Evolving Trends and How Provider Organizations Can Align

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Provider Trends BlogAs we start to look back at 2024, some trends from prior years persist, while others have shifted direction. Providers and health systems need to consider these changes as they begin to develop their growth strategies into 2025 and beyond.  

Retail and Digital Care Delivery  

Over the past 2 years, retail locations for healthcare have been growing rapidly as pharmacies and retailers have been opening new locations and expanding services. However, in 2024, we saw some of those same companies pull back on their investment in retail health. Consumers are still seeking convenient care, but the industry is re-assessing the economics of a retail business model, the types of care that are most appropriate for that setting, and how to balance consumer demand for easy access with a consistent relationship with physician. As the evolution continues, retail health outlets and traditional in-office settings will need to partner to find ways to ensure a consistent experience for patient care, while still providing the convenience that retail outlets bring for patients. 

Digital health delivery continues to complement traditional in-person visits. Telehealth visits for physical health concerns have generally leveled post pandemic to rate of 12-15 % of patient visits1. The use of audio or video modalities for mental healthcare continues to be preferred option for many patients, as it provides flexibility and a comfortable channel for patients who prefer it to a face-to-face setting2. In the next few months, telehealth delivery could be drastically impacted by how regulators decide whether to extend or modify pandemic era rules that will expire this year. Provider organizations can capitalize on the stabilization of patient demand, and the potential shifts in regulations. By providing both telehealth and in person options for their patients, possibly from the same physician, the opportunity exists to gain market share and increase patient loyalty. Transparency of appointment availability, modalities and the types of conditions that can be treated will be key to success. 

Whole Person Care 

Whole person care and personalized care continue to be a focus for the industry. The CMS Health Equity Index is another example of how equity is being integrated into the financial levers of the system, reinforcing its importance. Providers are trying to balance the demands of collecting social need information from their patients with the lack of reimbursement for that activity, and the challenge of having the resources to respond if a patient need is identified. Value-based contracting can be an approach to solve for the reimbursement challenges, but results are often lagged, making it challenging to measure return on investment. Providers will need to work across the industry to identify and partner with organizations that can address the social needs of patients and then educate their providers on how to connect patients with those resources. As the industry looks to refine care delivery to improve whole person health, standardization of tools, electronic health record integrations, and standard data definitions and collection methods will be imperative to empowering providers with the right solutions to address social needs and reduce disparities.  

Consumer Demands for Digital and Culturally Competent Care 

Responding to patient preferences is an important factor in a growth strategy. Patients want choice in who provides care, and how, when, and where care is delivered. They expect digital-first interactions for scheduling, bill payment, and viewing their health data, with person to person support available when needed. Patients also expect providers to be competent in their unique cultural or social needs while physical or mental health care is provided. While this may seem like a lot consider, positive digital experiences and cultural competence can lead to increased patient satisfaction, and ultimately retention3. Addressing social needs not only helps patients but can also benefit physicians, including less risk of burnout 4. Reputation, digital capabilities, provider availability and cultural competency//diversity play into a provider organization’s ability to grow through retention and acquisition of patients. 

Considerations for Provider Growth Strategies  

Providers and health systems are faced with a myriad of market forces as they consider their growth strategies. In addition to the trends explored above, rising costs, provider shortages and increasing financial pressures also are impacting provider organizations. Margins are tighter than ever driven by changes in government sponsored reimbursement levels and commercial market efforts to manage cost. Any growth strategy needs to consider revenue streams, patient expectations for care delivery and community needs.  

Strategy must tackle growth from multiple angles, and be grounded in analysis of market trends, patient expectations, provider activity, regulations and community health needs. Components of that strategy may include diversified contracting efforts, targeted patient acquisition and retention plans, digital capability extensions, services and location targeting and establishing partnerships are key to an overarching growth plan. Diversifying your contracting to include traditional fee for service, value-based care, government programs and direct contracting with self-insured employers, is an essential part of addressing all segments of the market and changing expectations on cost management. Knowledge of physician activity, patient health journeys and referral patterns across and within your system can help drive your physician and patient retention and recruitment activities. Understanding the physical and social needs of the community you serve can inform where you expand services, target locations and how you partner with community organizations to support patient needs beyond your four walls.  


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References:
  1. Medicare Telehealth Trends Report (cms.gov) 
    https://data.cms.gov/sites/default/files/2024-03/Medicare%20Telehealth%20Trends%20Snapshot%2020240307_508.pdf
  2. Telehealth Has Played an Outsized Role Meeting Mental Health Needs During the COVID-19 Pandemic | KFF   
    https://www.kff.org/mental-health/issue-brief/telehealth-has-played-an-outsized-role-meeting-mental-health-needs-during-the-covid-19-pandemic/
  3. How Effective is Cultural Competence Training of Healthcare Providers on Improving Patient Satisfaction of Minority Groups? A Systematic Review of Literature (wiley.com)  
    https://sigmapubs.onlinelibrary.wiley.com/doi/pdfdirect/10.1111/wvn.12176
  4. How Effective is Cultural Competence Training of Healthcare Providers on Improving Patient Satisfaction of Minority Groups? A Systematic Review of Literature — Penn State (psu.edu)  
    https://pure.psu.edu/en/publications/how-effective-is-cultural-competence-training-of-healthcare-provi

 

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