1. The Rise of Consumerism
Health Care Industry Committee
The Rise of Consumerism
Ready-to-Use Presentation Slides

2. Characteristics of a Traditional vs. Retail Market
Patients 2
Market Forces Turning Patients into Consumers
Catalyzing a Shift in Network Demands
Characteristics of a Traditional vs. Retail Market
Traditional Market
Retail Market
Growing number of buyers 1
Passive employer, price-insulated employee
Activist employer, price-sensitive individual
Proliferation of product options 2
Broad, open networks
Narrow, custom networks
Increased transparency 3
No platform for apples-to- apples plan comparison
Clear plan comparison on exchange platforms
Reduced switching costs 4
Disruptive for employers to change benefit options
Easy for individuals to switch plans annually
Constant employee premium contribution, low deductibles
Greater consumer cost exposure 5
Variable individual premium contribution, high deductibles
Source: Health Care Advisory Board interviews and analysis.

3. Finding Care the Way You Find Dinner
Suddenly Subject to the Marketplace of Opinion
Wave of Tools to Search Health Care Consumer Ratings
Consumer Willingness to Spend Out-of-Pocket for Health-Related Tools
Marcus Welby, MD
Health Apps or Programs
General Practice
Resources That Rate Physicians and Hospitals
497 reviews (read below)
Other available apps, websites:
Health-Related Video Games
Consumer Reports
HealthGrades
RateMDs
Vitals
ZocDoc
PatientsLikeMe
Consumers reading health-related reviews online
Consumers using health-related online reviews to decide where to get care
48%
33%
Source: PwC, “Scoring Healthcare: Navigating Customer Experience Ratings,” “The New Gold Rush: Prospectors are Hoping to Mine Opportunities from the Health Industry,” both available at: Advisory Board research and analysis.

4. Consumers’ Top 10 Primary Care Clinic Attributes4
Consumers’ Top 10 Primary Care Clinic Attributes
Prioritizing Convenience and Affordability
Average Utilities for Top Ten Preferred Primary Care Clinic Attributes
n=3,873
I can walk in without an appointment, and I’m guaranteed to be seen within 30 minutes
If I need lab tests or x-rays, I can get them done at the clinic instead of going to another location
The provider is in-network for my insurer
The visit will be free
The clinic is open 24 hours a day, 7 days a week
I can get an appointment for later today
The provider explains possible causes of my illness and helps me plan ways to stay healthy in the future
Each time I visit the clinic, the same provider will treat me
If I need a prescription, I can get it filled at the clinic instead of going to another location
The clinic is located near my home
Source: 2014 Primary Care Consumer Choice Survey, Marketing and Planning Leadership Council interviews and analysis.

5. Patient Preferences for Online Care Growing5
Patient Preferences for Online Care Growing
Survey Finds Visits Preferred to Clinic Near Errands or Work
Preference for Location of Services
Clinic located near work
Clinic located near errands
ing provider with symptoms
Clinic located near the home
Increasing Consumer Preference
Young, Wealthy, Busy—Strongest Potential Telehealth Targets1
54%
49%
53%
Of yrs olds
Of those making >$71K per year
Of those working >35 hours per week
Based on proportions of respondents interested in teleheatlh.
Source: 2014 Primary Care Consumer Choice Survey, Marketing and Planning Leadership Council interviews and analysis.

6. Price Shopping Abetted by Transparency
Free Apps, Tools Offer Platform for Comparison Shopping
Taking “Consumer-Driven” to the Next Level
Innovation in Brief: PokitDok
Service:
Carpal Tunnel Surgery
Location:
TravelSurgeryUSA, Charleston, SC
Website, mobile app marketed to individuals with high-deductible health plans
Offers database of over three million providers
Budget:
$ 4,000
Negotiate
Payment Type:
Cash
HSA
Insurance
Request Quote ”
“What Castlight Health is to people with employer-provided health insurance, PokitDok is to people with high-deductible plans. The new ‘set your price’ service for basic healthcare services may be what ‘consumer-driven healthcare’ needs to become a realistic option.”
MedCity News
Source: MedCityNews, “PokitDok Makes Cash Payments Easier for Doctors and Patients,” April 17, 2013, available at: Advisory Board research and analysis.