Organizations are primarily seeking to improve the patient experience through future digital health solutions.
The digital health technology industry is booming as health systems continue to invest in the space.
Hospital operators raised their spending on digital health over the past two years and are planning to pour more resources into solutions in the next 12 months, according to a survey by the Peterson Health Technology Institute.
The survey fielded responses from 332 decision-makers at health plans, employers, and health systems to gauge purchasers’ current approach, contracting process, and future plans with digital health.
Among the 100 respondents from health systems, the top three motivations for spending on digital health solutions were increased consumer demand (87%), improved outcomes (65%), and cost savings (49%).
Over the next year, 56% of health systems expect to increase their spending on digital health, while 30% plan to maintain and 3% anticipate decreasing investments.
Through future solutions, health systems want to improve the patient experience (80%), reduce administrative cost (75%), improve patient access (73%), reduce administrative burden (61%), improve health equity (59%), reduce spending on targeted conditions and treatment areas (54%), and remain competitive with offerings (52%).
To measure value for digital health solutions, health systems look for increased patient satisfaction (89%), patient engagement (78%), improved performance against key clinical outcome metrics (78%), decreased spend on medical costs (66%), revenue (42%), and decreased spend on pharmacy costs (36%).
Where AI fits in
While being one of the most talked about digital health technologies, AI’s effectiveness in clinical settings remains murky.
Where health systems have shown more willingness to implement AI is with administrative tasks that can reduce the time staff spend on workflow, potentially leading to less burnout and employee turnover.
A recent report by Silicon Valley Bank revealed that this year has already featured more investments in health tech companies leveraging AI than in any other year, with AI valuations up 50% since 2019.
In terms of spending, 44% of all health tech investment dollars went to AI companies through the first months of 2024, compared to 36% for all of 2023.
Jay Asser is the CEO editor for HealthLeaders.
KEY TAKEAWAYS
After spending more on digital health over the past two years, more than half of health systems (56%) surveyed by the Peterson Health Technology Institute expect to increase investments in solutions in the next 12 months.
Health systems measure value for digital health solutions based on if they increase patient satisfaction first and foremost.
Investment in AI specifically is on the rise, though health systems are targeting the technology more for non-clinical areas.