Strategic Investments in Digital Health: Navigating the Landscape of Startups and Innovations

From telemedicine and wearable devices to AI-driven diagnostics, the integration of digital solutions is revolutionizing the way healthcare is delivered and experienced. As this trend continues, healthcare delivery organizations find themselves at a crossroads, embrace innovation or risk falling behind. Investing in digital health care is no longer a choice; it's an imperative for health systems seeking to provide the best possible care to their patients. By harnessing the power of digital innovations, health systems extend the reach of medical expertise, ensuring even the most remote patients have access to top-tier care. When used effectively, these solutions also enhance efficiency, reduce administrative burdens, and free up valuable time for healthcare professionals to focus on what truly matters: patient wellbeing.

Despite the emergence of a myriad of tools and platforms, meaningful improvements in care delivery have yet to materialize at scale. As health systems increasingly recognize the significance of digital health and commit resources to this technology, strategies to prioritize investments, focused on truly impactful initiatives, are crucial to ongoing success.

Digital Health Ecosystem

According to CB Insights, digital health funding reached $10.2B in 2023 across 1,090 deals. These companies aren’t trying to replace large health systems and insurance companies. Instead, most new entrants are focused on specific patient populations or workflows and are carving out portions of the healthcare market. This shift puts emphasis on a concept introduced in a prior article by our colleagues Alan Trimakas and Stacie Leutner - Health systems and health plans must prioritize future-proofing themselves in digital health technology to ensure they can adapt and keep up with their more nimble startup peers.

Future-proofing in digital health involves embracing the latest tools and systems and building a flexible infrastructure that seamlessly accommodates future technological advancements. By doing so, health systems can remain agile, efficient, and capable of delivering the highest quality of care in an increasingly digitized healthcare environment. Consumers expect health systems to provide a digital journey that they experience in other industries, and digital health tools can satisfy that demand.

Considerations

Creating an infrastructure that supports and promotes continued investment in digital health solutions is no small achievement. Organizations must be mindful of the long-term impact of selecting a digital health vendor and how it impacts the ecosystem rather than solves a singular challenge. Here are considerations to guide the potential digital health opportunities that may present themselves:

• Needs Assessment: Conduct a comprehensive needs assessment to identify specific challenges, inefficiencies, or gaps that potential digital tools could address. Consider how these tools can alleviate multiple needs across the system.
• Alignment with Strategic Goals: Evaluate how the digital tools align with the system's strategic goals. Consider whether they support objectives such as improving patient outcomes, enhancing operational efficiency, reducing costs, or increasing patient engagement.
• Interoperability and Integration: Consider whether the digital tools can seamlessly integrate with the existing infrastructure, electronic health records systems, and other technologies.
• Scalability and Flexibility: Consider whether the digital tools can accommodate the health system's current and future needs as it grows and evolves. Scalable solutions allow for expansion across multiple departments or facilities.
• Usability and User Experience: The digital tools should be intuitive, easy to learn, and user-friendly for healthcare professionals, staff, and patients. Devices that require minimal training or disruption to existing workflows are preferred.
• Data Security and Privacy: Ensure that the digital tools adhere to robust data security and privacy standards, especially when dealing with sensitive patient information. Evaluate whether the devices comply with relevant regulations.
• Vendor Reputation and Partnership: Research the reputation and track record of the digital tool vendors. Ensure they are experienced in the healthcare industry and consider future partnership opportunities.

By embracing innovation and strategically collaborating with emerging digital care startups, organizations can position themselves at the forefront of a new era in healthcare delivery. The aspirational result is a more efficient, patient-centric, and technologically advanced healthcare system that benefits both providers and the individuals they serve. The time to adapt is now, and the path forward involves a thoughtful embrace of the transformative power of digital technology in healthcare.

References

State of Digital Health. (2023).?CB Insights.?