in collaboration with
COMPLEXITY
AND OPPORTUNITY
A SURVEY OF US HEALTH CONSUMERS’
WORRIES AND WANTS
FOREWORDBY OLIVER WYMAN
A young mother is up at 2 am, worried that her infant won’t stop crying. A high
school football player needs a physical on a Saturday morning in order to play
in the big game. A grandmother thinks her blood pressure is too high—again.
Each of these individuals needs healthcare, but their needs are not the same. For the mother, it might
be a video consultation with a pediatric nurse; for the quarterback, a visit to a retail clinic; and for the
grandmother, a same-day appointment at her longtime family doctor. Much of the investment we see
in healthcare transformation today focuses on creating just such personalized, segmented options in
an industry that, for far too long, has taken a one-size-fits-all approach to its offerings. As healthcare
organizations increasingly understand and seek to engage more deeply with their consumers, they are
rapidly expanding the range of services they provide.
Yet the path to pleasing every consumer is not a straight one. In this first-of-its-kind research,
Oliver Wyman, in collaboration with FORTUNE Knowledge Group, finds that some consumers were
ready yesterday for new solutions such as home visits and telehealth. They quickly will become loyal to
whomever serves them when they want, where they want, and how they want, at a price they can afford.
Others, however, are reluctant to spend even a dollar more on top of already sky-high healthcare costs.
For them, every new solution needs to prove its value and then some, and serving them will depend on
finding a business model that doesn’t rely on consumers parting with their own hard-earned cash.
Today’s Gen Xers and millennials, and particularly those who struggle with chronic diseases, are far
more willing to pay for innovative healthcare services than older generations. Over the next 10 years, as
these young adults move toward middle age, we can expect that more of them will inherit the burdens of
diabetes, high blood pressure, and other lifestyle diseases. As a result, another 140 million individuals will
be drawn to—and willing to pay for—healthcare services that meet their unique needs. These services,
mind you, will likely bear little resemblance to the doctor’s office visit we think of today. Simultaneously,
the oldest members of Generation Z (today’s high school and college students) will achieve adulthood
and begin purchasing their own healthcare. Do we really think this generation that grew up on one-click
retail and streaming-anything-anywhere entertainment will be satisfied with today’s healthcare
Farther along the age curve, members of the so-called Sandwich Generation, who are squeezed caring
for both their children and aging parents, view time as their most precious commodity. They want
navigation and simplicity, and will pay for solutions that give them hours back in their days and peace of
mind back in their nights.
Our research provides a nuanced view into the concerns and the needs of healthcare consumers.
What people want and what they’re willing to pay for vary significantly by segment. And yet, one view
is consistent: Consumers want a better healthcare experience. The system doesn’t work as it could (or
should) for many people. They’ve told us what they want and need, and now it’s up to us to deliver.
Copyright2017 Oliver Wyman 2
EXECUTIVE SUMMARY
The US healthcare system is entering a period of transition. Between reform efforts and
competitive pressures, healthcare companies are faced with the challenge of transforming
amidst uncertainty.In this climate of change, understanding Americans’ attitudes toward
the healthcare services they use, and also how those services might be expanded or
improved to better meet consumers’ wants and needs, will become increasingly important.
To inform this discussion, Oliver Wyman, in collaboration with FORTUNE Knowledge Group,
conducted an online survey of 2,016 US consumers in October and November 2016 (for a
detailed demographic breakdown, see page 16). The survey is one of the largest of its kind,
and the findings are highly relevant for policy makers, industry leaders, and the general
public at this key moment. The survey’s insights are many:
healthcare system is far from perfect. The cost of healthcare is a concern for all
consumer segments, and most find the medical system complex and confusing.
consumers’ experiences, expectations, and concerns are as diverse as the country itself,
and the survey data reveal a wide variation in what forms of healthcare consumers value
and are willing to pay for.
policymakers and business leaders understand the very real differences in the consumer
market—and particularly the differences by generation, income level, and health status.
There is no single strategy that will
meet consumers’ varied desires and
needs. Instead, it’s about seeing the
complexity of the consumer market
and tailoring the solutions accordingly.
Copyright2017 Oliver Wyman 3
from how insurers structure their plan offerings; to employers’ responsibilities toward
workers; to how, when, and where providers deliver care.
the market (such as younger individuals, baby boomers, family caregivers, and people
with chronic diseases) is important if the healthcare system is to meet the needs of these
millions of Americans today and in the coming years.
offerings accordingly, will lead to higher consumer engagement, more efficient care,
decreased overall costs, and a more vibrant market for insurance products.
of business, but the survey shows that healthcare may not be so different from
other markets. As is the case in other industries, succeeding in healthcare is about
customer segmentation, understanding these segments , and then being relentless in
personalizing the offering.
The days of viewing healthcare holistically are over. Healthcare
companies that adopt a universal consumer strategy will face
challenges and frustrations because there is no single strategy
that will meet these varied desires and needs. Instead, it’s about
personalization, seeing the complexity of the consumer market, and
adopting a multi-faceted consumer’s point of view—one that can be
executed through a number of different strategies.
Copyright2017 Oliver Wyman 4
A POPULATION
IN CONTEXT
Millennials and Gen Xers make up nearly half of the US
population. According to our survey, these individuals are
more likely to view healthcare as a consumer good than
their older counterparts. As a result, they represent both a
dramatic growth opportunity and a challenge for healthcare
organizations. Millennials and Gen Xers expect a broader
range of healthcare services than they are currently offered.
As the nearly 140 million Gen Xers and millennials age, they
will begin consuming healthcare services at increasingly
higher rates, and they are likely to express their unique
preferences more strongly. The healthcare marketplace needs
to start preparing now to serve this massive new demand.
Not to be forgotten, Generation Z, though not polled in the
current survey, is likely to represent another challenge and
opportunity for healthcare organizations. About 40 million
members of this generation will turn 18 and begin making
their own healthcare decisions over the next decade. Is the
healthcare system ready to serve them
ExHIbIT 1: US POPULATION bY GENERATION
81M
74M
65M
71M
26M
Silent Generation
8%
Gen Z
and Younger
26%
Millennials
23%
Gen X
21%
Baby
Boomers
22%
Note: Generational definitions are sourced from the Pew Research Center.
Population s