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Customer Experience and Design

The Line Between Retail and Healthcare Continues to Blur

The Line Between Retail and Healthcare Continues to Blur

The retailization of healthcare. The consumerization of healthcare. Patients and/or consumers. The buzz and debate around the retail/healthcare topic continues to come up as the line between the two industries continues to blur. Patients, as consumers in other industries have rising expectations in regards to customer experience and service. Retail is having an enormous impact on healthcare and organizations are looking for ways to meet the demands of the new healthcare “consumer”. Transparency, personalization, omni-channel and right-now access are just some of the trends healthcare organizations need to be addressing.

Melody Smith Jones, Manager, Connected Health, PerficientTo address the retail trends some healthcare organizations are looking to hire talent and expertise from the retail industry in an effort to improve the experience for customers. Health insurance companies are opening retail store-fronts as a way to better engage with their customers, and at the same time, retailers are pushing into the healthcare space. The number of national pharmacies and big box stores setting up urgent care and primary care clinics within their stores is on the rise.

As healthcare organizations continue to transform their business processes and models it is imperative for them to understand the impact retail is and will continue to have on their business. I recently sat down with Melody Smith Jones (@melsmithjones), Manager, Connected Health, Perficient to talk about some of these retail trends and what healthcare organizations should be doing to provide exceptional consumer experiences and adapt to the evolving healthcare industry.

KATE: What is the expectation of the patient?
MELODY
: As healthcare reform and the healthcare market evolve, patient expectations are changing. Historically, the doctor-patient relationship was one where the doctor served the patient and the patient was a less active participant in their care. While healthcare reform has had a role to play in changing this paradigm, the market itself is a separate and powerful force leading to patients expecting and then becoming more welcomed as a member of the care team. In the end, I believe that patients not only believe their medical data belongs to them (as opposed to the health system that acts as the caretaker of that data) but want a more open book approach to communication around that data. They will continue to seek out healthcare providers for their expert opinions, but patients, or their proxy, will take a more active role in charting the course of their care.

KATE: How is the retail industry setting the precedent for patient expectations?
MELODY: Sometimes healthcare providers bristle when they hear patients referred to as “consumers”. It is considered rather Patients, as consumers of other industries, are accustomed to being enabled with data and then being in the driver seat throughout their journey.distasteful, as a provider of care, to discuss money matters with patients. However, “patients” and “consumers” are not two sides of a spectrum. A patient will always be a patient. However, there are times during their journey as a patient when they are also a consumer. A patient as a consumer, for example, researches and takes tours of birthing centers. This gets even more interesting when one considers the consumer expectations that patients bring with them from experiences in other industries. Retail is key to this discussion. While a patient only has, on average, 4 doctor visits per year, that same consumer has, on average, 115 shopping trips per year. Patients, as consumers of other industries, are accustomed to being enabled with data and then being in the driver seat throughout their journey. It will be interesting to see how those consumer expectations continue to find their way into the patient experience.

KATE: How are retail chains providing healthcare services impacting the healthcare industry?
MELODY: Healthcare services offered in a retail setting are one of the most obvious mixes of retail strategy in healthcare. These come in a few varieties. There are traditional retailers, like Kroger, that now offer healthcare services on premise. There are also independent chains with interesting strategies. Some, for example, are setting up shop within close proximity to the local ER such that the care provider can display their wait time on a marque and then allow the patient to make the choice of going to the ER or, instead, going to this retail location for care. Many traditional care providers are opening up retail locations as well. Similarly, traditional brick and mortar locations are coming equipped with more retail features, such as full service pharmacies and food vendors.

KATE: How successful will retail chains be in operating healthcare facilities?
MELODY
: My answer here is uncommon. While I believe that healthcare services will continue to be provided in retail settings, I think that a more modern retail brand of care will occur when care services are more commonly provided outside of the brick and mortar completely. Think about it, most retailers are offering their wares using technology as a main, or sometimes exclusive, medium. Similarly, care services will continue to go digital, and the providers that invest in the right technology infrastructure now will be more poised to compete in this landscape.

KATE: What tech requirements do healthcare facilities need to transition to a retail model?
MELODY: There are levels of maturity in this regard. Clearly, electronic medical records, and a means for providing patients with access to their data are simply barriers to entry. Going a step further, the providers that will do well with a retail model are the ones that consider more than just integration with EHR as a decision-making criterion for the patient portal that is used. These providers will consider a more market-centric approach to the features they should present on the portal (check out our white paper on the 7 Features of a Market-Driven Patient Portal) that will make the portal a more habit forming technology on the part of the patient. However, having a retail model goes beyond EHR and patient portal. In retail, you would consider the entire patient/consumer journey and the various touch points that are necessary across that journey. The good news is, investing in such touch points can actually not only improve care but also reduce the cost of care. Something as simple as a text messaging program to remind the sickest of the sick of their follow up appointments after discharge has shown to have a dramatic impact on reducing readmissions rates. Similar text programs have also reduced, for example, the number of diabetes patients that use the ER as a primary means of care. Social media and web content are powerful population health tools that can also be used to convert unknown consumers into loyal patients. Over the next few years we will see even more evolution. Healthcare providers will begin to see that the true core competency of the retail industry is understanding the data around the consumer and then using those insights to motivate and incentivize behavior change. In my opinion, there is no other industry where such a tactic would have as real or as lasting impact as it would in the healthcare industry.

Want to learn more about retail strategies for healthcare or how to use connected health strategies to transform the patient and member experience? Check out our complimentary on-demand webinars:

Transform the Patient and Member Journey with a Connected Health Experience

A Real Retail Strategy for Healthcare

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Kate Tuttle

Kate Tuttle is a senior marketing professional with more than 13 years of marketing experience in both B2B and B2C environments. She has more than 7 years of healthcare industry experience and is passionate about technology and its impact on consumer experience.

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