Health Market 2.0 describes where the “Patient to Consumer Revolution” is taking us, according to Tom Main and the team from Oliver Wyman. Health Market 2.0 reframes health around the consumer and will drive huge gains in both healthcare benefits and financial savings. Technology is helping drive this transformation and plays a role in the new “trifecta” or elements in the new health market. They are the quantified self, transparent consumer markets and smart care teams.
With 7 out of 10 adults tracking or monitoring some activity, the quantified self is quickly becoming the way which we will get immediate and contextual feedback, and use that to improve our health, receive rewards and become more in-charge of our lives. It is a direct play from the growing Do It Yourself (DIY) movement.
Transparent markets eliminate the imbalance of information between buyers and sellers, and enable consumers to access information from a broad array of quantitative (think Change Healthcare) and qualitative (social networks) sources, so they can create the best set of services for themselves. Private exchanges are part of this – and there is every reason to believe insurance itself will change so that we’re no longer purchasing benefits once a year.
Smart care teams – the new models for delivering care – are already emerging, using a broad team of clinicians and coaches to help people stay healthy (and avoid expensive care). They’re using biometric screening and devices to intervene before a problem emerges and, with data and analytics, will operate on a larger scale than we’ve seen to date.
The most exciting thing for me is how much activity is taking place in all of these areas. As Oliver Wyman points out, early stage funding in health has grown 7 times between 2009 and 2013, not including the more recent forays by Google and Apple. Yes, there will be some failures along the way, but the momentum towards Health Market 2.0 is tremendous and it is gratifying to have it described so eloquently by Oliver Wyman.