It’s no surprise—recently-released market research finds that provider technology investment is being driven by value-based reimbursement (VBR). Investment in technologies that supports value-based care will grow 34% over the next eight years—from $600 million in 2017 to $6.4 billion in 2025 (see Healthcare Provider Annual Report 2017: Will the Real Value-Based Care (VBC) Please Stand Up?). In a decade, that growth curve would result in half of the $11.7 billion provider organizations spend on technology being focused on managing value-based care.
This shift is a fundamental change. For the past decade, much of the focus of provider organization executive teams has been on getting fully functional electronic health record systems (EHR) in place (see EHRs & Satisfaction-Of Both Consumers & Clinical Professionals and We Don’t Have An EHR & We Won’t Do Email) and meeting meaningful use requirements. But, as our recent technology adoption survey found (see The Impact Of Tech In The Future – & The Reality Of Tech In The Present), EHRs are now the rule—84% of specialty provider organizations with revenue over $25 million and 75% of organizations with revenue below $25 million have an EHR. But adoption in other categories is lagging. Less than half of organizations of any size have health information exchange (HIE) capabilities and less than a third of organizations using clinical decision support tools or population health management tools. On the consumer-facing side of the equation, only 20% are using remote monitoring technologies and less than half have adopted telehealth technologies.
So what are those next-generation, value-based care tech investments? They appear to fall in two categories: management of value-based reimbursement contracts (analytics and HIE) and consumer-centric technologies focused on increasing consumer engagement and self-management. A recent survey by First American Healthcare Finance found that the top two tech investments that hospitals are making in 2018 are self-service/self-management kiosks for consumers (54% of hospitals surveyed) and data integration/predictive analytics tools (53% of hospitals surveyed)—see Health IT Spending Rises for Patient Satisfaction, Big Data for more.
What technologies should your organization be investing in? And what should they be spending? As I’ve said before, it all depends on (and starts with) your strategy. For more check out these resources in our OPEN MINDS Industry Library:
- Leveraging Technology To Support Your Population Health Management Strategy
- The Strategy Of Tech Investment
- Planning Your Treatment Tech Investment
- A Dizzying Discussion Of Tech Strategy At #OMTechnology
- Investing In Treatment Tech – Aligning Strategy With New Technology Possibilities
- Your Insights For Tech Management & Strategy
- From Strategic Planning To Tech Strategy
- Getting The Best Tech ROI
- What Is ‘Blockchain’ & What Will It Mean For Your Tech Strategy?
- Don’t Implement Tech In A Bubble: Consider Your Strategy
For even more don’t miss our executive workshop on February 16, 2018, Leveraging Technology For Competitive Advantage: An OPEN MINDS Seminar On Best Practice Technology Implementation, at the Sheraton Sand Key Resort in Clearwater Beach, Florida.