6 Ways Digital Technology Is Changing the Healthcare Industry

The healthcare industry has been undergoing rapid changes thanks to advances in digital technology. According to a report from Grand View Research, the global healthcare IT market was valued at $199.5 billion in 2023, with a projected growth rate of 18.7% annually from 2024 to 2030. Factors like the increasing use of smartphones, demand for remote patient monitoring, and advancements in healthcare IT infrastructure are driving this growth. Investments in eHealth and digital health are also on the rise.

Digital technology is fundamentally transforming healthcare. Solutions like electronic health records (EHRs), telemedicine, mHealth apps, and medical wearables are becoming more widespread. While these technologies bring benefits like improved care coordination, increased efficiency, and reduced costs, they also raise concerns about cybersecurity, data privacy, and system interoperability.

As the digital transformation in healthcare accelerates, it promises to change how care is delivered and managed. This article will explore six major ways that innovative digital health technologies are impacting key players and processes in the industry.

What Are The Benefits of Healthcare Technology?

The rise of digital technologies in healthcare is bringing about meaningful changes that improve access to care, enhance patient experiences, lower costs, and boost the accuracy of decision-making. Technologies such as telemedicine platforms, patient portals, AI-driven analytics, and health data tools are driving system-wide improvements for patients, healthcare providers, and public health authorities.

1. Better Access to Care
   • Digital technologies like telehealth services are making healthcare more accessible. Video consultations and remote monitoring allow patients, especially those in underserved areas, to receive care without leaving home. For example, Alto Pharmacy simplifies the prescription process with its mobile app, coordinating doctors, insurers, and medication delivery to remove barriers to access. Additionally, Zipline uses drones to transport medical supplies to remote hospitals, expanding access to essential healthcare.
   • Amazon’s acquisition of PillPack and its introduction of RxPass—a $5 prescription service—further demonstrate how digital innovations are making healthcare more convenient and accessible for people, particularly those with chronic conditions.
2. Enhanced Patient Experiences Through Communication Technology
   • Patient portals are improving the healthcare experience by giving patients easy access to their medical records, test results, and direct communication with their healthcare providers. These portals allow patients to message doctors about their treatment plans, promoting better collaboration and improving overall care.
   • Beyond patient portals, tools like Google’s Open Health Stack and MedPaLM, an AI-based language model for healthcare, are making health information more accessible, helping patients better understand their conditions and take a more active role in their healthcare.
3. Lower Delivery Costs
   • Electronic health records (EHRs) not only streamline healthcare delivery but also lower operating costs by improving workflow efficiency and reducing paperwork. Practices using EHRs typically see higher revenues and lower costs due to improved billing processes and insurance claim management.
   • For example, integrating EHRs with billing systems automates tasks like claim submission and coding, leading to faster reimbursements and reduced manual errors. This boosts financial performance for healthcare providers while improving patient satisfaction.
4. More Accurate Decision-Making
   • Artificial intelligence (AI) is revolutionizing how healthcare providers make decisions. AI algorithms can analyze large amounts of patient data, including medical images and vital signs, to support early disease detection and more accurate diagnoses. The use of blockchain technology in managing patient records also enhances data security and trust.
   • Clinical decision support systems powered by AI help doctors make better treatment choices by analyzing medical history and other factors. For example, Microsoft’s Dragon Ambient eXperience (DAX™) Express uses GPT-4 to improve medical documentation, allowing doctors to focus more on patients.
   • As AI continues to evolve, it will become even more capable of diagnosing complex conditions quickly and accurately. However, issues like algorithmic bias and privacy concerns must be carefully managed to maintain trust and ensure patient safety.
5. Faster Information Sharing
   • EHR systems facilitate faster sharing of patient information between healthcare providers. This improves care coordination and helps detect emerging health issues more efficiently. By eliminating manual data entry and streamlining administrative tasks, EHRs enable healthcare providers to deliver better and faster care.
   • However, implementing EHRs comes with challenges such as data migration and staff training. Overcoming these hurdles is essential to fully realize the benefits of faster information exchange and improved patient outcomes.
6. Improved Public Health Research
   • Digital health data tools are improving public health research by allowing authorities to analyze trends at a population level. AI, for example, can process historical health data to predict disease outbreaks and inform targeted interventions.
   • During the COVID-19 pandemic, countries like the UK and the US rapidly adopted telehealth and digital health tools to improve care and track virus transmission. These technologies helped streamline care quality and inventory management, though challenges like technical issues and digital illiteracy still need to be addressed to improve telemedicine adoption.

The Future of Healthcare: Navigating Challenges and Opportunities

While digital health offers significant promise, it also comes with challenges that need to be addressed to unlock its full potential.

Bridging the Digital Divide

Not everyone has equal access to digital healthcare technologies, particularly in underserved regions or among older populations. Bridging this gap will require expanding broadband access and tailoring technology to meet diverse needs.

Training and Adaptation

Transitioning from traditional to digital healthcare requires extensive training for healthcare providers. Comprehensive training programs and resource allocation are essential for successfully adopting new digital tools.

Managing Implementation Costs

Initial investments in digital healthcare, including technology acquisition and staff training, can be costly. Strategic financial planning is necessary to manage these expenses and ensure long-term success.

Ensuring Cybersecurity and Data Privacy

With the rise of digital health technologies comes the risk of cybersecurity threats. Protecting patient data with robust security protocols and regular staff training on data privacy practices is critical.

Achieving Interoperability

To maximize the benefits of digital health systems, it’s essential that different platforms can communicate effectively with each other. Standardizing data formats and protocols will help avoid fragmented care and inefficiencies.

Navigating Regulatory Compliance

Digital health is subject to region-specific regulations. Staying compliant with these regulations is critical to ensure legal and ethical operations.

Investing in Healthcare Technology

As digital technology becomes more integrated into healthcare, investment in this sector is growing. However, investors should carefully consider the risks, such as market volatility and the unpredictable nature of emerging technologies.

Look for Innovative Companies

When evaluating healthcare technology companies, consider their management vision, product pipeline, and ability to drive ongoing innovation. A company’s commitment to long-term healthcare solutions rather than short-term gains is often a good indicator of its potential for success.

Understand the Med-Tech Life Cycle

Bringing a new medical technology from concept to widespread use involves several complex steps, including research and development, clinical trials, regulatory approval, and product launch. Each of these steps requires time, resources, and extensive testing.

The Future of Healthcare: Navigating Technology’s Impact

Digital technology is revolutionizing healthcare by reshaping patient care, streamlining operations, and opening new avenues for research. However, as with any industry undergoing rapid transformation, there are risks. Investments in healthcare technology should be approached cautiously, with attention to both opportunities and challenges.

By understanding these complexities and taking a strategic approach to investing, stakeholders can contribute to the growth of this critical sector, which promises to improve healthcare outcomes and drive economic growth.

This material is provided for informational purposes only and does not constitute investment advice. Always consult professional advisors before making investment decisions.

This material, provided by Linqto, is for informational purposes only and is not intended as investment advice or any form of professional guidance. Before making any investment decision, especially in the dynamic field of private markets, it is recommended that you seek advice from professional advisors. The information contained herein does not imply endorsement of any third parties or investment opportunities mentioned. Our market views and investment insights are subject to change and may not always reflect the most current developments. No assumption should be made regarding the profitability of any securities, sectors, or markets discussed. Past performance is not indicative of future results, and investing in private markets involves unique risks, including the potential for loss. Historical and hypothetical performance figures are provided to illustrate possible market behaviors and should not be relied upon as predictions of future performance.