These are real-time notes from the World Health Care Congress on Health Plan Innovation that is taking place on March 11-12 in Orlando.Steve Auerbach, President of connextions Health kicked off the 2 day Congress event by talking about Innovation.
His computer Avatar linked the Apple iPhone's integration and the transformation of the Travel Industry from a Business-to-Business to a Business-to-Consumer model. The obvious parallel being that Health Care is on the cusp of the same transformation.
- Consumer Aggregation will become a focus
- Choice is needed to drive down cost (I argue that Informed choice is needed
- Successful companies allocate cost across the entire consumer experience
- The strong will survive in a consolidated world
- More govenrment regulation and oversight is coming
- Move to commoditization due to lower margins and less money to go around.
Who will survive: The companies that are thinking about new products, new business models.
Those that undeerstand the consumer and understand how to deliver value.
Business Intelligence that understands the consumer and their lifetime value.
In terms of life time costs: Acquisition costs will flatten
Retention costs will increase and serivce costs will be contained.
In the Travel industry the transformation of the business model flattened in five years. Primarily through the use of the Internet. We can expect the same happening in Health Care.
92% of Americans get HealthCare through employers/Consultants. The durct to consumer model is broker based (about 8% of market)
The future is in the exchange model.
survivors will be those that understand how to please the customer.
Consumers like to shop in multi-channel venues. There are typically 4.2 touch points before customers buy a Medicare product.
Successful consumers will understand which are the high value consumers.