Mar 27, 2024

96% of Healthcare CEOs Believe Investment in New Technology is Worth the Cost

7 in 10 healthcare executives said the implementation of new technologies hasn’t lowered hospital expenses, yet nearly all (96%) believe that the investment in new technology is worth the cost.

American Heart Month 2024

A recent Health Leaders article examined the technology investments being made by healthcare CEOs, noting that these investments aren’t just about the financial and human resources — they’re also about having patience and trust in the process. At CirrusMD, we believe that investments in the right virtual care strategies are delivering ROI today.

Every technology solution being launched to address a legacy problem area of healthcare brings with it the promise of newly found dollars and savings. Yet it’s clearly going to take time to understand the actual impact these solutions offer, in addition to what processes must change to achieve results, and what barriers must be overcome. 

Decision-makers across the industry agree, according to Ernst & Young’s survey of over 100 payer and provider executives. While seven in 10 respondents (71%) said the implementation of new technologies hasn’t lowered hospital expenses, nearly all (96%) believe that the investment in new technology is worth the cost.

“The sentiment is important for leaders in an industry that is typically slower to adopt and implement technology. Hospitals may not have to be at the forefront of new technology, but with financial and workforce challenges wreaking havoc at facilities across the country, many organizations can’t afford to fall behind the curve. And CEOs seem to understand that.”

Phil Wright, CEO of Memorial Regional Hospital South said, “We're used to still touching patients and talking to patients…the more we create solutions around AI and technology, it can be a little scary. On the flip side, all of this technology and innovation, if used properly, can do nothing but help the patient process, help us become more efficient, help us make better decisions about how we deliver care, help us be more precise and accurate in the types of medicines, the types of treatments that we're able to give.”

Finding Savings in Digital Health Investments

Ernst & Young’s survey found that 86% of respondents acknowledge the potential cost reduction from digital health investments. One of the ongoing areas of cost savings measured for CirrusMD clients is the reduction of care costs directly attributed to the redirection of care to appropriate settings. Historically, CirrusMD has analyzed client ROI based on claims data, and found an average savings of $398 per care encounter, when care is shifted from expensive care settings like an Emergency Department or Urgent Care to a virtual care when possible.

Today with Physician-first Care & Guidance, we can go even further in measuring value for employers and health plans alike. For example, in organizations taking a “virtual front door” approach to care, even greater value is measured. This begins at the initial point of care, first through redirection of care settings, but then also through increased utilization of invested point solutions (like behavioral and mental health solutions, MSK providers, diabetes management tools). Value increases further through the reduction of gaps in care and health risks, improvement in the timing and use of health screenings and diagnostics, and anticipated patient compliance with physician-directed care.

Finding Savings in Digital Health Investments

We’ve long discussed the shortage of primary care physicians in America; the length of time it takes for a PCP appointment; the dearth of qualified mental healthcare providers, just to name a few of the areas where obtaining brick & mortar care is difficult. 

Health Leaders points out that “By utilizing technology to supplement the workforce, leaders can do more with less while keeping staff happier. In Ernst & Young’s survey, nine out of 10 executives said that after shifting administrative responsibilities to a digital system, their department has more time to focus on the needs of their providers. Solutions that reduce administrative burden and allow physicians and nurses to spend more time caring for their patients will pay off in the long run by cutting down on turnover.”

Supporting in-person staff with expert virtual physicians can be the game changer for both staff and patients alike.

Virtual Care-fully Planning a Better Future

CirrusMD recognizes the opportunity to reduce cost on the front line — at the point of care — by meeting members and employees at their moment of need, with a qualified physician who can address their problem. In fact, 86% of the time, encounters are resolved on the CirrusMD platform without a referral or follow-up to in-person care. It’s efficient, it’s convenient, it’s scalable, and perhaps most importantly — the ROI is here today.

Subscribe to our Newsletter