The U.S. healthcare system was initially built around traditional institutions, like hospitals, insurers, and provider networks. Today’s market has experienced a shift, placing the consumer at the center of the equation. Whether having prescriptions delivered, scheduling an appointment on your phone, managing chronic conditions at home, or accessing mental health resources via virtual appointments, the new healthcare experience is shaped by convenience, personalization, and digital-first care.
William Blair’s Ryan Daniels, CFA, partner, and group head of healthcare technology and services in Equity Research, discusses how companies are aligning their business practices to meet modern-day consumer needs and highlights what’s driving value in this consumer-centric healthcare market.
- How does your team assess the impact of technology and digital health solutions on consumer-centric healthcare, particularly for individuals who prioritize convenience and advanced care options?
- Our analysts evaluate this by using several key lenses to understand how these factors enhance consumer-centric care. First, we consider the friction reduction offered to consumers, such as ease of scheduling, telehealth access, and streamlined communication. From there, we look beyond the convenience factor to determine if the solution can also support complex care needs, like chronic condition management.
Our team also considers whether the solution satisfies the “three Ps” of healthcare: patient, provider, and payer. To determine satisfaction, we ask questions like:
- Can the technology platform extend clinician capacity through AI triage, automated follow-ups, remote monitoring, or clinical decision support?
- Does the solution reduce labor intensity and allow providers to practice at the top of their license?
- Does the solution deliver high-quality care at a lower cost?
- Your recent Healthcare Mosaic report on aging-in-place highlights opportunities in adjacent sectors, like meal delivery, transportation, and home maintenance. Do you see potential for bundled or platform-based investment strategies to capture this ecosystem effect?
- Absolutely. We believe this will be a key long-term enabler of growth in the aging-in-place market over the coming years. Traditional payers, like Medicare or larger managed care entities, are not structured to coordinate bundles of non-medical services needed by aging consumers. These services can include anything from home modifications, such as wheelchair ramps, lifts, or wall braces, to healthy meal deliveries to non-medical transportation—all essential for safely aging in place.
A platform provider that can contract, vet, and transact with a variety of these service vendors becomes a valuable partner for insurers. Our team believes that the majority of members want to age in place, and the cost of doing so is markedly lower than institutional care. This creates a strong incentive for insurers to support and adapt platform-based strategies. We expect providers offering these programs to see strong traction with both payer-partners and consumers for their platform solutions and services in the coming years. - Both the Healthcare Mosaic and Consumer-Centric Healthcare reports examine several well-positioned public and private operators in this space. What characteristics distinguish these likely long-term winners?
- We believe several factors can drive long-term market leadership. A few significant areas are:
- Strong Company Leadership: Passionate business executives are necessary for fostering a culture rooted in care, integrity, and an unwavering focus on improving the quality, cost, and convenience of care for consumers.
- Scale and Breadth of Services: Companies offering solutions to consumers with varying needs across various markets are well-positioned to become go-to partners for larger national payers and providers.
- Proven Outcomes: Whether through cost savings or clinical impact, results are evidence of the solution’s success and value.
We believe providers who track and respond to these loyalty engagement signals will be better positioned to retain patients and create long-term value; those that don’t risk falling behind in an increasingly consumer-driven market.
RYAN DANIELS, Group Head of Healthcare Technology and Services
- What regulatory and policy changes do you believe may have the most significant influence on the consumer-centric healthcare market?
- We feel that the shift away from fee-for-service (FFS) payments to value-based care (VBC) has made the most impact on the market. FFS payments place quantity over quality, and both public and private payers have strongly supported a movement toward VBC delivery, which aligns payments with the quality of care and outcome received. In fact, Medicare has frequently stated its desire to move all members to VBC models by 2030, indicating a huge market opportunity for providers who can help enable this function.
- How do you evaluate consumer loyalty and digital engagement as value drivers in consumer-centric healthcare businesses?
- Just as convenience and digital access have become central to the healthcare consumer experience, consumer loyalty and digital engagement are now essential benchmarks for evaluating provider performance and long-term value.
A recent Huron Consulting Group study found that 39% of consumers would switch care providers to find more convenient locations. In comparison, 31% would do so for better appointment availability, including digital care. This shows that patients are not only engaged but willing to act when their needs aren’t met.
Importantly, this trend spans generations, reinforcing the idea that access to both in-person and virtual care is now a baseline expectation. We believe providers who track and respond to these loyalty engagement signals will be better positioned to retain patients and create long-term value; those that don’t risk falling behind in an increasingly consumer-driven market.