Transforming Consumer Experience in Healthcare

The healthcare ecosystem is becoming increasingly complex and consumer needs and expectations are escalating. The drive to create a more sustainable healthcare system means that industry players are forced to deliver new models of care whilst developing more sustainable business models under ever increasing budgetary conditions.  As cost cutting efforts reach diminishing returns, it has become obvious that the solution to this complex set of issues is to re-frame the problem, working back from patients and health consumers, and build models that deliver compelling experiences to consumers and superior health outcomes.

Last week, I held a webinar in collaboration with international consulting firm Palladium, and delivered insights on the healthcare system and future trends obtained from the Future Solutions in Australian Healthcare White Paper, an acclaimed research paper involving 21 thought leaders in Australian healthcare. If you missed it, please click on the video above to watch the recording.

It will identify where various sectors in healthcare have become siloed and focused on internal drivers, rather than focusing on patient and consumer demand drivers. New technologies for developing insights into experiences and narratives will be examined along with practical models for innovation to improve return on investment.  By the end of the session, you will have a clear step-by-step guideline to introduce consumer-focused transformation in your organisation.

Please do not hesitate to get in touch with me if you have any questions or would like to share your insights on this timely topic.

6% Rise in Health Insurance Premiums may ignite highest lapse rates

One of the media hot topics this month is certainly the rise health insurance premiums.

The second highest health insurance premium increase in a decade seems to be creating a “perfect storm” for unprecedented lapse rates in the industry. There are a number of reasons why the 6% average rise in Health Insurance Premiums may see far more consumers switch in record numbers to more favoured health insurers.

‘Industry disruptive’ switch campaigns such as Onebigswitch (backed by media conglomerate news.com.au) and the growing adoption of brokers such as iSelect.com.au, Comparethemarket.com.au, Helpmechoose.com.au and choosewell.com.au and are making it easier for customer to “lapse” and switch to another fund. Watch the coverage of Onebigswitch on Sunrise here

A health insurance policy “lapses” when a policyholder decides to stop making payments to an insurer often because they have moved to another fund or decided that they cannot afford health insurance altogether.

However, buyer beware! The act of switching funds actually raises the overall costs of funds to acquire new customers. These costs are then indirectly passed on to consumers, thereby reinforcing a vicious cycle of rising premiums.

Its also becoming increasingly challenging for consumers to compare “apples with apples”; there are now over 20,000 policies in the market with complicated exclusions and restrictions.

To counter the problem, health insurers are revolutionising their ‘customer experience’ efforts to encourage members to stay with their current funds.

Ten health insurers including Medibank, BUPA and NIB are collaborating on a pioneering research White Paper developed by Energesse to better understand consumers and drivers of retention.

I was recently interviewed on radio about these issues and what consumers, particularly older members of funds, should do at this time to protect their health and financial interests. You can listen to the interview here.

More importantly, with all the industry changes and the need to innovate, we have partnered with international strategy consulting firm Palladium, to deliver a cutting edge webinar on “Transforming the Customer Experience in Healthcare”. This will help healthcare organisations, such as health insurers, hospitals and government bodies can get closer to their customers and transform their business models to meet these rising consumer expectations. Its not to be missed – registration details here – please feel free to share the link with your colleagues in the industry.

Webinar: Transforming the Consumer Experience in Healthcare

Tuesday the 31st of March 2015 (Australian Eastern Standard Time):

8:00am AND 4:00pm SESSIONS

Register here for the 8:00am AEST session
Register here for the 4:00pm AEST session
Unless you are 100% aligned with the needs of your consumer or patient in your organisation, this session is for you.

Finally, I am taking my own advice and reviewing my own health insurance policy this year. If you’re reviewing yours, this article from Business Insider may be useful.

My Thoughts on How We Can Set the Healthcare System Right

I was recently interviewed by Informa for the upcoming Future of Medicare Conference in August where I will be speaking about the Future Solutions for Australian Healthcare Reform.

Dr Avi, you began your career as a medical doctor in the UK and Australia, and have now successfully founded 3 companies as CEO. Could you tell us a bit about your career journey?

In my time as a medical practitioner, I worked across the medical systems of the National Health Service in the UK as well as the public and private health care system in Australia. Now as the CEO of Energesse, I also work with healthcare institutions in the US, and as a result, my team and I have developed a broad understanding of various healthcare systems in developed economies as well as some of their major challenges and opportunities.

After my time in clinical practice, I completed an MBA with Honours from the University of Queensland and spent 5 years in the biotech and pharmaceutical industry. Initially I managed Research and Development as well as marketing activities. However, in my last 2 years in industry I become more responsible for Innovation and Corporate Strategy with industry leader Pfizer Australia, with over $1 billion in annual revenue.

I then took a brief exodus from healthcare and spent several years as CEO of companies in the video and technology space, which gave me great insights into how innovation occurs in the creative industries and how quickly the speed of technology can move. I eventually sold one company to return to healthcare and initially managed a holistic wellness practice and supported a consumer-led drive for prevention in healthcare. The company then grew and evolved into a healthcare consultancy firm for larger health and wellness related organisations.

Full interview here