Alternative care site usage on the rise

Consumer use of alternative sites of care such as retail health clinics, urgent care centers and telehealth is on the rise, and likely going to climb higher, according to a new report from consulting firm Oliver Wyman.

Given consumers' willingness to use these options, Oliver Wyman projects at least $200 billion in current healthcare spend could flow to one or more of these alternative sites of care.

The report, "The New Front Door to Healthcare is Here," covers the potential impact on providers, payers and retailers, as well as specific considerations and opportunties for each industry segment.

The firm conducted a national survey late in 2015 and found that more consumers of all demographics are using alternative sites of care, and many report good experiences. Survey highlights include:

• 25 percent of consumers have used a retail clinic, an 11 percentage point increase from the previous survey in 2013.
• Almost 80 percent of consumers who had visited a retail clinic within the past two years said the experience was the same or better than a traditional doctor’s office.
• 32 percent of respondents would use a retail clinic only if it were affiliated with a local hospital or provider.
• Retailers’ "best" customers are more willing to receive health and wellness services at that retail site; though some of their "worst" are also interested, and this could be a source of growth.

The industry is now at a critical juncture, according to the report. If the "new front door" is not designed and executed correctly, costs may rise and consumer experience will decline. Stakeholders need to reconsider their market strategy, as well as benefit design, network structure, incentives provided, services offered and business model.