Health plans, health systems, and employers demand evidence of improved outcomes

NEW YORK —

Employers, health plans, and health systems remain committed to investing in digital health solutions despite rising healthcare costs and economic uncertainty, according to the Peterson Health Technology Institute’s (PHTI) 2025 State of Digital Health Purchasing survey. At the same time, they seek assurances that digital solutions deliver better health outcomes, while lowering overall costs. The survey identifies trends in purchasers’ digital health approaches, contracting processes, and future plans in the multibillion-dollar industry.

PHTI’s survey polled 309 decision-makers responsible for purchasing or influencing adoption of digital health solutions at U.S. health plans, employers, and health systems in August 2025. The survey found that most health plans (84%) and health systems (79%) increased their investments in digital health solutions over the past two years, while most employers (68%) maintained their spending rates. Among those who increased spending, the top reasons include: offering a wider variety of health solutions (81%), increased patient engagement (77%), and vendor price increases (38%). In the next 12 months, approximately half of purchasers (49%) plan to maintain their current spending rates, while 38%—primarily health plans—expect to increase spending.

“The digital health market is maturing and purchasers remain committed to continued investment in health technologies, but they want more than just engagement metrics about how many of their members are using a product,” said Meg Barron, managing director of engagement and outreach at PHTI. “Purchasers are seeking performance-based contracts that ensure that these solutions deliver measurable outcomes.”

Looking ahead, improving access to care is a top priority for all purchasers over the next 12 months. A majority (70%) of respondents report fewer than half of their eligible members are enrolled in digital solutions. Other priorities diverge based on purchaser type: health plans are focused on offering competitive benefits, health systems on reducing administrative burden, and employers on enhancing user experience. Priorities for clinical focus areas include diabetes, mental health, and primary care. The survey also found that AI integration has become mainstream, with more than four in five health plans and health systems adopting AI solutions, primarily for administrative tasks and clinical decision support.

When selecting digital health solutions, employers prioritize cost while health plans and health systems focus on vendors’ track records. When deciding whether to switch solutions, cost is the top consideration for all purchasers, followed by user satisfaction, vendor relationships, and clinical outcomes. With 75% of contracts lasting two years or less, more than half of respondents review their offerings annually.

“With the proliferation of digital health solutions in recent years—many of which have the potential to positively impact employees and their families, while also creating opportunities to reduce costs—it’s more important than ever to have clear evidence of clinical effectiveness and economic impact,” said Meredith Touchstone, AVP of benefits at CarMax and participant on PHTI’s Purchaser Advisory Council. “Before investing time and resources into any one or multiple digital health solutions, employers need objective data from a credible source about what works and demonstrates value.”

Nearly half of purchasers are currently using performance-based contracts, and the majority plan to use them in the next year. These contracts tie payment to specific performance metrics, such as clinical outcomes, member engagement, or financial savings. Further, most purchasers see opportunities to improve their current agreements, including setting clearer standards for how much patient outcomes need to improve before vendors receive payment, adjusting payment models away from clawbacks, and refining eligibility criteria for their applicable patient populations.

“Health plans assess the quality, efficacy, and value of digital health technology the same way they assess other clinical interventions: outcomes,” said Timothy Law, DO, MBA, chief medical officer at Highmark Inc. and participant on PHTI’s Purchaser Advisory Council. “Plans increasingly expect their digital health vendors to have the sophistication to provide proof of outcomes-based results that justify their investment.”

NORC at the University of Chicago fielded the survey and contributed to its design and analysis.

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About the Peterson Health Technology Institute

The Peterson Health Technology Institute (PHTI) provides independent evaluations of innovative healthcare technologies to improve health and lower costs. Through its rigorous, evidence-based research, PHTI analyzes the clinical benefits and economic impact of digital health solutions. These evaluations inform decisions for providers, patients, payers, and investors, accelerating the adoption of high-value technology in healthcare. PHTI was founded in 2023 by the Peterson Center on Healthcare. For more information, please visit PHTI.org