88% of U.S. Providers Plan to Increase Third-Party Technology Spending

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Jul 19, 2023, 14:39 ET

New Study Reveals Digital Transformation as the Key Driver for Health Technology Investment Upswing in 2023-2024

MADISON, Wis., July 19, 2023 /PRNewswire/ -- Many hospitals and health systems are still struggling to recover from one of the toughest financial years on record, yet 88% plan to increase their third-party technology investments in 2023-2024

This is just one insight from "Buyer Mindsets: Health Technology Perspectives from Clinical and Clinical IT Leaders," a new InfoBrief* from the IDC, a leading provider of global IT research and advice. Sponsored by Redox, the InfoBrief analyzes the technology-buying perspectives of 205 clinical and clinical IT leaders at medium-to-large-sized healthcare organizations in the United States.

The uptick in providers' third-party technology spend is largely tied to their determined push for digital transformation, which the report identifies as providers' most important organizational goal for 2023-2024. Many plan to use digital technologies to cut waste out of their operations (e.g., via automation), resulting in reduced costs and maximized efficiency.

While providers are turning to third-party solutions to help transform their operations, they're also acutely aware of their infrastructure limitations. In fact, 40% of clinical leaders identify integration and middleware as IT operations and system infrastructure technologies that have challenged their organizations the most.

That clinical leaders highlight this challenge (even more than clinical IT leaders at 27%) suggests that clinicians acutely feel the impact of fragmented data on their daily workflows and care outcomes.

"For a long time, providers have thought about integration as connecting one technology to another," said Luke Bonney, CEO of Redox. "But now, market leaders are thinking beyond that to consider the power of data, and how it can really transform their business."

This is perhaps why IDC survey respondents identified data reliability (40%) and data availability (39%) as among the most important benefits they expect from new technologies.

"Delivering health data that's complete, accurate, and standardized at the point of care makes it possible for providers to offer the personalized care that consumers want," Bonney said. "But before that can happen, the data must be usable; clinicians, as users, must be able to customize their data experience, accessing only the data they want, when and where they need it."

This is where third-party tech vendors can differentiate themselves from their competitors. According to 43% of IDC survey respondents, vendors that lack a clear understanding of clinical workflows won't be considered or selected.

"Providers are looking for nimble vendors who can clinically validate their solutions and differentiate the way they care for patients," Bonney said. "Ideally, the technology vendors they choose now will be able to easily exchange data outside their network, wherever their patients go for care."

*IDC InfoBrief, sponsored by Redox, "Buyer Mindsets: Health Technology Perspectives from Clinical and Clinical IT Leaders," IDC #US50931923, July 2023.

About Redox

Payers, providers, and health tech vendors use Redox to produce differentiated experiences for patients and clinicians. Connecting to more than 4,500 healthcare organizations, Redox provides a composable software experience across the healthcare ecosystem. With our robust APIs, product teams are empowered to build whatever they can imagine. Redox accelerates innovations that make healthcare data more useful than ever before. For more information, visit www.redoxengine.com.

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SOURCE Redox Inc.