Report finds that digital health solution adoption will accelerate in 2024, but hospital and health system leaders will face extraordinary solution selection challenges
Panda Health, a digital health intelligence platform and marketplace that connects hospitals and digital health companies, has released its third annual Digital Health Technology Report exploring how hospital and health system leaders are approaching digital transformation and how their objectives are evolving over time. The report is based on an independent survey of 100 hospital leaders conducted in December 2023 by healthcare consultancy Sage Growth Partners.
Ongoing economic challenges—including escalating labor and borrowing costs and declining margins—forced many hospitals and health systems to focus primarily on opportunities to reduce spending and cut costs in 2023. This year’s report, however, finds that as the economic pressures begin to ease, healthcare organizations are beginning to allocate more resources to digital transformation initiatives. In fact, more than two-thirds of survey respondents (67%) say their digital health technology budget will increase this year.
Still, the survey findings indicate that ongoing margin pressures—combined with the oversaturated vendor market and the recent failures of several well-known companies—will create unprecedented levels of risk and complexity for C-suite decision-makers.
“Hospital and health system leaders are very aware that investing in the right digital solutions will provide their organizations with significant benefits, however, they also recognize that selecting the wrong solutions could negatively impact their efficiency, patients, clinicians, staff members, and bottom line,” said Ryan Bengtson, MHSA, President and COO, Panda Health. “Our new report reveals that this is creating extraordinary solution selection challenges for hospital and health system leaders, compelling many to conduct more thorough evaluations and seeking additional proof points and results that show meaningful impact.”
Among the report’s key findings:
- 95% of hospital and health system leaders say that digital transformation is either a medium or high priority for their organization.
- 67% of respondents say their digital health technology budget will increase this year.
- 75% indicate recent failures of well-known digital health companies have made them less confident in their digital health vendors.
- 98% believe that additional digital health vendors will cease operations this year.
- 75% say that they struggle to find unbiased market intelligence relating to digital health categories and solutions.
- 67% indicate that it takes more than 6 months to identify, evaluate and implement new digital solutions.
“This new research shows that hospital leaders overwhelmingly agree that digital transformation will provide their organization with significant and wide-ranging benefits,” said Dan D’Orazio, CEO, Sage Growth Partners. “As leaders continue to navigate the digital health market in the year ahead, it is vital that they have additional support and unbiased information to help ensure optimal investment decisions.”
The full copy of The 2024 Digital Health Technology Report: More Demand, More Complexity, More Diligence is available here.
Learn more about how Panda is helping hospitals and digital health companies connect for optimal results by contacting growth@panda.health. For more information on Panda and how they are supporting safer digital health decision-making, visit Panda.health.
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