Patient outcomes top measure of digital health solutions’ ROI
More than half of hospital leaders believe that improving patient outcomes is the most important measurement of ROI for digital health solutions, survey results reveal.
Sage Growth Partners conducted the survey in June 2024 on behalf of Panda Health, polling 75 hospital leaders. Of the survey respondents, 14% were CFOs or vice presidents, 28% were clinical leaders, 29% were IT leaders and 29% were operations leaders. The survey aimed to explore the digital health ROI metrics that matter to hospital leaders, how ROI factors into their purchase decisions and how they measure it once the technologies have been implemented.
The three most crucial ROI measurements for digital health technology purchases were improved patient outcomes, with 61% of survey respondents assigning it 1 on a scale of 1-10 (where 10 was least important); improved patient experience, with 47% of respondents assigning it 2 on the scale; and improved quality measures, with 39% assigning it 3 on the scale.
Improved workforce satisfaction and reduced clinical cost also made the top 10 most important ROI measurements list, coming in at seven and eight, respectively.
More than half of the hospital leaders surveyed (54%) said their organization does not have a formal process for assessing ROI when buying digital health solutions. Though a vast majority (81%) said it is helpful when a vendor details the expected ROI of the solution during the sales process, 39% do not trust the information provided.
Still, 36% somewhat trust and 25% fully trust the ROI information vendors share. However, 59% said vendors’ ROI promises fall short more than half of the time and 29% said they fall short half of the time.
Despite this, 65% of survey respondents said that their current digital health solutions have met or exceeded their internal ROI expectations.
According to the report, the disconnect between survey respondents stating that vendor promises of ROI often fall short and believing their implemented solutions are performing well likely arises from more cautious internal expectations of ROI.
“As noted, only 25% of hospital leaders place a high amount of trust in ROI information shared by vendors,” the report notes. “As a result, it’s likely that most hospital and health system leaders are setting their internal expectations for digital health solutions lower than what’s shared by vendors. That’s leading to less disappointment and more satisfaction.”
Most survey respondents said they hold vendors accountable for ROI performance using various approaches. While 58% prioritize ongoing vendor engagement, 56% said they build an established ROI into the contract and 49% use risk-based contracts.
Understanding and assessing digital health ROI is essential in a rapidly evolving virtual healthcare market.
A recent Trilliant Health report emphasized virtual healthcare’s shift from volume to value, noting that healthcare leaders must determine areas where virtual care will yield the highest ROI. Data collected by the market research firm revealed that most health systems (76%) invested in virtual health tools in 2024 to drive patient experience and access, while 61.5% invested in digital front doors, 53.5% in remote patient monitoring and 48% in virtual care tools to address labor shortages.
Similarly, a report published in October 2024 shows that digital health purchasers, including healthcare providers, payers and employers, prioritize spending on specific digital health tools. The report from the Peterson Health Technology Institute and the NORC at the University of Chicago found that 65% of survey respondents have invested in digital diabetes solutions, 62% in digital primary care solutions, 56% in digital mental health solutions and 56% in preventive care solutions.
Anuja Vaidya has covered the healthcare industry since 2012. She currently covers the virtual healthcare landscape, including telehealth, remote patient monitoring and digital therapeutics.
link