The next phase of health engagement

Issue 69 l Eka’s Weekly Roundup (5 April 2024)

Apr 05, 2024

What is the front door to the health care system?

In the past, this was your general practice doctor, or in more severe cases the waiting room in the ER department.

At Eka, we believe that the first step in health is much earlier than this, and lies in the hands of individual consumers. Rock Health has updated their annual research on consumer engagement, which is possibly one of the best summaries of how consumers are adopting digital health tools in their day to day lives.

How to talk to consumers about their health 🗞️

Virtual care might have reached peak access, but that is not the same as saying it has reached peak usage

In 2023, over 75% of of survey respondent reported having ever used virtual care. By virtual care, we mean care delivered via video, text, or app. This has been pretty steady over the last three years, and some are suggesting that as a result the US virtual care market has reached a maturity point.

This is old data, but the same was true in 2021 for telehealth penetration rates. The next leg of growth in digital health will be product led rather than access led.

Things to monitor will be: (1) usage frequency, (2) cost competitiveness compared to offline and omni-channel, and (3) quality and non-inferiority compared to traditional pathways.

Covid opened the gates for diagnostics, but this hasn’t yet reached the consumer mainstream

Consumers are familiar with at-home COVID-19 diagnostic testing, but adoption hasn’t yet translated to other test types.

A few businesses have pivoted from Covid-19 testing to other forms of testing: Newfoundland, MyHealthChecked, or Randox.

But, compared to Covid-19 lateral flow tests, all other health markers pale in comparison (Covid-19 was 59% penetrated, while the second closest test was genetic at 13%, or 1/5 of Covid tests’ usage rate.

Companies like Everly Health are using diagnostics as a ‘test to treat’ model, while 23andMe is launching a $1,200/year subscription to help uncover health risks in your DNA.

Consumers are getting smart on the value of their data

Though consumers are willing to share their health data, they’re becoming more discriminating about whom they’re willing to share data with. There has been a gentle decline in willingness to share from 2020 onwards, across all stakeholders (especially Health Cos).

One wild stat from Oliver Wyman is that consumers trust banks more than hospitals with personal data. Roughly 50% of consumers trust banks, compared with 40% trusting health care providers (grocers & tech companies also get a tough time with only 23% and 15% trusting them with personal data respectively).

Convenience doesn’t cut it: innovators need to invest in product

Consumers are drawn to virtual care’s convenience, but innovators will need to invest in additional value drivers to stay competitive.

Of those who recently used virtual care, they did so for greater convenience (39%), shorter wait times (30%), and the ability to see a specific provider who couldn’t otherwise be seen in person (17%).

The highest penetrated areas in virtual care reflect the preference set above: (1) prescription refills, (2) minor illness care, and (3) mental health.

Convenience shoppers can also be seen in purchasing trends data. Many consumers are opting for online generalists & specialists, over in-person options for healthcare products.

But, in order to stay competitive, health-dedicated platforms will need to invest beyond convenience. Virtual care startups are seeing competitive pressures from multiple fronts including retailers (CVS and Walmart), grocers (Kroger partnership with Atlanta Clinics), and tech-enabled clinics (Forward Health in the US, Neko Health here in Europe). These are building out omni channel strategies to meet the consumer where it bests suits them.