Digital transformation ignites rapid change the health care industry
But take heed: This brave new world is not without pitfalls.
Although the COVID-19 pandemic didn’t start the digital transformation in the benefits industry, it certainly accelerated its pace. Trends such as remote work, telemedicine and a spike in online shopping are sure to continue as the economy slowly gets back to normal.
The industry must understand the profound impact of this transformation on customers, employees and health care in general, and then adjust accordingly, said Lygeia Ricciardi, client relations consultant and health-care futurist for Carium.
“Our daily experience in perhaps ordering groceries and having them delivered to our house informs how we expect our health-care providers, benefits providers and employers to act with technology,” she said. “Consumers don’t necessarily discriminate and give you a pass because you’re in a different industry.”
Related: Consumer demand booming for digital health products
Ricciardi shared her insights during the online webinar, “Digital Transformation: Imperatives for the Benefits Industry” on February 4, presented by Benefitfocus. This transformation offers both opportunities and challenges.
“People expect more flexibility in where they can live,” she said. “Companies that are able to embrace and use remote work, not just during the pandemic but beyond, have an opportunity to pull from a much broader, more diverse base of talent.
“Employers also are increasingly taking advantage of the gig economy in creative new ways. It’s a broader idea of pulling people in with a particular type of expertise to fill a niche need that may not merit hiring someone full time or even part-time but having a more fluid ongoing working relationship.”
At the same time, proper data stewardship is imperative for employers, according to Jaimy Szymanski, founder of Kaleido Insights.
“This explosion of data and its driving of artificial intelligence and machine learning applications have really unlocked this brand-new phase of digital transformation, shifting how employers think about employee data,” she said. “Most employees are working from home, and that can bring up new challenges in how employees are being tracked throughout the workday in terms of progress and what they are spending their time on.”
Employers can create a win-win environment by welcoming this trend. “We have found that one of the biggest drivers of digital transformation in the future of the workforce is a company culture that embraces engaging, connecting, growth and innovation at the employee level,” Szymanski said.
Perhaps the most profound changes are in the health care industry itself.
“One of the trends we are seeing is this push toward virtual care,” Ricciardi said. “Another is a shift from treating acute illnesses and injuries as they come up to looking more at prevention and management of conditions. That means your are tracing someone’s biometrics and their vital stats on an ongoing basis to start seeing things before they become a problem.”
This changing landscape is attracting new and diverse players.
“The industry used to be a more clearly defined box of providers, but that box is expanding and eroding,” she said. “You not only have tech giants moving into this space but you also have things like Minute Clinics, Walgreens and CVS. You also see all kinds of companies that were not in any way in health care in the past that are there now.”
Szymanski agrees. “It opens a lot of opportunities for new and existing companies to think about new partnerships and new ways of reaching the consumer and bringing them in as a partner in their wellness and health care on a daily basis,” she said.
This brave new world is not without pitfalls.
“We really have to examine the data risks that are brought about in the collection, use, analysis and disclosure of all of these types of data that are being used in health care,” Szymanski said. “We need to think of being good stewards of consumer data, because we are only going to see telehealth visits increase.”
Expect consumer rights to become increasingly important.
“There is a huge piece of consumer information that is missing in what your rights are as a customer in terms of the ability to start or stop data collection, understand how your data are being used and analyzed, and maybe how it was used to make a decision on whether you were approved for a certain product, whether you got a claim approved or if you were offered one benefits package over another,” Szymanski said.
Businesses that recognize and address these concerns will be more likely to succeed.
“We are in the midst of a revolution and a change, and that is frightening, but there also is an opportunity in it,” Ricciardi said. “As an organization, if you declare that privacy and security are important to you and that you respect the input of consumers, you can build a competitive advantage relative to others in your field.”
Despite these challenges, the most significant roadblock to digital transformation is not external but internal. “Digital transformation is not possible without leadership buy-in and without buy-in from the whole organization that they need to change, not only to complete but also to survive the next wave of technology,” Szymanski said.
Cultural change is imperative for success.
“Think about your customers, patients and employees and what you can learn from them about where they are in regard to use of technology, what their particular preferences are, what their burning needs are and what problems you can solve for them,” Ricciardi said. “Try different things, ask the customer what they think of it and look at the data that you are able to track about how what you tried changed behavior.”
She reminds businesses that it’s fine to learn to walk before they run.
“I know this all seems overwhelming,” Ricciardi said. “We had quite a year, and 2021 has had its bumps so far as well. But you can manage this. Not only do you have to, but it’s not as bad as it sounds. You might make mistakes along the way, but it is doable. There are many organizations before you that have undergone the path of greater digital transformation and succeeded. It may be bumpy and frightening, but you will get there.”
As Szymanski concluded, “Start small, but just start.”
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