A 1,500-patient study by researchers at the University of Southern California found that 17% of patients feel judged or stereotyped by healthcare providers. Those same patients tended to mistrust their doctors, rate their health as poor and have a higher incidence of hypertension and depression.3
The 2015 U.S Transgender Survey revealed that a third of all transgender patients who saw a healthcare provider had at least one negative experience, including being refused treatment, verbally harassed, physically or sexually assaulted, or having to teach the provider about transgender people in order to get appropriate care. Nearly a fourth did not see a doctor when they needed to because of fear of being mistreated as a transgender person.4
The problem is not just bias from physicians. Focus groups with African American, Latino, Native American and Pacific Islander patients revealed that they felt they experienced more racial bias from medical staff than from physicians.
People of color and other underrepresented populations also experience something called "stereotype threat." These patients are aware of negative stereotypes about their cultures and they expect to be stereotyped by their healthcare providers, particularly if the provider is of a different race or cultural background. For example, black Americans may be viewed as lacking education or women may be viewed as being less talented in math or science. The awareness of these stereotypes makes them anxious, impairing cognitive performance and working memory. They may struggle to accurately share the information that providers need, or they may misrepresent information specifically to avoid conforming to the expected stereotype. Interactions between clinicians and these patients are shorter, frequently unpleasant and feature little patient involvement or shared decision-making. Patients may have trouble focusing on the information the provider gives them, which may impact their abilities to adhere to post-op instructions. As a result, these patients may struggle with compliance and experience poorer outcomes than their white counterparts who do not have such stereotypes or cultural barriers to overcome.5
Fear of being stereotyped can also cause patients to skip appointments and postpone needed care. People tend to avoid situations where they feel unwelcome or where they expect devaluation. In the past, all of this would have constituted poor patient care, but the outcomes would have been viewed as the patients' problem. Now, though, facilities share responsibility for these experiences and outcomes.
Thanks in part to the Affordable Care Act, bad outcomes impact facility revenues. Medicare's Value Based Purchasing program punishes facilities by up to 2% of reimbursement for poor scores on items like outcomes and patient experience scores, a real possibility in facilities that aren't focused on diversity. Bundled payments for procedures like total joints, hip fractures and certain heart procedures mean that hospitals must assume the costs for all related care, including complications, for 90 days. Health Maintenance Organizations and now Accountable Care Organizations (our organization is one) capitate care, making profitability dependent on keeping patients healthy.
An even more powerful influence may be shifts in market share. Especially with social media and services like Healthgrades and Yelp!, it's easier than ever for patients across all communities, including those that have been historically marginalized, to share their experiences receiving care and service from healthcare organizations. When a healthcare provider does or does not serve diverse patient populations well, word can spread within communities. Patients will choose the organizations that feel welcoming and inclusive. So facilities that embrace diversity gain market share.