Improved patient outcomes and experiences among top ROI metrics, study finds

Digital health technologies have transformed healthcare delivery, offering unprecedented opportunities to expand care access, enhance clinical decision-making, improve patient engagement, and streamline administrative workflows. Healthcare organizations across the country are investing heavily in these innovations, recognizing their potential to address pressing challenges from staff shortages to rising patient expectations for convenient, personalized care. 

However, these investments come with significant costs that don’t always equate to an immediate or easily measurable ROI. Traditional healthcare technology, like an X-ray machine, was associated with a direct and quantifiable ROI – i.e., the number of patients that need an X-ray and how much you could charge per X-ray. As healthcare technology gets more sophisticated and its impact spreads beyond pay-per-use, how do healthcare leaders evaluate whether their digital health technologies are truly delivering value?  

The ROI Metrics That Matter Most

While traditional business metrics often prioritize cost savings and revenue, healthcare leaders are taking a different approach, according to Panda Health’s Digital Health ROI Report. The top priority metrics for healthcare leaders when evaluating digital health technologies are: 

1. Improved patient outcomes (61%) 
2. Improved patient experience (47%) 
3. Improved quality measures (39%) 
4. Increased revenue (37%) 
5. Improved operational metrics (37%) 

Cost savings metrics rank much lower on the priority list, with reduced clinical costs at 16% and reduced administrative costs at just 12%. 

To better understand how healthcare organizations are approaching ROI measurement and optimization, Panda Health commissioned healthcare consultancy Sage Growth Partners to conduct an independent survey of hospital and health system leaders in June 2024. The report explores ROI from multiple angles, including the metrics leaders prioritize, how ROI factors into solution evaluations, measurement methodologies, and strategies employed by organizations reporting the most successful returns. 

This focus on patient-centered outcomes aligns with what healthcare leaders discussed at the ViVE 2025 conference panel on ambient AI technology.  

“We identified specific problems we wanted to solve with ambient technology,” said Michael Schlosser, Chief Transformation Officer at HCA Healthcare, while discussing HCA’s approach to ROI for ambient AI technology. “First, reducing physician documentation time. Second, improving their experience and addressing burnout. Third, enhancing our revenue cycle performance. Documentation is fundamental to healthcare delivery – it drives our data quality, revenue cycle, quality metrics, and clinical outcomes.” 

Skepticism About Vendor Claims

The report reveals significant skepticism among healthcare leaders regarding vendor ROI claims. Only 25% have a high level of trust in ROI information shared by vendors, and nearly 60% say vendors don’t meet ROI promises more than half the time. 

In order to maximize ROI, Dr. Priscilla Frase, CMIO at Ozarks Healthcare, emphasizeS the importance of regular feedback loops with vendors. 

“I check in with every participant at least every other week to track what they’re seeing and identify trends. Technology evolves quickly – a model update might change note quality, making something that worked well previously less effective today. Maintaining this ongoing communication helps us adjust and maximize value,” she shared during the ViVE panel. 

Aligning Stakeholders on ROI Priorities

The report highlights significant differences in how various healthcare leaders prioritize ROI metrics. For example, CFOs rank improved patient experience as their top priority, while clinical, operational, and IT leaders all place improved patient outcomes at the top of their lists.  

“Alignment across stakeholders related to top ROI priorities is absolutely critical during solution evaluations. Lack of alignment overly complicates the process, and it increases the risk of falling into a common trap: Selecting a solution that does an OK job at meeting multiple objectives, but fails to really excel in the areas where ROI is most critical,” notes Ryan Bengtson, Panda Health CEO in the report.  

Strategies for Maximizing ROI

The report identifies five key strategies that differentiate organizations reporting successful ROI from those experiencing disappointment: 

1. Prioritize ROI heavily during evaluations: 80% of organizations with successful ROI consider it at the earliest stages, compared to 64% of those reporting disappointment.
2. Implement a formal ROI evaluation process: 71% of successful organizations have a formal process, versus just 42% of those experiencing lower returns.
3. Evaluate multiple solutions before deciding: 73% of successful organizations vet solutions they ultimately decide not to purchase, compared to 54% of organizations with poorer results.
4. Hold vendors accountable: Using risk-based contracts (63% vs. 42%) and building established ROI targets into contracts (54% vs. 38%) correlates strongly with better outcomes.
5. Use diverse information sources: Organizations reporting successful ROI are more likely to consider peer recommendations (55% vs. 38%) and information from conferences (35% vs. 17%). 

The report makes clear that achieving ROI isn’t a one-time implementation but requires ongoing engagement and iteration. 

“Success requires keeping end users – physicians and clinicians – at the center of development. Their feedback must be incorporated into continuous improvement,” said Schlosser. “There’s no easy button or quick fix – creating value is an iterative process that requires sustained partnership between technology teams and clinical users.”