Deloitte Analysis: Consumer Demand for Virtual Health Outpaces Market Offerings
Friday, October 18th, 2024
Key takeaways
- Ninety-four percent of consumers are willing to return for virtual health visits in the future — up from 80% of consumers surveyed in 2020.
- Meanwhile, nearly 50% of health systems surveyed say they offer the same or fewer virtual visits today compared to 2022 with some ending virtual visits completely.
- Eighty-two percent of health system executives would be willing to expand virtual care services if reimbursement rates were equivalent to in-person care.
- Forty-three percent of millennials and 33% of Gen Z surveyed say they would switch their doctors if virtual visits are not offered.
Why this matters
Today's health care consumers are accustomed to highly personalized virtual experiences, and they're willing to switch providers to get it. The findings from Deloitte's latest report, "The growing disconnect between virtual health availability and consumer demand," underscore a gap in health care systems' understanding of today's health care consumer. The report shows that 40% of health care systems reduced or discontinued virtual visits because they perceived low patient interest. While the report indicates additional reasons health systems are reducing virtual visits, Deloitte suggests that virtual health has the potential to be a profitable growth area at a time when health systems need it most and presents opportunities to improve patient experience and access to care.
Convenience and cost are driving consumers to go virtual
In today's fast-paced world, many consumers expect the flexibility of conducting their day-to-day activities virtually— whether it's working, managing finances, or shopping. The demand for convenience in health care is apparent with Deloitte's survey showing patients increasingly seeking virtual appointments as a more flexible and accessible option. The ability to schedule appointments at convenient times, avoid travel and reduce wait times is appealing to more health care consumers who value efficiency and convenience.
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Convenience is the No. 1 reason why consumers are choosing virtual health visits over in-person appointments. People favored more flexible appointment times (64%), the elimination of travel to get to the appointment (44%), and shorter wait times (37%).
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Cost was another benefit to consumers, with one-third saying virtual visits are more cost effective for them considering expenses like time off from work, transportation, parking and childcare.
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Flexibility is important, as 1 in 4 survey respondents are willing to switch doctors to get access to virtual care.
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More Hispanic (38%) and Black (29%) respondents would consider switching doctors to ensure the availability of virtual visits than white (21%) and Asian (17%) respondents.
Key quote
"Health care consumers today appear to feel empowered, and many are seeking experiences with providers that can deliver personalized care when, where and how they want to receive it. Our research suggests that some patients are willing to change providers if they don't offer virtual health, so this should be a clear signal to health care systems that the needs and preferences of their consumers should be understood and acted upon."
— Urvi Shah, principal, Life Sciences and Health Care, Deloitte Consulting LLP
Clinician resistance and reimbursements hindering virtual health growth
Provider adoption of virtual care has been hindered by several challenges:
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Low interest among physicians and clinical teams remains a challenge, with 60% of health system executives citing this as the main factor.
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Inadequate reimbursement rates and changes in payment incentives: (82%) of health system executives would be willing to expand virtual care services if reimbursement rates were equivalent to in-person care.
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Health system executives also say they were influenced by what they perceived to be low patient interest (40%).
Key quote
"Despite these challenges, the growing consumer demand for virtual health presents a significant opportunity for health care systems. There are operational strategies that can enhance the profitability of virtual health, even with lower payments. The concept of Smart Hospital of the future is no longer a sci-fi concept — it's here and starting with immersive experiences with virtual reality and a wide variety of tech and digital tools and can only expand access and reduce obstacles from a health equity standpoint."
— Anwesha Dutta, managing director, Smart Hospital of the Future Leader and Tech Strategist, Health Care Consulting, Deloitte Consulting LLP
Consumer-centric growth opportunity for health systems
The increasing demand for virtual health underscores a need for health systems to prioritize new strategies, operations capabilities and technologies to transform care delivery, attract and retain patients and improve margins. However, challenges such as limited access to capital and increased scrutiny on return on investment should be addressed. Overcoming these obstacles will be important for health systems to capitalize on the opportunities presented by virtual health and transform health care delivery centered around the patient experience.