Unlocking Value: Exploring UPMC’s Digital Health ROI Framework at HIMSS25 | TechTarget

Digital health offers many promises: better patient care, improved experiences for both patients and healthcare providers, and wider access to medical services. However, putting a price tag on these benefits can be tricky, especially when hospitals are navigating tight budgets.

At a recent HIMSS25 session, Mike McSherry, the CEO of Xealth, shared insights from UPMC, a major health system in Pittsburgh with 40 hospitals and a budget of $28 billion. UPMC has embraced digital health across various areas, like preparing for surgeries and managing cancer screenings.

UPMC faces challenges in measuring the financial impact of its many digital health programs. To tackle this, they created a framework to evaluate the return on investment (ROI) of each program. McSherry explained how Xealth helps in this process by tracking usage within electronic health records (EHRs).

UPMC broke its evaluation into three main categories:

• Value Category: This outlines the main benefits for the health system, such as time savings for clinicians and staff, reduced IT costs, and increased revenue.
• Description: Each category has specific questions that help clarify its impact, like how much clinician time can be saved per patient or whether the digital tools lessen the IT load.
• Commentary: This expands on the value of each category. For clinician time savings, it might highlight how digital tools allow doctors to focus more on patient concerns. Similarly, for IT savings, it may point out how these platforms streamline processes without extra IT support.

Using this framework, UPMC can justify financial investments in digital health. They also analyze whether these tools work as expected. They measure “value” by calculating the potential benefit per patient, factoring in patient numbers and engagement rates. They also consider cost savings based on avoided labor hours.

For example, UPMC’s home physical therapy program allows therapists to assign customized exercises digitally. This saved therapists an average of 1.5 minutes per patient and cut down on errors caused by switching systems. In 2023, this translated to an estimated annual value of over $112,000.

Another successful initiative is UPMC’s shared decision-making program for breast cancer surgery. This program engages patients better before their consultations, saving 5 minutes of clinician time by automating the distribution of educational materials. This led to nearly $28,000 in annual value for UPMC.

As digital health tools continue to evolve, it’s essential for health systems to have robust frameworks like UPMC’s. This not only helps in demonstrating the value of these tools to executives but also enhances the overall patient experience. When patients feel informed and satisfied, they tend to stay loyal, benefiting the health system in the long run.

In conclusion, measuring the success of digital health programs is crucial. It ensures that health systems can make educated choices about technology investments, leading to better care and happier patients.