6 Ways Digital Technology Is Changing the Healthcare Industry

Digital Technology in Healthcare: A New Era of Patient Care? 

The healthcare technology (healthcare IT) market has experienced rapid growth in recent years, as highlighted by a report from Towards Healthcare (as of 2024). The global healthcare IT market size is projected to be valued at $280 billion for year  2024 and is projected to expand at a compound annual growth rate of 17.5% from 2024 to 2034. The healthcare IT market is experiencing significant growth, driven by the increasing number of patients with chronic conditions and the rising demand for efficient management of patient data through innovations such as remote monitoring, e-prescriptions, and telehealth solutions.¹

This projected growth trajectory underscores how digital technology is fundamentally altering the healthcare landscape. As more providers integrate solutions like electronic health records (EHRs), telemedicine platforms, mHealth apps, and medical wearables, the industry reaps benefits as well as faces notable challenges. On one hand, digital health tools may improve care coordination, increase access and efficiency, empower patients, and reduce costs. On the other hand, they bring risks such as cybersecurity vulnerabilities, interoperability challenges, and regulatory complexities.

Below, we explore six major ways that innovative health technologies and digital solutions are impacting players and processes within the industry.

What Are The Benefits of Healthcare Technology?

Digital innovation is reshaping how healthcare services are delivered and accessed. Technologies such as telemedicine platforms, patient portals, electronic health records, AI analytics, and health data tools are being adopted by healthcare stakeholders – patients, providers, payers, and public health authorities – to address current industry challenges. These tools are looking to create expanded access to medical services, more streamlined communication between patients and providers, and enhanced management of clinical data. While the adoption of these technologies may be increasing, they also present challenges, such as cybersecurity concerns, training requirements, and ensuring interoperability across systems. Addressing these barriers is critical to the integration of digital solutions into healthcare.

1. Access to Care

Digital technologies like telehealth services are making healthcare more accessible for patients. Solutions such as virtual visits and remote monitoring expand access to care, particularly in underserved areas.²

For example, a reputable online pharmacy simplifies the prescription process by allowing consumers to submit valid prescriptions and communicate with licensed pharmacists from the comfort of their homes. These services often provide convenience through fast delivery or local pickup options, making medications more accessible for those who may face barriers to traditional pharmacy visits.³

Autonomous delivery networks are also expanding care access by transporting supplies to remote hospitals internationally. Such networks enable more equitable delivery to improve the availability of vital medical products.⁴

2. Communication Technology: Patient Experiences

Patient portals are secure online platforms that give patients access to their health records and test results, enabling healthcare providers to better meet patient needs. Portals facilitate patient-provider collaboration, as patients can message doctors with any questions about their treatment plan or health. However, their adoption may face challenges, including limited access for patients unfamiliar with technology, privacy concerns, and the potential for information overload. Addressing these challenges requires clear communication, robust security measures, and patient education to ensure effective use of the portals.⁵

3. Delivery Costs

By leveraging the power of big data, technologies like electronic health records (EHRs)  can help reduce operating costs for providers by optimizing clinical workflows, as well as help streamline operations. EHRs eliminate paperwork and manual record-keeping, allowing clinicians to deliver care more efficiently.⁶

Risks and Challenges: While EHR systems bring benefits, they also can involve significant upfront costs, staff training requirements, and potential implementation challenges. Ensuring data security and privacy within these systems is a critical concern.⁷

4. Accurate Decision-making

AI algorithms can analyze large sets of patient data, including medical images, vital signs, demographics, and health records, aiming to detect diseases earlier and support accurate diagnoses. However, reliance on AI systems introduces risks such as algorithmic bias and transparency issues. Maintaining trust and safety is essential as these technologies evolve.⁸

5. Information Sharing

EHR systems can help improve the sharing of patient information across care facilities, giving providers better access to medical histories to coordinate care, detect emerging issues, and improve treatment quality.⁹

Challenges: Data migration issues, staff adaptation, and interoperability across systems are significant barriers to effective implementation.¹⁰

6. Public Health Research

Digital health data tools allow public health authorities to analyze population-level trends and make new discoveries. For example, AI can process years of historical records to model disease outbreak likelihoods and inform targeted interventions by policymakers.¹¹

Case Study: During the COVID-19 pandemic, digital health tools facilitated virtual healthcare, assisted in care quality oversight, and supported vaccine management. However, challenges like technical problems, digital illiteracy, and contextual barriers highlighted the need for comprehensive support systems for effective implementation.¹²

Navigating Challenges and Opportunities

While digital health has potential, its implementation comes with several key challenges. These include bridging the digital divide, ensuring cybersecurity, managing costs, and achieving interoperability across systems. Understanding and addressing these challenges is essential for utilizing digital health technology effectively and securely.

This material, provided by Linqto, is for informational purposes only and is not intended as investment advice or any form of professional guidance. Before making any investment decision, especially in the dynamic field of private markets, it is recommended that you seek advice from professional advisors. The information contained herein does not imply endorsement of any third parties or investment opportunities mentioned. Our market views and investment insights are subject to change and may not always reflect the most current developments. No assumption should be made regarding the profitability of any securities, sectors, or markets discussed. Past performance is not indicative of future results, and investing in private markets involves unique risks, including the potential for loss. Historical and hypothetical performance figures are provided to illustrate possible market behaviors and should not be relied upon as predictions of future performance.

Sources

1. https://www.towardshealthcare.com/insights/healthcare-it-market-sizing ↩︎
2. https://www.mayoclinic.org/healthy-lifestyle/consumer-health/in-depth/telehealth/art-20044878 ↩︎
3. https://www.urmc.rochester.edu/encyclopedia/content?contenttypeid=34&contentid=16406-3 ↩︎
4. https://www.barrons.com/articles/zipline-amazon-ups-drone-delivery-a2246207 ↩︎
5. https://www.benchmarksystems.com/blog/advantages-and-disadvantages-of-patient-portals/ ↩︎
6. https://www.cdw.com/content/cdw/en/articles/digitalworkspace/how-clinical-workflow-optimization-creates-better-patient-outcomes.html ↩︎
7. https://getvim.com/blog/ehr-implementation-challenges/ ↩︎
8. https://pmc.ncbi.nlm.nih.gov/articles/PMC9955430/ ↩︎
9. https://www.cms.gov/medicare/regulations-guidance/promoting-interoperability-programs ↩︎
10. https://pmc.ncbi.nlm.nih.gov/articles/PMC7657707/ ↩︎
11. https://pmc.ncbi.nlm.nih.gov/articles/PMC10240961/ ↩︎
12. https://pmc.ncbi.nlm.nih.gov/articles/PMC10572344/ ↩︎