The Truven Health Blog

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By Truven Staff

Provider Cost Competition Affected by Generational Characteristics

Linda MacCracken imagePricing transparency is more crucial to consumer provider selection, given more healthcare spending. Price and affordability are one of the top two factors defining quality for Generation Xers and Baby Boomers, and the third highest factor among the younger Millennials and older Generation Xers. The recent article, Disruptive Innovators: Cost Competition Puts Pressure on Providers underscores the future impact to providers. This is more apparent in outpatient care, where there are many more competitors for the same provider services. Providers wanting to keep the educated, informed and patients willing to act will need to engage around direct price competition – via payments, rates and payer channels. The Truven Health Treatment Cost Calculator integrates payer coverage benefits applied to any planned procedure, and gives the consumer more provider switching options than seen in the past. For the Millennial deciding between seeing the doctor or spending money on food, entertainment and cell phone fees, healthcare may be postponed. The Baby Boomers and Greatest Generation have higher loyalty to primary care providers, and may have a comparatively slower rate of defection for pricing purposes for planned procedures, such as the colonoscopies.

Complete a short form to download the Truven Health research brief, Matching the Market: Using Generational Segments to Attract and Retain Consumers, that explains the motivations behind four current generations:
  • Greatest/Silent Generation (adults born before 1942): Physician Directs Me
  • Baby Boomers (1943–1960): Engage Me
  • Generation X (1961–1981): Educate Me
  • Millennials (Adults Born Since 1982): Connect With Me
These generational attitudes affect how consumers view a variety of healthcare decisions.

Linda MacCracken
VP, Advisory Services