Digital Transformation in Healthcare: Why Build vs. Buy Matter

There has never been more pressure for health systems to invest in digital transformation, especially when it comes to strengthening the consumer experience, according to a recent Deloitte survey. Key findings from the research suggest that existing digital offerings available through health systems are not adequately meeting consumers’ needs. 

For instance, Deloitte found that while health systems do a good job of meeting consumers’ access and care needs “within the walls,” their efforts tend to fall short when it comes to meeting consumers’ preventive care and well-being needs (“before the walls”) and continued care needs (“beyond the walls”).

Recognizing this shortfall is important as health system leaders consider how best to position their digital strategy to meet evolving consumer expectations. Poorly designed technology deployments that have landed in the IT graveyard due to lackluster performance and low adoption rates offer plenty of lessons learned—and cause for trepidation.

Ultimately, health system executives must ask: “Can we afford to go it alone?”

High Stakes for Digital

Minimizing risk with health IT investments is critical as the healthcare C-suite looks at an ever-dwindling pool of dollars. And digital matters: 65% of patients are ready to switch providers for better digital experiences. That’s why when it comes to digital strategy design, the build versus buy discussion is paramount. 

Consumers have clear preferences about digital healthcare access. A survey conducted by the U.S. Office of the National Coordinator found that half of individuals who accessed their online medical records in 2022 used a mobile app, representing a 13 percentage-point increase from 2020. In another recent survey, nine out of 10 said they prefer all digital elements offered over a single platform, and 50% prefer this be done through a single mobile app. 

Yet the average hospital can have as many as six patient apps at one time. CIOs report offering more than 40 different patient engagement tools per health system, many of which are point solutions. And while two-thirds of patients say they try to interact via mobile, most healthcare providers still lean heavily on web-based experiences. 

Disjointed mobile strategies that are common in health systems, characterized by multiple single-function mobile apps, will not result in widespread adoption and repeated use—the primary goal of any mobile strategy. In addition, a “build it and they will come” approach that focuses on loading a range of offerings onto an app without consideration for consumer needs, experience and design will not drive the desired ROI.

Forward-thinking health leaders recognize that a well-designed mobile app will reflect personalized, value-added experiences that consumers get from other industries such as retail and travel. In healthcare, a mobile app must essentially become a digital handholding experience at each stage of the patient journey. This digital companion must anticipate consumers’ needs from the moment a patient leaves home to parking to the point of care and beyond. This requires a keen understanding of patient preferences and how they interact with a particular health system.

The 80-20 Approach for Build or Buy

Research reveals that there are foundational elements that most patients want in a unified mobile platform. Some of these include wayfinding capabilities along with the ability to view lab results, access patient records, schedule appointments, request prescription refills, complete registration and communicate with providers and other healthcare professionals.

This foundational framework—addressing 80% of what consumers are seeking—is the best starting point. From the “build your own” perspective, health systems can look to best-in-class solutions and off-the-shelf integrations to establish this foundation and then bring in the other 20% of solutions that address more specific nuances and needs over time. 

Understanding what should make up that 20% of digital strategy requires deeper insights relative to specific health system needs, patient desires and the demographics of a particular community or region. This information can be gathered over time from feedback from patient satisfaction scores, focus groups, patient and family advisory council surveys and peers.  

For many health systems, resource constraints and competing priorities within IT departments are often a non-starter for designing a unified mobile platform that adequately addresses development, navigation, design and user experience. The “build it from scratch” option is complicated, time-consuming and expensive at best, and then there is the question of ownership for the long term. 

Given the high stakes related to digital strategy, the business case for having a strong partner do the heavy lifting is often an easy one to make. An existing and proven platform that addresses the 80% foundation allows health systems to quickly pull in existing digital solutions and speed the launch of an impactful mobile app. Then, over time, IT departments can add the other 20% to ensure an optimal design that truly becomes a competitive differentiator. 


About Lee Jones

Lee Jones is the Chief Product Officer for Gozio Health. With over 25 years of experience, Lee excels at helping rapid-growth companies scale through building relationships, developing technology and products, engaging new markets, and building strong, effective teams. His experience includes engineering management, marketing, strategic relationships, management consulting, and JDAs while operating in both small and large companies. Before Gozio Lee was privileged to have been part of three start-ups that were successfully acquired.