New Survey Reveals Strong Commitment to Digital Health Technologies, With Spending Set to Increase

NEW YORK (Oct. 10, 2024) —

Health plans, employers, and health systems plan to increase their spending on digital health solutions in the coming year, according to the Peterson Health Technology Institute (PHTI)’s 2024 State of Digital Health Purchasing survey. The new survey captures information about purchasers’ selection process, contracting approach, and future adoption plans in the burgeoning, multibillion-dollar digital health technology industry.  

Spending on digital health has increased rapidly over the past two years and the survey indicates that purchasers plan to continue to grow their spending on digital health offerings in the year ahead. According to the survey, 97% of employers, 86% of health systems, and 84% of health plans intend to maintain or increase spending on digital health solutions over the next year. Reasons for increased spending were relatively consistent, with all three purchaser groups reporting increased consumer demand (83%) and improved health outcomes (62%) as primary motivators. Further, three out of five health plans (60%) cite cost savings as a top reason for increased investment in digital health; 49% of health systems and 34% of employers agreed.  

“Health plans, employers, and providers want to meet continued demand for digital health solutions, while ensuring the solutions they purchase have strong evidence that they improve health and generate economic efficiencies,” said Caroline Pearson, executive director of PHTI, the U.S.’s only independent evaluator of digital health solutions. “This survey shows that there is a valuable opportunity for digital health companies to better align their offerings with what purchasers need and want, which in turn, will allow more people to access these tools and the benefits they can bring.” 

With respect to contracting, the survey shows most contracts with digital solution providers last for two years or less, giving purchasers frequent opportunities to reassess the performance of these products. Risk-based contracts are common, with 79% of purchasers utilizing performance arrangements for at least some of their digital health solutions. When measuring contract performance, health plans (95%) and health systems (88%) are more likely to focus on health outcomes, whereas employers tend to evaluate contracts based on user adoption and engagement. Patient and member satisfaction is a common measure across purchasers.  

In terms of disease areas, the survey shows that purchasers plan to prioritize digital health solutions for diabetes (53%), preventative care (51%), mental health (50%), cardiovascular disease (47%), and primary care (46%), which is consistent with current priorities. Most purchasers offer digital health solutions for five or fewer conditions; however, 43% of purchasers currently offer solutions for six or more clinical indications. 

“The insights from purchasers in this survey can help digital health companies and their investors understand how solutions are being selected, and how their customers are evaluating their performance,” said Meg Barron, managing director of engagement and outreach at PHTI. “These findings call for companies to invest further in evidence generation, focus on user experience, and demonstrate return on investment.” 

The survey was conducted in partnership with NORC at the University of Chicago and polled 332 decision-makers responsible for purchasing digital health solutions at health plans, employers, and health systems. PHTI intends to field this survey on an annual basis to track trends and developments in the digital health sector.