1 2015 – Takes into account physician behavior 4/13/2015 19 UH Access Department Community standard is same day appointment 4/13/2015 20 Emergence of Virtual Health • Virtual doctor-patient video consultations to grow 65% by 2018 • Expected revenue from video consultations: – 2013 - $100 Million – 2018 - $13.7 Billion • Mayo Clinic goal - serve 200 million people • Kaiser of Northern California predicts by 2016 they will have more virtual visits than in-person visits 4/13/2015 21 Emergence of Big Data • As an industry we are now beginning to use data to anticipate what consumers want and expect • Big data leads to: – – – – New research and treatments based on clinical intelligence Identification of best practices Reduction in inconsistencies among providers Predictive models to forecast patient behavior and provide preventive care – Better patient experience by targeting what patients want and when they want it – Cost savings from more efficient use of information 4/13/2015 22 Early Results of Reform Higher Quality Can Coincide with Lower Cost National results since 2010: – – – – – – – Early elective deliveries down by two-thirds Ventilator-associated pneumonia down by > than half Pressure ulcers down by 26% Patient falls down by 15% Medicare 30-day readmissions down by 8% Prevented 560,000 hospital-acquired conditions Saved 15,000 lives 4/13/2015 23 Early Results of Reform Higher Quality Can Coincide with Lower Cost UH results since 2010: – – – – – – 4/13/2015 Early elective deliveries down by 72% Ventilator-associated pneumonia down by 50% Pressure ulcers down by 49% Patient falls down by 52% Medicare 30-day readmissions down by 19% Prevented 149 hospital-acquired conditions 24 Increasing Demands on Physicians • Improve quality • Manage costs • Coordinate care • Improve productivity • Shift from volume to value • Respond to regulatory change • Adopt culture of shared authority • Engage patient as partner • EMR • Social media interactions with patients • Stay current 4/13/2015 25 The Challenge of Change for Physicians 4/13/2015 26 From Challenge to Opportunity in Consumer Directed Healthcare • Investing in / improving EMR • How long people are willing to wait • How do patients want to communicate • Use of apps 4/13/2015 27 What Will You Wait For? WEEKS MONTHS Accessing a Doctor DAYS Online Shipping Opening a Credit Card HOURS Opening a Bank Account Booking a Flight via Phone MINUTES Booking a Flight Online Taxi/Car 28 Patients Prefer Near-Term Appointments 4/13/2015 29 How Do Patients Want to Communicate • 62% want to communicate via email with physician • 65% want appointment reminders via email • 25% want to schedule appointments online • 76% are willing to go online to view test results • 10% want interactions solely through an app on their phone Health systems who don’t adapt will continue to struggle to build a strong consumer experience 4/13/2015 30 Clinical Integration • Higher quality • Continuity of care • Bi-directional information flow • More efficient processes • Cost reduction for all stakeholders • Positioned for lower risk management • Customer facing • “Doctor, the patient will see you now” 4/13/2015 31 Primary Care Institute Four main goals: 1. Help physicians deliver excellent outcomes and patient experience 2. Increase physician engagement and satisfaction with UH 3. Encourage innovation in developing new care models 4. Improve value 4/13/2015 32 Primary Care Institute Deliverables • Discover new models of patient management and clinical care • Improve communication • Adopt care models that enhance experience and outcomes • Foster growth in care services that MDs want to deliver • Create opportunities for MDs to partner with community 4/13/2015 33 What PCP’s Can do to Help • Be open to learning, discovery and innovation • Participate and share insights • Trust that future incentives will lead to better health outcomes 4/13/2015 34 2/08/2010 4/13/2015 University Hospitals 35