Hospitals zero in on ROI as digital health budgets rise: Report

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Even as healthcare costs rise, many U.S. employers, health plans and hospital systems are maintaining or increasing investments in digital health technology — but they’re growing more selective about what they buy, an Oct. 15 report from the Peterson Health Technology Institute found.

The report, conducted in August by NORC at the University of Chicago, surveyed 309 decision-makers from health systems, employers and payers.

Here are seven key findings from the report:

  1. A majority of health plans (84%) and health systems (79%) have raised their digital health spending over the past two years.

  2. Roughly half of all respondents said they plan to hold spending flat in the next year, while 38% — mostly health plans — expect to spend more.

  3. While investment remains resilient, decision-makers want clearer proof that digital platforms deliver measurable results. Nearly half of respondents said they already use performance-based contracts that tie payment to specific outcomes, and most plan to adopt such models in the year ahead.

  4. Improving access to care ranked as the top goal for purchasers, though only 30% said more than half of their eligible members are enrolled in digital programs.

  5. Health plans cited competitive benefits as their next priority, while hospitals focused on easing administrative work, and employers emphasized user experience.

  6. Artificial intelligence has become standard in the space, with more than four in five health plans and health systems reporting adoption — mostly for administrative tasks and clinical decision support.

  7. Cost remains the leading factor driving both purchasing and replacement decisions, followed by user satisfaction, vendor relationships and clinical results. Most digital health contracts last two years or less, and more than half of organizations review their vendor portfolios annually.
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