Search
Close this search box.
Search

The importance of determining ROI in the digital health value chain

Something is missing in the digital health value chain, according to a post on Medcity, written by Amos Sadler and Bill Simpson. They encounter in their line of work countless value propositions that digital health companies strive to (or claim to) deliver.

While clinically and commercially validated digital health interventions are supposed to be paving the way towards success and bringing return on investment to the health stakeholder, the question remains: what exactly is the return on investment ROI that digital health promises to bring?

Sadler and Simpson believe there are a lot of grey areas when it comes to digital health ROI quantification. Is it qualitative and health outcome improvements that matter? How do you take something this multi-dimensional, quantify it in a metric and then somehow attribute fiscal value to that? Is it an objective improvement in medication adherence?

To narrow things down, the authors define value as an immediate improvement in revenues for healthcare stakeholder and/or demonstrable, repeatable, significant, short and long-term cost savings. Since it is way easier to sell the first proposition than it is to sell the second, true systemic digital health care innovation is a challenge to commercialize.

Short term gains not always apparent

The short-term gains are not always apparent in the cost-savings equation and not everyone has the patience (or fortitude) to view longitudinal outcomes as valuable. Every stakeholder has a different definition of what patient engagement or behavior change is and the value that it brings to their organization. This variability means that we can’t use these terms in our everyday discussions about the ROI of digital health, the post authors write.

 As an alternative they offer five terms that might not be perfect but may accurately reflect the value of digital health interventions. With a little definition and a lot of objective data, healthcare stakeholders can be shown ow the many domains of digital health can add value: Engagement Assurance; Behavior change; Patient Centricity; Population health management enablement; Innovation (read the post for a point by point explanation of these ROI terms.

Stakeholders need to define value

In the end of course it is up to the healthcare stakeholders to define value, define ROI, and, above all, define their measurement of when a digital health application has sufficient ROI. ‘Then, once you’ve understood how digital health can add value to your organization take that definition, lead with it and then let the digital health community do its job and deliver.’

Whixx

ICT&health World Conference 2024

Experience the future of healthcare at the ICT&health World Conference from May 14th to 16th, 2024!
Secure your ticket now and immerse yourself in groundbreaking technologies and innovative solutions.
Engage with fellow experts and explore the power of global collaborations.

Share this article!

Read also
Balancing regulatory compliance with seamless adoption, healthcare navigates the integration of AI solutions.
A guide to implementing AI in healthcare amid the EU AI Act
AmyWebb-Stephen-Olker
Futurist Amy Webb claims that wearables will evolve into "connectables"
Digital health solutions empower patients to better manage their health and integrate care into their daily lives.
How to improve Digital Patient Engagement to streamline workflows
For people with diabetes, inaccurate blood glucose measurements can lead to errors in diabetes management, including taking the wrong dose of insulin, sulfonylureas, or other medications that can rapidly lower blood glucose.
Smartwatches measuring glucose level: Harmful but easy to buy fake innovations
How to introduce innovation and AI in healthcare organizations if there is no business model for prevention and quality – Our interview with Professor Ran Balicer, the Chief Innovation Officer at Clalit Health Services and founding Director of Clalit Research Institute.
I see no legitimate rationale for delaying the digital transformation in healthcare
Pioneering Cardiac Arrest Detection for Enhanced Survival.
CardioWatch Revolutionizes Cardiac Arrest Detection
Dr. Oscar Díaz-Cambronero, Head of Perioperative Medicine Department at La Fe Hospital, spearheads innovative telemonitoring initiatives revolutionizing patient care
Smartwatches Saving Lives Inside and Outside the Hospital
EIT 2024
EIT Awards 2024. Two European startups are revolutionizing the treatment of cardiovascular diseases
Bertrand Piccard, Swiss explorer and founder of the Solar Impulse Foundation
EIT Summit 2024. What are the trigger points that drive or inhibit innovation?
MMC pioneers wireless monitoring for premature infants with the innovative Bambi Belt, revolutionizing care with improved comfort and mobility.
Wireless Monitoring of Vital Signs in Premature Infants at Máxima MC
Follow us