Impact of Healthcare Innovation on Revenue

Since the COVID-19 pandemic, global health systems have embraced a shift to more cost-effective, technology-reliant and value-based care models in order to properly adapt with the ever-shrinking operating margins and continuously provide quality health care services. The major challenge with adapting innovative practices, particularly health technology, is how healthcare providers can recoup return on investment (ROI) and/or return on innovation. An analysis of the operating cost of using electronic health records (EHRs) in the United States shows it is a capital-intensive effort to move all record-keeping to EHR systems that are compliant with Health Insurance Portability and Accountability Act (HIPAA) standards as well as have a user-friendly interface for both providers and patients. Most U.S.-based hospitals have already invested heavily to integrate about 95% fully functional EHR-certified systems. Over 85% hospitals in the country have also adapted at least a basic EHR system among other health technologies. But the problem is: financial benefits of utilizing EHR systems have been lower than the cost of integrating such innovations. This explains why hospitals in the U.S., UK and other developed/developing countries are seeking alternative technologies with higher ROI that are capable of improving EHR workflow and transforming documentation at the point of care to achieve more complete charge capture (Kumar & Mostafa., 2020).

EHR systems are designed to improve communication between health providers and care users, and more importantly, provide more efficient and cost-effective health services. Moreover, the systems enhance better documentation of patient record for more complete and accurate billing. But the purpose of integrating advanced technology in health care delivery is not just patient-centred or service-oriented; achieving higher impact on revenue Is also a priority. EHRs are a value-creation model used by healthcare organizations to gain access to current, accurate and expansive data, and use the information to build analytics that determine cost of care (Tsai et al., 2014).

However, healthcare administrators need to find wats of recovering expenditure on implementing EHRs. Evidence-based studies show there are windows of opportunities from adapting technological practices in the healthcare industry. But to achieve competitive advantage and maximize profits, health leaders need a well-designed plan of action and adequate resources as crucial components of the innovation process (Nabi et al., 2017).