DIGITAL REVENUE STREAMS FOR HOSPITALS
DIGITAL REVENUE STREAMS FOR HOSPITALS
New Service Lines
Growing high-value service lines is one of the most effective ways in which hospitals and health systems can add direct value to the organization. By focusing on specific services lines that show the greatest growth potential, they can allocate limited resources to achieve the greatest effect in driving value. Leaders can leverage intelligent data to inform such business strategies from the top down. After using data to identify a service line with growth potential, leaders need to dig deeper into data and analytics to uncover specifically how best to improve and market the service line.
DHI works with hospital executive teams to accurately determine the true digital value (DV$) associated with new service lines and service line digital health enhancements.
Current Service Line(s) commonly requested:
- Virtual Care
- Remote ICU
- Virtual Visits
- Virtual Consultations
- Remote Patient Monitoring
The data monetization market is poised to touch a valuation of $707.86 billion by 2025. Cutting edge technologies such as blockchain and cognitive analytics will take insights and revenue obtained from data and create new revenue streams while promoting wellness among the communities they serve – directly and indirectly.
Thanks, in large part, to the deployment of EHR technologies, data abounds in a hospital environment. Health record information must be protected at all times to ensure appropriate privacy but the digital value (DV$) of the organization’s data should be considered a true enterprise asset. With proper de-identification, healthcare organizations reap the benefits of this asset through analytics. Many hospitals and health systems find extra digital value (DV$) by monetizing these analytics of de-identified data for generating new revenue streams.
Data monetization, according to Gartner, refers to using data for quantifiable economic benefit. This can include indirect methods such as, but not limited to:
- Measuring business performance improvements
- Productizing information (i.e., new information-based offerings)
- Informationalizing products (i.e., including information as a value-add component of an existing offering)
- Selling data outright (via a data broker or independently) to organizations that have a business need for real-world insights such as clinical trials, pharmaceuticals, digital health vendors, and healthcare payors
Leveraging the untapped digital value (DV$) of a hospital or health system requires strategic and practical understanding of the appropriate approach for each scenario. They will often take the form of leveraging analytics around patient preferences, stratified population risks, and applied predictive analysis. More recently hospitals began providing data as add-on services to enhance the experience of patients and employees The most common approach, and often with the highest digital value (DV$), of data monetization is to share the data assets in a raw, native, and de-identified form (known as Data-as-a-Service) or an (API).
Due to disruptive digital health innovations creating an enormous amount of data generated in healthcare ecosystems, hospitals are well positioned to reap tremendous digital value (DV$) benefits. Due to privacy concerns and regulations, a hospital data monetization strategy must create a balance between the monetization approaches and data security.
What is a digital health innovation accelerator? An accelerator is an organization that typically helps startup and early-stage companies mature and grow their businesses. Accelerators generally provide a structured training program over several months, extensive mentoring for company founders, limited capital investment, access to additional investors, and other services.
Once only for large health systems, the ability to participate in innovation hubs and accelerator programs has opened to a more inclusive and collaborative market environment. Today, hospitals are creating new digital value (DV$) through partnerships and alliances throughout the healthcare industry.
DHI assists hospital executive teams with evaluating the digital value (DV$) of potential innovation hub and accelerator program participation. We also assist in the establishment and program management of this digital health innovation programs.
- Recognizing a lack of innovation programs in pediatric healthcare, Children’s Hospital Los Angeles announced a new digital health accelerator that will link 26 hospitals across the U.S., U.K. and Australia with 10 tech companies focused on increasing digital innovations in pediatric healthcare. The 13-week program will run every year from January through March.
- The University of California San Francisco School of Medicine received a $1.5 million grant to establish a new endowment that funds palliative medicine innovation projects focusing on improving training for clinicians treating patients with serious illnesses via telemedicine. The fund supports development of a series of educational modules for students and other trainees to use and learn necessary skills for using telemedicine successfully.
- Marian Regional Medical Center’s Foundation received a $2 million gift from an anonymous donor, which it used to create the Advanced Technology and Innovation Endowment Fund. The program invests in medical equipment and technology for the hospital.
- Baton Rouge, La., secured a collective $1.2 million in federal and private-sector funding to launch Health-Tech Catalyst, a three-year healthcare innovation initiative. The effort will comprise three parts: an innovation incubator for new technologies, a program in which hospitals collaborate to increase clinical trial access or develop experimental treatments, and an investment capital arm for healthcare startups.
Mid-size health systems and hospitals are establishing partnerships that leverage technology to alleviate administrative burdens while improving quality of care and patient engagement. Once seen as a venture only viable for the largest health systems, smaller organizations are finding success in developing digital products that can be monetized to partners and other health organizations through strategic partnerships and joint ventures with other health systems and technology startups seeking to leverage clinical and operational expertise from providers. These with early-stage companies can provide access to technologies can provide a competitive edge to a health system.
The marketplace for health centered digital products is rapidly expanding in clinical (telehealth, hospital at home, care team coordination), operational (predictive analytics, patient engagement, financial services), and direct to consumer, or DTC, such as wearables and on-demand diagnostic testing.
- Atrium Health, as part of its strategy to improve access to care, is leveraging an Alexa skill that allows its patients to locate and reserve urgent care visits
- Boston Children’s Hospital has deployed voice within its Extended Recovery After Surgery (ERAS) Program, including managing patients after cardiac procedures by pushing voice messages and enabling health tracking through Alexa. BCH also uses Alexa to replace call buttons in inpatient care settings (e.g., call a nurse, change room temperature)
- Oschner Health System is working in the remote patient monitoring space to integrate Remote Patient Monitoring (RPM) tools for diabetes and hypertension with EMR systems to power real-time insights and decision-making
DHI provides education, strategic planning, and management services on behalf of hospitals and health systems that wish to leverage participation in digital product development and monetization.