[SURVEY RESULTS] The 2024 edition of State of Software Modernization market report is published!
GET IT here

Digital Transformation in Healthcare: Benefits, Challenges & Tips

readtime
Last updated on
July 15, 2024

A QUICK SUMMARY – FOR THE BUSY ONES

Digital transformation in healthcare: Key takeaways

  • The U.S. digital health market is rapidly growing, projected to expand at a CAGR of 19.5% from 2024 to 2030. Key drivers include new technologies (AI, IoT, 3D printing), evolving patient expectations, demographic shifts, and regulatory updates.
  • Significant challenges include security and data privacy concerns, resistance to change, reliance on outdated legacy software, and staff shortages and skill gaps. Addressing these issues requires robust cybersecurity measures, change management strategies, and comprehensive training programs.
  • Key technologies transforming healthcare include AI, IoT, robotics, telemedicine solutions, EHR, blockchain, and 3D printing. These technologies enhance diagnostics, patient monitoring, surgical precision, data security, and the creation of custom medical devices.

TABLE OF CONTENTS

Digital Transformation in Healthcare: Benefits, Challenges & Tips

Introduction

Healthcare is the next industry poised for rapid and significant transformation. While this shift presents numerous opportunities, it also brings challenges that demand proactive crisis management. How can we address these challenges, maximize benefits, and mitigate risks effectively in digital transformation in healthcare?

Digital transformation in the healthcare industry

Digital transformation in healthcare involves the application of modern technologies to enhance and modernize the services provided within the industry.

According to Grand View Research, the U.S. digital health market size was estimated at USD 81.17 billion in 2023 and is projected to grow at a CAGR of 19.5% from 2024 to 2030. This indicates that the digitalization of this market is set to advance further, potentially introducing revolutionary solutions.

The major key drivers of digital transformation in healthcare industry are: 

  • Emergence of new technologies (AI, IoT, 3D printing, and more)
  • Evolving patient expectations (an increasing demand for online services)
  • Demographic shifts (younger generations are more open to adopting digital healthcare services)
  • Regulatory updates (providing incentives for digital healthcare providers).

Highly qualified experts in the industry are keenly aware of emerging trends and needs. According to Deloitte, 88% of healthcare experts and leaders state that digitalization and a patient-centric approach are their primary investment focuses. Following these are investments in cybersecurity (80%) and clinical care delivery (68%).

Despite ongoing advancements, there remains significant room for improvement, as many processes in the industry are still managed manually. Consequently, many nurses, doctors, and medical professionals spend substantial time on administrative tasks. 

Outdated processes in healthcare present numerous drawbacks. They not only result in higher long-term costs but also elevate the risk of errors. Automating clinical workflows can significantly improve accuracy, accelerate decision-making processes, and enhance overall staff productivity. These changes present numerous opportunities for advancements in the upcoming decades.

Benefits of digital transformation in healthcare

List of benefits of digital transformation in healthcare

The digital transformation of healthcare offers numerous benefits to patients, doctors, medical staff, hospitals, researchers, and other institutions. Here are some key advantages:

Enhanced personalization

Patients increasingly expect personalized care. Digital transformation allows healthcare providers to tailor services to individual needs and preferences, granting access to personal health records and developing customized treatment plans based on medical history and genetic profiles. 

Increased access to services

Digital transformation improves healthcare accessibility by enabling online appointment scheduling and offering telemedicine services. This particularly benefits people in remote or rural areas and elderly patients, promoting equity and enhancing overall access to healthcare.

Boosted productivity

In the light of healthcare labor shortage, maintaining high efficiency among available staff is crucial. Digital tools help to eliminate paperwork, streamline data access, and reduce the time spent on administrative tasks, allowing healthcare professionals to dedicate more time to patient care. Also, AI-supported medical records analysis further accelerates diagnoses and improves workflow.

Cost optimization

Although initial investments are required, digital transformation leads to substantial long-term savings. In the U.S., where healthcare costs are among the highest globally, digital solutions significantly reduce expenses related to data analysis and healthcare administration.

<span class="colorbox1" fs-test-element="box1"><p>For more insights into the benefits and outcomes of successful digital transformation in healthcare industry, check out these digital transformation examples. They include big companies like Lego, Disney, Nike.</p></span>

Challenges of digital transformation in healthcare

Despite the numerous benefits, digital transformation in healthcare faces several significant challenges related to its adoption, security, and other critical factors. Here are the major obstacles to successful digital transformation in healthcare:

Security and data privacy concerns

Patient health information is extremely sensitive. If digital transformation is implemented incorrectly, it can lead to data breaches and leaks. Therefore, it is crucial to meet the highest standards of cybersecurity.

Resistance to change

The healthcare industry often exhibits a conservative attitude toward new technologies and changes. With doctors spanning various generations, not all of them adapt easily to digital innovations and move away from old procedures and practices. 

Legacy software

Many healthcare institutions still rely on outdated legacy software, which can be difficult to integrate with newer, more modern solutions. This can lead to interoperability and compatibility issues, inhibiting the digital transformation process in healthcare.

Staff shortages and skill gaps

Digital transformation necessitates that medical staff become proficient in using digital tools daily. Many healthcare professionals need to update their skills and become familiar with modern solutions. Ensuring that medical staff can effectively use technological advancements requires time and a series of comprehensive training programs.

<span class="colorbox1" fs-test-element="box1"><p>To explore options for partnering with a suitable company for your digital transformation needs, check out top digital transformation companies.</p></span>

Trends in digital transformation in healthcare

Several technologies will undoubtedly play a pivotal role in the digital transformation of healthcare. Let's take a closer look at them:

Artificial Intelligence (AI)

AI is transforming numerous industries, and its impact on healthcare is profound. This technology is highly beneficial for automation, data analytics, predictive diagnostics, and the creation of personalized patient treatment plans. AI can also assist patients through chatbots and other telemedicine solutions, improving accessibility and efficiency. 

<span class="colorbox1" fs-test-element="box1"><p>Generative AI, in particular, offers the potential for advanced diagnostic imaging and personalized care. To get more insights on the topic, go to the overview of generative AI in healthcare.</p></span>

Internet of Things (IoT)

IoT devices offer numerous opportunities in healthcare: wearables can collect biometric data in real time and continuously monitor patients' health metrics. These devices can also provide valuable data during surgeries, enhancing the efficiency and outcomes of medical treatments.

Robotics

The application of robotics in healthcare can revolutionize various aspects of the industry. Robots can perform precise surgeries and other advanced medical procedures, including remote operations, which can transform our current perception and capabilities in surgery. Robotics can also assist in routine tasks, reduce the workload on medical staff, and increase overall efficiency.

Telemedicine solutions

Telemedicine solutions have significantly advanced, particularly accelerated by the COVID-19 pandemic. According to Insider Intelligence, the utilization of telehealth services surged from 21 million U.S. adults in 2019 to 64 million by 2023. This growth reflects the rising accessibility of applications, chatbots, and online platforms. These tools enhance patients' access to medical services and facilitate communication with healthcare providers.

Electronic Health Records (EHR)

Creating digital records of patient's medical history and test results is essential for accurate diagnoses and effective treatments. Modern EHR solutions allow patients and doctors to easily access and review patient histories, find necessary data quickly, and adjust treatment plans accordingly.

Blockchain

Beyond its associations with cryptocurrencies, blockchain technology holds promise in healthcare. It enhances data security by encrypting patient information, thereby safeguarding sensitive medical data. This makes blockchain a valuable and perhaps unexpected fit for the healthcare industry's security needs.

3D printing

Modern 3D printing represents a revolutionary technology in healthcare. It facilitates the creation of prosthetics and custom implants more efficiently, rapidly, and cost-effectively than ever before. The advancements in 3D printing are expected to bring about transformative changes in healthcare in the upcoming years.

<span class="colorbox1" fs-test-element="box1"><p>For further inspiration, ideas, and case studies on trends in digital transformation in healthcare industry, read more about software solutions used in hospitals.</p></span>

Healthcare digital transformation tips

Now that you're familiar with the possibilities of healthcare digital transformation, it’s time to address the burning question: how can it be implemented successfully?

As technology experts who have led numerous digital transformation projects in healthcare, here are our tips on how to implement it efficiently in your organization:

  1. Assess your needs

Before investing in digital healthcare, conduct a thorough review of your current infrastructure. Define the areas most in need of improvement and the specific goals you wish to achieve. This will guide the development of a clear strategy and ensure that your financial investments target the most critical solutions with the greatest potential impact.

  1. Create a roadmap

Armed with a comprehensive understanding of your needs and capabilities, the next step is to define key performance indicators (KPIs) that will help measure the success of implemented solutions. Break down the implementation process into manageable stages that are easier to execute and monitor.

  1. Select the solutions

Based on your strategic plan, carefully select the digital solutions that align with your organizational and technical goals. Ensure these solutions meet your specific needs and are compatible with your existing business processes.

  1. Implement the solutions

Collaborate with IT professionals to implement the selected solutions according to industry best practices. Consider conducting pilot programs to test the solutions on a smaller scale before full-scale deployment. This approach allows for early issue identification and ensures that the solutions are well-suited to your organization.

  1. Monitor and evaluate progress

Implementation marks the beginning, not the end, of your digital transformation journey. Continuously monitor the efficiency and outcomes of your initiatives using the established KPIs. This ongoing evaluation enables you to make refinements as needed and maximize the return on your digital transformation investment.

Next steps

Navigating healthcare digital transformation without experienced IT professionals can be challenging, as many healthcare facilities may not have such expertise in-house. In such cases, finding a reliable and experienced digital transformation partner becomes crucial. 

Good news - outsourcing is a proven strategy to enhance the efficiency of digital healthcare transformation. Entrusting these responsibilities to companies with Western culture and robust project and risk management processes will ensure smooth and cost-efficient execution.

Frequently Asked Questions

No items found.

Our promise

Every year, Brainhub helps 750,000+ founders, leaders and software engineers make smart tech decisions. We earn that trust by openly sharing our insights based on practical software engineering experience.

Authors

Olga Gierszal
github
IT Outsourcing Market Analyst & Software Engineering Editor

Software development enthusiast with 7 years of professional experience in the tech industry. Experienced in outsourcing market analysis, with a special focus on nearshoring. In the meantime, our expert in explaining tech, business, and digital topics in an accessible way. Writer and translator after hours.

Leszek Knoll
github
CEO (Chief Engineering Officer)

With over 12 years of professional experience in the tech industry. Technology passionate, geek, and the co-founder of Brainhub. Combines his tech expertise with business knowledge.

Olga Gierszal
github
IT Outsourcing Market Analyst & Software Engineering Editor

Software development enthusiast with 7 years of professional experience in the tech industry. Experienced in outsourcing market analysis, with a special focus on nearshoring. In the meantime, our expert in explaining tech, business, and digital topics in an accessible way. Writer and translator after hours.

Leszek Knoll
github
CEO (Chief Engineering Officer)

With over 12 years of professional experience in the tech industry. Technology passionate, geek, and the co-founder of Brainhub. Combines his tech expertise with business knowledge.

Read next

No items found...

previous article in this collection

It's the first one.

next article in this collection

It's the last one.