Survey shows growing interest in digital health
October 21, 2024
Source: Peterson Health Technology Institute, October 10, 2024
The Peterson Institute for Health Technology, which published literature summaries of diabetes and musculoskeletal digital health programs earlier this year, published the results of its first survey of purchasers of digital health technologies. They surveyed 332 purchasers from 115 health plans, 117 employers and 100 health care delivery organizations. Digital health solutions range from an FDA-approved mobile app to address opioid use disorder to a comprehensive point solution to manage a chronic disease.
The Peterson Institute found that 75% of respondents reported spending more on digital health technology than two years ago, and most expected to spend more over the next two years. Respondents cited more consumer demand and better effectiveness of digital health solutions. Almost half (47%) of those that reported increased spending said that digital health technology decreased costs. More than half of respondents (53%) had between one and five digital solutions.
Source: Peterson Health Technology Institute, October 10, 2024
More than half of employers reported purchasing digital health technology for diabetes (78%), cardiovascular disease (54%), obesity (63%), mental health (57%), primary care (56%), and asthma or other respiratory diseases (55%). Employers reported that their evaluations of digital health interventions included improved health outcomes (99%), decreased health care costs (93%), and providing data back to community providers (97%). Direct contracting was the most common contracting method for health plans (63%) and employers (59%), followed by PBM contracting (30%; health plan, 32%; employer). Employers were more likely to rely on formularies for digital health access (65% employer, 58%; health plan).
Eighty-nine percent of employers reported that their contracts included risk-based terms to ensure contract performance. Most contracts were for two years or less.
Implications for employers:
- Interest in and spending on digital health solutions is likely to continue to grow.
- Digital health will likely continue to be a rapidly evolving market. There will likely be continued rollout of new vendors, especially those using artificial intelligence, and existing vendors will continue to consolidate, and some will fail.
- Employers should carefully monitor their investments in digital health, as vendor claims of cost savings might not be borne out during real-world implementations.