2. Industry Status and Outlook
Industry Segmentation
The Medical Profession
Physical Therapy
Health Insurance
American Consumer Analysis
Medical Devices Market
Software Suggestions
T a b l e o f C o n t e n t s
3. Industry Status and Outlook
INDUSTRY
STATUS
INDUSTRY
SEGMENTATION
MEDICAL
PROFESSION
THERAPY
WORLD
HEALTH
INSURANCE
CONSUMER
ANALYSIS
MEDICAL
DEVICES
Health Insurance vs. Providers
Providers vs. Consumers
Health Insurance vs. Consumers
Influence of Legal Costs
Definition of “Essential Health Benefits”
H E A L T H C A R E R E F O R M
The Healthcare Industry is in transition
An industry in development
Connectivity and Integration
difficulties – Multiple vendors
with different standards
HIPAA - The Health Insurance
Portability and Accountability Act
of 1996 Privacy and Security Rules
Integration with Suppliers and
Supply Chain
E H E A L T H
P O L I T I C A L L A N D S C A P E
Congress and Lobbyists
Consumer Groups and advocacy
Political parties and divisive HC issues
SOFTWARE
SUGGESTIONS
4. Nursing Care Facilities
Community Care
Facilities for the
Elderly
Residential Mental
Health Facilities
Other Residential Care
Facilities
General Medical and
Surgical Hospitals
Other Specialty
Hospitals
Psychiatric and
Substance Abuse
Hospitals
Healthcare Industry Segmentation
INDUSTRY
SEGMENTATION
INDUSTRY
STATUS
MEDICAL
PROFESSION
THERAPY
WORLD
HEALTH
INSURANCE
CONSUMER
ANALYSIS
MEDICAL
DEVICES
Office of Physicians
Home Healthcare
Services
Offices of Dentists
Offices of Other
Healthcare
Practitioners
Outpatient Care
Centers
Other Ambulatory
Healthcare Services
Medical and Diagnostic
Laboratories
AMBULATORY SERVICES HOSPITALS
NURSING & RESIDENTIAL
CARE FACILITIES
SOFTWARE
SUGGESTIONS
5. Healthcare Industry Facts
Hospitals provide complete medical care, ranging from diagnostic
services, to surgery, to continuous nursing care.
Some hospitals specialize in treatment of the mentally ill, cancer
patients, or children.
Hospital-based care may be on an inpatient (overnight) or outpatient
basis.
The mix of workers needed varies, depending on the size, geographic
location, goals, philosophy, funding, organization, and management
style of the institution.
As hospitals work to improve efficiency, care continues to shift from
an inpatient to outpatient basis whenever possible.
H O S P I T A L S
Hospitals employ 34.6% of the HC Workforce
Source: U.S. Bureau of Labor Statistics
6. Healthcare Industry Facts
Nursing care facilities provide inpatient nursing, rehabilitation, and
health-related personal care to those who need continuous nursing care,
but do not require hospital services.
Nursing aides provide the vast majority of direct care. Other facilities,
such as convalescent homes, help patients who need less assistance.
Residential care facilities provide around-the-clock social and personal
care to children, the elderly, and others who have limited ability to care
for themselves.
Workers care for residents of assisted-living facilities, alcohol and drug
rehabilitation centers, group homes, and halfway houses.
Nursing and medical care, however, are not the main functions of
establishments providing residential care, as they are in nursing care
facilities.
N U R S I N G A N D R E S I D E N T I A L C A R E F A C I L I T I E S
Is a Growing Segment with Aging Population
Source: U.S. Bureau of Labor Statistics
7. Healthcare Industry Facts
About 36 percent of all healthcare establishments fall into this
industry segment.
Physicians and surgeons practice privately or in groups of
practitioners who have the same or different specialties.
Many physicians and surgeons prefer to join group practices because
they afford backup coverage, reduce overhead expenses, and
facilitate consultation with peers.
Physicians and surgeons are increasingly working as salaried
employees of group medical practices, clinics, or integrated health
systems.
O F F I C E O F P H Y S I C I A N S
The Emerging Trend is Toward Consolidation
Source: U.S. Bureau of Labor Statistics
8. Healthcare Industry Facts
Skilled nursing or medical care is sometimes provided in the home,
under a physician's supervision.
Home healthcare services are provided mainly to the elderly.
The development of in-home medical technologies, substantial cost
savings, and patients' preference for care in the home have helped
change this once-small segment of the industry into one of the
fastest growing healthcare services
H O M E H E A L T H C A R E S E R V I C E S
Excellent Market for Portable Devices
Source: U.S. Bureau of Labor Statistics
9. Healthcare Industry Facts
This segment of the industry includes the offices of chiropractors,
optometrists, podiatrists, occupational and physical therapists,
psychologists, audiologists, speech-language pathologists, dietitians,
and other health practitioners.
Demand for the services of this segment is related to the ability of
patients to pay, either directly or through health insurance.
Hospitals and nursing facilities may contract out for these services.
This segment also includes the offices of practitioners of alternative
medicine, such as acupuncturists, homeopaths, hypnotherapists, and
naturopaths.
O F F I C E S O F O T H E R H E A L T H P R A C T I T I O N E R S
Will Be Substantially Affected by HC Reform
Source: U.S. Bureau of Labor Statistics
10. Healthcare Industry Facts
This segment includes outpatient care center and medical and
diagnostic laboratories.
These establishments are diverse including kidney dialysis centers,
outpatient mental health and substance abuse centers, blood and
organ banks, and medical labs that analyze blood, do diagnostic
imaging, and perform other clinical tests.
87% of the total Healthcare Establishments belong to this category,
but they only employ 42% of the total Healthcare workforce.
In an industry wide consolidation trend these establishments will be
seriously affected by the Healthcare Reform
A M B U L A T O R Y H E A L T H C A R E S E R V I C E S
Will Be Substantially Affected by HC Reform
Source: U.S. Bureau of Labor Statistics
11. Healthcare Industry Facts
Technological advances have made many new procedures and methods of
diagnosis and treatment possible.
Advances in medical technology also have improved the survival rates of trauma
victims and the severely ill, who need extensive care from therapists and social
workers as well as other support personnel.
In addition, advances in information technology have a perceived improvement
on patient care and worker efficiency.
Cost containment also is shaping the healthcare industry, as shown by the
growing emphasis on providing services on an outpatient, ambulatory basis.
Enrollment in managed care programs—predominantly preferred provider
organizations, health maintenance organizations, and hybrid plans such as
point-of-service programs—continues to grow.
Cost effectiveness also is improved with the increased use of integrated delivery
systems, which combine two or more segments of the industry to increase
efficiency through the streamlining of functions, primarily financial and
managerial.
R E C E N T D E V E L O P M E N T S
Will Be Substantially Affected by HC Reform
Source: U.S. Bureau of Labor Statistics
13. Medicine Industry Facts
Many physicians and surgeons work long, irregular hours.
Acceptance to medical school is highly competitive.
Formal education and training requirements—typically 4 years of
undergraduate school, 4 years of medical school, and 3 to 8 years of
internship and residency—are among the most demanding of any
occupation, but earnings are among the highest.
Job opportunities should be very good, particularly in rural and low-
income areas.
S I G N I F I C A N T P O I N T S
Will Be Substantially Affected by HC Reform
Source: U.S. Bureau of Labor Statistics
MEDICAL
PROFESSION
INDUSTRY
STATUS
THERAPY
WORLD
HEALTH
INSURANCE
CONSUMER
ANALYSIS
MEDICAL
DEVICES
INDUSTRY
SEGMENTATION
SOFTWARE
SUGGESTIONS
14. Medical
Doctor
(M.D.)
Doctor of
Osteopathic
Medicine
(D.O.)
Types of Physicians
Source: U.S. Bureau of Labor Statistics
Types of
Physicians
M.D.s also are known as allopathic physicians.
D.O.s emphasize on the body's musculoskeletal
system, preventive medicine, and holistic patient
care.
are most likely to be primary care specialists
although they can be found in all specialties.
About half of D.O.s practice general or family
medicine, general internal medicine, or general
pediatrics.
both M.D.s and D.O.s may use all accepted methods
of treatment, including drugs and surgery
A Physician may have one or more specialties
15. Medical Profession Overview
Race/Ethnicity Number Percentage
White 519,840 54.5
Black 33,781 3.5
Hispanic 46,507 4.9
Asian 116,412 12.2
American Native/Alaska Native 1,594 .16
Other 13,019 1.3
Unknown 223,071 23.4
Low percentage of Ethnic Physicians
* 8.5 Percent of Hispanic and Black physicians is low when the general
population of the combined minorities is over 30% of the total population
Source: Physician Characteristics and Distribution in the US, 2010 Edition. American Medical Association.
16. Medicine Industry Facts
To practice medicine as a physician, all States, the District of Columbia,
and U.S. territories require licensing.
All physicians and surgeons practicing in the United States must pass
the United States Medical Licensing Examination (USMLE)
For osteopathic physicians, the Comprehensive Osteopathic Medical
Licensing Exam (COMLEX).
To be eligible to take the USMLE or COMLEX, physicians must graduate
from an accredited medical school. Although physicians licensed in one
State usually can get a license to practice in another without further
examination, some States limit reciprocity.
Graduates of foreign medical schools generally can qualify for licensure
after passing an examination and completing a U.S. residency. For
specific information on licensing in a given State, contact that State’s
medical board.
L I C E N S U R E A N D C E R T I F I C A T I O N
Source: U.S. Bureau of Labor Statistics
17. Medicine Industry Facts
M.D.s and D.O.s seeking board certification in a specialty may spend
up to 7 years in residency training, depending on the specialty.
A final examination immediately after residency or after 1 or 2 years
of practice is also necessary for certification by a member board of
the American Board of Medical Specialists (ABMS) or the American
Osteopathic Association (AOA).
The ABMS represents 24 boards related to medical specialties
ranging from allergy and immunology to urology.
The AOA has approved 18 specialty boards, ranging from
anesthesiology to surgery. For certification in a subspecialty,
physicians usually need another 1 to 2 years of residency.
L I C E N S U R E A N D C E R T I F I C A T I O N
Source: U.S. Bureau of Labor Statistics
18. Medical Profession Overview
More Than 150 Specialties and Subspecialties
Medical specialty certification in the United States is a voluntary
process.
While medical licensure sets the minimum competency requirements to
diagnose and treat patients, it is not specialty specific.
Board certification—and the Gold Star—demonstrate a physician’s
exceptional expertise in a particular specialty and/or subspecialty of
medical practice.
The Gold Star signals a board certified physician’s commitment and
expertise in consistently achieving superior clinical outcomes in a
responsive, patient-focused setting.
Patients, physicians, healthcare providers, insurers and quality
organizations look for the Gold Star as the best measure of a physician’s
knowledge, experience and skills to provide quality healthcare within a
given specialty.
V A L U E O F S P E C I A L I Z A T I O N I N T H E U . S .
19. American Board of Allergy and
Immunology
Allergy and Immunology
American Board of Anesthesiology
Anesthesiology
American Board of Colon and Rectal
Surgery
Colon and Rectal Surgery
American Board of Dermatology
Dermatology
American Board of Emergency
Medicine
Emergency Medicine
American Board of Family Medicine
Family Medicine
American Board of Internal
Medicine
Internal Medicine
American Board of Medical Genetics
Clinical Biochemical Genetics*
Clinical Cytogenetics*
Clinical Genetics (MD)*
Clinical Molecular Genetics*
American Board of Physical Medicine
and Rehabilitation
Physical Medicine and Rehabilitation
American Board of Plastic Surgery
Plastic Surgery
American Board of Preventive
Medicine
Aerospace Medicine*
Occupational Medicine*
PH & General Preventive Medicine*
American Board of Psychiatry and
Neurology
Psychiatry*
Neurology*
Neurology in Child Neurology*
American Board of Radiology
Diagnostic Radiology*
Radiation Oncology*
Medical Physics*
American Board of Surgery
Surgery*
Vascular Surgery*
American Board of Thoracic Surgery
American Board of Urology
American Board of Neurological
Surgery
Neurological Surgery
American Board of Nuclear
Medicine
Nuclear Medicine
American Board of Obstetrics and
Gynecology
Obstetrics and Gynecology
American Board of Ophthalmology
Ophthalmology
American Board of Orthopaedic
Surgery
Orthopaedic Surgery
American Board of Otolaryngology
Otolaryngology
American Board of Pathology
Anatomic Pathology and Clinical
Pathology*
Pathology - Anatomic*
Pathology - Clinical*
American Board of Pediatrics
Pediatrics
Medical Profession Overview
G E N E R A L C E R T I F I C A T E S
20. SOURCE: American Medical Association, 2009 Physician Characteristic and Distribution in the US.
Medical Profession Overview
Internal, Family & Pediatric Medicine are 41%
MEDICAL
PROFESSION
INDUSTRY
STATUS
PHYSICAL
THERAPY
HEALTH
INSURANCE
CONSUMER
ANALYSIS
MEDICAL
DEVICES
INDUSTRY
SEGMENTATION
20.1
12.4
9.6
5.65.55.2
5
4.1
32.5
Percentages of Medical Specialties
Internal medicine
Family medicine/general practice
Pediatrics
Obstetrics and gynecology
Anesthesiology
Psychiatry
General Surgery
Emergency Medicine
Other
SOFTWARE
SUGGESTIONS
21. Industry Outlook and Characteristics
PHYSICAL
THERAPY
INDUSTRY
STATUS
HEALTH
INSURANCE
CONSUMER
ANALYSIS
MEDICAL
DEVICES
INDUSTRY
SEGMENTATION
MEDICAL
PROFESSION
SOFTWARE
SUGGESTIONS
22. PT Profession Overview
Internal, Family & Pediatric Medicine are 41%
PHYSICAL
THERAPY
INDUSTRY
STATUS
HEALTH
INSURANCE
CONSUMER
ANALYSIS
MEDICAL
DEVICES
INDUSTRY
SEGMENTATION
MEDICAL
PROFESSION
Employment is expected to grow much faster than average.
Job opportunities should be good.
Today’s entrants to this profession need a post-baccalaureate degree
from an accredited physical therapist program.
About 60 percent of physical therapists work in hospitals or in
offices of other health practitioners.
S I G N I F I C A N T P O I N T S
SOFTWARE
SUGGESTIONS
23. SOURCE: American Board of Physical Therapy Specialties, 2010
PT Certified Specialist Statistics
Orthopaedics accounts for more than 50%
148 146
1109
841
6157
1011
854
82
Certified Therapists per Specialty Cardiovascular & Pulmonary
Clinical Electrophysiology
Geriatrics
Neurology
Orthopaedics
Pediatrics
Sports
Women's Health
24. PT Industry Facts
All States regulate the practice of physical therapy. Eligibility
requirements vary by State. Typical requirements for physical
therapists include graduation from an accredited physical therapy
education program; passing the National Physical Therapy
Examination; and fulfilling State requirements such as
jurisprudence exams. A number of States require continuing
education as a condition of maintaining licensure.
Advancement. Physical therapists are expected to continue their
professional development by participating in continuing education
courses and workshops. Some physical therapists become board
certified in a clinical specialty. Opportunities for physical therapists
exist in academia and research. Some become self-employed,
providing contract services or opening a private practice.
L I C E N S U R E
Consolidation in Hospitals is the latest trend
Source: U.S. Bureau of Labor Statistics
25. PT Industry Facts
The American Physical Therapy Association’s accrediting body, called the
Commission on Accreditation of Physical Therapy Education (CAPTE), accredits
entry-level academic programs in physical therapy. In 2009, there were 212
physical therapist education programs.
Of these accredited programs, 12 awarded master's degrees; and 200 awarded
doctoral degrees. Currently, only graduate degree physical therapist programs
are accredited. Master's degree programs typically are 2 to 2.5 years in length,
while doctoral degree programs last 3 years.
Physical therapist education programs include foundational science courses,
such as biology, anatomy, physiology, cellular histology, exercise physiology,
neuroscience, biomechanics, pharmacology, pathology, and radiology/imaging,
as well as behavioral science courses, such as evidence-based practice and
clinical reasoning.
Some of the clinically-based courses include medical screening, examination
tests and measures, diagnostic process, therapeutic interventions, outcomes
assessment, and practice management. In addition to classroom and laboratory
instruction, students receive supervised clinical experience.
E D U C A T I O N
Source: U.S. Bureau of Labor Statistics
28. Patient Protection and Affordable
Care Act
Industry Status and Outlook
HEALTH
INSURANCE
INDUSTRY
SEGMENTATION
MEDICAL
PROFESSION
THERAPY
WORLD
INDUSTRY
STATUS
CONSUMER
ANALYSIS
MEDICAL
DEVICES
#1 Unitedhealth Group
#2 Wellpoint Inc. Group
#3 Kaiser Foundation Group
#4 Aetna Group
#5 Humana Group
#6 HCSC Group
#7 Coventry Corp. Group
#8 Highmark Group
#9 Independence Blue Cross Group
#10Blue Shield of CA Group
T O P 1 0 H E A L T H
I N S U R E R S
Source: National Association of Insurance Commissioners
T R E N D S D R I V I N G H E A L T H
I N S U R A N C E I N V E S T M E N T
#1
Health plans spend on technology
and business process operations.
#2
Integrated Health
Management
#3
Health Analytics and Business
Intelligence
#4
Expansion of Individual Ins.
Markets and Retail Purchasing
#5
Cost Reduction and Improved
Operational Effectiveness
#6
SOFTWARE
SUGGESTIONS
29. Health Insurance “Trigger Points”
Profits for the 10 largest U.S. insurance companies jumped 250%
between 2000 and 2009 while millions of Americans have lost
coverage, according to a report released Thursday by the U.S.
Department of Health and Human Services.
The report found that the five biggest insurance companies --
WellPoint (WLP), Cigna (CI), UnitedHealth Group (UNH), Aetna
(AET) and Humana (HUM) -- saw their profits increase 56% in
2009, a year in which 2.7 million people lost their private coverage.
What's more, the report found that the companies combined earned
a total of $12.2 billion last year. And lest we forget, on the executive
compensation, CEOs of the top five received $24 million on average
in 2008, the report said.
H I G H C O S T A N D P E R C E P T I O N O F A B U S E
General consensus is mistrust and suspicion
U.S. Department of Health and Human Services.
30. Health Insurance “Trigger Points”
An average family health insurance policy now costs more than some
compact cars, and four in 10 companies will likely pass more of that
expense on to workers, according to a closely watched survey of
businesses released Tuesday.
The average cost of a family policy offered by employers was $13,375
this year, up 5% from 2008, the Kaiser Family Foundation and the
Health Research & Educational Trust survey found. By comparison,
wages rose 3% over that period, the study said.
The annual survey of more than 2,000 companies also found that
40% of small-business employees enrolled in individual health plans
pay annual deductibles of $1,000 or more. That's almost twice the
number who paid that much in 2007.
H I G H P R E M I U M S
General consensus is mistrust and suspicion
U.S. Department of Health and Human Services.
31. Health Insurance “Trigger Points”
Since 1999, health insurance premiums for families rose 131%, the
report found, far more than the general rate of inflation, which
increased 28% over the same period. Overall, health care in the
United States is expected to cost $2.6 trillion this year, or 17% of the
nation's economy, according to the non-partisan Congressional
Budget Office.
As insurance costs increase, workers are also picking up a larger
share, the survey found. The average employee with family coverage
paid 26% of the premium, the study found, but 41% of companies
said they are "very likely" or "somewhat likely" to increase the
amount employees pay for coverage in the next year.
H I G H P R E M I U M S
General consensus is mistrust and suspicion
U.S. Department of Health and Human Services.
32. Patient Treatment Table of Responsibilities
Patient Examination
Prescribe testing and
lab work
Referral to specialists
Consult with other
physicians and health
professionals
Prescribe treatment
PHYSICIAN INSURANCEPHYSICAL THERAPIST
Patient Examination
Proposes treatment
plan pending
physician and
Insurance approval
Executes treatment
plan
Reports treatment
progress to Insurance
and physician
Defines coverage
Defines fees for
treatment
Defines treatment
instances and
frequency
Pays providers for
treatment
33. Cross Functional Treatment Flow Chart
PATIENTPHYSICIANINSURERTHERAPIST
Goes to
Primary Care
Physician
Examines
Patient and
Prescribes
Searches for
preferred
provider
Evaluates patient
and creates
treatment Plan
Approves
Treatment
Plan
Sends Plan of
Care with
approval
Defines Quantity
and Frequency of
Session
Reports on
treatment
sessions
Refunds and
evaluates
progress
34. Industry Outlook and Characteristics
CONSUMER
ANALYSIS
INDUSTRY
STATUS
HEALTH
INSURANCE
PHYSICAL
THERAPY
MEDICAL
DEVICES
INDUSTRY
SEGMENTATION
MEDICAL
PROFESSION
SOFTWARE
SUGGESTIONS
35. Source: 2008 Survey of Health Care Consumers Deloitte LLP
Zones of Healthcare Consumer Activity
36. 82% currently have a PCP
60% currently use
prescription Drugs
15% had a hospital stay
21% switched treatments
or Prescriptions
18% switched doctors
T R A D I T I O N A L
H E A L T H S E R V I C E S
Behaviors in the Five Zones of Health Care Consumer Activity
14% delayed a recommended treatment
13% decided not to pursue a course of care altogether
30% questioned their physician about a treatment
recommendation
38% expressed a brand preference for a medication
to their physician
65% say they adhere to Rx recommendations
S E L F - D I R E C T E D C A R E
20% used an alternative approach to treatment
12% consulted an alternative provider
9% substituted an alternative therapy for a prescription medication
21% purchased medications through mail order or online
16% used a retail clinic and 3% traveled outside the U.S. for care
A L T E R N A T I V E / N O N - C O N V E N T I O N A L
H E A L T H S E R V I C E S
Source: 2008 Survey of Health Care Consumers Deloitte LLP
37. Behaviors in the Five Zones of Health Care Consumer Activity
To compare quality, 26% used a health plan web site, 11% used a hospital site, and
9% used a physician site
To compare prices, 22% used a health plan web site, 6% used a hospital site, and
5% used a physician site
For health information, 30% used a physician web site, 22% used a plan site, and
14% used a hospital site
Consumers use online resources and pharmacists for information about new
prescription
I N F O R M A T I O N S E E K I N G
88% currently have health insurance of some kind
3% have a high deductible plan/consumer-directed plan
19% called their plan to inquire or complain about care
F I N A N C I N G
Source: 2008 Survey of Health Care Consumers Deloitte LLP
39. Consumer Segment Definitions
The Content & Compliant segment (29%) includes consumers who tend to
prefer traditional approaches to care and accept what doctors recommend.
Consumers in this segment, on average, are more compliant and satisfied
than others.
Content & Compliant consumers are less likely to seek information or use
value-added services offered by doctors, hospitals and health plans.
They are least interested in shopping for and customizing their insurance.
26% of the Content & Compliant consumers report annual household
income of $100,000 or higher, compared to 22% or less in the other
segments.
C O N T E N T & C O M P L I A N T
Source: 2008 Survey of Health Care Consumers Deloitte LLP
40. Consumer Segment Definitions
The Sick & Savvy segment (24%) includes the highest percentage of
consumers who report having one or more chronic conditions (52%).
This segment uses the health care system more than other segments.
Similar to the Content & Compliant, the Sick & Savvy prefer traditional
approaches to care. However, Sick & Savvy consumers take greater charge
of their own care, preferring to rely on themselves more than their doctors
when making care-related decisions.
They are more sensitive to quality differences among providers than the
Content & Compliant, and also seek information, use value-added services,
and want to shop for and customize their insurance to a greater extent.
S I C K & S A V V Y
Source: 2008 Survey of Health Care Consumers Deloitte LLP
41. Consumer Segment Definitions
Also similar to the Content & Compliant, Sick & Savvy consumers adhere to
treatment decisions once they are made and are generally satisfied with the
care they receive.
These two segments are somewhat older than the other segments, with
mean ages of 48 years (Content & Compliant) and 49 years (Sick & Savvy).
They also include the highest proportions of Caucasians among all the
segments (81% of the Content & Compliant, 85% of the Sick & Savvy).
Gender is a key difference:
The Sick & Savvy include a higher percentage of women (61%) than the
Content & Compliant (48%).
S I C K & S A V V Y
Source: 2008 Survey of Health Care Consumers Deloitte LLP
42. Consumer Segment Definitions
The Online & Onboard (8%) segment includes high users of the system who prefer
traditional approaches but who are also receptive to care provided in non-
conventional settings.
Consumers in this group lean toward relying more on themselves than their doctors
in making decisions and use online tools and value-added services more than any
other segment.
Online & Onboard consumers seek information and are sensitive to quality
differences. They tend to be compliant with treatment decisions and satisfied with
their care.
The Online & Onboard segment includes a high percentage of consumers who report
having one or more chronic conditions (47%), but does not stand out with respect to
any of the key demographic characteristics: Mean age is 45 years, 53% are women,
92% are insured, 69% are Caucasian, and 19% report annual household income of
$100,000 or higher.
O N L I N E & O N B O A R D
Source: 2008 Survey of Health Care Consumers Deloitte LLP
43. Consumer Segment Definitions
Shop & Save consumers (2%) are prone to switching doctors, treatments and health
plans, and make changes to their insurance far more than others.
This group is more sensitive to the prices of health care services than others.
Consumers in this segment tend to prefer doctors who use traditional approaches
and lean toward allowing doctors to make decisions for them.
Shop & Save consumers are open to alternative approaches and non-conventional
settings and are much more likely than others to purchase prescription drugs
through mail order or online sources, use a retail clinic, and travel outside their
community and the U.S. for care.
They take advantage of value-added services offered by doctors, hospitals and health
plans, but tend to be less satisfied and less compliant than others.
This segment has the lowest average age (38 years) and includes the largest
proportion of men (64%) and lowest proportion of Caucasians (62%).
S H O P & S A V E
Source: 2008 Survey of Health Care Consumers Deloitte LLP
44. Consumer Segment Definitions
The Out & About segment (9%) uses alternative approaches to treatment, consults
alternative health care practitioners, and substitutes alternative or natural therapies
for prescription medications more than the other segments.
Consumers in this group are independent, generally preferring to make their own
decisions.
They tend to be sensitive to quality, seek information, use some value-added services
and want to shop for and customize their insurance.
The Out & About segment is the least compliant and least satisfied of all the
segments.
Gender is its most notable demographic distinction: 64% of Out & About consumers
are women.
This segment is similar to other segments with respect to age (mean of 43 years), race
(70% Caucasian), income (18% report annual household income of $100,000 or
higher) and health status (43% have one or more chronic conditions).
O U T & A B O U T
Source: 2008 Survey of Health Care Consumers Deloitte LLP
45. Consumer Segment Definitions
The Casual & Cautious segment (28%) is the healthiest segment, with only 19% having one or
more chronic conditions, and nearly the youngest segment, with a mean age of 40 years.
This group is also the least-insured group – only 80% report having insurance compared to 89%
or more in each of the other segments.
This group uses the system and seeks information less than others; it appears to be waiting for the
need to arise.
The Casual & Cautious are sensitive to the price of health services more than all other segments
except Shop & Save. More than all other segments, the Casual & Cautious feel less prepared
financially to deal with their future health care needs and fewer say they understand their
insurance.
These consumers currently lean toward preferring traditional approaches, but are inclined to rely
somewhat more on themselves than doctors when making decisions. They also generally report
being less compliant and satisfied than others.
In addition to being relatively healthy and young, just over 55% of Casual & Cautious consumers
are men, nearly 75% are Caucasian, and 21% report having an annual household income of
$100,000 or more.
C A S U A L & C A U T I O U S
Source: 2008 Survey of Health Care Consumers Deloitte LLP
46. Preference for Traditional vs. Non-Traditional Health Services
Source: 2008 Survey of Health Care Consumers Deloitte LLP
47. Source: 2008 Survey of Health Care Consumers Deloitte LLP
Consumer Opinion Regarding Adherence to Evidence-Based
Standards as a Basis for Physician Payment
48. Source: 2008 Survey of Health Care Consumers Deloitte LLP
Use of Healthcare Innovation
49. Healthcare is a Consumer Market
K E Y F I N D I N G S
#1
The consumer market is not homogeneous: It is a complex and
demanding market comprised of six unique segments.
#2
Consumers want to make their own decisions and want tools to help
them do this. The source for these tools is up for grabs.
#3
Consumers are embracing innovations that are “disruptive” to
stakeholders who provide traditional health services and health plans.
#4
Consumer Behavior Conclusions
50. Industry Analysis and Trend
MEDICAL
DEVICES
INDUSTRY
STATUS
HEALTH
INSURANCE
PHYSICAL
THERAPY
CONSUMER
ANALYSIS
INDUSTRY
SEGMENTATION
MEDICAL
PROFESSION
SOFTWARE
SUGGESTIONS
51. Recession Impacts Medical Device Market
2009
Recession
Impact
Cap Ex Spending Patient Volumes
Destocking/Inventory
Management
HC Reform Looming
Internal Resources
Investment Spending
Source: Frost & Sullivan -Medical Devices Market Ready To Skyrocket, 2010
61. Interface and Database Features to maximize value to provider
and patient
SOFTWARE
SUGGESTIONS
INDUSTRY
STATUS
HEALTH
INSURANCE
PHYSICAL
THERAPY
CONSUMER
ANALYSIS
MEDICAL
DEVICES
INDUSTRY
SEGMENTATION
MEDICAL
PROFESSION
62. Internet Connectivity, Reporting
Usage via web
Monitoring Systems for equipment
status and failure prevention and
reporting
Secure Connectivity with Interface of
mobile devices such as iPad, iphone
and other mobile devices to command
the application of force, frequency
and intensity.
Secure storage of patient treatment
plan and history available to all
equipment operators via The Cloud
PT Interface and Knowledgebase Usability Suggestions
63. A dynamic and anatomically correct
image of the human body with the
complete muscle skeletal system,
muscle chains, where the
professional may pinpoint, evaluate,
comment and diagnose each
individual muscle and/or muscle
chain and notate dated observations
regarding volume, treatment plan,
session history and all represented in
a graphical interface of the human
body with a touch navigation system
inherent to the Apple digital
navigation standards
PT Interface and Knowledgebase Usability Suggestions
64. Intelligent real time
knowledgebase access where the
system suggests diagnosis and
other areas to examine based on
treatment and diagnosis history of
all cases in the database.
Where as the physical therapist
pinpoints and notates
observations, the system will
intelligently suggest further areas
to look, possible diagnosis, muscle
chains involved, possible trigger
points and other important
aspects relevant to the Salo
Darder method
PT Interface Suggestions
65. Grabar test fascial y resultados
test diagnóstico salo-darder
sobre imágenes de los diferentes
segmentos corporales y de las
cadenas musculares y grabar
marcando las líneas y zonas
afectadas
Que se pueda grabar progresión
tratamiento, certificada por
nuevos test
PT Interface Suggestions
GRABAR TEST FASCIAL Y RESULTADOS TEST DIAGNÓSTICO SALO-
DARDER
Incluir templates del SOAP assessment
Editor's Notes
President Obama has taken on Health Care Reform, one of the most divisive issues in America today. In a situation like this is logical that all stakeholders make decided efforts to influence the outcome. Health insurances have had a sustained battle with healthcare providers and consumers over who controls patient treatment (type, quantity and frequency). Insurance companies worry about cost containment, providers worry about liability, consumers worry about quality and cost and the government worries about the burden of healthcare on the nation’s budget. In 2011 Healthcare has become the largest cost center in the Congressional Budget with 874 billion dollars 44 billion over the defense budget
Healthcare reform has specified a new definition for Essential Health benefits that affect Insurance companies and Physical Therapy providers. The Health care reform bill specifies that Mental Health and Physical Therapy will be required benefitsin the essential benefits package, but insurers may well limit the number of visits that are allowed. That’s because the law says that the essential health benefits should reflect the benefits of a typical employer plan. According to the New York Times April 20, 2010, 9:00 am Can Insurers Still Cap Physical Therapy Visits? By MICHELLE ANDREWS
The Health Care reform bill is being forged in the political landscape by the congress and an army of lobbyists representing all industry groups including consumer and advocacy groups. Furthermore, both political parties have further polarized the issues in their political agendas, Making the Health Care Reform
Technological advances have made many new procedures and methods of diagnosis and treatment possible. Clinical developments, such as infection control, less invasive surgical techniques, advances in reproductive technology, and gene therapy for cancer treatment, continue to increase the longevity and improve the quality of life of many Americans.
In addition, advances in information technology have a perceived improvement on patient care and worker efficiency. Devices such as hand-held computers are used record a patient’s medical history. Information on vital signs and orders for tests are transferred electronically to a main database; this process eliminates the need for paper and reduces recordkeeping errors. Adoption of electronic health records is, however, relatively low presently.
Cost containment also is shaping the healthcare industry, as shown by the growing emphasis on providing services on an outpatient, ambulatory basis; limiting unnecessary or low-priority services; and stressing preventive care, which reduces the potential cost of undiagnosed, untreated medical conditions. Enrollment in managed care programs—predominantly preferred provider organizations, health maintenance organizations, and hybrid plans such as point-of-service programs—continues to grow. These prepaid plans provide comprehensive coverage to members and control health insurance costs by emphasizing preventive care. Cost effectiveness also is improved with the increased use of integrated delivery systems, which combine two or more segments of the industry to increase efficiency through the streamlining of functions, primarily financial and managerial. These changes will continue to reshape not only the nature of the healthcare workforce, but also the manner in which healthcare is provided.
Trend 1: Patient Protection and Affordable Care Act Healthcare reform introduces sweeping provisions that have a significant impact on all industry
segments. An increased membership base and greater competition for it… Enhanced quality of care delivered at lower prices… The ability to provide
sustainable coverage, supported by new business models, market intelligence and supporting systems.
These are just a few of the competing demands unleashed by passage of the Patient Protection and Affordable Care Act, which potentially could
reshape every aspect of the healthcare system.
Our Perspective
Healthcare reform undoubtedly offers business and compliance challenges. Yet it also represents opportunity for health plans able to move quickly -- and remain agile -- as reform is enacted. Seizing the opportunity to take market leadership will require fresh thinking, identifying synergies in systems and processes related to other key industry trends, and the ability to flex and adapt in response to unanticipated effects and political shifts.
Trend 2: ICD-10 has the potential to revolutionize the nation’s healthcare system. Health plans will incur significant spend on both technology and business process
operations. ICD-10 interim milestones and deadlines are imminent, and health plans must make critical decisions this year about their compliance strategies. Early adoption of native ICD-10 offers the opportunity for competitive advantage, yet the lack of standard crosswalks and mapping paths, among other factors, creates a significant challenge to achieving on-time compliance.
Our Perspective
ICD-10 compliance presents substantial challenges to payers and providers. Yet ICD-10 will create opportunities for innovations in health plan products, processes and pricing. Stakeholders best positioned to take advantage of this changing environment will be rewarded. This requires a proactive and thoughtful approach to capturing the synergies among various compliance initiatives.
Trend 3: Integrated Health Management. Replacing poorly coordinated, acute-focused, episodic care with patient-centered, valuebased, coordinated care over an individual’s lifetime is foundational to the transformation of the U.S. healthcare system. Integrated Health Management strategies are changing provider reimbursement from fee-forservice models to physician pay-for performance, outcomes-based contracts, global pricing strategies and risk-based capitation. Understanding the effectiveness of these strategies in improving outcomes and reducing costs will require sophisticated predictive modeling and analytic capabilities.
Our Perspective
Healthcare reform requires health plans to invest in technologies and processes to become “virtual” integrated health management organizations. By 2012, we expect certain plans will have thoroughly evolved to the IHM model and will displace competitors, as well as gain market share.
Trend 4: Health Analytics and Business Intelligence. The competitive environment requires business intelligence (BI) that translates data into actionable information. Enterprise views of clinical and financial data are critical to successfully managing risk and improving quality and cost performance. Further, consumerism and related decision support tools require meaningful, current and actionable intelligence. Complying with federal, state and industry reform and regulations also will require significant information management components designed to increase information availability, quality, usefulness and transparency. This will require updating BI strategies and selecting, as well as implementing, new solutions.
Our Perspective
Health plans will compete to distinguish themselves as “health infomediaries” and leverage this status for competitive and price advantage. The payer market will become segmented: plans capable of leveraging the power of analytics will demonstrate a clear advantage in market share and trend management.
Trend 5: Expansion of Individual Insurance Markets and Retail Purchasing The individual market has grown faster than any other segment of the health insurance industry, and now healthcare reform has extended coverage to as many as 45 million new enrollees. Selling to individuals is vastly different than selling to businesses. Grasping this important financial growth opportunity requires health plans to significantly re-engineer existing approaches to product design, customer service
and information technology. Plans that demonstrate best practice competencies in enrollment, eligibility, and premium billing will quickly rise to the top in these new markets. This will require a focus on substantially streamlining and enhancing the customer experience.
Our Perspective
Health plans with a historic focus on the individual market will be well positioned to take advantage of expected market growth in this segment. By 2013, we expect to see some new -- and some non-traditional players – dominating the individual insurance market.
Trend 6: The “Lean” Healthcare Organization: Cost Reduction and Improved Operational Effectiveness Health plans will be under increasing political and consumer pressure to cut costs and improve operations. Leading payer organizations will accomplish this by aggressively adopting “lean IT” methodologies to eliminate
process and system redundancies, reduce cycle time and waste, and increase effectiveness.
Our Perspective
Re-engineering core business and administrative processes has significant potential for driving improved efficiency in healthcare organizations. Healthcare also is primed for next-generation global sourcing solutions, which will accelerate the development of new business capabilities that drive business effectiveness and better operational performance. For example, privacy and security solutions will enhance further development of global interoperability and increase protections around medical identity.
Today’s healthcare consumer market is divided in 5 sectors. Self- directed care, traditional health services, Alternative, and non-conventional health services, information seeking and financing
Consumers use the U.S. health care system frequently
Consumers’ experiences with doctors, hospitals, health plans, prescription drugs and other health care services form the
basis for their attitudes and beliefs about how the system performs and which areas might need to be improved.
82% of consumers report having a primary care physician (PCP), and 92% of these consumers say they had visited their PCP at least once in the last 12 months. 15% of consumers report having had an overnight stay at a hospital in that same period. 60% currently take medications. 88% report having some form of health insurance, either directly or through their spouse or partner (insurance types included medical coverage through Medicare, Medicaid, and various commercial plans such as preferred provider organizations, health maintenance organizations, and traditional fee-for-service plans, as well as specialty coverage for dental, eye,
and long-term care and unspecified supplemental coverage).
• Significant percentages of consumers modified a treatment recommendation, used alternative and non-conventional modes of care, and sought information to assist in decision-making in the last 24 months. It is important to consider these behaviors in light of the various
circumstances in which consumers typically have an opportunity to engage directly in decision-making. Physicians are often chosen based on recommendations from friends and family more than on price or quality information, which is usually limited. Hospital choice usually reflects the physician’s preference, not the consumer’s. Medications are “prescribed” by physicians, so consumers typically have little influence over which alternatives are considered. Insurance programs are frequently offered through employers or the government, with limited consumer choice. Therefore, it is notable that considerable percentages of consumers are engaging in behaviors that reflect direct consumer decision-making.
Two segments (Content & Compliant and Sick & Savvy), representing 53% of U.S. consumers, lean toward the status
quo, generally preferring traditional approaches. Half of this more traditional group, however, is taking advantage of opportunities
to become better informed, more engaged consumers. The Sick & Savvy segment (24% of the U.S. population) actively seeks
information, is sensitive to quality differences among providers, and wants to shop for and customize their insurance.
• Three segments (Online & Onboard, Shop & Save and Out & About) include the 19% of U.S. consumers who are inclined in
various ways to take advantage of innovative, non-conventional and alternative approaches.
• The sixth segment (Casual & Cautious), representing the remaining 28% of U.S. consumers, is currently disengaged from the system,
using health care services infrequently.
Consumers support the concept of physician pay-for-performance (Figure 13). 84% or more of every segment favor or might support
a national program that provides incentives for doctors to adhere to evidence-based practices. Support is especially strong among
consumers in the Online & Onboard and Shop & Save segments. Support is somewhat stronger among men than women, and
among Hispanics compared to non-Hispanics, but otherwise, opinions do not vary significantly by age, race, health status or
insurance status.
Consumers are receptive to innovations such as retail clinics, online medication ordering, customized insurance programs,
in-home monitoring, medical tourism and computerized personal health records.
• 1 6% of consumers have used a walk-in clinic located in a pharmacy, shopping center, store, or other retail setting, and 34% say they
might do so in the future. 44% of consumers say they would be comfortable with the accuracy, safety and quality of care offered
in a retail clinic that is staffed by a nurse practitioner. Slightly more (45%) say they would be comfortable if the nurse practitioner uses
a computer-based system that enables him/her to access electronic patient records, check for drug and allergy interactions, confirm
treatment recommendations, etc. Nearly half (48%) of consumers say they would be comfortable if the nurse practitioner is affiliated
with a local doctor’s office.
• 21% have purchased prescription medications through mail order or online sources, and 37% might do so in the future.
• 13 % currently use a monitoring device, but 88% say they would be interested in using a self-monitoring device at home if they were to
develop a condition that required regular monitoring (33% say they are extremely interested).
78% of consumers express a preference for customizing their insurance product by selecting the benefits and features they value
and, in doing so, increasing or decreasing the overall cost of their coverage. Only 22% prefer selecting from a few pre-packaged
products with defined benefits and features.
• While only 25% of consumers report maintaining a personal health record of any kind, including paper-, computer-, or web-based files,
nearly half (46%) say they would be interested in using a software program or web site to create a personal health record.
• For 19% of the consumer population – the Shop & Save, Online & Onboard, and Out & About segments – use of health care
innovations is especially high (Figure 14). These innovations appear to be accepted without concern. Sizable percentages of the
other segments, especially the Sick & Savvy, but also the Casual & Cautious and Content & Compliant, indicate interest in using these
innovations in the future.
Cap Ex Spending= Money spent to acquire or upgrade physical assets such as buildings and machinery. also called capital spending or capital expense.