Deloitte Analysis: Consumer Demand for Virtual Health Outpaces Market Offerings

Ninety-four percent of consumers want virtual health, yet nearly 50% of health systems are providing the same or fewer virtual visits compared to two years ago

NEW YORK, Oct. 16, 2024 /PRNewswire/ -- 

Key takeaways

• Ninety-four percent of consumers are willing to return for virtual health visits in the future — up from 80% of consumers surveyed in 2020.
• Meanwhile, nearly 50% of health systems surveyed say they offer the same or fewer virtual visits today compared to 2022 with some ending virtual visits completely.
• Eighty-two percent of health system executives would be willing to expand virtual care services if reimbursement rates were equivalent to in-person care.
• Forty-three percent of millennials and 33% of Gen Z surveyed say they would switch their doctors if virtual visits are not offered.

Why this matters
Today's health care consumers are accustomed to highly personalized virtual experiences, and they're willing to switch providers to get it. The findings from Deloitte's latest report, "The growing disconnect between virtual health availability and consumer demand," underscore a gap in health care systems' understanding of today's health care consumer. The report shows that 40% of health care systems reduced or discontinued virtual visits because they perceived low patient interest. While the report indicates additional reasons health systems are reducing virtual visits, Deloitte suggests that virtual health has the potential to be a profitable growth area at a time when health systems need it most and presents opportunities to improve patient experience and access to care.

Convenience and cost are driving consumers to go virtual  
In today's fast-paced world, many consumers expect the flexibility of conducting their day-to-day activities  virtually— whether it's working, managing finances, or shopping. The demand for convenience in health care is apparent with Deloitte's survey showing patients increasingly seeking virtual appointments as a more flexible and accessible option. The ability to schedule appointments at convenient times, avoid travel and reduce wait times is appealing to more health care consumers who value efficiency and convenience.

• Convenience is the No. 1 reason why consumers are choosing virtual health visits over in-person appointments. People favored more flexible appointment times (64%), the elimination of travel to get to the appointment (44%), and shorter wait times (37%).
• Cost was another benefit to consumers, with one-third saying virtual visits are more cost effective for them considering expenses like time off from work, transportation, parking and childcare.
• Flexibility is important, as 1 in 4 survey respondents are willing to switch doctors to get access to virtual care.
• More Hispanic (38%) and Black (29%) respondents would consider switching doctors to ensure the availability of virtual visits than white (21%) and Asian (17%) respondents.

Key quote
"Health care consumers today  appear to feel empowered, and  many are seeking experiences with providers that can deliver personalized care when, where and how they want to receive it. Our research suggests that some patients are willing to change providers if they don't offer virtual health, so this should be a clear signal to health care systems that the needs and preferences of their consumers  should be understood and acted upon."

—     Urvi Shah, principal, Life Sciences and Health Care, Deloitte Consulting LLP

Clinician resistance and reimbursements hindering virtual health growth
Provider adoption of virtual care has been hindered by several challenges:

• Low interest among physicians and clinical teams remains a challenge, with 60% of health system executives citing this as the main factor.
• Inadequate reimbursement rates and changes in payment incentives: (82%) of health system executives would be willing to expand virtual care services if reimbursement rates were equivalent to in-person care.
• Health system executives also say they were influenced by what they perceived to be low patient interest (40%).

Key quote
"Despite these challenges, the growing consumer demand for virtual health presents a significant opportunity for health care systems. There are operational strategies that can enhance the profitability of virtual health, even with lower payments. The concept of Smart Hospital of the future is no longer a sci-fi concept — it's here and starting with immersive experiences with virtual reality and a wide variety of tech and digital tools and can only expand access and reduce obstacles from a health equity standpoint."

—     Anwesha Dutta, managing director, Smart Hospital of the Future Leader and Tech Strategist, Health Care Consulting, Deloitte Consulting LLP

Consumer-centric growth opportunity for health systems
The increasing demand for virtual health underscores a need for health systems to prioritize new strategies, operations capabilities and technologies to transform care delivery, attract and retain patients and improve margins. However, challenges such as limited access to capital and increased scrutiny on return on investment should be addressed. Overcoming these obstacles will be important for health systems to capitalize on the opportunities presented by virtual health and transform health care delivery centered around the patient experience.

About the surveys
In July 2024, the Deloitte Center for Health Solutions conducted a survey of more than 2,000 U.S. consumers to understand their experiences with virtual health care. To understand health systems' perspectives, the Center for Health Solutions surveyed 51 U.S. health system executives about their virtual health strategies.

About Deloitte
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world's most admired brands, including nearly 90% of the Fortune 500® and more than 8,500 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an impact that matters by creating trust and confidence in a more equitable society. We leverage our unique blend of business acumen, command of technology, and strategic technology alliances to advise our clients across industries as they build their future. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Bringing more than 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte's approximately 460,000 people worldwide connect for impact at www.deloitte.com.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.

SOURCE Deloitte