Tag Communications

By: Randy Jacobs

The healthcare cost debate in America has succeeded in drawing a political line in the sand, but I’d argue that not enough attention has been given to the perceptions and realities faced by healthcare providers right now. And, speaking as a professional in healthcare marketing, I’d say that part of that is on us.

An extensive study into consumer attitudes about the U.S. health system - recently released by the Deloitte Center for Health Solutions – reveals that consumers generally believe the system is full of wasteful spending. More than half (51%) contend that between 50-100% of all spending in healthcare is a waste. This attitude has remained consistent over the past three years.  Of those believing the system is wasteful, 55% feel that money is wasted because of unnecessary paperwork and 49% because individuals don’t take enough responsibility. Consumers give high marks to value when measuring their spending out-of-pocket on their doctors and prescriptions. But, the marks attributed to hospital care and coverage based on treatment costs and premium rates were significantly lower. 

Predictably, rising health care costs coupled with the state of economy are causing a rising anxiety with consumers.  The result: cutbacks on household spending, delayed care and ongoing worry about being able to pay future healthcare costs.  13% say they have reduced health care spending considerably. 63% say that their monthly healthcare spending places some limitations on their household’s ability to spend money on essentials like housing, groceries, fuel and education.

Along with the sobering numbers, the report contains evidence of changing perception – and the opportunities ahead.

• U.S. consumers are increasingly recognizing that unhealthy lifestyles are a cost driver. Some (31%) are making healthier choices and calling for a greater focus on wellness in the system. That’s good news for those hospitals that are placing more emphasis on community wellness programs.
• U.S. consumers want increased use of information technologies to reduce paperwork, improve access, share information with providers and gain greater participation in decision making. But what are hospitals doing to educate the public on the value their Electronic Medical Record systems provide right now?
• U. S. consumers do not differentiate readily among doctors and hospitals on the basis of measurable/known quality, service, or costs. As a result, personal satisfaction and reputation are primary determinants of differentiation – meaning that perception is the real currency. 

Obviously there is room for quality healthcare providers to do a better job in educating the consumer on the value they bring to the table. The current healthcare delivery system is perceived as complex, wasteful and lacking in value for what is spent. Overcoming this dissatisfaction (currently at 28%) and increasing the satisfaction level (currently at 16%) will require much work to be done…and a lot more to be said about the changes that happen.  The healthcare providers that understand that may gain an edge in preference.

Randy Jacobs (RJ) is the President of TAG Healthcare Marketing and very active in local and state politics.