According to some estimates the global healthcare IT market will reach $1.4 trillion USD by 2030, up from $383 billion USD in 2022. We’ve seen an extraordinary number of new entrants in healthcare IT since the passing of the American Recovery and Reinvestment Act in 2009 and with the expected growth in market value, we are sure to see many, many more. Every new entrant will promise and deliver fresh ideas, amazing innovation, the opportunity to solve an as-of-yet unaddressed niche problem, and extraordinary value for individuals leveraging the technology. Each new entrant will also have digitized another segment or subsegment of healthcare and, unfortunately, add to the complexities of solving perhaps the greatest opportunity to unlock the value of digitization for healthcare delivery organizations, payers, providers, and patients – seamless data exchange.
The Impact of Interoperability on Healthcare Providers
Interoperability in the healthcare industry refers to the ability of different healthcare systems, devices, applications and organizations to seamlessly exchange and use patient information across various platforms. It allows disparate healthcare systems to work together and enable the secure and timely sharing of patient data and information.
Interoperability enables providers to access comprehensive patient records from multiple sources, enabling them to make well-informed decisions and deliver higher quality care. This seamless exchange of data reduces redundant tests, minimizes medical errors, and expedites treatment plans, ultimately leading to cost savings and, most importantly, better results for the patient.
Unraveling the Overlooked Potential
Despite the evident advantages of interoperability for the healthcare system as a whole, some healthcare technology companies overlook its potential and focus solely on individual product features optimizing a piece of the healthcare system as they build their businesses. These companies often prioritize short-term gains over long-term sustainability, missing out on the opportunity to create a comprehensive ecosystem that nurtures collaborative healthcare delivery.
Smart and agile healthcare technology companies understand the importance of leveraging technology to simplify complex or manual processes. By providing healthcare providers with a streamlined experience and the ability to integrate seamlessly with existing systems, healthcare services and IT companies can position themselves as vital components of the larger healthcare network.
Headwinds to Interoperability
While the economics of a larger healthcare network are generally attractive, there are headwinds to investment in interoperability companies face we should acknowledge. An obvious headwind sheer number of healthcare IT companies and the resulting heterogeneity of the technology landscape. Each healthcare delivery system and physician office is unique in terms of its mix of technologies leveraged in the treatment of their patients and the management of their business. On one hand, the large number of healthcare IT companies brings the industry incredible creativity and innovation, on the other hand each company has a different posture in terms of their business growth and participation in the broader healthcare ecosystem.
Another headwind lies in the process of interoperability. Many of the industry’s greatest thinkers have dedicated themselves to the creation of standards to support interoperability, but each company approaches those standards with a slightly different flavor. Interoperability often means the exchange of information between two technologies that in one way or another compete for clients. Participation in a larger interoperable network therefore can feel uncomfortable for organizations seeking to grow.
While headwinds exist, the opportunity to improve healthcare delivery and the business of healthcare is too great to let the headwinds deter progress.
The Way Forward: Embrace Interoperability
For healthcare technology companies striving to thrive in today’s competitive landscape, the message is clear: Embrace interoperability or risk being left behind. A comprehensive approach to data exchange not only benefits healthcare providers but also unlocks a wealth of opportunities for technology companies to expand their reach and impact.
As the healthcare industry continues to evolve and new entrants continue to enter the market, companies must prioritize the creation of integrated, interconnected solutions that empower providers and contribute to the advancement of healthcare as a whole.
The path to a successful and impactful healthcare technology company lies in embracing interoperability. As healthcare executives, providers, and innovators come together in this pursuit, we can collectively shape a healthier world for generations to come.
Nate Kelly
Nate Kelly is president at ChartSwap.
