The Future of Healthcare is Retail | Dan Stanek - WD Partners | HealthSpaces

00:18:14
https://www.youtube.com/watch?v=5EY2LRJvzBU

Summary

TLDRThe presentation highlights a transformative approach to healthcare by integrating retail principles to enhance consumer experiences. It stresses the rise of retail clinics as a response to evolving consumer preferences for convenience and accessibility in healthcare services. With major retailers like CVS and Walmart entering the healthcare field, traditional healthcare providers must adapt to these competitive dynamics. The speaker encourages healthcare organizations to prioritize consumer-centric practices, innovate care delivery models, and create holistic health experiences. Key challenges include addressing consumer dissatisfaction, enhancing brand communication, and differentiating services in a competitive marketplace.

Takeaways

  • πŸš€ Retailers are transforming healthcare through innovative clinic models.
  • πŸ‘₯ Consumers increasingly prefer retail clinics over traditional care.
  • πŸ“ˆ 81% of consumers are dissatisfied with current healthcare experiences.
  • πŸ₯ Retail principles emphasize convenience, accessibility, and branding.
  • πŸ“Š Future healthcare will lean toward outpatient, lower-cost models.
  • πŸ“… The importance of consumer-centric care is critical moving forward.
  • πŸ’‘ Organizations must redefine strategies and embrace consumerism.
  • πŸ›οΈ The line between retail and healthcare is blurring continuously.
  • 🌟 Creating engaging and reassuring environments is vital for patient experience.
  • πŸ”„ Healthcare must evolve rapidly to keep pace with retail dynamics.

Timeline

  • 00:00:00 - 00:05:00

    The future of healthcare is evolving, driven by the convergence of retail and healthcare sectors. WD Partners, an innovation firm specializing in customer experience, emphasizes the importance of adopting retail principles to improve healthcare delivery. With major retailers like CVS and Walmart expanding into healthcare through clinics, there's a notable shift in consumer preference, especially among younger demographics, towards retail-focused healthcare models that prioritize convenience and accessibility.

  • 00:05:00 - 00:10:00

    Understanding consumer dissatisfaction with healthcare experiences is crucial, as approximately 81% are unhappy with the current services. Healthcare providers must adapt to the reality of consumer choice, moving away from traditional hospital-centric models. As more people express willingness to switch primary care providers for better convenience, incorporating retail strategies such as branding and consumer-centric practices is essential to enhance patient experiences and retention.

  • 00:10:00 - 00:18:14

    The healthcare landscape is under significant transformation, prioritizing outpatient care and lower-cost models. To stay competitive, healthcare providers must think like retailers, ensuring easy access, recognizable branding, and welcoming environments. Moreover, leveraging technology to create holistic health ecosystems will become imperative. The industry needs innovative models that not only address current dissatisfaction but also engage consumers in their health journeys continuously, preparing for inevitable challenges from retail giants entering the healthcare space.

Mind Map

Video Q&A

  • What is WD Partners?

    WD Partners is a customer experience innovation firm that specializes in healthcare among other sectors.

  • How is retail affecting healthcare?

    Retailers are becoming healthcare providers, influencing patient experiences and care delivery.

  • What trends are impacting patient care?

    An increase in retail clinics and consumer preference for convenient healthcare options are notable trends.

  • What do consumers value in healthcare?

    Consumers prioritize convenience, accessibility, and a positive experience over traditional healthcare settings.

  • How can healthcare providers adapt?

    Providers can adopt retail strategies, improve customer experience, and focus on consumer-driven care models.

  • What does consumerism mean in healthcare?

    Consumerism refers to patients actively choosing and shopping for healthcare services that suit their needs.

  • What are the implications of retail clinics?

    The rise of retail clinics is changing patient expectations and competitive dynamics in healthcare.

  • What should healthcare organizations focus on?

    They should focus on convenience, brand consistency, and creating a soothing environment for patients.

  • How significant is consumer dissatisfaction in healthcare?

    81% of consumers reported dissatisfaction with their healthcare experiences.

  • What is the future outlook for healthcare?

    The future involves more outpatient care, consolidation among providers, and integrating retail principles into healthcare delivery.

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  • 00:00:00
    [Music]
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    you know when we talk about the future
  • 00:00:10
    of health care that's a very daunting
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    topic and we want to remove some of that
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    daunting aspect to it and try to
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    simplify it by taking one slice of it
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    and say it really can be more simple if
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    we take a very different perspective so
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    what I want to do is offer that
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    different perspective so many of you may
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    be saying what is a WD WD partners we
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    are a customer experience innovation
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    firm
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    I use the innovation work sorry but we
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    can take you all the way through that
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    journey mapping and research and
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    insights on through to the strategy of
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    what you do and how you do it and what
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    your network looks like and then take it
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    all the way through to the development
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    execution architecture engineering and
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    rollout of those concepts
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    we're thinkers that do what we offer
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    that's very different is that our
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    clients are the best in breed retailers
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    consumer goods companies food service
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    companies that's our heritage that's
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    where we've come from and we don't work
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    with just the small players we're
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    working with Target Home Depot Walmart
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    IKEA
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    you name it we are in there Starbucks
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    we're rolling out thousands of Starbucks
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    per year so we come at it with that kind
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    of mentality that idea of how do we
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    create experiences that people actually
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    choose to have who they want to go see
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    we know that there's a lot going on in
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    the healthcare community today there are
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    many dynamic forces that are forcing you
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    to innovate and to think about what your
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    patient experience is all about and
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    there's also a lot of systemic change
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    that's taking place in this market and
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    when you look at some of what's going on
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    a lot of it involves retailers retailers
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    are at the center of many of these big
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    deals CBS acquiring Aetna for 69 billion
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    dollars you don't spend 69 billion
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    dollars unless you're very serious about
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    doing something radical and different
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    Amazon is getting into the game there
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    are many things that lead us to say this
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    is just the beginning of dramatic change
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    and part of that change is the
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    retailer's ation of healthcare retailers
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    are becoming healthcare providers make
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    no mistake they are desperately seeking
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    that growth
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    and future that comes from health and
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    wellness and they can bring both of
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    those aspects together in many cases
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    retail and healthcare are on a collision
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    course you need to realize that retail
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    and healthcare are on a collision course
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    there are now over 3000 retail clinics
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    in operation ten years ago there were
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    only 351 CVS has 1,100 minute clinics
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    they have ninety eight hundred stores
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    Walmart has 19 Walmart care clinics in
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    operation right now they have four
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    thousand stores start doing the math
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    start looking at that what happens if
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    they just put a clinic in every one of
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    their stores and that's just two players
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    just two players in this market today a
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    third of consumers have gone to a retail
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    focused clinic that was only 15 percent
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    just three years ago so this is
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    dramatically changing and the way
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    consumers are perceiving it is
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    dramatically changing and in fact the
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    consumers that over-index to these kinds
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    of clinics are these folks households
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    with children
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    Hispanics millenials these are folks
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    that are attracted to this model that
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    are rejecting the models of the past and
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    are now saying there's a better way I
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    want to go to that new mousetrap that's
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    being offered to me when you ask all
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    Americans would you be willing to switch
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    your primary care physician about half
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    of them say yeah sure I'll switch when
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    you look at who's most likely to say
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    yeah I'll switch look at the
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    demographics 18 to 44 70% 70% say yeah
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    I'll switch you know why because it's
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    inconvenient for me to go to that
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    primary care physician today I'm willing
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    to trade off a diploma on the wall for
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    an experience as more convenient and
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    better for me health care is also being
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    offered in in a variety different ways
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    in retail we already saw what has
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    happened in the optical business a lot
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    of that business has now moved to what
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    people don't even see as being a health
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    care facility anymore it is now
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    LensCrafters
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    or pearl vision and now you see at
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    Costco getting serious about going into
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    hearing aids in audiology so is Walmart
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    cBS when you look at now in costco - you
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    can get a 3d printed orthotic right
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    there in the store so healthcare is a
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    growth industry for retailers that's the
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    way they're viewing it and they are very
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    serious about taking advantage of that
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    growth healthcare systems aren't sitting
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    back and saying oh yeah sure go ahead
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    and take all of our patients that's
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    alright we're just gonna be ok with that
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    no you're looking seriously just like
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    the last presentation the one before
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    that at seriously dialing into the
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    patient experience what can we do to
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    change how can we get more serious about
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    that and you need to because the barrel
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    Institute which was just featured says
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    that 81 percent of consumers are
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    unsatisfied with their healthcare
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    experience you are vulnerable 75 percent
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    your most loyal customers the people
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    that are that are coming in for frequent
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    healthcare visits are seventy five
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    percent of them are dissatisfied with
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    the healthcare experience but you keep
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    doing the same things and until you
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    change the way you do it until you take
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    a different lens these are the kinds of
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    things that are gonna happen
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    we have to change in fact there's a term
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    that I see at all these conferences
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    consumerism if I use the term
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    consumerism at a retail conference I
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    would get laughed off the stage you're
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    just discovering that people exist that
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    have choices that can go someplace else
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    they don't have to go where you are they
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    can go anywhere else that's how far
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    behind healthcare is that you are just
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    waking up to this reality that this is
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    even a term and it's true though people
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    are choosing they're starting to shop
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    shop for their healthcare and that is
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    exactly what they're doing they have
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    alternatives and they will choose the
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    alternatives that suit them best and
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    you're reacting you're starting to move
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    away from the hospital centric model
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    that big BMF monolithic hospital that
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    defines your your the way you think in
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    many ways in many ways and now it's
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    starting to get closer to the consumer
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    smaller more convenient and more
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    affordable and that's exactly the
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    direction that needs to happen when you
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    ask people like yourselves what are you
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    looking for
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    how are you looking to do this the
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    design priorities become convenient
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    location consistent branding a soothing
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    environment wayfinding it sounds a
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    little bit like a retail chain those are
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    exactly the kinds of things that
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    retailers want to do so you are in fact
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    looking for those kinds of retail
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    principles urgent care and many of your
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    operations are leading the way you're
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    starting to apply those principles in
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    that Urgent Care setting whether it's a
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    specialty Urgent Care opera opportunity
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    or whether it's offered by a healthcare
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    system but that's that's part of the
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    process that's starting to change and
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    that can lead to and be a bellwether for
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    a change that you have in your patient
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    experience in those settings and be able
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    to change the culture and be able to
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    change the the success metrics when you
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    look at it and how you serve those
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    customers in those types of settings and
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    we're seeing this happening in other
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    parts of healthcare as well in dental
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    you're starting to see chain operations
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    like great expressions dental or
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    heartland or Aspen Dental taking Chane
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    types of approaches in purely retail
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    settings one Medical is starting to
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    expand market to market by offering
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    primary care concierge services in much
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    like a retail type setting they're
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    starting to happen and this is truly
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    going to continue make no mistake the
  • 00:08:10
    line between healthcare and retail is
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    blurring and it's not going to stop when
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    you look at the future of healthcare
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    according to McKinsey look at what
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    they're saying a significant move away
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    from in patient care we're seeing
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    declines in inpatient care every day and
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    a move toward outpatient lower cost less
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    capital intensive care scale becoming
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    increasingly important what a scale mean
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    chains if you're not already part of a
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    large system you probably will be
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    someday because it's happening
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    consolidation is occurring and with
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    consolidation comes scale a shift to
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    distributed care settings rising
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    consumer expectations because the rest
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    of life is also occurring it's not all
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    about health care you have your dining
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    experiences your shopping experiences
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    consumers mounting demand for
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    convenience this is where the future is
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    this is reality
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    and we've seen that before in retailing
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    we've lived this movie already there
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    used to be all these downtown department
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    stores that define the landscape of
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    retail these giant monolithic
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    multi-departmental structures and we
  • 00:09:17
    said if you want to go shopping you have
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    to go here that's what we did and
  • 00:09:21
    consumer said you know what it's a
  • 00:09:23
    little more convenient for me to go five
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    miles away from my house and so the
  • 00:09:27
    market started moving away from those
  • 00:09:29
    models and now we can take some lessons
  • 00:09:32
    away from that we could say that we have
  • 00:09:35
    been there in retail we understand what
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    has been going on we will predict what
  • 00:09:40
    kinds of things you need to understand
  • 00:09:42
    as you move forward the first one is
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    location you have to think like a
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    retailer when you're looking at
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    locations look at CVS which which used
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    to be Justin strip Center locations now
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    started to dominate corners they have
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    9800 stores and each one is is carefully
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    chosen not just for the access to where
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    consumers are but also thinking about
  • 00:10:06
    parking thinking about ingress thinking
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    about egress thinking about all the
  • 00:10:11
    aspects that make it convenient and easy
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    to shop that store street presence being
  • 00:10:17
    inviting drawing people in make them
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    want to come in a lot of glazing a lot
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    of areas where you're saying to
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    customers beckoning them in with
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    something that is attractive and
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    interesting for them to look at as well
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    as providing something for them to see
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    at night or when they are off hours
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    having signature exterior elements so
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    that immediately you become recognizable
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    to customers and and they don't have to
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    just study your brand but there's some
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    unique element that distinguishes you
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    and that provides a touch point for that
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    customer to know that that they're
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    coming into your facilities being open
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    and having hours that are accessible to
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    consumers consumer hours not just our
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    hours this industry has responded to it
  • 00:11:01
    the fast food industry going late nights
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    it's not convenient for them to do that
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    but they have to do it to be competitive
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    in tomorrow's landscape speaking about
  • 00:11:10
    the landscape where are you on that
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    landscape most healthcare systems are
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    very much all the same
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    you look the same you offer the same
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    kinds of services how are you
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    differentiating in the retail market
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    there's a Nordstrom but there's also a
  • 00:11:23
    Walmart you pick your position you craft
  • 00:11:26
    it and you carefully make your
  • 00:11:28
    experiences revolve around those market
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    positions and those those brand
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    strategies and that has to happen in the
  • 00:11:34
    health care community as well and then
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    once you've established that brand how
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    do you carefully and and and very
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    strongly communicate that brand
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    consistently over and over again again
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    branding is not necessarily the strong
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    suit of the healthcare community but it
  • 00:11:50
    needs to be and then the customer
  • 00:11:53
    experience what do customers see what
  • 00:11:56
    are the cues what are the ways that you
  • 00:11:57
    communicate with them when they go
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    through the the experience in your in
  • 00:12:01
    your facilities the retail experience
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    there's a lot of movement and that's
  • 00:12:05
    what happens in an outpatient you can
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    have the opportunity for movement for
  • 00:12:09
    browsing for education engagement so
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    many things that make retail fun and
  • 00:12:14
    interesting you can bring even into your
  • 00:12:16
    facilities versus the cues that we have
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    in the medical community of sitting of
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    waiting sterile cold intimidating
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    frightening for customers not engaging
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    this is what we have to break away from
  • 00:12:28
    eliminate those cues from their from
  • 00:12:31
    their model omni-channel I've heard a
  • 00:12:34
    lot about technology but we have to
  • 00:12:36
    bring technologies that's useful that is
  • 00:12:38
    truly part of their process part of the
  • 00:12:41
    overall experience that is endemic to
  • 00:12:43
    the overall experience and that makes it
  • 00:12:46
    easy and fruitful for the customer to
  • 00:12:48
    engage in their facility and then
  • 00:12:51
    building for scale Starbucks has twenty
  • 00:12:54
    five thousand stores around the world
  • 00:12:56
    we're doing about a thousand every year
  • 00:12:57
    for them and yet they look very much
  • 00:13:00
    alike every one of them is locally
  • 00:13:02
    adapted there are templates there is a
  • 00:13:05
    kit of parts there is a tearing strategy
  • 00:13:07
    but you have to apply that tearing
  • 00:13:09
    strategy with the brand in mind and
  • 00:13:11
    knowing what needs to go where based on
  • 00:13:14
    that community but also based on the
  • 00:13:16
    brand but that kind of efficiency has to
  • 00:13:19
    be there because they have to do a lot
  • 00:13:21
    of stores but yet each one is very
  • 00:13:24
    careful and very important to them as
  • 00:13:26
    well so you have to balance that but
  • 00:13:28
    being able to apply
  • 00:13:30
    scale is going to become increasingly
  • 00:13:31
    important in healthcare as we look to
  • 00:13:34
    the future designing for the future is
  • 00:13:37
    really a one plus one equals three what
  • 00:13:40
    we see here is that we can't be all
  • 00:13:43
    retail but we also can't be all medical
  • 00:13:46
    we have to combine retail principles
  • 00:13:49
    with what we do best in the medical
  • 00:13:51
    community but most importantly we also
  • 00:13:53
    have to think about a new model a new
  • 00:13:56
    way of offering healthcare that does
  • 00:13:58
    bring these things together and does
  • 00:14:00
    bring these things to the forefront we
  • 00:14:03
    also have to think about not all
  • 00:14:05
    healthcare is the same there's been a
  • 00:14:07
    lot of discussion and there's a there's
  • 00:14:09
    a hospital centricity but yet hospitals
  • 00:14:12
    really represent this high acuity
  • 00:14:14
    situation which is certainly profitable
  • 00:14:16
    for you but there's also a whole nother
  • 00:14:18
    world that you offer which is much more
  • 00:14:21
    low acuity and in many ways that is a
  • 00:14:24
    very important aspect for you to not
  • 00:14:26
    only have touches with the consumer I
  • 00:14:28
    heard at a recent conference a person
  • 00:14:30
    from Piedmont health that said that they
  • 00:14:32
    track the interactions with their
  • 00:14:33
    customer with their customers and they
  • 00:14:35
    saw that 92 percent of the interactions
  • 00:14:37
    that the system had with their customers
  • 00:14:39
    were taking place outside of a hospital
  • 00:14:41
    setting ninety-two percent that's a lot
  • 00:14:44
    of touches and so that is traffic in the
  • 00:14:47
    retail vernacular that's a relationship
  • 00:14:49
    and that's also share building so that
  • 00:14:52
    when the time comes when they need the
  • 00:14:55
    high acuity situation you are their
  • 00:14:57
    provider of choice but it's important to
  • 00:14:59
    recognize that the high acuity decision
  • 00:15:01
    processes are very different the neat
  • 00:15:04
    states are different and the experiences
  • 00:15:06
    should be different too we can view them
  • 00:15:08
    in different ways to really look at how
  • 00:15:11
    do we optimize that day to day everyday
  • 00:15:14
    touch point with those customers how do
  • 00:15:16
    we make that the best that it can be I
  • 00:15:19
    implore you to shift your thinking move
  • 00:15:22
    away from just this hospital centric
  • 00:15:24
    mentality don't just take your low
  • 00:15:26
    acuity settings and make and shrink down
  • 00:15:28
    the hospital to those smaller boxes and
  • 00:15:31
    don't just look at every project as a
  • 00:15:33
    one-off project just like the last
  • 00:15:36
    presentation how do we modularize how do
  • 00:15:38
    we scale how do we think of this in
  • 00:15:40
    repeatability because increasingly
  • 00:15:42
    that's going to be important
  • 00:15:43
    q for you as you move forward in your
  • 00:15:45
    business and how do we get true consumer
  • 00:15:48
    centricity how do we put the consumer at
  • 00:15:50
    the center today the practitioners tend
  • 00:15:54
    to rule the roost
  • 00:15:55
    but until we make the consumer the
  • 00:15:58
    driver that is going to be something
  • 00:16:00
    that's going to be challenging for this
  • 00:16:02
    business competitively in this market
  • 00:16:05
    how do we make consumers the center we
  • 00:16:07
    have to create an ecosystem that makes
  • 00:16:10
    the consumer the center it's experience
  • 00:16:12
    led it is consumer focused and consumer
  • 00:16:16
    controlled engaging those consumers
  • 00:16:18
    incorporating the best elements of both
  • 00:16:20
    medical and retail in combining a
  • 00:16:24
    physical experience with a technology
  • 00:16:25
    experience personalizing it for that
  • 00:16:28
    customer because we have the information
  • 00:16:30
    in the data to do that making it easy
  • 00:16:33
    intuitive for them and having an element
  • 00:16:36
    of lifestyle and a daily pattern not
  • 00:16:38
    just when you need something not just
  • 00:16:40
    when it's an emergency
  • 00:16:41
    but how do we engage customers in a
  • 00:16:43
    continuous basis wellness services
  • 00:16:45
    health services that are part of
  • 00:16:47
    everyday living that's when we can have
  • 00:16:50
    a true experience that is an ecosystem
  • 00:16:53
    for health and wellness for the consumer
  • 00:16:56
    so going forth the market needs some new
  • 00:16:59
    things new experiences holistic journeys
  • 00:17:02
    for the consumer new models that are
  • 00:17:05
    innovation not the same old stuff that's
  • 00:17:07
    led to 81% dissatisfaction new models
  • 00:17:11
    and then once we figure out what those
  • 00:17:14
    new models are creating scale not just
  • 00:17:17
    experimentation but a land grab because
  • 00:17:19
    that is what's gonna happen how fast do
  • 00:17:21
    you think that those retailers will be
  • 00:17:23
    able to roll out healthcare solutions
  • 00:17:26
    they have a lot of money they have a lot
  • 00:17:28
    of clout and it's coming so you have to
  • 00:17:30
    be able to react quickly as well so as
  • 00:17:34
    we look to the future you may like or
  • 00:17:36
    not like Donald Rumsfeld but this is a
  • 00:17:38
    great quote that he has there are known
  • 00:17:40
    knowns there are some things we know it
  • 00:17:42
    doesn't take a crystal ball to be able
  • 00:17:45
    to see what's gonna happen in this
  • 00:17:46
    industry you know this is coming it's
  • 00:17:49
    happening the question is we have to
  • 00:17:52
    stop talking about it this is a business
  • 00:17:54
    that likes to talk
  • 00:17:56
    at these conferences it's time to act
  • 00:17:58
    it's time to do this it's time to start
  • 00:18:01
    getting serious about deploying a
  • 00:18:04
    different strategy when it comes to
  • 00:18:05
    these low acuity settings thank you very
  • 00:18:07
    much really appreciate
  • 00:18:08
    [Applause]
Tags
  • healthcare
  • retail
  • consumer experience
  • innovation
  • patient experience
  • retail clinics
  • consumerism
  • health services
  • consolidation
  • outpatient care