Big Topics in Small Doses Episode 2: COVID-19
How COVID-19 Has Accelerated
Healthcare Transformation
At the onset of 2020, the healthcare industry could never have foreseen the radical and transformational challenges that lay ahead. The COVID-19 pandemic would stress health systems in unprecedented ways, push health providers to their limits, and trigger sweeping changes in how care is defined and delivered.
To date, the World Health Organization reports more than 235 million cases and 4.8 million deaths globally for COVID-19. And this health crisis, arguably the biggest of its generation, has put a spotlight on accessibility gaps, disparities in health equity, payment models, and unanswered needs for mental health resources. In short, the pandemic has compelled the industry to re-evaluate how it does business.
Since the launch of Healthy Dose of Dialogue podcast, COVID-19 has taken center stage. Our guests, each with diverse and exceptional backgrounds in health, have pointed to the pandemic’s sizable impacts on health care, its potential threats, and the opportunities it presents the industry to improve.
Elizabeth Mitchell, president and CEO of Purchaser Business Group on Health (PBGH), said the pandemic shook the healthcare industry, revealing vulnerabilities, gaps in care, and a widespread call for reform. Elizabeth called out these issues as health care’s “pre-existing conditions.” Chief among these was a need to support the nation’s independently owned primary-care practices. A study by the Medical Group Management Association reported health providers had confirmed a 55 percent decrease in revenue on average and a 60 percent decrease in patient volume due to the pandemic limitations to in-person visits.
“If these primary care practices do go under, or if they are vulnerable, they’re going to get bought up by large health systems or private equity groups just leading to further consolidation,” Elizabeth said. “That’s a real challenge for purchasers because we know from all the evidence that prices go up, but quality does not.”
Elizabeth said before and during the pandemic, her organization has sought to improve and protect primary care due to its influence on health. In terms of benefits, PBGH reports that adults who regularly visit primary care physicians have 33 percent lower healthcare costs and are 19 percent less likely to die prematurely compared to those who only see specialists. The group estimates the U.S. could save $67 billion annually if everyone used a primary care provider as their primary source of care.
In addition to improving services, Cecile Chang, health and benefits U.S. commercialization leader at Willis Towers Watson, said the COVID-19 pandemic’s push for greater care has also increased demand for value-based health care models.
A value-based care model is a healthcare reimbursement model that is growing in popularity. It focuses on quality of care over quantity by rewarding health providers for positive patient outcomes instead of the number of services delivered.
Cecile said this framework supports quality care and has proven to be efficient and affordable over time. “I definitely think there is going to be more focus on value-based arrangements,” she said. “Trying to care for a population has never become more critical than now.”
Along with its challenges, the pandemic has also been a catalyst for healthcare transformation. Telehealth companies and telehealth solutions are a clear example, with Blue Shield of California health plan provider and member telehealth usage on track to meet or exceed 2020 levels, which were up nearly 2,100 percent from 2019.
Ahmad Thomas, Silicon Valley Leadership Group’s president and CEO, said telehealth represents a substantial growth area for businesses in his organization. In addition, Ahmad said the spike in telehealth offers previously unreachable opportunities for patients, providers, and health care purchasers.
“If you look at some of the core issues coming out of this pandemic related to health equity, and related to access, I would see telehealth as potentially one of the biggest drivers of providing more access and providing more equity and care,” he said.
Dr. Carrie Byington, the Executive Vice President and Head of University of California Health, said the urgency and pervasive reach of COVID-19 also fostered discussions within the medical community about the importance of health equity. She noted that COVID-19 underscored the fact that in a health crisis, the only way to protect a community is to protect everyone in that community.
“The concept of health equity and access to health care is now part of the national conversation,” Carrie said. “I believe strongly the pandemic will end, and when it ends, we’re not going to go back to the status quo. The country will advance, and it will advance in a way that I think will bring greater access to health care for all.”
Listen to the full episodes by clicking the links below:
Elizabeth Mitchell, President and CEO of Purchaser Business Group on Health (full episode)
Cecile Chang, Health and Benefits U.S. Commercialization Leader at Willis Towers Watson (full episode)
Ahmad Thomas, Silicon Valley Leadership Group’s President and CEO (full episode)
Dr. Carrie Byington, Executive Vice President and Head of University of California Health (full episode)