The Rise of Digital Health: Strategies for Effective Vendor Selection  

October 24, 2024 • Ella Krygiel - BOMA International
Since the pandemic, digital health has emerged as a major force in the medical field. Its definition can vary widely depending on the source. For example, the World Health Organization defines digital health in their Global Strategy on Digital Health  report as “the field of knowledge and practice associated with the development and use of digital technologies to improve health.” This can encompass everything from the familiar online patient portals we use today to the extensive array of health apps offering various services. Given the multitude of digital health technologies and platforms available, selecting the right vendors for your healthcare facilities remains a top priority. 

In a recent survey by the Peterson Health Technology Institute , hospitals identified key factors for selecting digital health vendors. As summarized by Beckers Hospital Review’s article, the survey of 100 health systems revealed that a proven track record is the most critical criterion, with 84% prioritizing vendors with successful previous implementations. Cost efficiency (76%) and strong customer support (68%) also ranked highly. Other important considerations included financial return on investment (65%), a comprehensive suite of products (60%), the vendor's financial stability (58%), clinical trial data (54%), and recommendations from peers (52%).  

With a proven track record and successful previous implementations as the top priorities when choosing digital health vendors, this comes as no surprise as the significance of selecting reliable partners in the healthcare landscape cannot be overstated. Ensuring that vendors have demonstrated their ability to deliver effective solutions not only enhances patient outcomes but also fosters trust among stakeholders, ultimately leading to more efficient and integrated care delivery systems. 

Of the criteria to consider when choosing digital health vendors, the growing prominence of artificial intelligence applications in healthcare is particularly noteworthy. According to a report by MarkestandMarkets , the value of AI in the healthcare market is projected to exceed $31 billion by 2026. The evolution of technology in the medical field has introduced new and effective ways to help improve patient experience, health outcomes and communication methods between patients and nurses as a whole. AI in healthcare is designed to assist, not replace, staff. As an IBM  report highlights, while these technologies can improve diagnosis accuracy and help develop treatment plans, they won’t replace the role of clinicians. In fact, their report suggests that with AI’s potential to identify dosage or diagnosis errors, this will “free up humans to spend more time on more effective and compassionate face-to-face professional care.”  According to an HealthTech  article, Dr. Denise Basow, Ochsner Health’s first chief digital officer emphasizes the need for the healthcare industry to have a strategy for a digital world. In other words, Dr. Basow describes the importance of clinicians to understand the process around the technology being used, which is just as important when sorting out technical issues. In addition to IBM’s report which indicates that the work of clinicians will not be replaced despite the rapid growth in AI, Dr. Basow encourages healthcare practices to continue applying digital health as “a connection between a doctor and a patient.” 

Real estate decisions are essential for effectively implementing digital health solutions designed to achieve value-based care, as noted by Bryan Johnson, CBRE Americas Healthcare Leader. “Digital health solutions will be one of the instrumental tools on the path to value-based healthcare in the U.S.,” Johnson shares. “Initially, health systems are looking at how to improve the health and wellbeing of patients. Some examples are EHR (Electronic Health Records), revenue cycle and health system data to reduce costs and create efficiencies in patient outcomes. Providers look to traditional outsourcing partners in the consulting and technology organizations to help drive solutions and leverage existing relationships and contracts. Real estate decisions will spin off on these outcomes that will feed into location analytics technology such as CBRE’s DimensionMed to set the delivery to the consumer.” 

CBRE’s technology is not the only platform making its way into the industry. In addition to other analytic tools, HippocraticAI  is another platform on the rise, which is meant to “to enhance medical diagnosis and treatment,” by allowing medical professionals the ability to accurately analyze, streamline workflow and improve patient outcomes. Amanda Sasaki, Senior Vice President of Healthcare Operations at JLL Healthcare Work Dynamics, offers valuable insights for selecting a quality digital health vendor: 

“Digital facility optimization solutions driven by AI are becoming essential for healthcare providers to enhance space utilization, safety and the operational efficiency of their facilities,” Sasaki shares. “When selecting strategic partners, prioritize those offering comprehensive product suites that address multiple needs, minimizing integration complexities. Request relevant case studies from potential partners and ask for referral conversations with their existing healthcare clients to verify the solutions' effectiveness as well as challenges they might have encountered in similar settings before committing to a full-scale implementation.” 

Digital health has the potential to transform healthcare delivery and unlock numerous opportunities for innovation and efficiency. As JLL’s 2024 Healthcare Real Estate Outlook  report finds, “Health systems can apply AI to understand how and where a provider’s time is spent and interpret this to better plan facility usage.” This strategic use of technology can ultimately enhance patient care and optimize resource allocation. 

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