Healthcare Customer Retention through Digital Transformation
Healthcare consumerism is here to stay and doctors are commodities, whether they like it or not.
I don't make these statements comfortably. However, speak with most doctors these days, and the majority will confirm the reality that Physicians as noble, trusted professionals is no longer the status quo.
Whether this is simply a consequence of the 'Amazonification' of society, or due to a growing mistrust in Big Pharma and Health Insurers, patients are no longer automatically. loyal to their family or specialist physician.
Hospitals are consequently finding themselves in very competitive arenas, constantly seeking operational efficiencies and novel offerings to ensure healthier bottom lines. There has been significant consolidation with recently increased M&A activity, as operators seek to find economies of scale.
$151 billion of private equity capital surged into healthcare globally in 2021, more than double the previous year, and the number of deals soared 36% to 515. There has also been significant investment in the healthcare IT (HCIT) market - disclosed value surged from $15.1 billion to $38.1 billion with deal count rising from 48 to 75 in 2021 with the main aims of:
• redefining care delivery through digital health tools;
• using technology and big data to accelerate drug development;
• optimising payer and provider operations; and
• supporting value-based care.
The peri-pandemic shift to digital has been accompanied by an increase in private market funding. IPOs and SPACs have not been as successful as perhaps was hoped for, and there has been growth in infrastructure funds, growth-equity funds, sovereign wealth funds, hedge funds, and crossover funds expanding their healthcare investments.
However, for these 'investments in digital' to make sense, companies will need to demonstrate compelling return-on-investment and superior clinical outcomes, be able to reach a diverse patient population and integrate with existing brick-and-mortar health systems to deliver coordinated care and a superior patient experience.