Health systems have sprinted toward digital solutions, but the gap is widening between the “haves” and “have-nots” as some systems progress toward their transformation goals and many others fall behind, according to a new report published today by Chartis, a comprehensive healthcare advisory firm.
In its 2024 survey, “From belief to transformation: Digital market leaders focus on value,” Chartis found that market leaders who have developed and invested in a cohesive strategic approach with a defined roadmap pull ahead while most health systems (70%) play catch-up.
“As the majority of health systems continue to make significant investments in digital to remain competitive, the focus has to shift to realizing a return on those digital investments,“ said report co-author Tom Kiesau, Chartis’ Chief Innovation Officer and Digital Transformation Leader. “Health systems are faced with increasingly constrained finances, even as patient and staff digital expectations continue to rise. Digital investments have improved stakeholders’ experiences, but “good enough” last year, simply won’t be “good enough” next year. It’s increasingly essential that all digital transformation investments demonstrate meaningful, tangible value, in direct alignment and support of the organization’s strategic objectives.”
Chartis surveyed 434 health system executives about the state of digital transformation and found:
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More than 80% of respondents are making “medium” or “high” investments in digital, including high investments in digital health solutions for operational efficiencies (88%) and consumer experience (91%).
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Half of respondents plan to increase investment this year. At least some are seeing improved patient and staff experience and positive value from their digital investments, but the degree of impact varies.
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Nine in ten executives say the impact of digital investments has been positive but note there’s room for greater impact as they progress in their transformations.
The survey also revealed several key findings, including:
Consumer digital demand drives health transformation
Consumers are looking for a digital healthcare experience to support convenient, efficient ways to access medical information and healthcare services. When asked to rank barriers to digital transformation, respondents did not align on a single most challenging barrier. However, consumer demand remained by far the lowest barrier to long-term digital transformation, as reported last year. This suggests that health systems understand that consumers are pushing for a digital healthcare experience, not objecting to it.
Demand for hospital at home is rising quickly
Demand for care at home has gained significant momentum, with 90% of respondents strongly agreeing on the urgency to develop a comprehensive approach to remote care. This marks a significant shift from Chartis’ 2022 survey, where nearly 40% of respondents reported that they were not even in the planning stages for hospital at home. Health system executives aren’t questioning whether they should develop a care at home program but rather are deciding how to build a program quickly and effectively.
Health systems gear up for AI integration
The healthcare industry has been slower to embrace artificial intelligence (AI) compared with industries like finance and telecommunications. However, with the advancement of AI, health systems appear eager to incorporate AI into broader organizational functions. More than 40% of executives reported actively piloting AI programs, and more than a quarter of respondents reported having a formal AI program in place. Only 11% reported no AI plan or development, compared to the more than 25% of respondents who had not started planning in 2021.
Methodology
From September to November 2023, Chartis, in partnership with market research firm Dynata, surveyed 434 health system executives about the state of digital transformation and their progress to date. Respondents represented a range of organization types (non-academic and academic), sizes (based on revenue), locations, and executive roles asking about the state of digital transformation and their progress to date. Dynata fielded the survey and aggregated responses. Qualified survey respondents who completed the survey were compensated on par with market rate.
About Chartis
The challenges facing US healthcare are longstanding and all too familiar. We are Chartis, and we believe in better. We work with more than 900 clients annually to develop and activate transformative strategies, operating models, and organizational enterprises that make US healthcare more affordable, accessible, safe, and human. With more than 1,000 professionals, we help providers, payers, technology innovators, retail companies, and investors create and embrace solutions that tangibly and materially reshape healthcare for the better. Our family of brands—Chartis, Jarrard, Greeley, and HealthScape Advisors—is 100% focused on healthcare and each has a longstanding commitment to helping transform healthcare in big and small ways. Learn more.
