How Kaiser Permanente's Product Transformation Revolutionised Healthcare Delivery
When a NFP in a highly regulated environment transforms to the Product Model, Customer Satisfaction Soars!
In a world where many believe innovation is nearly impossible in heavily regulated industries or large organisations with complex stakeholder networks, Kaiser Permanente stands as a powerful counterexample.
This American healthcare giant's journey demonstrates how embracing a product operating model can drive meaningful transformation—even in the most challenging environments.
Adopting a product management approach isn’t solely for commercial organisations chasing profit—it’s equally powerful for not-for-profit entities and even highly regulated sectors.
This is a summary of the NFP real organisation case study in “Transformed: Moving to the Operating Model”
The Healthcare Giant Before Transformation
Kaiser Permanente, serving more than 12 million patients as one of America's largest nonprofit healthcare organisations, faced significant constraints in their telehealth offerings before 2019. Their virtual care was limited to business hours only, restricted to patients' home markets, and hampered by technical, regulatory and operational challenges that prevented consistent delivery across regions.
These limitations became critical when COVID-19 hit, threatening to widen care gaps precisely when patients needed healthcare access most.
Why Product Transformation?
In 2019, Kaiser Permanente's digital organisation embarked on a large-scale transformation to the product operating model—a decision that would prove incredibly timely.
They built a digital product and technology group specifically focused on reimagining the patient health journey.
The transformation wasn't merely technological—it represented a fundamental shift in thinking.
Organisational Silos to Customer Experience
Siloed teams were replaced by customer orientated teams.
Product teams organised around patient journeys rather than internal departments or functions.
This patient-centric approach allowed them to:
Automate previously manual processes
Streamline digital experiences
Improve patient satisfaction scores
Increase adherence to medication and care plans
Enhance operational efficiency
The "Get Care Now" Solution
When the pandemic struck, the newly transformed product organisation was positioned to respond with remarkable agility.
Their challenge: develop a technology-powered solution allowing patients to access appropriate care regardless of location, time, or ability to visit medical offices.
The product teams partnered closely with clinicians and operations across all regional markets, employing continuous ideation and rapid testing.
They tackled substantial product risks, including:
Patient usability challenges
Clinician adoption hurdles
Complex regulatory compliance requirements
Integration with existing health records systems
Scalability needs for their 12+ million patient base
Remarkably, the "Get Care Now" solution—providing nationwide, 24/7, on-demand virtual care—was created in just four months from inception to launch, with the next iteration deployed three months later.
By transforming their teams to embrace a product mindset, they broke down technical silos, eliminated inefficient processes, and extended care times. Their transformation delivered remarkable, measurable results:
Member Satisfaction: Achieved a score of 9.6 out of 10 with an impressive 88% net promoter score.
After Hours Access: Over 36% of members now receive care after hours (between 5 p.m. and 8 a.m.), reducing the need for emergency room visits.
24/7 Virtual Care: Patients enjoy round-the-clock access to care across every state nationwide.
Rapid Innovation: This breakthrough transformation was accomplished in just 4 months
Kaiser Permanente’s transition to a product model was surprisingly quick and effective.
Collaboration and Discovery: Clinicians, business operations, and technical teams worked closely to understand patient needs and identify usability risks.
Rapid Development: With a clear vision, the product teams built and tested Get Care Now in just four months.
Nationwide Rollout: After a successful pilot, the solution was gradually expanded to all markets, ensuring seamless integration with existing systems and processes.
Continuous Iteration: Real-world usage data fueled ongoing improvements, optimising the virtual care experience for both patients and clinicians.
This is a summary of the NFP real organisation case study in “Transformed: Moving to the Operating Model”
Transformation Results
The results speak volumes about the power of product transformation:
Member satisfaction reached 9.6 out of 10
An exceptional 88% net promoter score
Over 36% of members accessing care after hours (5pm-8am)
Reduced emergency room visits
Decreased strain on critical healthcare resources
Perhaps most significantly, Kaiser Permanente demonstrated that meaningful innovation is possible even in highly regulated healthcare environments—something many industry experts had considered impossible.
FAQs
Q: What was Kaiser Permanente like before the product transformation?
A: Before 2019, Kaiser Permanente’s digital services were fragmented, heavily reliant on manual processes, and offered limited telehealth options—often restricted to regular business hours and local markets.
Q: What drove the need for change?
A: The combination of technical silos, inefficient processes, and limited care times—exacerbated by the COVID-19 pandemic—made it essential to transform the patient journey and improve overall service delivery.
Q: How did Get Care Now overcome previous telehealth limitations?
A: By integrating key data systems and adopting a scalable, agile approach, Get Care Now enabled 24/7 virtual care, eliminating geographic and time restrictions and significantly reducing emergency room visits.
Q: What factors complicated prior telehealth offerings?
A: Previous telehealth solutions were hindered by limited operating hours, geographic restrictions, inconsistent service delivery across regions, and the challenges of meeting technical, regulatory, clinical, and operational demands.
Q: How did COVID-19 impact Kaiser Permanente's care delivery?
A: The pandemic exposed the shortcomings of existing telehealth services and accelerated the need for a digital transformation, ultimately driving the development of a 24/7, on-demand virtual care solution.
Q: What were the key benefits of moving to a product model?
A: The transformation led to higher patient satisfaction, improved operational efficiency, expanded care access, and a reduction in emergency room visits—all achieved in a remarkably short timeframe.
Q: What tangible benefits did Kaiser Permanente experience?
A: Kaiser Permanente saw exceptional member satisfaction (9.6/10 and 88% NPS), 24/7 access to care nationwide, and more than 36% of service usage occurring after hours, all achieved in just 4 months.
Q. What tangible benefits did Kaiser Permanente’s patience experience?
Kaiser Permanente’s transformation delivered several key benefits to its patients:
24/7 Access to Virtual Care: Patients now have round-the-clock access to care across every state, ensuring that help is always available when needed.
High Patient Satisfaction: The digital transformation resulted in a remarkable satisfaction score of 9.6 out of 10, supported by an 88% net promoter score.
Reduced Emergency Room Visits: With more than 36% of service interactions occurring after hours (between 5 p.m. and 8 a.m.), many patients avoided unnecessary trips to the emergency room.
Streamlined Care Experience: The integration of digital services eliminated silos and manual processes, providing a smoother, more cohesive patient journey and better adherence to care plans.
This is a summary of the NFP real organisation case study in “Transformed: Moving to the Operating Model”
The Foundation: Understanding the Product Model
Successful transformation, like Kaiser Permanente's, begins with a foundational understanding of what the product model actually is. This critical first step requires proper education and training. The I ICAgile Certified Product Management 2 Day Training course provides teams with the essential knowledge and frameworks needed to truly grasp product thinking.
This intensive course covers the fundamental principles that drive successful product organisations—from customer-centricity and value delivery to cross-functional collaboration and iterative development. Without this shared understanding established through proper training, organisations often struggle to move beyond superficial changes to achieve the deep transformation needed.
Kaiser Permanente's success demonstrates why investing in proper product education creates the foundation upon which all other transformation activities can build. Teams must first understand what they're working toward before they can effectively implement change.
I’m Irene Liakos. A product management and growth expert with over 2 decades of experience growing product profitably across Telco, Banking, Fintech, AI, Data, Travel, Ecommerce and more. I teach, coach and advise product managers and business leaders. Reach out to me if your products aren’t delivering the value you need for your business to grow. Let’s transform your organisation and get your teams working within the product model. You can contact me at irene@phronesisadvisory.com
Implementing Change: Contextual Product Coaching
Understanding the product model is necessary but not sufficient—implementing it effectively requires contextual product coaching tailored to your organisation's specific environment and challenges. Once teams complete the ICAgile certified course and understand what the product model is, the next step is planning an organisation-wide transformation through contextual coaching.
This coaching helps translate product principles into practical application within your unique context. For organisations like Kaiser Permanente operating in complex, regulated environments with multiple stakeholders, generic approaches often fail. Contextual product coaching addresses:
How to reorganise teams around customer journeys within your specific organisational structure
Ways to navigate your particular regulatory and compliance requirements
Methods for aligning various stakeholders around product outcomes
Strategies for building the right technical foundations that support your specific product needs
Approaches to measuring success in environments where value isn't purely financial
Without this contextual coaching, organisations risk implementing a surface-level version of the product model that fails to deliver transformative results. Kaiser Permanente's journey shows how proper understanding combined with contextual implementation enables even the most complex organisations to achieve remarkable innovation through product transformation.
If you want to experience the kind of results Kaiser Permanente has when transforming to the Product approach, reach out to me for both Product Training and Coaching. I wrote the ICAgile Certified Product Management 2 Day Training course and have taught product teams in government, not for profit as well as banking, telco and more. I have also coached teams moving to the product model.
Drop me an email at irene@phronesisadvisory.com