This is an excerpt of a 1.620-word article in the May 3, 2021 issue of THE DARK REPORT (TDR). The full article is available to members of The Dark Intelligence Group.
CEO SUMMARY: In just 42 months, Millennials will make up 75% of the workforce, according to U.S. Department of Commerce statistics. As consumers and patients, they are already triggering changes, reforms, and innovation in healthcare. It is timely for clinical lab administrators and pathologists to understand how and why Millennials’ healthcare demands will be very different from Generation X and Baby Boomers. Here’s a look at key developments.
CONSUMERS ARE BECOMING A POWERFUL FORCE OF CHANGE as the nation’s healthcare system continues to transform. This has profound implications for those clinical laboratories that want to stay at the cutting edge with their lab testing services.
As consumers radically alter the way they access medical services, clinical laboratories will need to reconfigure key aspects of their services to properly serve the “new healthcare consumer” and meet their very different expectations for service, for quality, and for price.
For example, as more patients grow comfortable using telehealth to do virtual office visits with their physicians, how will clinical labs get access to that patient to collect the samples needed to perform the lab tests ordered by that physician as a result of the virtual office examination?
Today, the clinical laboratory industry is oriented around the primary specimen collection model of:
a) having phlebotomists in physician offices, and,
b) maintaining a network of patient service centers, typically located in physician office buildings.
Will this existing infrastructure of specimen collection sites be viable if a greater number of patients stop traveling to their doctors’ offices and instead see their caregiver using a telehealth service? Labs should ask this question in their strategic planning and develop new approaches to collecting specimens from those patients using telehealth services to consult with their physicians.
Millennials—Generation Y—are the front wave in this change in the way healthcare is accessed and delivered. Millenials’ healthcare demands include being comfortable accessing their physicians via telemedicine and virtual office visits, especially if it saves time.
Similarly, Millennials’ healthcare demands mean using their smartphones and digital devices to have immediate access to their health records. A high proportion of Millennials also track their own health metrics with a fast-growing product category known as “wearable fitness technology.” These devices range from FitBits and Nike Fuelbands to Apple watches.
The consumer revolution in healthcare is not limited only to Millennials’ healthcare demands. Growing numbers of Gen X’ers and Baby Boomers are becoming comfortable seeing their physicians virtually, having 24/7 digital access to their health records, and using wearable devices to monitor their diabetes, deliver insulin, and track the function of their heart, among other uses.
Insurers Support Telehealth
Health insurers are jumping on the virtual physician visit trend. Not only do telehealth services meet the wants of Millennials for quick access to their doctors, but telehealth sessions are a way for payers to reduce healthcare costs without compromising the quality of care. Just this year, Oscar Health, UnitedHealthcare, and Kaiser Permanente launched or expanded virtual-first care plans.
Humana started similar health plans in the Southeast U.S. two years ago that require the patient to start a care encounter with a virtual physician visit in exchange for very low monthly premiums. Last year, Humana invested $100 million in telehealth company Heal specifically to help the insurer expand into new markets.
This trend of expanded acceptance and use of telehealth and virtual office visits was intensified by the outbreak of COVID-19 in the winter of 2020. From the start of the pandemic, even senior citizens proved willing to see their doctors virtually.
The American Medical Association published a report quoting Jared Augenstein, a Director at Manatt Health. He said that “between mid-March and mid-October of last year, nearly 25 million Medicare beneficiaries received services via telehealth, while Medicaid and CHIP beneficiaries received nearly 35 million services via telehealth last year.”
Convenience as a Driver
Another important driver of change in healthcare shared by all consumers—regardless of their generation—is the desire for convenience. Today’s healthcare consumer wants a smooth, fast, and easy experience with any retailer or service provider.
That is why patients are increasingly frustrated with how they are forced to interact with hospitals, doctors’ offices, clinical laboratories, and other providers. It is still common for a patient with an appointment for a health service to walk into the facility and be handed a clipboard with a form to fill out with pen or pencil. Patients must sit in the lobby and fill out forms before they can access their doctor or have a procedure performed.
This example shows why patients—as consumers—are frustrated with the healthcare system. They understand that, if they are buying from Amazon, eBay, or any number of other web retailers, they may be just two clicks away from completing a purchase. That is not true for healthcare.
Labs Emulating Starbucks?
Similarly, these patients know they can walk into a Starbucks, give the barista the order, and then hold their smartphone up to the reader to complete the transaction wirelessly and instantly. Furthermore, digitally-connected consumers can use the Starbucks app on their smartphone to order and pay before they even entered the store! This allows them to walk through the door and find their order ready and waiting to be picked up.
Imagine how different the experience of your lab or pathology group’s patients would be if your team streamlined and automated as much of the specimen collection process as possible. Your lab would create a loyalty bond with each patient that would be difficult for competing laboratories to break. It could be the ultimate competitive advantage.
Changes in healthcare and other segments of business attributed to the different interests and needs of Millennials and Millennials’ healthcare demands can be better understood when compared to earlier generations.
For example, the “Greatest Generation” (those Americans who fought World War II and parented the Baby Boomer generation) were typically recognized to be compliant patients. They usually accepted their doctor’s diagnoses and recommendations with few questions.
This is generally not true of Baby Boomers. They are the generation of patients who do deep-dive research into their health conditions. They then arrive for their appointment carrying a stack of published clinical studies and press the doctor to absorb this information and incorporate it into their treatment plans.
Generation X continued the research trait of the Boomers, but also began adapting to new models of primary care. Urgent care centers could be considered a response to Gen X patients who want 24/7 access to healthcare whenever they have earaches, sore throats, and sniffles.
All this changed with Millennials because they grew up with computers, mobile communication devices, and the Internet. Millennials tend be more demanding consumers of healthcare.
Thus, clinical laboratory leaders would be well-served to understand Millennial lifestyle preferences and meet those expectations.
Are you already planning to meet Millennials’ healthcare demands? Please share your thoughts with us in the comments below.