10th annual polling of U.S. healthcare leaders reveals both divergent and aligned perspectives on critical topics including AI, consumerism, interoperability, and value-based care
Today Change Healthcare (Nasdaq: CHNG) and the HealthCare Executive Group (HCEG) published the 2020 Industry Pulse Report, an annual study that takes the pulse of healthcare executives nationwide, and reports on the challenges, issues, and opportunities they see in the coming year for healthcare.
Conducted by market research and strategy firm InsightDynamo, and commissioned by Change Healthcare and the HealthCare Executive Group, this year’s Industry Pulse Report exposes widely divergent readiness and perspectives among payers and providers around value-based care, consumerism, interoperability, and more.
The report also reveals where payers and providers are well-aligned, such as around Social Determinants of Health, specific tactics to improve consumer engagement, and the immense potential for artificial intelligence (AI) and machine learning (ML) to improve healthcare. Also, for the first time in its decade-long history, Industry Pulse Report researchers asked participants what direction they anticipate healthcare will take after the 2020 election, regardless of how the fortunes of the political parties play out.
"This year’s report provides a fascinating look at where healthcare is in 2020," said David Gallegos, SVP, Consulting Services, at Change Healthcare. "In our 10 years of fielding this research, I don’t think we’ve seen healthcare industry leaders so polarized on some strategic issues and so tightly aligned on others. These insights can help foster a dialogue between payers and providers about their priorities, driving collaboration to advance solutions on those issues in the year ahead."
The 10th Annual Industry Pulse Report draws on responses from 445 healthcare leaders nationally from payer, provider, and third-party vendor organizations, and interviewed between October and December 2019. Of the respondents, 24% are C-suite, 15% are VP/SVP, and over 40% hold director titles.
Key takeaways from the 2020 Industry Pulse Report include:
- Payers report being much farther along the path to value-based care than providers, with nearly two-thirds (62%) indicating their organizations are using alternative payment models, and 9% using full capitation. Meanwhile, less than half (43%) of providers say they use alternative payment models, and a mere 2% report full capitation in use. Additionally, payers (25%) are much more likely than providers (8%) to cite IT Infrastructure as a key barrier to implementing value-based care.
- Only 18% of providers and 24% of payers say they have a "full consumer-centric strategy" in place. Moreover, 14% of providers say they have "no consumer-centric strategy," whereas 100% of payers report having a strategy or one in development. Consumerization efforts overall are mostly in the early stages, with 34% of providers and 43% of payers calling their strategy "nascent," and just 36% of providers and 33% of payers characterizing their efforts as "intermediate." Payers and providers also disagree on who is best positioned to provide cost and quality data to consumers, both believing they are the best choice.
- Payers and providers are divided on what will make healthcare interoperability happen. More than twice as many providers (23%) than payers (11%) see consumer demand as driving interoperability, and nearly 40% of the C-suite believe interoperability will materialize when consumers insist on it. Payers, however, are nearly twice as likely (36%) than providers (20%) to cite regulatory changes as fueling interoperability, while 18% of providers think physician-driven initiatives are a key driver compared to just 2% of payers.
- Payers and providers are aligned on the benefits of AI and ML investments. Respondents say smart technologies are having a positive impact on operations by improving health system efficiency (payers 38%, providers 56%) and reducing costs (payers 28%, providers 42%). AI and machine learning are also improving consumer engagement, with 36% of payers and 39% of providers reporting a payoff.
- Regardless of who wins the White House in 2020, payers and providers don’t expect disruptive change to the U.S. healthcare system. The majority of C-suite respondents (39%) believe there will be no significant changes to the U.S. healthcare system following the 2020 elections, and a majority (28%) of all respondents agree. The highest percentage of providers (31%) predict a continued unwinding of the Affordable Care Act (ACA), while 26% of payers expect the ACA to be strengthened. Just 17% of respondents expect to see a public option take hold, and only 3% predict America will move toward a single-payer, "Medicare for all" system post-election.
"The 2020 Industry Pulse is the most powerful and complete insight into differing Industry perspectives that we have had in 10 years," said Ferris Taylor, executive director of the HealthCare Executive Group, a 32-year old non-profit association of healthcare leaders. "It should facilitate a much greater discussion and collaboration across all segments of healthcare."
The full 41-page 2020 Industry Pulse Report expands on all of the above insights and more; and is available at https://inspire.changehealthcare.com/2020-Industry-Pulse-Results. Registration is also open for "Industry Pulse Check: How Providers and Payers See 2020 Healthcare Trends," a webinar featuring exclusive data not published in this announcement or the 2020 Industry Pulse Report. The webinar will feature live commentary, including registrant Q&A with analysts from the HealthCare Executive Group and Change Healthcare.
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About HealthCare Executive Group
The HealthCare Executive Group is a national network of healthcare executives and thought leaders who come together as a group to navigate the strategic and tactical issues facing their organizations. HCEG provides a platform for its members and partners to promote healthcare innovation, technology, and the development of lifelong professional relationships. Originally chartered as the Managed Care Executive Group (MCEG), the HealthCare Executive Group (HCEG), was founded in 1988 by executives looking for a forum where the open exchange of ideas, opportunities for action, collaboration and transformational dialogue could freely ensue, especially with respect to the annually identified HCEG Top 10 opportunities, challenges and issues all members face. For more information and the 2020 HCEG Top 10, visit our website, follow HCEG on Twitter at @HCExecGroup and connect with us on LinkedIn.
About Change Healthcare
Change Healthcare (Nasdaq: CHNG) is a leading independent healthcare technology company that provides data and analytics-driven solutions to improve clinical, financial, and patient engagement outcomes in the U.S. healthcare system. We are a key catalyst of a value-based healthcare system, accelerating the journey toward improved lives and healthier communities. Learn more at changehealthcare.com.