Generational gaps are undeniable, and with so many different age cohorts coexisting today, we see a fascinating mix of perspectives, habits, and preferences, especially when it comes to shopping, payment methods, and even healthcare. This unique blend of diverse generational needs and behaviors brings both exciting opportunities and complex challenges for businesses and healthcare providers.
Take shopping and payment methods, for example. The younger crowd, Gen Z and Millennials are tech-savvy and favor online shopping, mobile wallets, and contactless payments. They love the convenience and speed and are always looking for a more personalized shopping experience.
Meanwhile, Gen X and Baby Boomers might be a bit more old-school in their approach. While they have embraced many digital trends, they often prefer the traditional in-store experience, finding comfort in browsing and paying with cash or credit cards.
Understanding these generational differences is vital for healthcare providers to cater to a diverse patient base. As new technologies emerge, appreciating and addressing these generational differences will be imperative to creating more inclusive, responsive, and optimal solutions in healthcare.
Join us as we explore the varying healthcare preferences across generations and understand why it's essential to tailor healthcare services to accommodate different preferences and needs.
The US population is fairly balanced across four generations: Gen Z (20.7%), Millennials (21.7%), Gen X (19.5%), and Baby Boomers (20.9%). Each generation brings distinct preferences, values, and expectations to the table.
But do healthcare needs and preferences genuinely differ across these generations? Let's explore different aspects to grasp the nuances.
According to PYMNTS, Generation Z patients often encounter surprise out-of-pocket expenses, with 32% not realizing they would need to make copayments for their healthcare visits. In contrast, most Generation X (80%) and baby boomers (90%) were aware of their out-of-pocket obligations in advance.
Furthermore, the average out-of-pocket cost for healthcare visits is approximately $363. However, Millennials face the highest average costs at $619 per visit, highlighting the significant financial burden they bear compared to other generations when seeking medical care.
Rising healthcare expenses have particularly affected the younger generation, with 74% of Millennials and 56% of Gen Z canceling appointments upon receiving cost estimates they cannot afford. In contrast, baby boomers benefiting from Medicare coverage have a cancellation rate of only 13%. Generation X falls in the middle, with nearly 4 in 10 canceling appointments due to high-cost estimates.
Interestingly, those living paycheck to paycheck tend to cancel appointments to avoid financial strain. This highlights how financial circumstances strongly influence healthcare decisions across generations, impacting access to essential medical services.
When considering healthcare options, Gen Z consumers (66.4%) prefer an omnichannel approach to healthcare services that seamlessly integrates digital and in-person healthcare options. This generation values the convenience and accessibility of digital tools alongside traditional healthcare interactions. Millennials closely follow, with 63% favoring these flexible healthcare choices, reflecting their reliance on technology in managing their healthcare needs.
In contrast, only 30-40% of baby boomers and Gen X utilize a mix of digital and in-person healthcare options. These generations tend to have more varied preferences, with some embracing digital tools gradually while others prefer traditional healthcare methods.
Generation Z is at the forefront of adopting digital healthcare tools, with 66% using wellness apps. Among them, 24% utilize fitness or sleep trackers, 18% engage in digitally guided workouts, and 17% use apps to track their diet. They embrace technology to stay on top of their health. In contrast, the adoption rate among other generations is significantly lower, with only 40% utilizing similar digital health solutions.
According to a study by Kantar, Millennials stand out as the most likely generation to own credit cards, with 65% reporting having one.
Cashback is the preferred reward choice across all age groups, but Millennials (41%) and Gen Z (40%) show a stronger preference for instant rewards compared to Gen X (34%) and Boomers (26%), who are less inclined towards this option. Moreover, younger generations prioritize immediate and tangible benefits that contribute directly to their financial well-being, favoring cash back over accumulating points or seeking discounts.
Furthermore, digital payment methods such as Apple Pay and Google Wallet have gained significant popularity among Gen Z (54%) and Millennials (53%). Conversely, adoption rates are notably lower among Gen X (35%) and Baby Boomers (18%).
The younger generations have a more holistic view of their health compared to older generations, emphasizing a balance of physical, mental, and emotional well-being. They are more proactive in seeking comprehensive care, including preventive measures, mental health support, and alternative therapies.
Healthcare providers must shift from disease treatment to prioritizing wellness, prevention, outcomes, and overall health to attract and cater to this niche. In addition, 47% of millennials would switch to a provider offering a better payment experience.
In addition, the younger generation, especially Gen Z, have grown up in a world where technology seamlessly integrates into their daily lives. By tapping into their comfort with technology and offering multiple digital payment options such as card-on-file, mobile wallets, and contactless payments, you can streamline the payment process, provide the convenience and flexibility they expect, and ultimately build stronger relationships with your younger patients.
Acknowledging and addressing generational differences in payment preferences will elevate your practice to new heights by:
Efficiently managing front desk collections helps maximize revenue and reduces outstanding balances. Providing preferred payment methods tailored to each generation increases the likelihood of prompt payments, reduces payment friction, and boosts cash flow.
Offering convenient options such as card-on-file, text-to-pay, and digital wallets expedites payment transactions. Moreover, digital payments eliminate manual data entry, allowing for quick and secure transactions with minimal friction, improving patient satisfaction, and optimizing revenue.
Manual patient payment processes are prone to errors and consume valuable staff time, hindering overall efficiency. In contrast, digital payments provide a reliable, traceable record of transactions, ensuring accuracy and expediting the payment process. This enables employees to allocate their time to more strategic tasks rather than chasing late payments or handling paper checks.
Furthermore, digital payment solutions enable healthcare providers to streamline operations, minimize administrative tasks, and empower staff to focus more on patient care and customer service.
Patient expectations have evolved; they prioritize a better healthcare experience, from advanced medical treatments and personalized care plans to seamless access and convenient payment options. They are even willing to switch providers for better service.
Catering to the preferences and needs of each generational cohort ensures patient satisfaction and engagement, fostering trust and loyalty. A dedicated and loyal patient base improves patient retention and guarantees a stable revenue stream, supporting long-term practice growth. Furthermore, it also promotes business expansion through positive word-of-mouth referrals.
Patients, especially the younger generation, are hunting for practices that make their healthcare journey convenient and hassle-free. Healthcare practices that leverage technology gain a significant competitive edge by positioning themselves as innovative and patient-centric. It sets them apart from competitors who rely on an outdated, one-size-fits-all approach. Simplifying the payment process and reducing administrative burdens signals that your practice values patient time and preferences, driving business growth and differentiating it in a competitive healthcare market.
Glenwood's revenue cycle management tool — GlaceRCM — streamlines patient collections by providing user-friendly tools such as eBills, text reminders, a patient payment portal, digital payments, and kiosk collection terminals. Our advanced tools simplify payments, ensure timely and consistent collections, reduce administrative burdens, and enhance your practice's financial health, allowing you to focus on providing exceptional care.
Schedule a Free Consultation!
