Tips to surviving shift to the empowered consumer
Providing service and satisfaction is the key
By Ruth Colby
Vice President-Account Management
Sachs Group
Evanston, IL
Given the speed and complexity of change in today’s health care environment, physicians may be tempted to view their challenge as one of survival. Our research shows that at least one of these changes, increasing consumer choice, is creating new opportunities for physicians.
Physicians who understand and meet the needs of empowered consumers will do more than just survive — they will thrive.
Today’s health care consumers have more choice than ever before. They have choice in plan type, and most plans have broad provider panels. Sachs’ research shows that 70% of surveyed respondents in HMOs had choice of plan. We also found that 51% of respondents in indemnity plans, 62% in preferred provider organizations, and 65% in point of service plans had choice.
We also found that the type of plan determines key physician selection criteria. In commercial risk populations, "close to home" and "referred by friend" are top criteria for selecting a primary care provider. But that figure drops for commercial non-risk populations, with only 29% saying "close to home" and "referred by friend" are important selection criteria.
Health plans nearly always form the link between the physician and patient, but the key relationship is the one between the physician and the patient, without involvement of the health plan.
As plans offer wider panels of physicians and more hospital choices, the patient has a choice of whether or not to remain with a particular physician. If the physician is not meeting the patient’s needs, that patient can and will seek another physician.
Patient satisfaction is key to loyalty. A look at findings from the Chicago market reveals the impact of less-than-satisfied patients on physician practices. Chicago is a typical Stage Three market. Managed care dominates the market, and five major hospital systems have emerged from a wave of consolidations. Despite the high levels of managed care, consumers in Chicago have choice and they use it.
Sachs’ research shows that 42% of the surveyed population in Chicago changed primary care providers last year. Although 26% of these consumers changed primary care providers because insurance required them to do so, 20% changed because they were dissatisfied with care and 16% were dissatisfied with the physician’s manner. On three criteria — wait time for appointment, in-office wait time, and physician manner — Chicago had the lowest satisfaction scores in the nation.
Satisfaction drives loyalty and retention, and tremendous opportunity exists for improving patient satisfaction in Chicago and nationwide. Yet, merely satisfying patients isn’t enough to create loyalty. In fact, consumers who are merely satisfied are shown to be rather indifferent. Only by moving satisfaction levels from "satisfied" to "very satisfied" can physicians create the kind of loyalty that results in retention.
Loyalty also tends to be age-linked. In the Chicago market, the over-55 population is less likely to change primary care physicians than younger patients, especially those in the 25-34 range, who are especially volatile.
To achieve the kind of satisfaction levels that result in loyalty, physicians must enlarge their understanding of what matters most to health care consumers in their market.
For example, many physicians think a degree from an impressive institution is of primary importance to consumers. But our research shows that excellence in physician education and training are givens in the minds of most consumers. Convenience (of hours and location), office wait times, and ease of communication have a bigger impact than the diploma on the wall.
Based on our research, we recommend that physicians who want to acquire, retain, and satisfy today’s health care consumer must:
• Offer services at times convenient to the consumer.
• Make sure the environment the consumer comes into is comforting and comfortable.
• Ensure that office staff treat the consumer in a manner that enhances their experience.
• Understand the importance of a good bedside manner.
• Develop excellent communication skills.
The development of excellent communication skills deserves special attention. Dissatisfaction with care and with a physician’s manner is closely related to communications, so it is critical that physicians understand the power of good communication skills.
By taking the time to listen to patients, collect their feedback, and engage in meaningful dialogues, physicians are enhancing patient satisfaction and loyalty. The physician who responds to patient needs is more likely to be the physician patients choose and the one they stay with. As patient choice grows, the physicians who engender this kind of loyalty will thrive.
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