Executive power shift: Embracing elevated consumerism in health care

The first cycle of disruption in the health care industry, characterized by less intrusive and consumer-centric changes, is underway. This cycle, marked by industry fragmentation, is expected to grow over the next three years and will be driven by new entrants from the retail and consumer sectors.

One of the key aspects of this cycle is the emergence of “DIY” health-conscious consumers. According to the biennial Deloitte Survey of US Health Care Consumers, 32% of respondents chose virtual visits because they’re more convenient.⁶

This demographic is making informed choices about their wellness, driving the proliferation of personalized wellness products and experiences. The growing popularity of wearables and digital health services is a testament to this trend, reflecting daily engagement and a heightened focus on personal health monitoring and management.

Transparency in health care is another critical component of this cycle. There’s an increasing demand for price transparency, driven by consumer knowledge and policy changes. This transparency is essential for empowering consumers, allowing them to make more informed decisions. Moreover, advancements in technologies like GenAI are revolutionizing the way health plan benefits are understood and utilized. By bridging gaps in health and health insurance literacy, these technologies simplify complex decisions and facilitate self-service, enhancing consumer empowerment.

The accessibility of health care has improved with the proliferation of convenient care sites like retail clinics, virtual platforms, and home health services, exemplified by One Medical’s hybrid model and tools like ZocDoc, which ease health care navigation.

Over the next three to six years, we expect to experience a shift to the second stage. This cycle is characterized by the emergence of the fully enabled health consumer, a pivotal force disrupting the landscape of general care.

Our data shows 20% of surveyed consumers already use social media for information on public health issues (while only 50% go to their doctor), and 21% get information from their health plans.⁷ Armed with personal health records and an expanding array of health knowledge, these consumers aren’t only more informed but also increasingly demanding in their expectations from health care providers.

This evolution is fueled by easier access to information and the demand for convenience seen in other industries, compelling consumers to seek more personalized health plans and engage more deeply in their own health management. The traditional general care model faces disruption from these informed consumers, technological advancements such as digital therapeutics and GenAI, and the growing popularity of on-demand and subscription-based models. These innovations have the potential to reduce administrative burdens on clinician providers, potentially enabling them to offer more personalized, one-on-one care.

A significant trend is the segmentation of care offerings, which are increasingly being offered “a la carte” on health plans. This unbundling approach, a departure from the traditional one-size-fits-all model, allows for more customized and specific health care solutions. Companies like Maven Clinic demonstrate this trend, providing tailored offerings built around specific segments. Consequently, health plans are diversifying, offering a broader range of choices, but also introducing lower-cost, higher-risk options for catastrophic care, reflecting a new balance between cost and risk in consumer choices.

Trust plays a vital role in this new era, with consumers placing increased faith in digital solutions while reassessing their trust in traditional health care and human clinician providers. This distinction marks a fundamental change in the perception and utilization of health care. Cycle 2 represents not just a change in services and models but also a fundamental shift in the very ethos of health care provision and consumption.

By the year 2030, the health care industry will likely be transformed by cycle 3, a new era of health centered around the consumer. This era is marked by an unprecedented fusion of technology, biology, and personalized care. The core of this transformation is the shift toward far greater individualized care, or “N of 1” health modularization, wherein treatments and health strategies feel uniquely tailored to each person’s needs, utilizing data-driven insights to power individuals’ health journeys. This approach contrasts with the traditional one-size-fits-all model, ensuring that the same health condition can vary significantly between individuals.

This personalized health care will likely be seamlessly integrated into daily life, facilitated by advancements in wearables and digital health technologies. It promotes health consciousness without demanding significant behavioral changes. Another crucial aspect of cycle 3 is the reduction of intermediaries, bringing consumers closer to their care and giving them more control over their health decisions. We’re already seeing early signs of this shift with organizations such as Blue Shield of California’s decision to reduce the degree of benefits control it had previously granted to CVS Caremark.⁸

Cost reduction is another considerable benefit of cycle 3, with a focus on integrating equity in health care. Strategies such as subsidized care based on clinical and social determinants of health; new payment models like cash pay, sliding scales, and health stipends; and “N of 1” value-based care are set to emerge. These approaches aim to dismantle the wealthy-healthy dilemma, ensuring that quality health care is accessible to all, regardless of socioeconomic status.

This cycle of evolution isn’t solely about changing how health care is delivered; it’s about reimagining what health care can be. It’s a vision of a world where everyone, irrespective of background, has the tools, knowledge, and support to lead a healthier, happier life. Cycle 3 isn’t just a change in health care—it’s a change in how we live.