The Future of Digital Health: Insights from the 2024 State of Digital Health Purchasing Survey

In an era where technology is reshaping every aspect of our lives, the healthcare sector is no exception. A recent survey conducted by the Peterson Health Technology Institute (PHTI) has unveiled a significant trend: health plans, employers, and health systems are gearing up to increase their investments in digital health solutions over the next year. This article delves into the findings of the 2024 State of Digital Health Purchasing survey, highlighting the motivations behind this surge in spending, the evolving landscape of contracting, and the prioritized areas for digital health solutions.

Sustained Growth in Digital Health Spending

The survey, conducted in partnership with NORC at the University of Chicago, gathered insights from 332 decision-makers responsible for purchasing digital health solutions. The results are striking, indicating a robust commitment to digital health across various purchaser groups:

• Employers: A staggering 97% of employers plan to maintain or increase their spending on digital health solutions.
• Health Systems: 86% of health systems are also poised to sustain or boost their investments.
• Health Plans: Similarly, 84% of health plans intend to maintain or increase their spending.

These figures reflect a collective recognition of the value that digital health solutions bring to the healthcare ecosystem.

Driving Forces Behind Increased Investment

Several key factors are propelling this increased investment in digital health solutions:

Consumer Demand

The growing demand for digital health solutions among consumers is a primary driver for all purchaser groups. As patients become more tech-savvy and seek convenient, accessible healthcare options, health plans, employers, and health systems are responding by investing in innovative digital tools.

Improved Health Outcomes

Purchasers are increasingly aware of the potential for digital health solutions to enhance the quality of care and improve patient outcomes. By leveraging technology, healthcare providers can offer more personalized and effective treatment options, ultimately leading to better health results.

Cost Savings

Cost savings are another significant motivator, particularly for health plans. By investing in digital health solutions, these organizations aim to reduce overall healthcare costs while improving efficiency and patient satisfaction.

Contracting Trends and Performance Measurement

The survey also sheds light on emerging trends in contracting and performance evaluation within the digital health space:

Shorter Contract Durations

Most contracts with digital health providers are now lasting two years or less. This trend allows purchasers to regularly assess performance and adapt their strategies based on the effectiveness of the solutions they have chosen.

Risk-Based Contracts

Performance-based arrangements are becoming increasingly prevalent, with 79% of purchasers utilizing them for at least some of their digital health solutions. This shift towards risk-based contracts emphasizes accountability and ensures that providers are incentivized to deliver measurable results.

Focus on Outcomes

When evaluating contract performance, health plans and health systems prioritize health outcomes, while employers focus on user adoption and engagement. This distinction highlights the varying objectives of different purchaser groups and underscores the importance of aligning digital health solutions with specific needs.

Prioritized Disease Areas

As organizations look to invest in digital health solutions, certain disease areas are emerging as priorities:

• Diabetes
• Preventive Care
• Mental Health
• Cardiovascular Disease
• Primary Care

These areas reflect a growing recognition of the need for targeted interventions that can effectively address prevalent health issues.

Conclusion: A Call to Action for Digital Health Companies

“Health plans, employers, and providers want to meet continued demand for digital health solutions, while ensuring the solutions they purchase have strong evidence that they improve health and generate economic efficiencies,” stated Caroline Pearson, executive director of PHTI. The findings of this survey present a valuable opportunity for digital health companies to better align their offerings with the needs and desires of purchasers. By doing so, they can enhance access to these innovative tools and the myriad benefits they can provide.

As we move forward, the landscape of digital health is set to evolve rapidly. Stakeholders across the healthcare spectrum must remain agile, responsive, and committed to leveraging technology to improve health outcomes and drive efficiencies. The future of healthcare is digital, and the time to invest is now.