Reinventing healthcare

Consumers and physicians pushing for transformational change in Asia, according to Bain & Company study

Healthcare players in Asia-Pacific are in for a wild ride. Explosive growth combined with changing demographics and shifting consumer expectations will inevitably lead to significant transformation, according to Bain & Company.

By 2025, close to half a billion people across Asia-Pacific will be aged 65 or older, and with age comes increased illness and other age-related health conditions.

As the demand for chronic care management outpaces that for acute care services, expenditures will grow at double the rate of the rest of the world.

To better understand the region’s challenges and opportunities, Bain surveyed more than 1,800 consumers in Australia, China, India, Indonesia, Singapore and Thailand, and more than 250 physicians in Australia, China, India and Indonesia.

The survey found healthcare systems across the region need to undergo transformational change, with consumers and physicians alike recognising the status quo is unsustainable.

Within the region, both physicians and consumers are ready to embrace change. Roughly 50% of those surveyed said they would adopt digital delivery models such as telemedicine and remote care in the next five years.

Consumers are pushing to change the existing frontline models of healthcare delivery by demanding more control, with nearly 70% stating they would prefer a single touchpoint for managing their healthcare.

Physicians are also feeling the strain on healthcare systems, with nearly half of all physicians surveyed saying it will be more difficult to deliver high-quality care in the future.

“Our survey found the potential for a crisis in healthcare quality, accessibility and affordability looms large,” said Vikram Kapur, who leads Bain’s healthcare practice in Asia-Pacific.

“Asia-Pacific is at a crossroads, but there is an exciting opportunity to reimagine care delivery if stakeholders adjust to meet the changing expectations and needs of both physicians and consumers.”

While each country’s specific situation will dictate the best path forward, Bain research revealed four universal opportunities that stakeholders can pursue as they look to reinvent their healthcare systems. They are:

Empower consumers by providing a single touchpoint for care: Consumers want greater ownership of their care, with nearly 70% of respondents expressing the desire for a single touchpoint for managing their healthcare.

Transition care outside of hospital walls: Shifting non-emergency services from hospitals to outpatient settings or alternative delivery models will be the key to relieving the burden on overextended hospitals.

Roughly 50% of consumers surveyed would be comfortable receiving services in an outpatient setting, and more than 80% of physicians believe a number of non-emergency services could be offered outside of hospitals.

Increase consumer access to digital tools and platforms: Stakeholders will need to invest in world-class digital tools and online platforms, including telemedicine. Notably, 46% of consumer respondents expect to use telemedicine in the next five years — an increase of 109% over those who use it today.

Support physicians with new technologies: Physicians are aware of the growing chasm between consumer needs and their ability to deliver. They fully expect to increase their use of AI and machine learning in the next five years to bridge the gap.

“The ability of healthcare players to build trust with consumers and physicians will be key,” said Lucy d’Arville, a Bain partner and co-author of the report.

“Interestingly, our research found trust in healthcare players varies across countries,” she said.

“In Australia, India and Singapore, 70% of consumers say they most trust their primary care provider.

“However, in China, Indonesia and Thailand, trust is greatest in secondaryand tertiary-care providers. Overall, there were mixed levels of trust for health insurers.”

It is clear the time is now for healthcare stakeholders in Asia to be looking at how they can reinvent their systems.

Stakeholders that are responsive to physicians and consumers will quickly emerge as the front-runners in this dynamic environment.

More than 80% of physicians believe a number of non-emergency services could be offered outside of hospitals.