It does, however, account for a relatively smaller percentage of healthcare spending, but that blip doesn’t mean its impact isn’t being felt. Healthcare is not what happens to consumers; it’s what consumers choose for themselves, and e-commerce allows for a much broader range of choices.
The barriers preventing e-commerce from wider acceptance in healthcare are real. But overcoming them might be the key to helping the patients and providers most in need of e-commerce to take advantage of the numerous cost-saving benefits available to them.
What’s the holdup?
A few variables factor into e-commerce’s underutilization in the healthcare field. For instance, Communications for Research estimates that the entire healthcare industry invested $15.6 billion into information technology in 2015, a figure expected to increase in coming years.
But even with updated technology, communication between providers and networks is often limited, which complicates collaboration and the referral process. In addition, many patients are legitimately concerned about the safety and privacy of their health records.
A large chunk of those same customers — many of them Baby Boomers — must also adjust to a considerable learning curve when using technology. The Pew Research Center notes that only about 46 percent of people between ages 60 and 69 own smartphones.
So, while Millennials may find accessing e-commerce healthcare services natural and efficient, Boomers’ uncertainty could harbor a skepticism and mistrust that causes some of them to miss out on the features that could help streamline their healthcare experience.
Integrating e-commerce into healthcare can significantly cut costs in terms of time, transportation, and inventory for providers and patients. For it to be successful, though, the majority of consumers will have to embrace it, and the implementation onus lies largely with healthcare providers.
Changing the way healthcare works
When implemented effectively, e-commerce can reduce the skyrocketing costs of healthcare and help with preparing, storing, and monitoring medical records, a traditionally time-consuming and costly process.
Healthcare providers in brick-and-mortar facilities store high quantities of inventory that can be expensive to maintain, and all those costs are taken on by the consumers.
E-commerce could not only reduce these costs, but perhaps more importantly, it would also save time, which translates into more time to care for patients. The ability to access personal records, engage with providers, and complete financial transactions online gives consumers greater ownership over their healthcare.
Whereas patients were once talked at rather than consulted with when it came to medical procedures, they can now be active participants in their care. Consumers can also become more selective in choosing their providers, which, in turn, will necessitate increased competence among providers in keeping up with market competition.
With these four steps, providers can utilize e-commerce to its full potential and stay ahead of the curve as it becomes a more dominant force in healthcare:
1. Automate wherever possible. When possible, preset anything that is manual and repetitive to save time and to reduce or eliminate certain expenses. This includes digitizing patients healthcare records, which can reduce the costs of hospital admittance by more than 9 percent, according to the Association of Electronic Health Records.
Constructing an updated, easy-to-use website also frees up time and helps build trust with consumers who are searching for providers. Baby Boomers on the fence about e-commerce still search for online reviews and are drawn to providers who have helpful websites; a helpful website should house doctors’ biographies, relevant healthcare information, and contact information for consumers wanting to reach their providers.
2. Cut costs; build alliances. Use e-commerce to better plan for and deploy products and services. E-commerce helps providers build alliances with one another and with healthcare suppliers to further reduce costs for consumers.
Currently, B2B e-commerce makes up an average of 10 to 15 percent of revenue for healthcare suppliers, according to a study conducted by Insite Software; for larger firms, that number jumps up to about 65 percent.
3. Scale up technology. Provide for secure communication across multiple networks by synchronizing medical histories, diagnoses, treatments, and more. This will require a commitment to hardware, software, and a strong tech infrastructure (including a stable internet connection).
Because patients have serious concerns about security breaches and privacy, this implementation can be actioned by combining lean startup methods with regulatory oversight. Similar to how the U.S. Food and Drug Administration may approve biotech development and adoption, regulatory practices and monitoring will help protect patient privacy and Health Insurance Portability and Accountability Act standards.
4. Educate patients. Pave the path to electronic portals and e-commerce by educating patients on how to use the technology and access their personal accounts. Some patients will transition easily thanks to their familiarity with technology. Others will need assistance to become comfortable enough to make e-commerce a part of their healthcare.
Healthcare tech suppliers and providers must make sure that all consumers, especially those who need the most assistance, are part of a continuous dialogue. As healthcare e-commerce ramps up, keeping consumers in the loop will help ensure that they remain interested, up-to-date, and engaged.
A better way to shop for healthcare
E-commerce has the potential to dramatically reduce healthcare costs by putting funds back into patients’ hands. For instance, consumers will have a greater selection of healthcare plans to choose from, including flexible spending accounts that can reduce health expenses by at least $8 billion. These accounts can be managed through e-commerce.
As nearly every other industry has shown, e-commerce isn’t just a fad; it’s quickly becoming the de facto way to do business. As it permeates more of the healthcare industry, it will become increasingly important for providers to make implementing e-commerce a top priority.
Vivek Kopparthi is the co-founder and CEO of NeoLight, an empathy-driven technology company primarily focused on lean medical devices for newborn care. With a background in electronic engineering, he and his team developed the world’s fastest, most powerful treatment for infant jaundice. As an entrepreneur, Kopparthi oversaw organizations of 100-plus employees, served as a startup advisor, and consulted for global corporations.
