New Research From Booz & Company Shows Strong Consumer Support for Bundled
NEW YORK, NY -- (Marketwire) -- 01/30/13 -- Booz & Company announced
today the results of a survey polling 1,000 U.S. consumers on their
interest in bundled healthcare packages. The findings demonstrate
strong support among healthcare consumers for the introduction of
bundled care in the marketplace: Fully 78 percent of respondents
expressed that the concept was appealing to them.
This survey is the first in a series of research efforts from Booz &
Company on ways to transform healthcare delivery and financing in the
face of rising healthcare costs, an aging population, and the
implementation of the Affordable Care Act. Forthcoming research in
2013 will gauge interest and sentiment from different stakeholder
groups integral to the success of bundled healthcare: physicians,
hospitals, payors, and employers. Booz & Company will conduct this
"Healthcare leaders know the time has come to figure out how to make
high-quality, affordable care accessible to more people," said Gary
D. Ahlquist, senior partner in Booz & Company's North American health
practice. "This survey shows there is an active appetite for change
from traditional approaches to healthcare delivery, and suggests what
a viable new model could look like."
Bundled healthcare is a model in which patients are offered a
complete package of care, financing, and support for a specific
condition -- a break with the de facto medical model of
fee-for-service (billing separately for each activity). In bundled
care, a single fee covers every individual action related to a
condition or procedure from end to end.
Booz & Company has worked on bundled healthcare design and
implementation since 2006, when it helped initiate a payor/provider
partnership in Florida to develop and roll out two bundled care
offerings. Until now, however, the U.S. healthcare system's
fragmented care delivery, information availability, incentives, and
standards have blocked widespread adoption of bundles.
"The groundwork for bundled care is finally being laid," said Minoo
Javanmardian, partner in Booz & Company's North American health
practice. "Recent healthcare policy changes, an increasingly
integrated IT infrastructure, and the affirmation of the Affordable
Care Act are enabling insurers and providers to share data, share
risk, and get patients to take more responsibility for their own
care. All these things are critical to transforming care delivery."
Perhaps the strongest indicator that bundled care will be a core part
of the future healthcare system is the support it is receiving from
such top private employers as Walmart, Lowe's, and Boeing. Beginning
this year, Walmart, the world's largest private employer, will be
partnering with leading providers to offer bundled care for a number
of common procedures.
The study, Bundled Care: The Voice of the Consumer, can be downloaded
Key Data Highlights
1. Respondents indicated that they are increasingly willing to switch
hospitals (50 percent) and specialists (45 percent) for bundles that
are significantly lower-priced (meaning at least 10 percent less than
2. Consumers showed a clear preference for bundled offerings from
physicians, hospitals, and employers; 30 percent more consumers
ranked these bundles as attractive choices compared to those offered
by retail stores, online insurance aggregators, or brokers.
3. Among all stakeholders, primary care physicians enjoyed the
greatest loyalty from consumers; 64 percent said they would not
change from their existing physician or choose one based on bundle
4. Consumers remain largely unwilling to travel extensively to
receive care under bundles; 74 percent were willing to commute within
their own city and no farther. Rural residents were much more willing
to travel regionally than were urban and suburban residents.
5. Of the benefits available through bundles, patients saw the
ability to provide input in their care processes, coordinated care,
and warranties as the most appealing. More than 50 percent of
respondents ranked these as the top three benefits.
6. Consumers ages 31-49 are most likely to find bundles appealing (86
percent), offering commercial payors and hospitals a test bed for
innovation outside Medicare and Medicaid programs.
7. A large majority of consumers (80 percent) prefer bundled coverage
across all settings in the care continuum, from initial physician
consultation to post-acute care and rehab.
For related content, visit the Booz & Company Health practice page:
About Booz & Company
Booz & Company is a leading global management
consulting firm focused on serving and shaping the senior agenda of
the world's leading institutions. Drawing on the talents and insights
of more than 3,000 people in 58 offices around the world, the firm
helps its clients achieve essential advantage by working with them to
identify and build the differentiating capabilities they need to
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