Healthcare market insights: 5 priorities for digital transformation

In Brief

5-Minute Read
  • Healthcare organizations are prioritizing foundational digital investments, including cloud optimization, data management, and data security.
  • Data integration and interoperability challenges persist, limiting healthcare systems from gleaning meaningful insights and making data-informed decisions.
  • AI adoption remains cautious yet impactful, with leaders focusing on strengthening foundational elements to expand use cases from operational functions to clinical applications.

Digital tools, technology, and data analytics are critical drivers of innovation and efficiency in healthcare. To understand how healthcare organizations are navigating the ever-evolving digital landscape, Huron surveyed CTOs, CIOs, and other technology leaders at national and regional healthcare systems and academic medical centers. Our research surfaces new insights about digital transformation priorities, challenges, and growth opportunities shaping the industry’s future.

Key digital insights:

Leaders narrow in on infrastructure modernization

Leaders are prioritizing foundational technology investments as prerequisites for broader digital initiatives. Cloud optimization emerges as the top digital transformation priority, followed by data management, and security and compliance. Increased focus in these areas signals a mature approach to digital transformation — one that recognizes robust infrastructure as the cornerstone of data-driven decision making.

Data integration is an elusive strategy

Despite widespread recognition of data’s strategic value, healthcare organizations continue to grapple with integration challenges.

Only 17% of leaders say their organization has a unified view of their data across teams and departments, compared with half of leaders who report a more fragmented approach. Massive data volumes coming from disparate or incompatible data sources make it difficult to maintain data integrity and make meaningful use of information. Leaders say ensuring data integrity across partner organizations is their top digital challenge.

Lack of interoperability impedes access to meaningful insights

Like data integration, interoperability is a key enabler for better decision making and delivering high-quality care. Yet, most technology leaders report low to moderate levels of interoperability between core technology systems.

As data strategies mature, we'll be able to assimilate knowledge sources from traditional systems that collect information (tabular data), but also collect observable data with audio, video, and IoT devices that will give us information in real time. The convergence of all that knowledge will transform care delivery by increasing the speed of time to information."
—Michael Holt, principal, data analytics and management

Frontline tools spark renewed attention, investment

As workforce shortages and burnout mount, technology that enables healthcare workers to do their jobs efficiently and effectively has become an urgent priority. However, just 60% of leaders say their organizations execute digital apps and tools for healthcare workers well — a sharp drop from 74% in our previous survey.

Leaders note a particularly steep decline in how well their organizations integrate specific workforce tools, including automated documentation and ordering, and voice recognition and ambient listening technology. These areas represent key opportunities to increase job efficiency moving forward.

Leaders recognize that technology plays a vital role in improving the employee experience, operational efficiency, and care delivery. Nearly three-quarters (71%) of leaders deem digital apps and tools for their staff an immediate priority, with 60% planning a significant investment.

Leaders deaccelerate AI initiatives, prioritize fundamentals

While artificial intelligence (AI) commands significant attention in healthcare, our research reveals a nuanced approach to its implementation. Organizations are strategically prioritizing data and technology infrastructure before pursuing large-scale AI initiatives to ensure a solid foundation for success.

Where deployed as part of a comprehensive digital strategy, AI is delivering notable outcomes, with leaders reporting particularly strong success in five areas.

Leaders plan to focus on clinical AI applications, such as real-time clinical analytics and population health monitoring, as they shore up core technology and infrastructure.

Organizations get excited about AI, sometimes for the wrong reasons. It risks becoming a shiny toy instead of a strategic tool. Organizations that have modernized their infrastructures to lay a healthy digital foundation and those with clear business objectives tend to be more successful in realizing the benefits of AI tools. We’re just scratching the surface of what’s possible."
—Fanny Ip, managing director, digital and automation

What is the opportunity for healthcare technology leaders?

Healthcare leaders face the complex task of balancing immediate organizational needs with future ambitions. The opportunities presented by data and advanced analytics are seemingly endless. However, organizations must maintain momentum on strategic initiatives while ensuring that foundational capabilities, including core infrastructure, comprehensive data strategies, and governance are in place to support advanced applications.

Success will depend on a clear vision, structured execution, and unwavering commitment to both digital excellence and better clinical outcomes. Increasingly, point solutions will need to give way to big picture views of the organization and its strategic goals.

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