Younger consumer groups will force radical change in healthcare
As new consumers seek efficiencies and technology-enabled care, providers will need to quickly evolve approaches.
While achieving change in the healthcare industry has been compared to steering an ocean liner the size of the Queen Mary, that’s all likely to change radically in the coming years. Consumer demand will be the major impetus.
Many experts have predicted the industry will evolve eventually, but a recent survey of 4,000 adults by PwC suggests that younger generations will be pushing for digital evolution within the industry and an improved focus on pre-emptive health rather than care of those who are already sick.
PwC researchers say this transformation is already underway. They note that expectations for the industry are changing and predict that the U.S. healthcare system could look radically different in a decade.
“The system faces mounting pressure to evolve as market dynamics, including rising costs and advancements in technology and biology, are compounding to force change,” they conclude, adding that “a groundswell from consumers is propelling this transformation … what once felt like a distant vision is now within reach.”
Pressures from younger generations will only intensify and cause unprecedented change within the industry. “Together, these generations, which make up 63 percent of the U.S. population, are redefining healthcare on their own terms,” researchers write. “They are signaling, funding and accelerating the shift toward a new system of health, one that organizations must serve if they want to remain relevant in the decade ahead.”
Demands of younger generations
Much of the pressure to change will come from Millennials and Gen X, who are likely to be responsible for the care of both their children and aging parents. Respondents to the PwC survey say they are anxious for the industry to deploy innovations like smart health devices, robotic assistants and unified platforms.
These sandwich-generation responsibilities are increasing the urgency to find solutions that overcome systemic barriers to care. These impediments are common, with 68 percent of these respondents saying they’ve encountered barriers when accessing care.
These consumers say they are currently using or are interested in using AI-assisted diagnosis, augmenting or forming the basis of their conversations with their physicians.
Additionally, nearly three out of every four respondents (73 percent) are currently using or are interested in applying AI-powered care navigation tools that recommend the right care setting or provider, thus acting as a virtual primary concierge.
A question of trust
Those consumers who are younger than 30, which PwC labels as Gen Z, have even a more radical expectation for change in healthcare.
“As the first digital-native generation, they see healthcare through a different lens and act on digital data sources,” researchers concluded from the data. For example, only 57 percent of Gen Z respondents said they trust primary care physicians, compared with 85 percent of those in the Baby Boomer generation, and the Gen Z cohort is more likely to trust tech companies (36 percent) and retailers (37 percent) than any other age segment.
Nearly four out of every five Gen Z respondents (79 percent) said they use health technology, such as wearables, telehealth and online prescription services on a monthly basis, compared with 68 percent of all other respondents. And Gen Z and Millennial respondents are more likely to use insights derived from digital health apps and AI-powered technology, data indicated.
Researchers say Gen Z and Millennials are far more likely to seek care outside traditional settings. Some 41 percent use virtual visits, compared with just 28 percent who prefer in-person, and nearly half have used retail clinics in the past year.
Seeking prevention and advanced technologies
With the majority of consumers already using personalized healthcare technology, they are comfortable using those insights to advance a change in a healthcare system that has traditionally focused on treatment. That could support transformation in the industry, researchers predict.
Overall, 65 percent of consumers want a system that’s built around prevention, underscoring a shift to “proactive health investment” from sick care.
Many respondents have high hopes for using artificial intelligence, both now and in the future. They see current uses for AI in handling administrative and tasks via triage, which they believe will help free up clinicians’ time to enable them to focus on care. Some 13 percent say they will pay extra for AI-orchestrated post-visit support. And looking ahead, about 80 percent say they expect to adopt emerging tools like AI-assisted personalized care plans and genomic screening within the next five years.
The findings have implications for health leaders today, the report concludes. “Leaders have a narrow window to harness consumer optimism and dismantle systemic barriers,” researchers conclude. “The next two to three years represent a critical window for organizations to establish themselves before tech companies and retailers could take the lead.”
Researchers conclude that essential initiatives should include unhooking growth from real estate, moving to virtual, at-home and retail models; building a connected ecosystem; targeting high-opportunity areas with tailored offerings and AI-enabled technologies; and democratizing access to open services to those in all income levels.
Fred Bazzoli is the Editor in Chief of Health Data Management.