Deloitte research indicates that by ensuring virtual health offerings prioritize convenience and address consumer preferences, health systems could gain a competitive advantage
Despite an increase in consumer demand, the use of virtual health services has remained relatively flat since 2022, according to recent research from Deloitte. About a quarter (24%) of survey respondents say they are willing to switch doctors to ensure access to virtual health options. Today’s consumers, accustomed to highly personalized virtual experiences in banking, retail, and entertainment, now expect the same level of convenience and customization in their health care interactions. These trends underscore a need for health care organizations to adapt by enhancing their virtual health offerings or risk losing market share.
In July 2024, the Deloitte Center for Health Solutions conducted a survey of more than 2,000 US consumers to understand their experiences with virtual health care. The findings from Deloitte’s 2024 survey of US health care consumers reveal that while consumer demand for virtual and digital health services is high, the availability of these options remains inconsistent. To delve deeper, we also surveyed 51 US health system executives about their virtual health strategies. The findings reveal a striking disconnect: Although many health systems are both interested in and capable of offering virtual health services, their organizational priorities often don’t align with consumer needs. Some health systems have even scaled back or completely discontinued their virtual health offerings.
This disparity highlights a critical challenge for the health care industry: aligning organizational strategies with the growing consumer demand for accessible, digital health solutions. Even though the percentage of surveyed consumers who have had a virtual health visit in the previous 12-month period increased only slightly from 42% in 2022 to 44% in 2024, their willingness to continue using virtual health has increased significantly. In 2024, nearly all consumers who have had a virtual visit (94%) expressed a willingness to have another one, up from 80% in 2020 (figure 1).
Some consumers are willing to change doctors to ensure virtual health access
The availability of virtual health visits is becoming increasingly important as consumers become more empowered and prioritize access and convenience in their health care decisions. Some of the consumers we surveyed say that even when they want a virtual visit, they don’t schedule one due to various reasons: the available appointments aren’t convenient (33%), their doctors don’t offer virtual health services (22%), or the health care organization either no longer provides virtual visits for the type of visit they are looking to schedule or has gone out of business (11%).
About one in four consumers surveyed (24%) say they would be willing to switch doctors if virtual visit options aren’t offered. While many people switch doctors due to insurance changes or doctor retirements,1 this 24% represents those willing to switch solely based on the availability of virtual health. This willingness is particularly pronounced among younger consumers, with 43% of millennial (born between 1981 and 1996) respondents and 33% of Generation Z (born in 1997 or later) respondents expressing this sentiment versus just 7% of baby boomers (born between 1946 and 1964). Younger consumers may also have fewer regular medical needs, making them less likely to have established strong relationships with their current doctors.2 Additionally, 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 (figure 2).
Convenience and cost drive consumers’ preference for virtual visits
Convenience is the main reason consumers opt for virtual health visits. The majority of survey respondents who prefer virtual visits for certain types of care cite several benefits: more flexible appointment times, the elimination of travel to a doctor’s office, and shorter wait times (figure 3). Additionally, about one-third of respondents say that virtual visits are more cost-effective, considering expenses like time off from work, transportation, parking, and child care.
Despite an increased willingness to use virtual health services, some consumers still prefer in-person care for certain health care needs (figure 4). Most surveyed consumers say they prefer in-person care for dermatology (68%), chronic care management (62%), preventive services (56%), post-surgical check-ins (60%), and obstetrics-gynecology (52%). These responses suggest that most consumers believe the quality of care is better for these services when delivered in person and that these consumers appreciate an in-person touch. These findings highlight opportunities to improve both access to and awareness of virtual visits for various types of care, benefiting both consumers and clinical staff.
However, certain types of care and services can be well-suited to virtual settings and can even enhance quality and outcomes. For example, some post-surgical follow-ups, weight management, dermatology, mental health, and chronic care management appointments can be effectively managed virtually. In many cases, the quality of care and opportunities for care coordination in these areas are comparable to, or even better than, in-person care.3 These services can be conducive to virtual visits when they involve shorter appointments, don’t require physical examinations or testing, or benefit from an already established clinician-patient relationship.
There also appears to be a disconnect between consumer preferences and the actions of health system executives. Most surveyed health system executives recognize the broad benefits that virtual health can offer to both consumers and their clinical staff. Despite this recognition, some health systems are limiting their virtual offerings.
According to our survey of health system executives responsible for virtual health offerings, about half of the respondents say that their organizations have increased virtual care options over the past two years. Additionally, most respondents (82%) indicate they would be willing to expand virtual care services if reimbursement rates were equivalent to those for in-person care. Despite growing consumer interest, 18% of the surveyed executives report that their organizations offer fewer virtual visits today than in 2022. Some organizations have stopped offering virtual visits entirely, and 29% have not changed their virtual health offerings over the past two years (figure 5).
The survey results also suggest that executives might not fully appreciate consumers’ needs when making decisions about virtual health. According to the surveyed executives, virtual health decisions are often driven by clinician perspectives and financial considerations. While both factors are important, considering virtual health from a consumer lens could be just as critical. Some of the health system executives we surveyed seem to think that patient preference for virtual health is low. However, this perception is misaligned with our consumer survey results, which show a high level of interest in virtual health services.
Health system executives who have reduced their virtual health services indicate that their decisions are primarily based on the needs of clinicians or the organization, rather than those of consumers. Low interest among physicians and clinical teams is the top reason cited by surveyed executives for limiting or not offering virtual health options. Some respondents do not see much demand from patients, and 3 of the 10 respondents indicate that payment incentives and inadequate reimbursement influenced their decisions about virtual care (figure 6).
Despite these challenges, virtual health has the potential to be a profitable growth area for health systems when it is most needed. The Deloitte Center for Health Solutions’ US Health Care CFO survey reveals that 27% of health systems have failed to meet their operating margin goals over the past three years.5 One contributing factor is decreasing revenue. Some virtual health services are billed under codes that have lower reimbursement rates compared to in-person visits, thereby negatively impacting margins.
However, there are operational strategies that can enhance the profitability of virtual health care delivery, even with lower payments. These strategies include adopting different staffing models and utilizing lower-cost clinicians, centralizing staffing, and leveraging command centers to oversee operations centrally. Additionally, using technology to automate various aspects of operations can reduce costs and increasing service availability during evenings and weekends can boost patient volumes. Furthermore, virtual visits can drive significant downstream volume by leading to further testing, diagnostics, and other in-person care services, thereby substantially contributing to a health system’s overall profitability.
These findings underscore the need for health system executives 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 must be addressed. Overcoming these obstacles is crucial for health systems to successfully capitalize on the opportunities presented by virtual health.
There is still work to be done to bring virtual health to consumers
Despite acceptance by health systems, clinicians, and consumers, the growth of virtual health use has not increased much since the federal public health emergency ended in May 2023. Over the past few years, many health systems have increased their budgets and prioritized investments in digital technologies and capabilities like cloud and artificial intelligence. The current situation presents an opportunity for health systems to re-evaluate their virtual health strategies. There is growing consumer demand for health systems to expand and scale virtual health and other alternative site-of-care options, leveraging their already expanded technology and digital capabilities. These capabilities can enable greater patient acquisition and retention.
Health system executives looking to enhance their virtual health strategies can consider the following approaches:
Implement human-centered design principles. Virtual health approaches should prioritize the consumer’s perspective alongside that of clinicians and the organization. Both consumer and clinician feedback can guide strategic decisions, process designs, and investment considerations. Instead of merely replicating in-person experiences, health care organizations should design virtual health solutions to meet the specific needs and expectations of consumers.
At the same time, virtual care should be seamlessly integrated into clinicians’ workflows to ensure high-quality care. Effective communication and education are essential to this approach. For example, health care organizations should educate patients about when virtual visits are appropriate for their care needs. Creating a virtual care experience that provides user-friendly digital platforms and tools can help enhance the patient experience.
Ensure equitable access and experiences. Due to inequities in health outcomes and the social, economic, and environmental drivers of health, some consumers may need tailored, additional, or specific support to achieve equitable access to and experiences with virtual health. Health systems should strive to ensure equitable access and experiences for all consumers. Strategies should include using virtual visits to attract patients who were previously uncomfortable or unable to access the health care system. For example, virtual health can help mitigate the stigma associated with certain conditions like mental health and provide better access to care for those with transportation difficulties or living in rural areas where physical clinics are not easily accessible.
Some consumers and communities may need additional support for virtual visits, such as access to broadband or technology literacy training, and some may simply need private spaces to conduct virtual visits. Health systems should collaborate with stakeholders to provide access to those in areas with broadband/internet issues. Consumers with lower literacy levels may need content in simpler language, and content in multiple languages may be necessary for certain geographic groups to improve accessibility. A diverse and representative virtual care delivery team could help improve the acceptance of this care model. Additionally, health systems should aim to attract diverse and representative talent to design the technology and digital tools, helping ensure that services resonate with diverse populations.
Assess financial, operational, and strategic opportunities. Health systems should consider conducting a pricing analysis to understand the financial implications of virtual care versus in-person visits across different patient cohorts, appointment types, and settings. This analysis can provide valuable insights for identifying growth opportunities and enhancing patient retention. Additionally, health systems should focus on developing process flows and operations that make virtual health options financially viable. This could involve creating more capacity to increase patient volumes and expand the book of business. Clinicians could see more patients due to quicker appointment turnover, and clinics could extend hours of operation to make care more accessible by having clinicians work flexible online shifts.
Establishing command centers dedicated to virtual health, where staff conduct virtual visits, monitor patients, and assess capacity, could also lead to cost efficiencies by operating centrally or virtually. Leveraging generative AI and other technologies to support staffing and processes could further enhance financial viability. As part of this effort, organizations should define value and metrics for virtual health that go beyond return on investment. Metrics for patient satisfaction and outcomes—both of which have financial implications—should be measured and tracked alongside financial and operational metrics.
Continue to invest in digital and technological advancements. While many health systems have already made digital and technology investments that have enhanced their capabilities, the health care sector still lags behind other industries.9 To bridge this gap, health systems should consider investing in a diverse portfolio of technologies that can be used for virtual health care delivery. This could include digital platforms that can be seamlessly integrated with electronic health records and other systems. Technologies like unlimited reality (encompassing virtual reality, augmented reality, and mixed reality) could help enhance the virtual experience by creating immersive environments.10 For example, immersive VR allows mental health professionals to perform patient assessments, interventions, and monitoring in a safe, controlled, and personalized environment. Additionally, health systems should consider prioritizing their investments in enabling technologies such as cloud computing and gen AI, which can help improve operations, efficiencies, and care delivery.
Seizing the virtual health opportunity
The current landscape presents a significant opportunity for health systems to re-evaluate their virtual health and digital experience strategies. By aligning with consumer expectations and leveraging digital advancements, health systems can enhance patient satisfaction, secure their market position, and improve financial performance. The future of health care is increasingly digital, and those who embrace this shift could be well-positioned to thrive in an evolving market.
