Will AI replace traditional healthcare systems?

Fact or fiction video addresses the question

About the series

Fact or fiction? breaks down common myths and misconceptions about digital transformation, while showcasing KPMG leaders’ perspectives on related topics such as artificial intelligence and blockchain, and the impact of these emerging technologies on the workforce, businesses and society. 

Episode Eight

Healthcare is evolving to become a consumer-centric industry. Non-traditional players from the technology, telecommunications and retail sectors are already entering the market, raising the stakes for incumbent healthcare organizations. KPMG’s Ash Shehata explores the evolution of healthcare in the latest episode.

The changing healthcare delivery model

By Ash Shehata

Aging baby boomers and tech-savvy millennials will place new demands on healthcare, an industry that has been slow to change.

While healthcare providers have made technology investments to improve clinical outcomes, they have traditionally lagged other industries like financial services and hospitality when it comes to satisfying customers.

Some of this reluctance likely ties to the complexity of the healthcare sector, which is affected by regulation, privacy rules and the need to manage patients who may have multiple chronic conditions. Patients have been unsatisfied with bureaucracy, difficulty securing timely appointments, confusion about insurance benefits, and an overriding sense of insufficient value for the dollars they spend on healthcare.

In our most recent thought leadership piece –  Healthcare 2030: The consumer at the center – we outline how healthcare can evolve to become a consumer-centric industry. Non-traditional players from the technology, telecommunications and retail sectors are already entering the market, raising the stakes for incumbent healthcare organizations.

Following are some of the most critical issues healthcare organizations should consider as they look toward the next decade:

  • Keep pace with consumers’ evolving demands… Healthcare organizations should aspire to a better understanding of consumer needs, motivations and behaviors, which will help drive patient engagement. The mindset needs to shift so that individuals are viewed as people, not just patients.
  • Commit to true value for outcomes… Care management solutions, such as risk stratification calculators and predictive analytics, can help shift the providers’ focus from treatment to prevention and cure. Key to this shift will be advanced analytics capabilities that blend patients’ clinical data and personal preferences to enable a more holistic approach to outcome improvement.
  • Foster care continuity through a layered delivery model… Many hospitals – especially in rural communities -- are struggling. Further, the market has shifted with retail and virtual health settings now expanding their primary care offerings and patients’ increasing interest in receiving hospital-level care in the home. A layered approach to care delivery will allow patients to move seamlessly through the system as they age or develop more complex needs. A critical aspect of this model will be the emergence of aggregators that will house and analyze the data patients need to make smarter decisions about where and when to seek care. 
  • Drive convenience through the strategic use of technology disruption… Patients need timely and convenient access to healthcare. In addition to streamlining the scheduling process, healthcare organizations should focus on creating a more cohesive experience across the continuum of care with the help of disease management tools, remote monitoring, telehealth, and care decision support tools. 

Technology disruptors are making aggressive inroads into healthcare, making it all the more critical that providers and health plans adopt consumer-oriented models and technologies that improve patient engagement, experience and outcomes. Having knowledge of a patients’ records, but also their social circumstances and behavior, will drive healthcare’s evolution. There is no longer an acceptable gap between consumers’ experiences with other industries and with health plans, physicians, outpatient care centers, and hospitals. Baby boomers and millennials -- whose own children and grandchildren will need care by 2030 -- should expect no less.

For additional information or to speak with Ash Shehata, please contact Bill Borden.


Fact or fiction videos

Episode 1

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Episode 2

Episode 5

Episode 3

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Ash Shehata

Ash Shehata

Principal, National Sector Leader for HCLS, KPMG US

+1 513-763-2428

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Media contact

Bill Borden

Bill Borden

Director, Healthcare & Life Sciences Comm., KPMG US

+1 201-505-6351