How Will the Current Macroeconomic Environment Impact Digital Health and Healthcare IT Decision-Making?

As health systems grapple with market uncertainty, how will the current macroeconomic environment impact digital health and healthcare IT decision-making? How are AI and automation addressing healthcare labor shortage challenges? Capital One Healthcare analyst Don Hooker shared his perspective with Healthcare IT Today in the following interview.
From your work with stakeholders, are you seeing any concerns regarding digital health point solutions?
To set the stage, overall “healthcare IT” budgets appear to be stable at many healthcare provider organizations, but there are still a lot of concerns about how an uncertain macroeconomic environment might impact digital health and healthcare IT procurement decision-making. Specifically, healthcare providers continue to highlight challenges with labor and supply costs (shortages) as a source of operating margin pressure. In some cases, this is forcing them to be more selective with their software and services vendors.
In this environment, digital health point solution vendors face increased pressure to show their provider customers a hard-dollar and near-term ROI. Also, digital health point solution vendors may face pressure from provider organizations looking for ways to streamline their vendor relationships in order to gain better volume-based pricing. We have definitely seen a greater mix of revenue growth from cross-selling in recent quarters. Existing clients who have already realized success with a given vendor seem much ...

Source: EMR and HIPAA - October 6, 2023 Category: Information Technology Authors: John Lynn Tags: Ambulatory C-Suite Leadership Healthcare IT Hospital - Health System Revenue Cycle Management Healthcare Labor Shortage Healthcare Leadership Healthcare M&A Healthcare ROI Healthcare Trends RCM Source Type: blogs