Innovations in healthcare technology: Meeting the industry’s challenges and opportunities

November 21, 2024

Today's global healthcare industry is a multi-trillion-dollar behemoth at a crossroads. Weighed down by crushing costs and red tape, the sector is looking for ways to improve in nearly every imaginable area. That's where innovation with healthcare technology comes in.

In today's fast-moving and ultra-competitive market, tech-infused tools are being integrated into every step of the healthcare experience to realize two key goals: quality of care and operational efficiency. Healthcare technology refers to any IT tools or software designed to boost operational and administrative productivity, give new insights into medicines and treatments, or improve the overall quality of healthcare provided.

Here we explore how healthcare organizations can innovate, leveraging new and advancing technologies, as well as vast stores of data, to build a better business and create a better experience for patients, employees and partners.

Healthcare automation: where it all begins

The story of healthcare technology begins with automation. Automation is the answer to many of the healthcare industry's most pressing challenges. From labor shortages and employee burnout to rising costs and organizational complexity, intelligent automation has a role to play in managing these issues and alleviating their impact on the business and the people it serves.

The importance of automation in healthcare

The inaugural edition of Cognizant's Healthcare Provider Automation Survey found incredible appetite for automation, with more than 80% of the executive, IT and business respondents saying that this technology and its benefits are important to the success and continued health of their organizations. Our survey also found that organizations that have deployed an automation initiative in the last two years are very satisfied with the results.

But how is this technology being used? What motivates hospital and health system executives to pursue automation and generative AI? What challenges remain as healthcare organizations launch and scale innovations with automation?

To answer these and other questions, see our infographic on the study or download a copy of the full report.

Defining the healthcare automation strategy

While the vast majority of healthcare leaders say automation will play a critical role in the future of their organization, they have different perspectives on automation priorities, benefits and challenges. This suggests that organizations may not be aligned on strategy, governance and other important elements that will ultimately determine the success of automation initiatives.

To generate the full benefits of automation programs and maximize ROI, healthcare organizations must take a strategic, enterprise-wide approach that prioritizes high-value projects for the business, its partners and patients.

Learn more in our blog, Healthcare providers embrace automation, but strategy lags

Overcoming the obstacles to healthcare automation

Another concern healthcare executives express about automation is user resistance. While automation is critical to delivering care, and healthcare executives are highly satisfied with automation outcomes, fears remain that patients, clinicians and employees will be reluctant to change how they work as the technology revamps existing workflows and experiences.

As in other industries, employees within the healthcare sector may resist this technology because they are reluctant to learn new procedures and new skills; they may also fear job loss or displacement. On the patient side, people may be concerned that automation will alter their experience and remove the human touch from what are typically difficult and emotional interactions.

These fears are likely unfounded, however, as healthcare organizations that have completed automation projects are generally happy with the results, suggesting the expected resistance may never materialize and that employee and patient experiences are actually improved.

To learn more, see our infographic on the study or read our case study on how one healthcare organization saved $4.15 million with automation.

Healthcare data quality and availability: getting the data right

Before embarking on any automation or other healthcare technology initiative, you need to get your data right. From revenue automation programs to generative AI-enabled chatbots, every healthcare technology initiative relies on access to clean, accurate, timely and relevant data. Ensuring the quality and availability of this data is critical for ensuring companies can draw the full business value from their technology investments.

Data modernization: The first step to generating value from healthcare tech

Healthcare organizations are eager to adopt the game-changing innovations enabled by a range of advanced technologies. But whether companies are exploring artificial intelligence and machine learning, blockchain or natural language processing, these initiatives are all built on the same data foundation.

Data modernization-the process of transforming and optimizing large volumes of existing data into a form that supports insights generation-is the key to reaping the full expected benefits of these technology investments.

For more on this topic, read our blog, Don't make a move until you've modernized your data

Healthcare data transparency: Tapping the potential of price publishing mandates

Healthcare organizations, including hospitals, health systems and insurers, must adhere to all applicable state and federal price transparency regulations. One of the most recent mandates from the US Centers for Medicare & Medicaid Services (CMS) requires commercial health insurers to publish a machine-readable file (MRF) of their negotiated network prices every month.

This MRF data is filled with business insights. But payers need to know what to look for and where to find it.

To find out, read our blog, Payers must maximize the price transparency hand they're dealt

Case study: using AI to cut healthcare costs and improve quality

Healthcare data interoperability

Timely and secure access, integration and use of electronic health data-a concept known as interoperability in healthcare-is the key to enhancing health outcomes for both individuals and the system.

For a deeper dive into interoperability in healthcare, see our blogs Seamless data for future healthcare and Digital health and interoperability

Healthcare data security: combating a rising threat

Especially with the growing importance of data, security concerns are rising. Due to the sensitive nature of patient data, healthcare organizations must take additional measures to ensure security risks do not undermine patient trust.

The importance of healthcare cybersecurity

Healthcare organizations are a prime target for cybercriminals due to the sensitive and valuable nature of their data. In an industry built on trust, the consequences of a cyberattack can be devastating, potentially compromising patient privacy, disrupting critical services and eroding the brand image.

Learn more in our blog, The data breach that woke up the healthcare industry

End-to-end security solutions for healthcare in the age of digital

Outdated security solutions, sophisticated cyberthreats and increasing compliance requirements pose significant challenges for today's healthcare organizations. They need a proactive partner who can anticipate and neutralize threats before they materialize.

Learn more on our webpage, Tackling today's top security challenges

Case study: Improving visibility into healthcare cybersecurity threats

Healthcare platforms: renewing the infrastructure for new data flows

Once healthcare organizations establish an automation strategy, prepare their data and bolster security, the question remains about how to bring it all together. The fact is, most traditional technology infrastructures are ill-equipped to support new value propositions based on interoperable data flows, transparent pricing and open ecosystems.

In the current landscape, generating value for consumers and healthcare organizations alike will require innovation with open platforms and an ecosystem approach to technology and automation. These must be built on an intelligence layer that draws on data and insights from combined consumer, payer and provider data sets-and, increasingly, from combined payer/provider business models.

Rethinking the healthcare platform strategy

To support new business models based on payer/provider collaboration and even co-ownership of health systems, the industry's technology platforms and strategies need to evolve. Yet many organizations are attempting to drive these alignments with outdated platform strategies that are technologically incapable of supporting the data fluidity and consumer centricity these new business models require.

To support the profound shifts in healthcare business and operating models, organizations need to make fundamental changes in how their business and enabling technologies are architected. At the same time, healthcare organizations need to resist the market noise and focus on making sensible investments that build on, and drive value from, their existing platform investments and leverage their incumbent advantages.

To learn more, read our blog, Healthcare industry trends point to an evolving healthcare economy

Exploring the technology options for a new healthcare landscape

Most healthcare organizations are committed to delivering holistic, frictionless customer journeys that span the boundaries between payers and providers and seamlessly blend physical and digital experiences.

However, before they can do so, they must first modernize, rationalize and reimagine their current core platforms and technologies. This begs the question: What should payers and providers look for as they update their core platform strategies for the new normal in healthcare?

To find out, read our blog, Navigating platforms and technologies for a new healthcare era

Healthcare and gen AI: transforming the future of healthcare

Of course, it's impossible to discuss the future of healthcare without also discussing generative AI. Generative AI is a breakthrough technology that is transforming healthcare in once unfathomable ways. It is helping clinicians make more informed decisions faster and with greater accuracy while improving patients' involvement in care. As a result, it has the potential to significantly improve healthcare outcomes while also enhancing the quality and cost of care.

While there is still a lot to learn about the technology and the full scope of its potential for healthcare organizations, one thing is clear: Ignoring it would be a costly mistake.

Learn more in our article, Harnessing the power of gen AI to reimagine healthcare

How gen AI innovation will transform the healthcare industry

From patient care to contact centers, revenue cycle management to clinical research, gen AI's impact within healthcare organizations is pervasive, not disruptive. This technology has the potential to revolutionize almost every area of healthcare, helping improve the patient/provider experience, cut costs and drive growth and profitability.

At the same time, deploying this technology comes with a unique set of challenges and possibilities for healthcare organizations. Companies must adopt a comprehensive framework to ensure the success, scalability and sustainability of gen AI-powered healthcare initiatives.

Learn more in our blog, Five principles of gen AI for healthcare

Maintaining data protection and privacy in the age of AI

Healthcare organizations are eager to leverage generative AI for advanced use cases, such as claims management and prior authorization.

The question is: How can they do so safely and securely, given the existing data protection and privacy restrictions that restrict the use of personally identifiable information (PII) or protected health information (PHI) within large language models (LLMs)?

For a deeper dive, read our blog, Three keys to enterprise-wide gen AI adoption in healthcare

Patient-focused healthcare: achieving patient centricity

In the meantime, healthcare organizations need to bring patients further into the ecosystem. Healthcare technology has the potential to drive patient centricity by integrating patients more deeply into the healthcare ecosystem. As we look to the future, advancements in healthcare technology will shape a more personalized and engaging experience for the people who rely on it.

Using personal health technology to improve the patient experience

From voice-based personal assistants and companion bots, to in-home diagnostic devices, the use of personal health technology is exploding.

Yet many healthcare organizations hesitate to use data from personal health technology due to concerns about data reliability, regulations and liabilities, as well as organizational silos, low technology adoption among members and an inability to prioritize use cases.

How can healthcare organizations solve these problems and use personal health technology data to design experiences that anticipate and meet member and patient needs?

Find out in our blog, Three ways innovation hubs can accelerate personal health technology

Building patient centricity through robust mobile experiences

Recent Cognizant research reveals a near doubling in the number of members downloading payer apps since 2018. But that doesn't mean insurers are delivering an excellent digital experience.

What are the most desired features among members-and how can they be used to increase member adoption of digital channels, raise satisfaction scores and improve outcomes?

Learn more from our recent study, What customers really want from a health insurance app

Driving ROI from healthcare technology initiatives: the key to ultimate value

There's vision, and then there are results. With a robust business value realization program, healthcare organizations can effectively link manageable, measurable activities to business strategy to accelerate large digital programs and return on investment.

Here's how to launch and lead a successful program that aids in developing, tracking and managing value.

Learn more: Turning business vision into real value