Customer experience isn’t just an expense. It’s a competitive advantage

July 23, 2024

By Byron Jobe,
Vizient President and Chief Executive Officer

When was the last time you wrote a physical check? Most of us have moved on, paying with a credit card or the tap of a phone. But some people are still pulling out their checkbooks, especially for major expenses like a hospital visit.

In fact, I recently learned of a major health system that pinpointed two rural counties that were sending in most of the physical checks the organization received. This discovery pushed the health system to learn more about these patients and how they prefer to access care. They found that not only did this population prefer traditional payment over digital, but also brick-and-mortar clinics over virtual care options. As a result, the health system was able to make more effective decisions about care delivery and access because they took an experience-centered approach to seemingly unrelated data.

In today's fast-paced healthcare environment, prioritizing customer experience and engaging patients on their terms can create a lasting, positive impression that boosts loyalty and retention.

Customer experience is a differentiator

For several years, we've seen disruptors enter the market to address gaps in customer experience by offering convenient, patient-centered care that's often more cost-effective than traditional healthcare. While these disruptors have struggles of their own, new entrants are offering a growing range of care options and account for 3% of total visits, as shown by nationwide claims data from Sg2, a Vizient company.

Patient demographics are also shifting in ways that health systems can no longer ignore. In the coming decade, Sg2 projects a 9% rise in inpatient days to 170 million per year. With an aging patient population experiencing more complex conditions, emergency department bottlenecks will intensify, leaving patients to wait for inpatient beds.

In fact, Sg2 is projecting growth across all sites of care. From a 22% increase in home health to a 26% increase in outpatient behavioral health services, it has never been more important for health systems to key in on the consumers in their market.

To keep up with this obvious demand and to provide the access patients need, health systems must prioritize an exceptional customer experience. Here are four ways health systems are creating a care journey that's seamless, convenient, empathetic and efficient.

Save healthcare consumers time with self-service tools

Self-service tools such as appointment scheduling, accessing test results and medical records, and secure messaging with providers can not only transform the patient experience but also impact outcomes.

At the University of Pennsylvania Health System, patients who were able to self-schedule a mammogram appointment were 15% more likely to follow through and get the screening. This simple intervention required no additional clinical or staff resources, proving to be adaptable and scalable. Most importantly, it helped ensure that patients received the care they needed.

Help patients know what they're going to pay-and make it easy to do so

With healthcare expenses rising, patients are more cost-conscious and want a clear picture of their care costs upfront. As legislation continues to push price transparency requirements, health systems staying ahead of the curve with straightforward cost information can gain a competitive edge. By working proactively with insurers, leading health systems are making progress toward comprehensive estimates of out-of-pocket expenses, making it easier for patients to understand and manage their bills.

Health systems can also consolidate invoices and payment timelines, preventing the confusion of receiving multiple bills from a single hospital visit. Offering a variety of payment options, including online, credit card, automatic payments and, of course, those good old-fashioned checks, can also simplify the payment process, accommodating patients' diverse preferences.

Leverage technology for enhanced patient access

Nearly nine out of ten consumers are comfortable managing their healthcare needs via technology. That means health systems need to prioritize making their technology, including websites and apps, accessible, easy to use and optimized for mobile. Online booking, check-in and bill pay are must-haves, while online physician reviews are helpful too.

Cedars-Sinai introduced the CS Connect app, which uses generative AI to help patients reach out to their providers, manage appointments and view medical records-all from their phones. Patients answer questions about current symptoms and the chatbot schedules the relevant appointment. By harnessing technology to improve patient access, Cedars-Sinai delivers a more convenient and efficient healthcare experience, ultimately boosting patient satisfaction and loyalty.

Technology is just the start. Relationships elevate the patient experience

According to Sg2 data, most hospitals capture less than half of their patients' healthcare spending compared to their competitors. Also, less than a quarter of all patients are very loyal to one hospital. This means consumers are splitting their care between different providers, likely because a single provider is not able to comprehensively meet their needs in a particular market.

Consider Tampa General, where health system leaders have reimagined the scheduling department as a 24/7 experience center. Ambassadors don't just book appointments; they guide patients through their care journey, offering a human touch in a digital world. The result? A significant uptick in patient satisfaction and loyalty.

Investing in growth is important even during tough times

Companies that continue to invest in growth emerge stronger and more successful in the long run. When economic conditions are challenging, many organizations tend to cut back on investments, including those in customer experience. However, investing in customer experience means health systems can differentiate themselves from competitors, attract and retain customers, and position themselves for future growth.

Top health systems are focused on transforming healthcare to be truly consumer-centric, putting the patient at the heart of everything the organization does, whether that means continuing to accept paper checks or using AI to create patient-facing chatbots. In that way, customer experience almost falls in same bucket as culture. It can be difficult to measure, but you can tell when companies do it well. We all know the feeling of a company that's easy to work with. Health systems should strive to be on that list.