Following the Covid-19 pandemic, there has been a boom in the digital health space. But health executives aren’t seeing the financial benefits just yet, according to a recent survey from EY, a consulting firm. The online survey received responses from 101 healthcare executives in the U.S.
It found that while 86% of health executives say that digital health solutions have the potential to reduce costs, 70% said they haven’t seen a return on investment so far. In addition, 50% of healthcare organizations say that “siloed tracking metrics” make it hard to follow tech’s initial cost value.
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“I think we’re still in the early innings of this digital transformation. The Covid episode introduced to the world of U.S. healthcare that, yes, I can interact with my physician remotely and so forth. … We got this first initial wave of incredible excitement and value, but there’s so much work to be done still,” said Dr. Kaushik Bhaumik, EY U.S. health technology leader, in an interview.
That’s not to say a return on investment won’t happen someday from using tech. But other benefits will become evident before financial benefits, according to Mallory Caldwell, EY Americas health leader.
“I think we’re going to go through a period of seeing relief and unburdening and more time for the things that we really need to be doing before we get to a point where it’s robust enough and effective enough and interconnected enough to really then monetize,” Caldwell said in an interview.
Additional findings from the survey include:
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- AI is taking a larger role in healthcare, with 60% of respondents saying they are investing in AI-based applications. About 96% of respondents said they’ve seen a reduction in wasted time from AI and 90% said they can better prioritize healthcare providers’ time.
- About 94% of health executives said that newer technologies improve providers’ credibility. Another 90% said they are investing in staffing their digital health tech teams.
Based on these findings, the healthcare industry needs to “lean in” to these technological advancements, Caldwell said.
“There are so many things driving us, begging us to change the way we work: increasing costs, the workforce shortage that is here today and is projected to grow. … Every other industry has had periods of industrial revolution, technological revolution. Health hasn’t had our tech revolution,” he said. “We haven’t had our industrial revolution.”
Bhaumik echoed Caldwell’s comments, stating that the “system is incredibly stressed” and the healthcare industry needs to “fundamentally look at how we deliver care and the role technology can play.”
Photo: metamorworks, Getty Images
