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McKinsey: Digital health ecosystems – a payer perspective

Article Synopsis :

 The Digital Insurer reviews McKinsey’s Report on Digital health ecosystems: a payer perspective

Healthcare transformation offers opportunities for payers 

This McKinsey report takes an interesting angle about those who pay for healthcare. It says a digital health ecosystem can allow them to take advantage of their central position within the landscape.

Healthcare is forever changing and that has only accelerated in recent decades. Developments in other sectors have driven up consumer expectations. Prices are going up but more advanced medical services are becoming available all the time. And data-driven technologies are encouraging digitalisation and automation across the sector.

Dealing with disruption

All of these add up to a great deal of disruption placing pressures on the system. If the system is to effectively compete, it requires a fundamentally new capabilities

Some payers are integrating with other parts of the value chain to improve member experience in new ways. This is changing the market’s dynamics.

New products and services are being offered by tech startups that focus on the challenges facing the traditional business. But by disaggregating the value chain, this can dilute the value propositions of the payers.

Tech giants threaten to go after large value pools, and this may disintermediate some payers or carve them out from high-value areas and leave many conventional payers lagging behind the new leading edge of the industry.

Change provides opportunities

However, this change is also creating opportunities to solve long-standing problems. Many of the new digital offerings satisfy the higher expectations of consumers – even digital natives.

Core processes can be automated, strengthen partnerships with providers, and repositioning them at the centre of the healthcare landscape.

This McKinsey paper focuses on the opportunity for payers to harness digital health ecosystems and disrupt themselves by making use of the range of services afforded by these ecosystems that establish networks of digital service providers

New and better healthcare

A technology platform can provide a digital backbone, connecting provider systems, physicians, payers, patients, and other healthcare players.

By using this technology, payers will drive up data standards, be able to offer new services, such as on demand and provide more personalised treatment paths.

It won’t just make them better businesses, but it will improve the healthcare outcomes of all those they serve.

Link to Full Article:: click here

Digital Insurer's Comments

Healthcare is a sector crying out to be digitised. But there are few who would argue against it as a highly deserving use case.

What may help the sector reach a tipping point is the desire to find a better alternative to the paper-based one most of the planet still relies upon.

Our rapidly ageing society is living longer and healthcare systems across the globe would benefit from digitalisation.

It’s a no-brainer because it’s good for the business, it’s good for the practitioner, but most of all, it will be so much better for the patient.

Link to Source:: click here

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