Lessons for Doctors from the Decline of Retail
This is a call to action for all doctors. Practice owners are now facing many of the challenges small retailers in America faced not too long ago. Consumer demand has shifted the landscape in favor of larger product selection with online access. Doctor’s are being forced to adapt to the new rules of the game or get left behind.
Doing business in the digital age has been reshaped by the expectations of American consumers, as they have come to expect better access and more variety when buying goods and services. Industry giants have risen to power by offering consumers the ability to buy more goods faster and at the click of a button. Starting a business without a website or plan for e-commerce in the current day seems naive.
So it begs the question: how will this affect the next generation of medical practitioners in the United States?
There is no shortage of new technologies available to doctors, but there is, however, a shortage of relevant technology and providers willing to adapt. It seems like everyday another Electronic Health Record system (EHR) or mobile application is released claiming to be the one stop solution to everything wrong with healthcare. With over 300 EMR vendors currently on the market who can blame doctors for feeling overwhelmed by it all.
On top of this remains the fact that doctors are not properly trained to deal with running a company in the modern era of technology. Medical professionals are trained to care for
patients, not to evaluate software and optimize efficiency. Thus new technologies are rarely embraced by small provider groups as the idea of evaluation and implementation is a bigger headache than the opportunity to modernize is worth. While in the short term this may seem like sound thinking, the consequences of neglect are quickly approaching the small group provider as patients’ natural consumer desires for fast and easy access start to kick in.
“A study by Merritt Hawkins in 2015 found that only 17 percent of today’s physicians are in solo practice, a figure that stood at 54 percent in 1980. Moreover, the percentage of physicians who describe themselves as independent practice owners has dropped from 62 percent in 2008 to just 35 percent last year, manifesting an acceleration in the pace of decline.” (The Physician Foundation, 2014)
Much like the independent medical practice, the small town retailer was resistant to change and could not keep up with offering the broad range of goods and services their customers desired. Retailers failed to compete with the big box retailers and online marketplaces in price and consumer access and thus were largely eradicated from the marketplace. Lack of capital budget meant that the small independent retailers could not adapt quickly enough to compete with the big box stores in a rapidly changing ecosystem. In addition the overhead from rent meant retailers could not compete with the margins of online sellers. Those that did adapt early on, such as online shoe retailer Zappos, were able to enjoy massive success as their brick and mortar competitors around the country fell to the wayside.
Putting this in the lens of medicine one can see many of the same struggles occurring.
Limited services, inability to negotiate down prices with insurers, and outdated technology is leading to a decline in the number of independent practices in the United States. By modeling their practices to best meet the shifting demands of consumers practices can remain competitive in the digital age of medicine. Early adopters are already reaping some of the rewards of on-demand and virtual care (often referred to as telemedicine), but we are still far from mass consumer adoption. So what can physicians do to stay afloat in a world where large health systems with massive budgets dominate?
Learning from the experiences of small independent retailers, we know that what the small practice lacks in overhead they make up for in flexibility and ability to adapt, below are some strategies that small practices can utilize right now to help maintain patients and remain competitive among consumers in the digital age.
Work Smarter Not Harder
There are many small steps providers can take to help their practice stay competitive in a shifting landscape. Creating or updating a practice’s website to be more welcoming and include features such as patient scheduling is an easy way for doctors to attract and retain the new generation of tech savvy patients. Another way providers can engage with patients is by offering newly available telemedicine services. By giving patients the options to use their favorite apps and offer visits over tools such as Skype, providers can leverage technologies patients are already using to create a more satisfying visit.
Create a memorable experience
At the end of the day, it is important to remember that as providers your business depends on the patients you serve. They are the consumers of the medical world and they are no longer limited in how they receive their care. Long waiting times and poor bedside manner have led to the rise of the on demand doctor services such as American Well and Doc on Demand, who offer patients an alternative option of care, and bypass the primary care provider. By creating a more welcoming environment, the provider can increase the chance that a patient will keep coming back for care, or even better work as a referral for providers to family and friends. The provider must create value in their relationship with the patient or the patient will find cheaper and more convenient options of care.
Embrace Change
There is no use fighting the shifting tide of integrated medicine. Providers rarely open themselves up to technologists and entrepreneurs who are looking to aid them in their goal of providing care. Do not be like the independent retailers and live in denial until it is too late. Take the risk and be an early adopter. By participating in pilots with the engineers and entrepreneurs of the world you can remain competitive in the marketplace and do so at a low cost.
Looking at those retailers which have thrived in the age of big box and online sales, we can see many of the principles stated above in action. Coinciding web stores are now commonplace for retailers and for most new retailers it is often the fastest way to get new products to market.
Retailers no longer are just shelves that hold inventory. They are venues where consumers go to hang out, play, and experience the products. Can you imagine an Apple Store where the devices are in boxes? But most importantly those that have survived realized early on the importance of adapting. They embraced shifting consumer trends and were able to survive on the quality of their goods and merit of their service. The provider-patient relationship is key to
improving healthcare in America, we must keep it alive by learning through the failures of independent retailers.
