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AUGUST 2021
Generation
HealthTech:
How Digital Tools Amplify
Millennial Patient Loyalty
G e ne ration Heal thTe c h:
How Digit al Tools A mplif y
Mille nnial Patie n t L oyal t y
is base d on f indings f rom
a c e nsus - balanc e d sur vey
of 2 , 26 3 U.S. c onsume r s.
T he play book rev iews the
impac t of ac c ess to digit al
c ommunic ation tools on
patie n t s’ loyal t y to their
heal thc are prov ide r s and
how heal thc are se r v ic es c an
leve rage digit al op tions to
boos t patie nt e ngage me nt .
TABLE
OF
CONTENTS
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . 02
Going Beyond Dr. Google . . . . . . . . . . . . . . . . 06
Payments are experiences too . . . . . . . . . . . . 10
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Generation
HealthTech Generation HealthTech: How Digital Tools Amplify Millennial Patient Loyalty
was done in collaboration with Rectangle Health, and PYMNTS is grateful
for the company’s support and insight. PYMNTS.com retains full editorial
control over the following findings, methodology and data analysis.
Introduction
HealthTech, which encompasses opportunities for healthcare market- customer experience add-ons for providers seeking to engage new
everything from popular telehealth ers to engage patients and sustain patients.4,5 They represent a fun- consumers and build customer loy-
options to self-service health- their loyalty over time.3 Millennials, damental shift in the way patients alty must be aware of the impact the
care kiosks, is generating buzz on America’s largest age group, are dig- interact with their healthcare pro- digital shift has had on consumer
Wall Street and in the media, fuel- ital natives, and PYMNTS’ research viders, as well as a new standard healthcare preferences for how they
ing heavy investor commitments to reveals that they are focused on of customer service that puts con- select, receive and pay for care —
HealthTech innovations in 2021.1,2 convenience and simplicity when sumer preference first.6 Healthcare especially for millennials.7,8
PYMNTS’ research shows that it comes to interactions with their
the promotion of HealthTech that healthcare providers.
improves patient experience — 1. Pifer, R. Digital health funding in 2021 smashes past year’s record with $14.7B. Healthcare Dive. 2021. https://www.healthcaredive.com/news/
HealthTech innovations such as digi- digital-health-funding-in-2021-smashes-past-years-record-with-147b/602920/. Accessed August 2021.
ranging from digital check-ins to 2. Healthcare Investment Dollars in 1H 2021 Hit $47B. Silicon Valley Bank. 2021. https://www.svb.com/trends-insights/reports/healthcare-invest-
ments-and-exits/2021-midyear. Accessed August 2021.
tal records management, automated
payments to automated appoint- 3. Healthcare Payment Experience Report. PYMNTS.com. 2021. https://www.pymnts.com/wp-content/uploads/2021/01/PYMNTS-The-Health-
care-Payment-Experience-Report-January-2021.pdf. Accessed August 2021.
payment plans and hybrid telehealth
ment reminders — presents new 4. Fine, H. Local health tech companies drive effort to digitize health care records. Los Angeles Business Journal. 2021. https://labusinessjournal.
com/news/2021/may/17/los-angeles-emr-tech-companies-drive-digitization/. Accessed August 2021.
options are more than just trendy 5. Deep Dive: How Biometrics And Contactless Payments Are Key To Creating Patient-First Healthcare Experiences. PYMNTS.com. 2021. https://
www.pymnts.com/identity/2021/deep-dive-biometrics-patient-first-healthcare-experiences/. Accessed August 2021.
6. New Healthcare Study: More Patients Willing To Switch To Doctors With Better Digital Tools. PYMNTS.com. 2021. https://www.pymnts.com/
healthcare/2021/new-healthcare-study-more-patients-willing-to-switch-to-doctors-with-better-digital-tools/. Accessed August 2021.
7. Ibid.
8. With $140B In Medical Debt, Doctors Saying ‘I’ll Bill You’ Doesn’t Cut It Anymore. PYMNTS.com. 2021. https://www.pymnts.com/pymnts-post/
healthcare/2021/with-140b-in-medical-debt-doctors-saying-ill-bill-you-doesnt-cut-it-anymore/?c=rectangle-health. Accessed August 2021.
4 | Generation HealthTech Introduction | 5
Millennial consumers are accus- with Rectangle Health, PYMNTS
tomed to online experiences that describes how healthcare providers
68%
prioritize frictionless interactions, can leverage millennial and younger
and HealthTech tools are just one consumers’ interest in digitally man-
more way they can digitally manage aged customer experiences to boost
the most important areas of their patient loyalty.
lives. Despite high levels of health-
care provider loyalty among most Share of bridge millennial and younger
consumers, bridge millennials, mil-
lennials and Generation Z patients patients interested in being able to review
lead every other demographic in
their willingness to switch providers their medical histories digitally
to those that offer the digital health-
care tools they desire.
Younger consumers’ affinity for pro-
viders that make healthcare services
easier to access through digital
tools appears to be growing stron-
ger. PYMNTS’ research found that
the likelihood that Gen Z, millennial
and bridge millennial patients would
switch to providers that offer digital
healthcare management tools rose
from 31 percent in November 2020
to 35 percent in April 2021.
In Generation HealthTech: How
Digital Tools Amplify Millennial
Patient Loyalty, a collaboration
© 2021 PYMNTS.com All Rights Reserved
Going Beyond Dr. Google | 7
T
he trope “Dr. Google” them limit friction when paying for
to describe consumers’ healthcare, such as upcoming pay-
propensity to research ment reminders and payment plans.
medical conditions online PYMNTS’ research has found that
is more than a dismissive most patients — 76 percent — are
aside. Today’s digital-native health- “very” or “extremely” interested in
care consumers not only look up using at least one digital method to
their symptoms, potential provid- manage their healthcare services
ers and co-pay rates before booking or interactions with their providers.
appointments but also want digital This is especially true of bridge mil-
control over their healthcare expe- lennial and younger patients, whose
riences.9,10 PYMNTS data shows interest in such features rises to 86
that making digital healthcare tools percent.
available to consumers can enhance
Contrary to stereotypes about mil-
customer experience and build loy-
lennials and healthcare avoidance,
alty, but why does it matter so
research shows that 93 percent of
much? 11
millennials desire a patient rela-
Research shows that most con- tionship with a primary healthcare
sumer interest in digital healthcare provider (PCP). In addition, the qual-
management tools is practical: ity of their relationship with their PCP
Consumers want digital options matters to millennials: 90 percent
GOING BE YOND that save them time in communi- desire a holistic, ongoing relation-
DR. GOOGLE
cating with healthcare providers ship with their provider that includes
and allow them greater interactiv- frequent communication about
ity on their own terms. Consumers their emotional and mental health,
Why digital-native patients care about also want access to tools that help personal relationships and overall
tech tools
9. Dailey, D. Doctor.com’s 2020 Consumer Survey Signals the “Death” of the Referral. Mobile Health Times. 2020. http://www.mobilehealthtimes.
com/doctor-coms-2020-consumer-survey-signals-the-death-of-the-referral/. Accessed August 2021.
10. Hochberg, I.; Allon, R.; Yom-Tov, E. Assessment of the Frequency of Online Searches for Symptoms Before Diagnosis: Analysis of Archival Data.
Journal of Medical Internet Research. 2020. https://www.jmir.org/2020/3/e15065/. Accessed August 2021.
11. Report: Consumers Demand Digital Be Part Of Their In-Person Healthcare Experience. PYMNTS.com. 2021. https://www.pymnts.com/health-
care/2021/report-consumers-demand-digital-be-part-of-their-in-person-healthcare-experience/. Accessed August 2021.
© 2021 PYMNTS.com All Rights Reserved
1
8 | Generation HealthTech Going Beyond Dr. Google | 9
lifestyle wellness.12 Another recent “extremely” interested in November Are millennial patients’ unique
survey revealed the level of frustra- 2020 to 68 percent in April 2021) and needs being addressed?
3
tion millennials carry with respect filling out medical forms digitally (up Millennials make up the highest per-
to their healthcare providers’ com- from 58 percent to 60 percent). They centage of new parents, and they
munication practices: 76 percent of also expressed greater interest in also sleep fewer and work more
millennials said they wished their securely communicating with health- hours than generations before
providers would reach out to them care providers (increasing from 63 them.14 These busy patients are likely
more often between appointments.13 percent to 65 percent) and receiv- to find time-saving digital appoint-
ing digital payment notifications ment reminders, a website with Are routine administrative tasks
That means healthcare provider automated for consumers so
(up from 59 percent to 60 percent). telehealth options and simple digital
accessibility and user-friendly that in-person visits are focused
2
Generation Z, millennial and bridge records access to be key engage-
healthcare communications likely on care?
millennial consumers also became ment drivers.15
are essential components of a posi- While PYMNTS’ research shows that
more likely to switch healthcare pro-
tive patient-provider relationship for 62 percent of millennials prefer
viders if they were offered digital
most millennial consumers. in-person visits with their healthcare
tools to manage healthcare services,
Recent PYMNTS research under- with that share increasing from 31 providers, they want those visits
percent to 35 percent.
Is the healthcare provider’s web to be focused on care and not on
scores the importance of digital
presence simple, intuitive and administrative tasks.17 Digital tools
healthcare management to millen-
Here are three questions to ask contextually relevant? can help healthcare providers keep
nials. Bridge millennials and younger
when evaluating a healthcare provid- A vast majority of millennials (83 millennial patients loyal with better
patients showed increased inter-
er’s millennial patient engagement percent) conduct a great deal of in-office experiences.
est in both reviewing their medical
strategy: research well before they book an
histories digitally (rising from 64 per-
appointment with a doctor— on
cent of patients who were “very” or
subjects ranging from their poten-
tial doctors’ credentials to the
12. Author unknown. Millennials Speak Up About Their Health Care Expectations. American Hospital Association. https://www.aha.org/aha-center- possible meaning of their symp-
health-innovation-market-scan/2019-12-17-millennials-speak-about-their-health-care. Accessed August 2021.
13. Brogan, N. Baby Boomers and Millennials Want More Frequent Communication. Managed Healthcare Executive. 2019. https://www.managed- toms.16 A healthcare provider with a
healthcareexecutive.com/view/baby-boomers-and-millennials-want-more-frequent-communication. Accessed August 2021.
14. Ayesh, R. Millennials sleep and work more than previous generations. 2019. Axios. https://www.axios.com/millennials-lifestyle-work-social-bu- content-rich, user-friendly website
reau-labor-statistics-7fbabcc6-d5cb-4066-8ca1-f9724019905b.html. Accessed August 2021.
15. Report: Consumers Demand Digital Be Part Of Their In-Person Healthcare Experience. PYMNTS.com. 2021. https://www.pymnts.com/health-
care/2021/report-consumers-demand-digital-be-part-of-their-in-person-healthcare-experience/. Accessed August 2021.
can provide the answers millennials
16. Yasgur, B. Millennials Flock to Telehealth, Online Research. WebMD. 2021. https://www.webmd.com/lung/news/20210402/millenni-
als-flock-to-telehealth-online-research. Accessed August 2021.
seek while engaging them online.
17. Goodwin, J. Understanding the “why” for Gen Y: What Millennials are looking for in healthcare practices. Medical Group Management Asso-
ciation. 2021. https://www.mgma.com/resources/quality-patient-experience/understanding-the-why%E2%80%9D-for-gen-y-what-millennials.
Accessed August 2021.
© 2021 PYMNTS.com All Rights Reserved
Payments are experiences too | 11
C
ustomer experience While stimulus checks and tax
reviews often neglect refunds helped many millennials
how consumers pay for keep ahead of their medical bills,
healthcare, yet these pay- interest in payment plans remains
ments are a critical part strong among younger adults.20
of patients’ experiences. The past Most patients — 56 percent — are
year placed a financial strain on “very” or “extremely” interested in
many consumers, including millen- payment plans. Bridge millennial and
nials. A recent survey revealed that younger patients also are “very” or
more than one-third of millennials “extremely” interested in payment
(35 percent) were burdened with an plans at a high rate (73 percent).
unexpected medical bill in 2020, and PYMNTS’ research found that many
more than half (51 percent) said it healthcare consumers are not
was over $2,000.18 According to the offered payment plans despite their
same study, most millennials have interest in them. Clear onboarding
less than $3,000 earmarked to pay processes for new patients can help
for medical expenses. A recent poll limit confusion during payment and
of millennial patients revealed that prevent missed payments.
48 percent have medical debt, with
Healthcare providers seeking to
54 percent of parents with young
boost millennial patient loyalty
children reporting that they have
PAYMENTS A RE
should keep in mind the following:
ongoing bills they cannot pay all at
E X PER IENCES TOO
once.19
18. Grunebaum, D. Survey: Millennials Battle Surprise Medical Bills, Debt. Healthcare Insider. 2021. https://healthcareinsider.com/millennials-bat-
tle-surprise-medical-bills-251063. Accessed August 2021.
19. Adams, K. 72% of Americans say medical debt has kept them from achieving life’s milestones, study finds. 2021. Becker’s Hospital Review.
https://www.beckershospitalreview.com/finance/72-of-americans-say-medical-debt-has-kept-them-from-achieving-life-s-milestones-study-finds.
html. Accessed August 2021.
20. Burton, A.; Carpenter, J. Here’s How Young Americans Are Using Their Stimulus Checks. The Wall Street Journal. 2021. https://www.wsj.com/
articles/heres-how-young-americans-are-using-their-stimulus-checks-11613154233. Accessed August 2021.
© 2021 PYMNTS.com All Rights Reserved
12 | Generation HealthTech Payments are experiences too | 13
Competitiveness requires important digital offering that would communications frictionless is key to make payments online as well as
connectedness encourage switching providers. This to sustaining millennial engage- to send direct communication to the
Healthcare providers are encounter- kind of digital feature is even more ment. PYMNTS researchers learned office.
ing new categories of competition, relevant for Gen Z consumers (23 that younger patients are replacing
from exclusively online telehealth percent in 2021). Notifications about phone contact with visiting the prac-
services to personal health monitor- insurance coverage (rising from 6 tice’s website. Research found that
ing apps, that aim to reduce the need percent to 12 percent) and payments 13 percent of younger patients (Gen
for in-person checkups. Healthcare (rising from 3 percent to 7 per- Z, millennials and bridge millenni-
providers seeking to retain millen- cent) also became significantly more als) said using a practice’s website
nial patients and build loyalty should important this year. was their most preferred method in
provide these consumers with an 2021 — increasing from 9 percent in
73%
arsenal of relevant digital healthcare
In-person care should be 2020. In line with this trend, the sur-
data-driven vey revealed that 31 percent in 2021
tools.
Millennials want better in-person said calling on the phone was their
Millennials are loyal but aware of healthcare experiences as well as most preferred method, down from
their options simplified digital communications
Share of bridge
36 percent in 2020.
Millennials value their time with their because they are used to the effi-
Look at digital engagement as
millennial and
healthcare providers, and tools that ciency of digital channels. Asking a
limit friction in areas such as paper- series of relevant questions in-office more than a website
work or billing surprises can preserve
positive patient-provider relation-
about their desired digital healthcare
options will ensure they are receiv-
Email and text notifications grew
from 2020 to 2021 as a key digital younger patients
ships. Email and text notifications
grew as key digital offerings that
ing the care they need in the way
they prefer.
offering that encourages patients
to switch providers. This implies
who are “very”
could encourage patients to switch
Make communications effortless
that millennial patients are not just
gleaning information from health-
or “extremely”
providers. The importance of noti-
fications about appointments more Patients are looking to interact with care provider websites but are using interested in
the healthcare provider’s office as them as a way to connect to their
payment plans
than doubled from 2020 to 2021, ris-
ing from 6 percent to 14 percent of easily as a retailer’s helpdesk or providers. Ensure that your practice
consumers who said this is the most texting with a friend. Making digital website includes an easy, secure way
© 2021 PYMNTS.com All Rights Reserved
CONCLUSION
W METHODOLOGY
hile PYMNTS’ research shows that
most millennial and younger patients
prefer traditional in-person health-
care with a trusted provider, their
desire for digital convenience and
Generation HealthTech: How Digital
low-friction payment experiences often overrides Tools Amplify Millennial Patient
their loyalty to a familiar physician. When given a Loyalty is based on findings from a
choice between a familiar healthcare provider and survey of 2,263 consumers represen-
one who offers the digital healthcare manage- tative of the U.S. adult population.
ment options that millennials favor, many patients The playbook reviews the impact of
choose a digitally enhanced customer experi- access to digital communication tools
on patients’ loyalty to their health-
ence over familiarity. Today’s consumers see their
care providers and how healthcare
healthcare experiences — from how they manage
services can leverage digital options
appointments to how payments are arranged — as to boost patient engagement.
key to an overall positive patient visit. Healthcare
providers seeking to remain competitive with con-
sumers’ growing array of options, from telehealth
to self-service health kiosks, must offer patients
an in-office customer experience that meets their
digitally inspired standards.ABOUT
Generation
PYMNTS.com is where the best minds and the
best content meet on the web to learn about
“What’s Next” in payments and commerce.
Our interactive platform is reinventing the
way in which companies in payments share
HealthTech
relevant information about the initiatives
that shape the future of this dynamic sector
and make news. Our data and analytics team
includes economists, data scientists and
industry analysts who work with companies
to measure and quantify the innovation that
is at the cutting edge of this new world.
Rectangle Health, a leading healthcare DISCLAIMER
technology company, empowers practices PYMNTS.COM SHALL NOT BE LIABLE FOR ANY DAMAGES WHATSO-
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