Assessing online scheduling as an emerging trend in scheduling physician appointments

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1 Assessing online scheduling as an emerging trend in scheduling physician appointments A Stax analysis on the emergence of Online Appointment (OAS) as an influencing factor in selecting a service provider March 2017 Mark Bremer Ben Kadish mbremer@stax.com bkadish@stax.com

2 Introduction As the pace of daily life accelerates, we have become accustomed to researching and evaluating options online, and then seamlessly making decisions regarding a purchase, reservation, or appointment. Not only do consumers expect instant access to information to inform their decision-making, but we expect to do so from our smartphones. The ability to make comparisons, and then follow through on a purchase or visit decision, has transformed many industries including travel and hospitality, and is poised to transform the healthcare industry. This change in behavior, facilitated by technology, brought benefits to the consumer and efficiency to the industry. Online : The New Norm Online appointment scheduling (OAS) has become an increasingly important and expected part of people s lives. According to a recent Stax Inc. study commissioned by Healthgrades, 83% of consumers have experience with online scheduling, with travel and restaurants among the most frequently reported online scheduling experiences. Consumers expect to be able to make appointments online. Our study suggests that for about 35% of consumers, the availability of online scheduling makes all the difference in selecting between competing options. In choosing between two businesses of the same type, I am more likely to choose one that offers online scheduling than one that does not (Scale 1 7: 1 = I Completely Disagree ; 7 = I Completely Agree ) 10 8% 12% 7: I Completely Agree 6 16% % % 1: I Completely Disagree n = 934 Mean = 3.61 Top 2 = 2 Figure 1: Online Influence in Choice of Business 2017 Stax Inc., Page 2

3 In healthcare, the pace of technology change has often not kept up with consumer expectations for convenience and information. Despite the trend towards healthcare consumerism, consumers have not seen the same kind of robust patient-centered solutions to support their bookings with physicians offices. As a result, physician appointment setting still takes place squarely in the analog world, with about 85% of consumers scheduling physician appointments by phone. Methods Used to Schedule a Physician Appointment 5 10 Phone 86% In Person 62% Hospital/ Physician Website 37% Website Provided by Someone Other than My Doctor, Hospital, or Insurance Carrier 16% Insurance Carrier Website 4% n = 1,037 Figure 2: Methods of Physician Appointment To date, the complexity, lack of information transparency, siloed provider systems, privacy concerns and lag in technology adoption have kept healthcare providers behind consumer expectations for online interaction. This has created a disconnect, and an opportunity, for healthcare providers. Consumers expect online booking capabilities and convenience and demonstrate a preference for businesses that provide it. The results of the Healthgrades / Stax study demonstrate the value of offering online scheduling for healthcare providers. Consumer Demand: The OAS Opportunity Online scheduling provides both a differentiator for practices to capture more patients, including the attractive patient profiles practices often seek, and improves practice operational efficiency. Our research found that about 8 of patients prefer a physician that offers online scheduling to one that doesn t, across both primary care and specialist physicians. Further, online scheduling represents a draw for younger, more affluent, better educated patients. Finally, those to whom online scheduling most appeals tend to schedule more appointments for themselves and others than those who do not. Figure 3 shows that when presented a choice between competing physicians with similar profiles around physician experience, proximity, availability, and patient satisfaction, the vast majority of consumers chose the physician that also provides online scheduling Stax Inc., Page 3

4 Lift Created by Availability of Online 10 19% 23% Prefer Physician without Online 5 81% 77% Prefer Physician with Online PCP Specialist n = 601 n = 845 Figure 3: Online vs. Appointment Availability Realizing OAS Efficiencies to Drive Productivity While scheduling with human interaction provides a familiar model for both patients and providers, it is inefficient; by one third-party estimate, scheduling each phone-based appointment takes about eight minutes. When consumers schedule physician appointments online, they can do it about one-third faster than they can by phone, enabling office administrative staff to focus on other activities. Online scheduling also makes physicians more competitive for local demand, just as it has in other markets. The capability is seen as roughly equally important to patient satisfaction measures in choosing a physician, and an important driver of convenience by a two-to-one margin, consumers would choose to see providers that are farther away but have online scheduling over those that are closer and lack those capabilities. And the ability to schedule online is even more valuable than appointment availability itself in many situations in choosing a specialist, consumers prefer by a 4:1 margin to see a physician with lesser availability that has online scheduling, compared to a physician with greater availability and no online scheduling option (all else held equal in terms of physician experience, satisfaction, and proximity). Once patients are accustomed to using online scheduling, they do not go back, and it becomes an important input into decision making Stax Inc., Page 4

5 Trade-Offs in Physician Choice Online vs. Physician Appointment Availability 10 18% Prefer Greater Availability without Online 68% 5 82% Prefer Lesser Availability with Online 32% PCP n = 601 Specialist n = 845 Figure 4: Online vs. Appointment Availability As online appointment scheduling becomes more mainstream, proper management of the transition to online scheduling will enable providers to maximize its benefits and better engage patients. Online scheduling provides much more convenience to the patient and enhances the efficiency of the office, but also makes the schedule more dynamic. To manage this shift, providers should effectively communicate change, cancellation, and no-show policies to patients. Providers can use both human and technological resources to remind and engage patients around their appointments. This provides another valuable opportunity to engage with the patient base, and to free up time from scheduling and direct it toward truly valuable patient communication. Conclusion As practices and hospital systems look to continue to improve the patient experience, online appointment scheduling represents a clear opportunity and one in increasing consumer demand. Online scheduling helps to capture demand, improve office efficiency, and remain competitive. While navigating, the transition will require thoughtful communication with patients, providing the capability clearly drives value for both patients and practices Stax Inc., Page 5