Healthcare executives are investing in digital health tech without seeing an ROI

According to a survey conducted by Atomik Research and commissioned by Ernst & Young, 96% of healthcare executives believe that investing in healthcare technology is justified. However, 71% of these executives noted that overall hospital expenses have not decreased despite the implementation of digital tools.

The study involved 101 payer and provider executives in the U.S., revealing that nine out of 10 executives found that pushing administrative tasks to a digital system allowed their departments more time to address providers' needs.

Additionally, 93% of respondents regarded emerging technology as beneficial for providers, positively impacting operational efficiency. Despite 86% of executives recognizing the potential for cost reduction through digital health offerings, 70% reported not yet seeing a return on investment.

Nevertheless, 90% of healthcare executives expressed their commitment to continue investing in staffing digital health technology teams. Moreover, 94% believed that newer technologies contribute to increasing providers' credibility.

The survey, conducted between Sept. 26 and Oct. 6 of the previous year, had a margin of error of +/-10% with a confidence level of 95%.

The significance of these findings lies in the spotlight on digital health technology during the pandemic, marked by substantial early investments that have since declined. Some executives anticipate a resurgence in investment in 2024. However, investors now prioritise funding digital health companies with proven effectiveness and scalability, setting a higher bar for investment decisions.

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