A Deloitte study finds CEOs are focusing on digital transformation, partnerships, and shifting investments to virtual care and more.
With a rapidly shifting healthcare landscape, healthcare CEOs are rethinking their roles and responsibilities to effect positive change, yet changing course has proved more difficult than expected, according to a new report from consulting firm Deloitte.
Due to slow progress adopting value-based care, CEOs are shifting their focus and investments toward consumer engagement technologies, virtual health, and care coordination models, according to the Deloitte 2019 Health Care CEO Perspectives Study. "CEOs that do so may put their organizations in a good place if and when reimbursements eventually change to value-based payment models, increasing competitive advantage and consumer loyalty," according to Deloitte.
Primary Forces at Play
What's driving change? CEOs participating in the study say the following factors are contributing forces:
- Shift in care settings
- Adoption of value-based payment models
- Increase in the demands of proactive consumers
4 Ways CEOs Plan to Adapt to the Changing Landscape
The Deloitte report enumerates the following key findings:
- Complete digital transformations to create consumer-centered experiences. To engage a younger generation and compete with alternative sources of care, CEOs say it is essential to complete digital transformations that may still be in progress, according to the report. "Some of the most innovative CEOs are heavily invested in making the customer's health care experience seamless and personalized so it's convenient to access, lower in price and convenient through multiple access points—digital, personal and otherwise," according to a news release.
- Prepare for disruption from outsiders. While many view large retail consumer technology companies as only "minor threats," according to the report, CEOs are still preparing for competitive disruption. One approach is to reshape existing talent through training to better prepare them for the future. Some are importing ideas and talent from other industries.
- Develop partnerships. Expanding and deepening partnerships is one tactic most CEOs are exploring. "Working with the whole ecosystem—payers, providers, schools, public health organizations and community organization—can help them expand reach and gain influence," according to the release.
- Shift their focus and investment targets. CEOs are shifting their focus and investments toward consumer engagement technologies, virtual health, and care coordination models, says the report. "CEOs that do so may put their organizations in a good place if and when reimbursements eventually change to value-based payment models, increasing competitive advantage and consumer loyalty," according to Deloitte.
"The industry change that CEOs are witnessing firsthand reflects our predictions of a more consumer-centered future of health," says Michael Main, managing director, Deloitte Consulting LLP, in a news release. "Consumers want to take control of their health—they have been responding well to virtual care visits and are interested in tools that make their experience personalized, affordable and convenient."
The study involved interviews with 25 health system and six health plan CEOs conducted by the Deloitte Center for Health Solutions and the Monitor Deloitte Health Care Strategy practice. Participants lead large healthcare organizations, with most earning an annual revenue of $1 billion or more.
Editor's note: This story was updated on January 17, 2020.
Mandy Roth is the innovations editor at HealthLeaders.