10 things we heard from speaking with more than 50 health systems

Over the past year, we’ve met with healthcare leadership teams, spoken with clinicians, and engaged with patients at health systems across the country to understand how their information technology (IT) impacts patient, clinician, and caregiver experiences. We’ve heard about the need to strategically modernize the IT landscape and the deep frustration with progress to date.

We’ve seen many industries, such as life sciences and education, overcome similar challenges with tangible and lasting results. Despite today’s challenges, we’re optimistic about the potential for digital transformation in healthcare. The uniqueness of healthcare can be tackled with increasingly sophisticated tools that manage privacy, drive interoperability, and support a consumer-friendly experience. Specifically, there’s growing appreciation that a platform and applications-based approach, alongside existing EMRs, can be the foundation for a quantum leap in capabilities and user experience. Here are 10 key insights from our conversations:

(1) Healthcare technology is at an inflection point

Despite the current technology and program challenges healthcare organizations face, there remains palpable excitement about technology’s potential to improve care delivery and patient engagement. With the costs and complexity of healthcare’s fragmented technology landscape reaching a peak, the industry could be on the cusp of a systemic change.

(2) The arrival of consumer-centric healthcare experiences

Healthcare leaders are inspired by digital innovation in industries like travel and retail, while also maintaining a healthy skepticism about disruptors’ entrance into healthcare. The consensus among this group is that the patient’s digital experiences must, at a minimum, resemble those in their daily lives. Unfortunately, many of the tools available to patients and clinicians do not meet these expectations.

(3) COVID-19 has driven unprecedented momentum in favor of digital innovation

While the momentum for systemic change has been building for some time, COVID-19 was an unexpected catalyst for healthcare technology innovation and adoption. Industry leaders have commented on the speed with which patients and clinicians have adopted new digital solutions during the pandemic. This has led healthcare organizations to believe they can implement and benefit from large-scale change. As a result, many organizations are exploring more advanced digital capabilities and accelerating digital transformation initiatives.

Further, disruptors like Amazon, Google, Microsoft and primary care “payviders“ are rapidly growing their healthcare footprint, raising the question of whether or not traditional healthcare systems could be disinter-mediated from their patient populations. These market dynamics have accelerated innovation to build new patient engagement models.

(4) Yet, innovation has been bumpy

Many healthcare systems expressed deep-rooted frustration with the pace of technology innovation and the difficulty of integrating with and across existing solutions. Tepid early integration results have created an environment wary of further burdening clinicians with more change, and uncertain outcomes.

(5) Privacy and security remain top priorities

Recent incidents within healthcare and other industries have led to increasing concern about patient privacy and data security. As we move towards a more connected digital environment, keeping patient information secure is a top priority.

(6) Here today, gone tomorrow?

Healthcare organizations are eager to embrace innovation through digital transformation, but remain wary of a plethora of small, startup technology companies focused solely on growing revenue. Many organizations are concerned about long-term stability and product focus. However, there’s also hope that the recent focus on healthcare from venture capital and startup communities will take a different, more thoughtful approach. One that will create a stronger foundation for ongoing innovation.

(7) We need a new innovation model

The traditional model of a single vendor catering to all digital needs has given way to the model of the single-vendor combined with multiple point solutions. While health systems are beginning to see pilot-level benefits, the jury is out on scaling system-wide for value. Furthermore, they recognize the longer-term challenge of creating a seamless experience out of this combined strategy. There’s recognition that a platform-based approach connected with EMRs can knit together this complex environment in a seamless manner for both patients and clinicians. However, all recognize there’s work to be done to build out this infrastructure.

(8) Building the right scaffolding

Health systems are struggling to create an effective change management framework that addresses the new and dynamic technology landscape. To date, many initiatives have focused on change at the departmental or local level in a siloed manner without a viable path to scaling at a system level. However, digital transformation at scale requires concerted and centralized efforts, including technology, program, and data governance. Moving forward, organizations need a scalable and agile approach that builds on effective leadership and a pragmatic, but ambitious agenda.

(9) Early wins in patient financial engagement

Patient financial engagement solutions have demonstrated that technology done right can drive a superior experience with an unmatched return on investment. Solutions like Cedar and Olive have shown that you can integrate provider and payer systems with consumer-friendly interfaces and program design for maximum impact.

(10) Partnerships paving the way

The industry has moved beyond the build versus buy debate. There’s a newfound desire to form strategic partnerships with external collaborators to achieve a shared vision. This transition opens the door for well-capitalized, seasoned innovators to bring the next-generation of “Silicon Valley” technologies to healthcare, critically in a responsible manner.

What’s needed for digital transformation to move forward

Our listening tour highlighted the resolve to tackle the distinctive healthcare challenges with a rigorous approach. Industry solutions must be secure, scalable, sustainable, and deliver a consumer-friendly experience. Robust change management and governance are required. Our tour highlighted that healthcare leaders are leaning into digital innovation to address these opportunities.

At Tendo, we’ve seen and driven the digital transformation of other industries. Our experience in establishing high performing, pervasive digital platforms in complex, regulated industries like life sciences and education gives us confidence that the industry will be successful. Emerging technology holds the promise to solve many of the challenges that historically have held the industry back. When we look at healthcare, we see an industry on the cusp of a transformation.