The document discusses how consumer behavior is changing in healthcare due to rising costs and economic pressures. It notes that consumers are beginning to apply the same value criteria like price, service, and experience when making healthcare decisions as they do for other purchases. However, widespread changes may not be seen yet. The crisis is causing more employers to drop health insurance and more people to become uninsured or underinsured. The document also provides some statistics showing increased cost-cutting behaviors and examples of demand becoming more elastic.

1. Sick Around The World

2. Consumer Behavior
• Consumers are beginning to use the same value
criteria for healthcare decisions as they do with
other purchasing decisions:
• Service
• Price
• Experience
• Brand equity…
• However we cannot see a widespread change in
consumer behavior

3. Consumer Behavior
• With the adoption of consumer-driven plans and
the current crisis, change is coming:
• Many predict adoption of consumer-driven plans will
rise to 15% in 2009, 50% in 2013 and 90% by 2016.
• Crisis is causing more employers to drop health
insurance altogether: 19% of employers are planning
to stop offering health benefits over the next three to
five years (five times higher than the previous year)
• With a growing unemployment, the number of
uninsured and underinsured increases

4. Consumer Behavior
• 53% of the households said they had cut back on
healthcare in the previous year due to cost
concerns (Kaiser Family Foundation Health
Tracking Poll)
• Retailer CVS is closing 90 MinuteClinics for the
reason to “align with consumer demand” (Wall
Street Journal)
• “We are seeing that demand is far more elastic
than it was in other years” (CEO of Park Nicollet
Health Services in Minneapolis)

5. Consumer Behavior
• New consumer habits impact on healthcare providers:
• The decrease in volume may be a permanent reduction of
utilization stretch out physician visits and customer find
lower-cost alternative (“home made”)
• Price shopping will become the norm, as consumers
carefully consider their alternatives and negotiate for lower
costs
• Convenience, experience and service will become the
new value driver, relative to clinical quality, as patient
demand more for their money
• Competition in the healthcare market will become even
more intense

6. Consumer Behavior

7. Financial Analysis

8. Healthcare cost

9. Healthcare cost

10. Job opportunities

11. Job opportunities

12. Some data from the USA…
(2011)
• 16.5% of Americans are not covered by a
healthcare plan
• 46% of all personal bankruptcies are related to
healthcare costs
• US spends 15.9% of GDP or $6,657 per capita on
healthcare (twice that of the next most expensive
national expenditure ranking)

13. Some data from the USA…
(2011)
• 20% of US healthcare
dollars are lost to health
insurance companies in
the form of profits, and
similar wastage numbers
apply to big
pharmaceutical companies
• American life expectancy
at birth ranks 50th in the
world
• American overall level of
health ranks 72nd in the
world

14. Britain preventive
medicine
Negative (why it should
Positive (for the US):
not work in the US):
• System covers everybody • Long waiting list for
• Never have to pay a patients
medical bill • Hospitals compete to
• Financed from the general survive and not to make
taxation profits
• No medical bankruptcy • Too much government for
the US
• Physicians are encouraged
to keep people healthy • Brits are much more taxed
(bonus)
• World leader in preventive
medicine

15. Britain Healthcare statistics vs
USA
• Expenditure on health %
GDP: 8.4%/ 16%
• Expenditure on health per
capita: $2,992/ $7,290
• Expenditure from private
sector: 12.9%/ 52.8%
• Infant mortality per 1,000
births: 4.8/ 6.7
• Life expectancy at birth:
79.1 years/ 78.1 years

16. Japan: No Gatekeepers
Negative (why it should
Positive (for the US):
not work in the US):
• Spend half as much as the US on
healthcare per capita • Doctors can’t get rich:
• Longest life expectancy all over the world undervalued and underpaid
• Everybody has to sign up for a health
insurance policy at work or through
community (for jobless)
• Too much control by the
• Japan’s system is largely private (80% of government for prices
hospitals)
regulation (“Big Brother”)
• All citizens are covered and it is very cheap
(fairness) • Insurance companies are
• Price regulation by the government to keep
prices low not allowed to make profits
• Same prices everywhere in the country
• 50% of hospital are in
• High tech system of healthcare
• Patients can see any specialists they want financial deficits
• Competition between doctors, clinics and
hospitals is fierce
• Japanese system spend
too little

17. Japanese healthcare statistics
vs USA
• Expenditure on health %
GDP: 7.1% / 16%
• Expenditure on health per
capita: $2,373/ $7,290
• Life expectancy: 82.25
years/ 78.1 years
• Infant mortality per 1,000
births: 5/ 6.7

18. Germany: a market-based
system
Negative (why it should
Positive (for the US):
not work in the US):
• 90 % of the population • Rich pay for the poor and the
covered by the system
ill are covered by the healthy
• German pay premium based
on their income
• Population is highly satisfied
• Sickness funds (1,100)
compete among themselves
but are not allowed to make
profits
• Sickness funds negotiate
with drug companies and
medical providers to keep
prices low
• Excellent quality and
efficiency of the system

19. German healthcare statistics vs
USA
• Expenditure on health %
GDP: 10.4% / 16%
• Expenditure on health per
capita: $3,588/ $7,290
• Life expectancy: 80.07
years/ 78.1 years
• Infant mortality per 1,000
births: 3.54/ 6.7

20. Taiwan: a new system
Negative (why it should
Positive (for the US):
not work in the US):
• A mix of all the best ideas • Government spend too little
for healthcare of all around and is borrowing from banks
the world to pay the providers (solution:
• Equal access to healthcare increase the part of
healthcare in the GDP)
• Free choice of doctors
• No waiting time
• Encourage lots of
competition among medical
providers
• Smart card

21. Taiwanese healthcare statistics
vs USA
• Expenditure on health %
GDP: 5.8% / 16%
• Expenditure on health per
capita: $752/ $7,290
• Life expectancy: 78.32
years/ 78.1 years
• Infant mortality per 1,000
births: 5.18/ 6.7

22. Switzerland: a familiar
system
Negative (why it should
Positive (for the US):
not work in the US):
• It is possible to fix the • How much people are
healthcare system willing to pay the premium?
• Low administrative costs • Switzerland average cost
• Keep cheap universal of the premium:$750/month
coverage

23. Switzerland healthcare
statistics vs USA
• Expenditure on health %
GDP: 11.8% / 16%
• Expenditure on health per
capita: $4,500/ $7,290
• Life expectancy: 81.07
years/ 78.1 years
• Infant mortality per 1,000
births: 4.08/ 6.7

24. Healthcare around the world

25. Profits are dangerous for our
health
• ”We should not allow the medical-industrial
complex to distort our health care system to its
own entrepreneurial ends, medicine must serve
patients first and stockholders second. We are in
a market-oriented health care system spinning out
of control’ with commercial forces influencing
doctors’ judgments and manipulating a credulous
public.’” Arnold Relman (editors of the New
England Journal of medicine)

26. Sources
• 2010 Global Survey of healthcare consumers
behaviors
• Sick around the world (movie)
• The economic crisis: tipping point for healthcare
consumer behavior
• Yahoo finance