The Healthcare Consumer S tate of Mind www.nationalresearch.com - PDF document

When Worlds Collide: Long-Term Care vs. Consumerism www.nationalresearch.com Presenters Ryan Donohue Corporate Director of Program Development Rdonohue@nationalresearch.com Rich Kortum Director, Strategic Partnerships Rkortum@nationalresearch.com www.nationalresearch.com The Healthcare Consumer S tate of Mind www.nationalresearch.com Page 1 NRC Picker North Carolina Regional Networking Event Winston-Salem, NC| August 16, 2012

The Healthcare Consumer S tate of Mind • We are no longer on the tipping point of consumer-driven healthcare • We are now finally starting to grasp the importance of building a 1:1 relationship • We are dangerously unprepared to engage healthcare’ s fastest growing payers over the long-term and in meaningful ways www.nationalresearch.com The Healthcare Consumer S tate of Mind • S ince 2012, National Research embarked on a “ blue sky exercise” to qualitatively research the consumer view of healthcare • 176 consumers in 48 states participated in focus groups • 111,448 consumers polled through national survey • Results in NRC white paper www.nationalresearch.com The Healthcare Consumer S tate of Mind Healthcare consumers want healthcare companies to stop acting like healthcare companies . SOURCE: NRC’s Blue Sky Exercise, 2012-2013 www.nationalresearch.com Page 2 NRC Picker North Carolina Regional Networking Event Winston-Salem, NC| August 16, 2012

What’ s Wrong with Healthcare? • Providers play a key role in what consumers describe as “ the healthcare maze” • Providers wrongly position as healers of the sick/ dying • Consumers believe they can “ opt out” of the maze • Consumers turn elsewhere for essential information • Consumers seek a partner who will empower personal health and providers seek to fulfill this promise – however the two parties could not be further apart SOURCE: NRC’s Blue Sky Exercise, 2012-2013 www.nationalresearch.com Who Do Consumers Trust the Most? How would you rate your overall trust and confidence in the following: Doctors/Nurses 73.4 Hospitals 67.7 Pharmacies 67.1 Hospice/End of Life Services 48.6 Your Employer 36.2 Home Health Services 29 Fitness/Health Companies 26.9 Health Insurance Companies 26.4 Long Term Care/Nursing Homes 24 Your Government (Fed & Local) 13 SOURCE: NRC’s national consumer survey, April 2013, n size = 23,105, Top 2 Box responses only www.nationalresearch.com Consumer Perception Re: LTC use In the future, how likely is it that you or a household member will need the services of a skilled nursing facility (including nursing homes) on either a temporary or long-term basis? 100% 90% 80% 70% Frequency % 60% 50% 41% 40% 26% 30% 16% 20% 10% 7% 10% 0% (1) Not at all (2) (3) (4) (5) Very Likely Likely Response SOURCE: NRC’s national consumer survey, 2013, n size = 21,984 www.nationalresearch.com Page 3 NRC Picker North Carolina Regional Networking Event Winston-Salem, NC| August 16, 2012

Consumers on Future Long-Term Care Use When do you anticipate needing any such services? 100% 90% 80% 70% Frequency % 60% 52% 50% 40% 30% 20% 20% 13% 10% 10% 6% 0% Less than a 0 to 3 years 2 to 5 years 4 to 10 years More than 10 year years Response SOURCE: NRC’s national consumer survey, 2013, n size = 21,984 www.nationalresearch.com Where Perception Meets Reality www.nationalresearch.com Where Perception Meets Reality VIRTUAL EXPERIENCE VIRTUAL EXPERIENCE TRUE TRANSPARENCY TRUE TRANSPARENCY PROVIDING HEALTHCARE PROVIDING HEALTHCARE www.nationalresearch.com Page 4 NRC Picker North Carolina Regional Networking Event Winston-Salem, NC| August 16, 2012

Virtual Experience: Web = Virtual Frontline • 87% of Americans use the internet regularly • 39% have visited WebMD.com • 22% have visited a local provider website • 35% of consumers are likely or very likely to prefer a healthcare provider following a website visit SOURCES: National Research Corporation’s Market Insights survey, n size = 231,482, PEW Research Center, 2014, n size = 857 www.nationalresearch.com Virtual Experience: A S ocial & Mobile Play What form of social media do you use as a source of health information? Facebook 81% YouTube 41% Twitter 24% Pinterest 16% 55% 55% LinkedIn 14% Instagram 13% trust or highly trust trust or highly trust Other 5% information received information received Vine from hospitals via from hospitals via 4% social media sites social media sites FourSquare 3% SOURCE: National Research Corporation’s Market Insights survey, n size = 231,482 www.nationalresearch.com Virtual Experience: A S ocial & Mobile Play • 22% of consumers have used a mobile device to seek health info/ resources • 25% anticipate using a mobile device to seek health info/ resources next year • 18% prefer to interact with a provider exclusively via mobile device SOURCE: National Research Corporation’s Market Insights survey, n size = 231,482 www.nationalresearch.com Page 5 NRC Picker North Carolina Regional Networking Event Winston-Salem, NC| August 16, 2012

S ocial & Mobile Create Relationships www.nationalresearch.com Older Americans More Connected 73 percent view online ratings/ reviews before purchasing a product/ service – 83 percent of 18-34 years old – 82 percent of 35-44 years old – 69 percent of 45-64 years old – 52 percent of 65+ years old SOURCE: National Research Corporation’s Digital Decision Maker study, 2015, n size = 3,002 www.nationalresearch.com True Transparency: Consumers Want More • Consumers seek transparency from the ever-opaque healthcare industry • Only 6 percent visited Nursing Home Compare (13% visit Hospital Compare) • Out of pocket costs doubled from 2003 to 2013 – and could double again for the average consumer SOURCE: CNN Money, Kaiser Family Foundation, Credit Suisse, 2012-2013 www.nationalresearch.com Page 6 NRC Picker North Carolina Regional Networking Event Winston-Salem, NC| August 16, 2012

Healthcare Lacks Price Transparency Do you believe healthcare providers are upfront and transparent about the prices of the healthcare services they provide to patients? Yes 13.3 No 62.7 Don't Know 24 SOURCE: NRC’s Market Insights national survey, n size = 21,824 www.nationalresearch.com True Transparency is an Opportunity • Consumers must be aware of out-of-pocket costs • Providers should consider offering/ promoting payment plans, credit options and loyalty programs • Long-term care is an area of great opportunity for price transparency and price differentiation • Consumer-centric providers will embrace price as an external benefit and an internal bellwether www.nationalresearch.com True Transparency is More than Price • Transparency is more than a pricing paradigm • Consumers seek to better understand entire payment process – including their options • Consumers want empowerment through information • Consumers cannot determine ‘ value’ without ‘ pricing’ AND ‘ quality’ information www.nationalresearch.com Page 7 NRC Picker North Carolina Regional Networking Event Winston-Salem, NC| August 16, 2012

Providing Healthcare: S tretching Ourselves • The future long-term care provider will be tasked with a dual purpose to the consumer: care for the sick and the healthy • Long-term care providers will be j udged based on their ability to deliver health services as well as healthcare • Even the word “ health” is seen far differently from the word “ health care” www.nationalresearch.com www.nationalresearch.com Providing Healthcare = Opportunitie$ www.nationalresearch.com Page 8 NRC Picker North Carolina Regional Networking Event Winston-Salem, NC| August 16, 2012

Providing Healthcare: S tretching Ourselves • No matter the setting there is a place for healthcare in the midst of healthcare • Resident quality of life is driven by more than j ust clinical considerations • S taff stress plays heavily into the health equation for long-term care www.nationalresearch.com Consumers RE: Triple Aim When considering changes in healthcare, will the following increase, decrease, or stay the same in the coming year? 6.1 14.9 Access 59.1 13.9 6 Increase greatly 5.9 14.5 Increase somewhat Quality 60.4 13.3 Stay the same 5.9 Decrease somewhat 18.8 34.4 Decrease greatly Cost 40.6 3.6 2.7 0 20 40 60 80 100 SOURCE: NRC’s national consumer survey, 2014, n size = 24,103 www.nationalresearch.com Perception vs Reality www.nationalresearch.com Page 9 NRC Picker North Carolina Regional Networking Event Winston-Salem, NC| August 16, 2012