Millennials and Gen Z are upending healthcare

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Younger generations are dissatisfied with traditional care and are drawn to alternative healthcare services - and they're posing a threat to traditional hospital and health system revenue, according to a new global Accenture study of 7,993 global consumers over age 18.

The generational differences in healthcare preferences should force providers to reassess how they deliver care to younger consumers:

While younger consumers' acceleration of the digitization of healthcare isn't a new trend, it's one that's gaining momentum and poses a serious risk to laggard providers. Although younger consumers have fewer health needs and thus make up a small proportion of overall health spending, they'll account for the largest share of the US adult population in 2019.

That means that the preferences of millennials and Gen Zers - including their preferred care sites - will have a massive impact on provider revenue as they age into their prime spending years and shape the spending habits of their children.

And as younger cohorts continue to propel digital health adoption, providers' digital offerings - like telemedicine and online appointment booking - will likely evolve from "nice-to-have" to "must-have" features. Already, 49% of consumers say they'd be more likely to choose a provider if they offered the ability to communicate via videoconferencing - up from 36% in 2016.