- The digital transformation of healthcare began with the advent of the pandemic.
- Below is a preview for one Insider Intelligence Health report. The Digital Health Ecosystem. This report can be purchased here.
- Do you work in the Healthcare industry?With data-driven research, you can gain business insights about the latest technology trends and market trends as well your competitors.
The digital transformation in healthcare was accelerated by the coronavirus pandemic. Both patients and providers saw the benefits of the new technology and virtual solutions. Telehealth appointments remote patient monitoringServices and modified insurance options were able extend quality care to consumers at an easier and more affordable rate.
The incumbent healthcare institutions must be vigilant. Big techAs companies try to seize their space, companies like Alphabet, Amazon and Apple attempt to persuade consumers to abandon traditional healthcare providers by offering tech-focused consumer-first solutions.
We will be examining the current trends and transformations in the healthcare industry and highlighting what traditional players can do to keep up with big tech rivals.
Digital trends that are important in the health ecosystem
What is digital health? COVID-19 changed the face of healthcare. While the industry was slow to adopt digital solutions, it reshaped the entire ecosystem. This included insurance, healthcare delivery, as well as pharmaceutical spaces. Providers were pushed to adopt technology—including telehealth, remote patient monitoring (RPM), and artificial intelligence (AI)—to effectively treat patients from afar.
As a result, insurers had to address hurdles inhibiting patients and doctors from using telemedicine—like copays and unclear reimbursement pathways.
Pre-pandemic, 54% of US adults said they’d use telehealth if it meant saving money, per Amwell.
As hospitals and other healthcare providers were forced to cut non-emergency visits, remote care options became a popular option for healthcare delivery. Pre-pandemic, telehealth adoption rates hovered around 11%. But, that number shot up to 36% in August 2020, according to CivicScience.
Pharmaceutical companies like Pfizer, Moderna, and Johnson & Johnson took center stage amid the pandemic as leaders in vaccine development. And the rapid adoption of digital health tech will continue to work in their favor as they iterate to combat new strains of the virus—utilizing AI allows pharmaceutical companies to expedite the drug discovery process, and in turn, save money.
Factors that are driving the digital transformation in healthcare
- Lower cost Pre-pandemic, 54% of US adults said they’d use telehealth if it meant saving money, per Amwell. And with providers looking to see continued benefits from telehealth investments, they’ll likely maintain lower costs moving forward.
- Accessibility:Hyper-convenient care is in high demand. Nearly a third of consumers now want it. Millennials say that going to get a physical isn’t convenient. With millennials accounting for the largest proportion of US adults, providers are expanding their services to include virtual care and online digital healthcare.
- Models of value-based care:The shift to value-based care (VBC) is being driven by insurers. This forces providers to concentrate on the positive outcomes of patients and not the number of services provided. The digital tools such as AI-enabled analytics are helping optimize care without compromising cost.
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How COVID-19 impacted the health ecosystem
The “new normal” in healthcare is largely brought on by telehealth and digital technology. In August last year, more than a third of consumers had used telehealth. Although adoption is on the rise due to social distancing as well as stay-at home orders, telehealth will likely continue to be popular.
Additionally, telehealth is a possible solution to the impending provider shortage—tThe US could see a shortage in 122,000 doctors by 2032, and 670,000 healthcare workers by 2025, including nurses.
Telehealth has also shown to be a cost-saving tool that reduces unnecessary hospital visits and medical expenditures. Because of this, providers will likely continue offering telehealth services as a means of providing high-quality, remote care long after the pandemic. As telehealth adoption increases, it will be popular among consumers as well as benefiting healthcare providers.
As mentioned in Insider Intelligence’s Digital Health Ecosystem report, demand for virtual care will remain high since 83% of US adults say they’ll want to use telehealth even after the pandemicAccording to a Doctor.com survey.
For 2021, health ecosystem projections
It is difficult to predict the future of certain aspects of healthcare, but one thing is certain: Digital healthcare will be here for good. Cash-drained provider organizations will still likely need to rely on telemedicine to hook in revenues from patients who have grown accustomed to telemedicine’s convenience in recent months.
The US Department of Health and Human Services (HHS), data sharing mandates, are another thing to watch this year. The HHS rolled out mandates to improve interoperability among providers, payers, and health systems—but it put compliance on pause to give healthcare entities time to recover from the impacts of the pandemic.
Insider Intelligence anticipates that interoperability services providers that make it easier and more efficient to standardize, integrate and combine patient data will be given increased attention by hospitals as a result of these mandates
Another steady but slow trend in digital health is the “Digital Health” category. Digital therapy (DTx). Virtual care boom induced by the pandemic exploded and catapulted DTx to the forefront, resulting in massive adoptions of DTx tools.
