Digital transformation in healthcare: past, present, and future
Of all industries, healthcare stands to gain the most from digital transformation. This article covers what you need to know about digital transformation in the healthcare industry, including potential benefits for patients, providers, and payers, as well as future expectations.
What does digital mean in healthcare?
Digital transformation is a frequently used term in healthcare. Before exploring its impact on the industry, we must ask: What does digital mean in healthcare? In essence, digital healthcare involves using technology to enhance patient care. This includes everything from electronic medical records for tracking patient data to telemedicine for connecting patients with doctors.
By leveraging digital tools, healthcare providers can improve care quality and patient outcomes. Additionally, digital healthcare can reduce costs by increasing efficiencies and enhancing communication between providers and patients. As the healthcare industry evolves, digital transformation will play a crucial role in shaping future care.
Why is digital technology important in healthcare?
Healthcare organizations face increasing pressure to improve patient outcomes while controlling costs. Many are turning to digital technology to support their transformation efforts. Digital technology assists healthcare organizations in achieving their goals in several ways:
1) Boosting patient engagement
Digital technology enhances patient engagement by providing easy access to health information and eliminating the need for paper records (also known as digitization).
2) Better decision-making
It improves clinical decision-making by providing clinicians with real-time access to data and knowledge.
3) Automation & coordination
Digital technology reduces costs by automating administrative tasks with Robotic Process Automation (RPA) and improving coordination among care team members.
Ultimately, digital technology is a key tool for healthcare organizations to enhance the quality and efficiency of care.
How does digital technology affect healthcare?
Healthcare is undergoing a digital transformation driven by factors like the increasing availability of digital health data, declining costs of digital health technologies, and growing demand for more convenient and personalized healthcare services. Consequently, digital health technologies are becoming more widespread and significantly impacting healthcare delivery.
For instance, digital technologies are used to develop personalized treatments, improve clinical trial efficiency, and provide patients with more convenient access to care. Additionally, digital health technologies are crucial in developing new business models for healthcare delivery. As healthcare evolves, digital health technologies will play an increasingly vital role in shaping its future.
What does transformation mean in healthcare?
Digital transformation involves using technology to create new or improved business processes, products, or services. Successful digital transformation helps organizations become more efficient and agile, better meeting customer needs. The healthcare industry is particularly suited to digital transformation due to its reliance on complex processes and data.
By digitizing processes and making information more accessible, healthcare organizations can improve patient care and outcomes while reducing costs. Additionally, digital transformation can create new opportunities for care delivery, such as telemedicine.
As the healthcare industry continues to evolve, digital transformation will become increasingly important to remain competitive.
Challenges to digital transformation in healthcare
Healthcare organizations are under pressure to digitalize to improve patient outcomes, optimize workflows, and reduce costs. However, digital transformation can be complex, especially for large organizations reliant on legacy applications.
Key challenges include:
Data privacy & security
The healthcare industry’s digital transformation has brought many benefits, such as the ability to collect and store vast amounts of data. However, it has also created new challenges in data privacy and security. Healthcare data is highly sensitive, making its protection essential.
One major challenge is that healthcare data is often stored on various devices and systems, complicating unified security strategies. Additionally, data sharing between different parties introduces potential vulnerabilities. These challenges are compounded by the constantly evolving healthcare industry.
New technologies and trends continually emerge, making it difficult to stay current with best practices. Consequently, protecting healthcare data is a complex and ever-changing challenge.
Interoperability
To realize digital transformation benefits, healthcare organizations must seamlessly share data across digital platforms. Unfortunately, many systems still use legacy systems incompatible with newer ones, leading to data silos and hindering a holistic view of patients’ health. This can result in poor care decisions and wasted resources.
Healthcare organizations must invest in interoperability solutions to overcome these challenges, breaking down data silos and providing a unified view of patients’ health. Doing so will better position them to drive digital transformation and fully benefit from new technologies.
Data silos
Data silos are a significant challenge in healthcare today. A data silo is an isolated collection of data, complicating a complete picture of a patient’s health and care coordination among providers. Digital transformation helps address this by creating a more connected healthcare system, but many silos remain, hindering the full benefits of digital transformation. Overcoming data silo challenges is crucial to leveraging digital health technologies.
Demand for new service delivery methods
The healthcare industry is undergoing digital transformation as patients and providers increasingly use digital tools and services. This shift is driven by the need for more convenient, accessible, and personalized care, resulting in a growing demand for new service delivery methods like digital health services that enhance the patient experience.
Digital health services are rising due to their advantages over traditional care models. They are often more convenient and accessible, tailored to individual patient needs, and can improve outcomes by providing real-time data and feedback.
As the healthcare industry evolves, digital health services will play an increasingly important role in meeting the needs of patients and providers.
Resistance to Organizational Change Management (OCM)
Many healthcare professionals are reluctant to embrace new ways of working, preferring the familiar comfort of the status quo. This resistance can lead to delayed implementation of new systems, staff frustration, and increased costs.
To overcome this resistance, it is essential to understand its reasons. Only then can steps be taken to address the concerns of those resistant to change management programs. With a clear understanding of digital transformation benefits, healthcare organizations can finally start realizing its potential.
Difficult and complex processes that span multiple systems
The industry struggles to keep pace with the rapidly changing healthcare technology landscape. Healthcare processes are often complex and span multiple systems, making digitalization challenging. Additionally, stringent regulations can hinder new technology adoption.
Despite these challenges, the healthcare industry is progressing in digital transformation. With the right strategy and approach, digital transformation in healthcare is achievable.
Need for cooperative competition
Digital transformation in healthcare has increased competition among providers striving to offer the best care. While competition can be healthy, it can also lead to unsustainable cost increases and negative patient outcomes. Cooperative competition, however, is a win-win model that can help improve quality and access while reducing costs.
In cooperative competition, providers collaborate to identify best practices and share resources, focusing on high-quality care rather than competing. As the healthcare industry digitalizes, cooperative competition will become increasingly important in ensuring quality care is accessible and affordable for all.
Low employee engagement and satisfaction
The employee experience is often neglected. With new technologies, healthcare organizations expect employees to be more digitally savvy and comfortable with new tools and systems. This can be challenging for those not used to a digital environment.
Additionally, the healthcare industry faces significant pressure to reduce costs and improve patient outcomes, leading to high stress levels for employees, impacting their engagement and satisfaction.
Another challenge is employee retention. By addressing these challenges and reducing friction between employees and new technologies, healthcare organizations can improve engagement, satisfaction, and retention rates.
Lack of employee tech proficiency
Hospitals and clinics increasingly rely on digital tools to improve patient care and streamline operations. However, this shift has created a new challenge: ensuring employees have the digital dexterity needed to thrive in this new landscape.
WalkMe’s State of Digital Adoption Report 2022 found that 55% of enterprises say employees lack the necessary digital dexterity to use applications effectively. This lack of proficiency costs enterprises a minimum total of $21 million in large enterprises.
To overcome these challenges, healthcare organizations must invest in employee training and development. By providing employees with the skills they need to succeed, they can ensure digital transformation leads to improved patient care and stronger organizational performance.
Shift in payer models
In the past, most healthcare services were provided by fee-for-service providers, with patients typically responsible for paying the full cost of their care. However, this model is changing as we shift towards value-based care.
Under this model, providers are reimbursed based on the quality of care they provide, rather than the number of services rendered. This major change profoundly impacts healthcare delivery.
As we move towards a value-based system, it’s crucial to ensure providers have the tools and resources they need to succeed. This requires a digital transformation of the healthcare industry as a whole.
The benefits of digital transformation for patients, providers, and payers
By digitizing medical records and improving communication channels, patients, providers, and payers benefit from increased efficiency and better quality of care. Let’s break it down.
Benefits for patients
- Improved access to care
- Faster access to personal medical files
- Higher accuracy of care
For patients, digital transformation leads to more convenient and coordinated care. When all medical information is stored electronically, it’s easier for providers to access and share information.
Digital transformation helps avoid duplicate tests and procedures, ensures patients receive appropriate care based on individual needs, and provides faster access to medical records and appointments. Patients can communicate with providers through secure messaging platforms and avoid medication and treatment errors.
Benefits for providers
- Automating administrative tasks
- Preventing regulatory mishaps
- Reducing costs of service
Digital transformation helps providers create a more efficient, patient-centric healthcare system. By automating manual processes, eliminating paper records, and improving communication among providers, digital transformation reduces costs and improves care quality. Additionally, it helps providers engage better with patients by offering online access to medical records, appointment scheduling, and secure messaging.
By making it easier for patients to access needed care, digital transformation improves patient satisfaction and outcomes. It also helps providers stay compliant with regulations and reduces administrative burdens.
Benefits for payers
- Improved fraud detection
- Increased operational efficiency
- Expansive service offerings
The health insurance industry’s transformation has been driven largely by digital technology advances. For payers, these changes bring increased operational efficiency, more accurate claims processing, and improved fraud detection. Digital transformation also enables payers to offer new and innovative products and services, such as telemedicine and personalized care plans.
As the industry evolves, payers embracing digital transformation will be well-positioned to succeed in the changing landscape. It also helps payers develop more accurate risk models and improve patient safety.
Overall, digital transformation benefits all stakeholders in the healthcare industry.
The role of health professionals in digital transformation
In today’s digital age, health professionals must be prepared to respond to change. With new technologies and treatments constantly developing, it’s essential for those in the health industry to adapt. Digital transformation significantly impacts healthcare, and those who embrace it will find themselves in a strong position.
By using new digital tools, health professionals can improve care quality and make a real difference in people’s lives. However, it’s not just about using new technology—it’s also about understanding how best to use it. Health professionals must always be learning and staying updated with the latest developments to provide the best possible care for their patients.
Digital transformation is changing healthcare for the better, and those who embrace it will be at the forefront of this change.
The growing health-tech market
According to a report by Grand View Research, the global digital health market is expected to reach $410 billion by 2025. This growth is driven by factors such as the demand for better patient care, the rise of chronic diseases, and the healthcare sector’s digital transformation.
As more health organizations adopt digital technologies, there’s a corresponding increase in health tech startups. These businesses are developing innovative solutions to pressing healthcare challenges, from streamlining clinical trials to improving patient outcomes.
With support from government and industry, the health tech market is poised for significant growth in the years ahead.
Transformative technologies & trends in healthcare
Over the past few years, digital transformation has occurred across nearly every industry, and healthcare is no exception. New technologies are emerging that are transforming healthcare delivery, including:
3D printing
3D printing is starting to impact healthcare by creating custom prosthetics, implants, and even human tissue. As these and other technologies evolve, digital transformation will play a pivotal role in shaping healthcare’s future.
IoT (Wearable devices)
The Internet of Things enables real-time health monitoring and care. For example, wearable devices can track a patient’s heart rate and fitness level, transmitting this information to their doctor in real-time. This is particularly beneficial for those with chronic conditions needing close monitoring. In the future, more connected devices will further improve patient care and outcomes.
Robotics
Robotics is also impacting healthcare. Robots assist surgeons in performing complex procedures and are being developed to aid patients with disabilities. As these and other technologies evolve, digital transformation will play a pivotal role in shaping healthcare’s future.
Cloud computing
Cloud computing is increasingly important in healthcare, allowing organizations to store and share data securely and access it from anywhere. This is particularly beneficial for those working in remote areas or on the go. Cloud-based applications can streamline clinical trials and research. As cloud computing evolves, it will significantly impact the healthcare industry.
Electronic health records (EHRs)
One of the most important technological advances is the development of electronic health records (EHRs). EHRs provide a digital record of a patient’s medical history accessible by providers anytime and from any location. This has greatly improved care delivery efficiency and accuracy while reducing medical errors.
Telemedicine
Telemedicine allows patients to consult with doctors remotely via video call. This is particularly beneficial for those in rural areas or with difficulty traveling to see a doctor in person. Telemedicine can also provide specialist care to patients who might not otherwise have access to it.
Artificial intelligence (AI)
Another key area of digital transformation in healthcare is artificial intelligence (AI). AI is used to develop new drugs and diagnostic tools and has the potential to improve patient care by reducing errors and automating simple tasks. In the future, AI will become even more important in healthcare, providing personalized care and treatment plans.
Precision medicine
Precision medicine targets specific diseases with greater accuracy than ever before. A key method is gene editing, using cutting-edge technology to make precise DNA changes. This major breakthrough holds great promise for developing effective treatments for complex diseases and the future of precision medicine.
This is a major breakthrough in the quest to develop effective treatments for complex diseases, and it holds great promise for the future of precision medicine.
Examples of healthcare companies that have undergone digital transformation
Healthcare companies are under pressure to digitalize to remain competitive. Many have digitized specific processes, but few have undergone comprehensive digital transformation. Here are three examples of healthcare companies that have successfully completed digital transformations:
Kaiser Permanente
Kaiser Permanente is one of the largest healthcare providers in the US, with over 10 million members and more than 700 hospitals and clinics. In 2015, it launched My Health Manager, an online platform allowing patients to view medical records, schedule appointments, and message doctors. The platform has been a huge success, with over 6 million users as of 2019.
Intermountain Healthcare
Intermountain Healthcare is a not-for-profit healthcare system based in Utah, USA, with over 30 hospitals and 185 clinics, serving millions of patients each year. In 2017, it launched MyChart, an online platform for viewing medical records, scheduling appointments, and messaging doctors. MyChart has been a huge success, with over 1 million users as of 2019.
Mayo Clinic
Mayo Clinic is a leading healthcare provider in the US, with over 1,200 physicians and scientists across all 50 states. In 2016, it launched Mayo Clinic Care Network, an online platform connecting patients with Mayo Clinic doctors for second opinions and remote consultations. The platform has been a huge success, with over 700,000 consults completed as of 2019.
Cigna
Cigna is a leading global health insurance company with over 95 million customers in 30 countries. In 2016, it launched GoYou, an online health and wellness platform providing personalized health coaching and content based on individual lifestyle goals. The platform has been a huge success, with over 5 million users as of 2019.
Digital transformation in healthcare is essential for companies to remain competitive. By digitizing their operations, healthcare companies can provide better care for their patients and improve their bottom line.
The future of digital transformation in healthcare
Digital transformation in healthcare is inevitable and an ongoing process that constantly evolves. With the rapid growth of digital technologies, healthcare organizations increasingly adopt digital solutions to improve patient care, increase efficiency, reduce costs, and remain competitive.
The future of digital transformation in healthcare will focus on providing more personalized and patient-centered care. There will be an emphasis on developing digital solutions to improve patient engagement and experience and using digital technologies to enhance clinical decision-making and reduce medical errors.
As digital transformation in healthcare evolves, it will play an increasingly important role in improving care quality and making healthcare more affordable for everyone. In short, digital transformation in healthcare is an opportunity for providers to improve patient outcomes and create a more efficient and effective care delivery system.
The role of digital adoption in digital transformation
Digital adoption involves using digital technologies to improve business performance, requiring changes in technology use, processes, and culture.
For digital transformation to succeed, companies must first adopt new digital technologies. This can be challenging, but factors like leadership support, user buy-in, and comprehensive training can encourage digital adoption.
By adopting new digital technologies, companies can set themselves up for success in the digital age.
The leading digital adoption solution for healthcare
In recent years, healthcare organizations increasingly turn to digital adoption platforms (DAPs) to aid their digital transformation journeys. DAPs provide a centralized platform for managing digital technologies and workflows, offering numerous advantages for healthcare organizations.
For example, DAPs can streamline employee onboarding and training for new digital technologies, making it easier for staff to get up to speed quickly. Additionally, DAPs provide real-time visibility into digital technology usage across the organization, allowing leaders to identify and address any issues.
As healthcare organizations continue embracing digital tools and technologies, DAPs will become an essential part of their operations.
How to get started on your own digital transformation journey
Digital transformation can seem daunting, but it doesn’t have to be. Here are a few key steps to start your digital transformation journey.
First, take inventory of your existing digital capabilities and infrastructure:
- What digital tools and platforms do you already have in place?
- How are they being used currently?
Second, assess your organization’s needs and goals:
- What would you like to achieve with digital transformation?
- What areas need improvement?
Once you have a clear idea of where you’re starting from and where you want to go, you can begin to map out a digital transformation strategy that makes sense for your organization.
Finally, implement your plan and track your progress. As your digital transformation journey progresses, adjust your plan as needed to ensure you’re achieving your goals.
Learn how you can achieve digital transformation with WalkMe’s Digital Adoption Platform (DAP) for healthcare.
