Health systems globally are investing in digital and AI technologies to manage rising costs, workforce shortages, and growing consumer expectations. A McKinsey survey of 200 health system executives revealed that 75% believe their current investments in digital and AI are insufficient. Despite this, there’s a strong recognition of the potential impact, particularly in areas like virtual health and digital front doors, which 70% of respondents see as high-impact investment areas. However, financial constraints and outdated legacy systems are significant barriers, with 51% citing budget limitations as their primary challenge.

Key areas of digital investment include virtual health, digital front doors, robotics, and advanced analytics. Satisfaction rates with investments in robotics and advanced analytics are high, at 82% and 81%, respectively. However, there is often a misalignment between areas identified as high-impact and where actual investments are made. For instance, while virtual health is seen as highly impactful, investments in this area are not always prioritized accordingly. This discrepancy suggests the need for better alignment of investment strategies with perceived impact areas.

To address these challenges, health systems are encouraged to adopt several strategies. Forming partnerships can provide access to new technologies and expertise, while modernizing infrastructure through cloud technology can enhance scalability and flexibility. Reimagining workflows to integrate digital solutions more effectively and cautiously integrating generative AI can further drive efficiency and innovation. The potential benefits of successful digital transformation in healthcare are substantial, with McKinsey estimating potential savings of $200 billion to $360 billion.

The survey underscores the importance of strategic investments in digital and AI technologies for the future of healthcare. Health systems that successfully navigate financial and technological barriers could significantly improve operational efficiency, patient outcomes, and overall cost-effectiveness.

For more detailed insights, read the full article on McKinsey.