Digital Transformation in Healthcare: Benefits, Use Cases & Challenges (2026 Guide)

Have you noticed how hospitals are struggling to handle the growing number of patients in emergency departments because they don't have enough healthcare practitioners? 

Does that mean there will be limited options for patients to reach physicians or improve their health outcomes? Not necessarily. That's where a smarter healthcare system comes in—one that includes digital solutions, telemedicine, and mobile apps. 

This is digital transformation in healthcare. It's what enables hospitals to deliver faster care, make smarter decisions, and provide personalized patient experiences that seemed impossible just a few years ago. 

In this blog, we'll discuss what digital transformation in healthcare is, the specific benefits it provides, and a few use cases. 

What is Digital Transformation in Healthcare? 

Digitalizing healthcare business involves integrating digital tools and technologies, such as data analytics, telemedicine platforms, electronic health records, mHealth apps, and other AI-powered medical devices, across all facets of healthcare processes. 

But this doesn’t mean its scope is limited to adoption of digital health technologies; it’s more on the side of people (doctors, clinicians, healthcare staff).  

Even if technologies such as remote monitoring, predictive analytics, and robotics become too advanced, the future of healthcare seems unstoppable.   

But it won’t succeed if doctors don’t adopt it and bring it into their practices, as digital transformation is an organizational strategy.  

This means understanding these small touchpoints pushes you to rethink  

• how you serve your patients,  
• Can they talk to healthcare providers remotely,  
• access their medical information on the go,  
• interact with AI chatbots to solve their health-related concerns, or 
• connect with healthcare staff if required.  

Ultimately, such technology integrations are helping both healthcare providers and patients’ health.  

P.S - Need help in creating a custom healthcare application? 

Why are hospitals prioritizing Digital Transformation first in 2026? 

Digital transformation isn’t visionary anymore; it has become a runway.  

1. Rising labour shortages 

Finding highly skilled healthcare staff is a serious concern for hospitals and healthcare organizations, underscoring the need for digital transformation.  

It's not just an illusion; it has become a grounded statistic and even a survey, according to the Harris Poll (a US market research organization) claimed that.  

It’s predicted that there will be a shortage of 7,00,000 physicians and registered nurses by the year 2037.  

The survey even highlights that a nurse aged more than 40 years highlights the growing concern-  

Through cloud platforms and Artificial Intelligence, doctors can analyse patients’ data and customize their treatment plans accordingly. This means they can do more with less. 

2. Increase in Cyberattacks and Data Breaches  

The healthcare industry has become the prime target for cyberattacks as 60% of healthcare organizations worldwide are targeted annually. 

This industry is targeted each time because it holds the patient’s data, which is a treasure trove of information. Once such data is stolen, it not only puts patients’ privacy at risk but also comes with regulatory fines and reputational losses. 

But here’s the point; 

If your EHR systems are weak or staff aren’t sufficiently trained to detect threats, it would compromise patient privacy. 

That’s why you need to bring automation into your hospital operations like- 

• adopting cloud solutions,  
• establishing a zero-trust security model, and  
• encrypting patients’ data.  

3. Patients demand convenience and top-notch care  

Initially, care was provided on-site, but today patients need digital-first healthcare experiences. 

It's about meeting patients where they’re in their journey, like if patients demand convenience, then it could mean introducing telemedicine and patient portals, that’s what a digital-first patient experience is.  

For them, developing a mobile app is the driving force behind increasing patients’ engagement. To date, their mobile app has gotten 25K+ downloads because it enhanced patients’ experience in 3 ways -  

• Book appointments online  
• Access reports  
• View invoices  

4. Concern for Interoperability Issues

What if the electronic health records system isn’t integrated with departmental healthcare systems? Then data sharing won’t be possible.  

Digital transformation enables interoperability in healthcare information systems; if EHRs are not integrated with pharmacy systems, then there can be differences in medical dosages and treatment plans.   

But old legacy healthcare systems are not interoperable as they are isolated, and data remains in siloes. 

What benefits does digital transformation provide in the healthcare sector?   

Digitalization transformation in healthcare has changed the way patients seek treatments and health givers offer care. 

Here are a 8 benefits of digital transformation in healthcare - 

1. Improved communication between healthcare professionals   

There are certain delays in the healthcare sector that are caused due to lack of communication within the healthcare organizations and ultimately with the patients.  

Now, this delayed communication could be due to multiple reasons such as a lab report taking too long to come through or someone in the chain taking an off, which could prove to be fatal for a patient’s health.   

A delayed diagnosis could have severe implications for the patient. In this case, technology simplifies and fastens the process. Using digital procedures, healthcare organizations can implement automated protocols that ensure smooth, timely communication every time.  

2. Doctor-patient data management  

Hospitals deal with an abundance of data. The provision, and storage of medical reports, payment slips, and other patient data should not be a hassle for the healthcare organization. Additionally, they should be easily accessible to save time and effort for both the medical professional as well as the patient. All this is not manually feasible.   

Digitalization is the solution. The creation of centralized data storage and management platforms, workflows, and intranets would allow medical staff and professionals to retrieve, exchange, manage, and store data effortlessly.  

And it does not matter if the patient is physically present there or not. Reports could be shared through the internet on different preferred channels.   

Best part? Hospitals could also track the health vitals and monitor patient’s health using smart devices such as wearables, that further feed real-time data to clinicians. 

3. Digital healthcare platforms  

Digital platforms for the healthcare sector bring medical caregivers and seekers in one place. This platform includes all the services either of them could need, from EHRs (Electronic Health Records) to diagnosis to analysis, all can be accessed via one unified gateway.   

These digital solutions are optimized and made modern to cater to evolving needs and changing hospital-patient dynamics.   

4. Ease of appointment   

Digital appointments have reduced the hassle for patients who, in ill-health, used to look for doctors and clinics, frantically. At the same time, it is convenient for healthcare professionals as well to have a single platform to take and manage bookings, in an organized manner.   

These digital platforms require proper integration with other systems as well for better coordination and smooth functioning. Thus, these platforms are optimized for maximum results and ease of use. 

For example, cloud-based booking tech allows patients to make appointments from multiple locations using various devices. Patients could select the time and location that suits them. All this is done with minimal to no administrative staff involvement.  

Moreover, these apps are making healthcare accessible in rural or remote areas too. People get useful tips, health updates, etc., through these platforms.   

As technology advances, appointments would be created, deleted, or rebooked in a more convenient and efficient way. The aim would be to reduce wait times, allowing healthcare institutions to serve a greater number of patients. 

5. Accessible health records 

EHRs eliminate the room for human error and make patient data readily available at any time. This further enhances the process's efficiency and enables health professionals to do the needful at the earliest.  

However, there are still some challenges, such as poor system response times and system crashes, that could delay the retrieval of patient data and the treatment required.    

6. Customized treatment plans for patients  

One of the main benefits of implementing digital transformation in healthcare is making patients feel more personalized through custom treatment plans. This doesn't mean that you will improve your delivery processes; instead, it's more about meeting patients where they are in their journey.  

It's more about taking care of the specific needs of patients. As Artificial Intelligence is evolving, healthcare professionals such as doctors and clinicians are making the best out of it to create customized treatment plans based on an individual's medical history, genetics, and lifestyle.  

With the vast amount of medical data available at their fingertips, doctors can predict the potential risks associated with that patient.

7. Cost effective   

Digital transformation is a blessing for healthcare organizations as they can save their expenses by automating administrative tasks such as the appointment scheduling process, updating patient records, bill creation, etc.  

With extra hours saved, the unnecessary cost of hiring administrative staff is eliminated, allowing doctors and medical professionals to spend more quality time with patients.  

While the traditional healthcare processes deal with a lot of paperwork, the bad part is that these physical paper-based records are sometimes hard to read. And most times, doctors can conduct the same lab tests or scan multiple times. 

But EHRs keep the medical records in one place, reducing the need for duplicate diagnostic tests. 

This results in cost savings by 7-11% as the tasks are now automated and technologically enhanced. 

8. Better productivity for healthcare staff  

Digital transformation changes the way the healthcare sector works. With the automation of routine tasks, physicians can now devote more time to providing better patient experiences. 

One area where this transformation is particularly needed is staffing management.  

Traditionally, it was challenging for hospitals to allocate staff from each department – sometimes this results in more burnout among doctors, along with increasing inconsistencies in scheduling. 

To address these challenges, hospitals are turning to predictive analytics to better understand which patients need more quality healthcare treatment and can allocate resources accordingly. 

Similarly, with the introduction of AI-powered diagnostic systems, EHR, and clinical decision support systems, healthcare tasks can now be automated, which leads to a shift in focus towards patient-centered and value-based care. 

This automation is especially crucial given the administrative burden on healthcare professionals. In the US, physicians spend most of their time (30-55%) on clinical documentation, which sometimes affects patient-doctor relationships. 

That's why many healthcare workers have started to use cloud-based tools for simplifying their administrative workflows, becoming more productive, and reducing overwork. 

What are the Top Use Cases and Examples of Digital Transformation in Healthcare? 

Digital transformation in healthcare has streamlined healthcare processes, introduced revolutionary equipment, treatments, and cures, and made caregiving, a more accessible and effective practice for medical experts all over the world.   

Let's look at some of the use cases of digital healthcare solutions that have been reshaping the healthcare sector for various stakeholders, bringing in more efficiency and sophistication in practices.   

1. On-demand healthcare  

On-demand services are being increasingly sought, especially after the pandemic. And healthcare also has been a part of this trend. From home, delivery of medicines to at-home blood tests and other health checkups healthcare is being provided at the doorstep with just a few clicks.   

Moreover, doctors and practitioners could be found, and appointments could be booked through a single platform within seconds.   

From saving paper to saving shoe-leather costs to achieving higher efficiency and ease of communication, all is possible through in-demand healthcare solutions using digitalization.   

 2. Connected ambulance   

The road to the hospital is now smarter with connected ambulances.  

A connected ambulance gathers and shares the patient's vital information in real time, generally obtained through wearable devices, sensors, and HD cameras, with the hospital. 

Even before a patient arrives at the hospital, healthcare staff can gain a better understanding of the patient's condition and speed up their decision-making by giving doctors time to prepare for emergency treatments. 

But the road to connected ambulances can’t be possible without 5G capabilities. 

3. Automation  

Almost all the major running industries use automation to simplify and streamline work processes. Automation handles mundane, everyday tasks and allows human resources to focus on more core, crucial operations, and tasks.   

Similarly, automation in healthcare is helping with repetitive or tedious everyday tasks, allowing human resources to devote appropriate time and give the best care to patients. Automation also sometimes uses artificial intelligence or AI in healthcare to better understand the data and simulate human thinking and conversations while taking patient queries, etc.   

 4. Telemedicine and virtual visits  

The concept of telemedicine and virtual medical visits has been enabling patients and healthcare practitioners to communicate and consult without being physically present at the clinic or hospital, via phone or video appointments. This enhances the comfort and convenience of consultation and ensures the safety of the infected person and other patients as well.   

In fact, the telehealth and telemedicine market is expected to be valued at $ 106.0 billion in 2023, and $ 912.0 billion by 2033, growing at a CAGR of 24% during the forecast period.  

 5. Health wearables  

Wearables are portable healthcare devices that one can take with him/her anywhere they go. It’s basically health updates on the go.   

These devices gather, store, and even share a person’s health vitals/parameters/metrics with a doctor or any other healthcare provider in real-time using WiFi or 5G.  

They offer high flexibility due to their small size and extensive functionality and features. Some of the most widely used health wearables are smartwatches and smart patches.   

Health wearables are witnessing rapid user adoption. According to a Deloitte report, the market size of global wearable medical device market is expected to increase by USD 168.29 billion by 2030. 

Source

6. Patient portals  

Patient portals help patients and healthcare experts to access patient and treatment data easily and quickly. These portals give information about past, present and future appointments, generate electronic prescriptions, offer healthcare tips, etc.   

These portals increase the frequency and enhance the quality of communication between the involved parties.   

How to create a Digital Transformation Strategy for Healthcare Organizations? 

Today, healthcare organizations treat digital transformation as their top priority.  

Here’s how you can create a simple, actionable 4-step strategy for your business to provide a personalized treatment plan, improve the efficiency of healthcare staff while reducing their burnout, all made possible by connecting data with people and technology.  

Step 1 – Do the quick analysis of your legacy healthcare systems  

In this phase, you need to monitor all existing healthcare systems, including real-time location systems, patient engagement software, EHRs, EMRs, and telemetry systems.  

Here, we will check what all existing systems you’ve and what’s working for them.  

Step 2 – Assess the needs of your healthcare organization  

Once you have the information handy, you need to do the needs analysis, like what health records system you need, like a nursing team dealing with manual documentation, or radiologists dealing with a slow PACS system. 

After that, you need to work with the design team to prioritize tasks and map them against key performance indicators such as 

Step 3 – Create a technology Roadmap  

We’ll create a technology strategy to map which tasks can be automated and which healthcare systems can be integrated into your clinical workflows.   

Here, we’ll also decide who’s accountable for project delivery and for modernizing legacy healthcare applications.  

Step 4 – Provides Ongoing Support and Maintenance  

Digital transformation is never a one-and-done task; it requires continuous support and guidance throughout the digital journey.  

The development team should provide continuous support to resolve downtime issues and roll out updates to keep healthcare systems up to date.  

Additionally, the technology vendor should train your healthcare staff, including clinicians, nurses, and administrative teams, to streamline workflows. 

How much does digital transformation cost for hospitals?  

The cost of implementing digital transformation for your hospital can range between $250,000 - $500,000/year. But this is just a rough estimate. 

The cost of developing healthcare app would differ if you need a complex medical tool such as an EHR appointment system, a remote patient monitoring app, or a custom telemedicine app.  

Few factors affect the cost of a healthcare digital transformation project -  

How to measure the ROI of healthcare digital transformation?  

The ROI of healthcare digital transformation is primarily driven by quality, cost, and speed. If digital initiatives improve even one of these areas no matter which technology is used, the ROI is considered positive. 

However, ROI in healthcare goes beyond direct financial returns and includes operational, clinical, and experiential outcomes. 

A few logical factors used to measure ROI in a healthcare digital transformation project 

• Improvement in care quality, such as better clinical outcomes, reduced errors, and enhanced patient safety  
• Reduction in operational and administrative costs through automation and streamlined workflows  
• Faster service delivery, including shorter turnaround times and quicker access to care 
• Increase in revenue through improved billing accuracy, utilization, and patient retention  
• Higher staff productivity and better resource utilization  
• Enhanced patient experience, engagement, and adoption of digital tools  
• Reduced compliance risks, penalties, and data security issues  
• Clear comparison of pre- and post-transformation performance using defined KPIs and benchmarks 

What are the top challenges that Digital Transformation creates in the healthcare sector?  

As the healthcare industry is a data-intensive and regulated one, integrating digital tools and technologies presents several challenges, as given below -  

1. Concerns related to privacy and security  

One of the significant challenges that Digital transformation creates in the healthcare sector is rising security and data privacy concerns. 

Generally, hackers tend to focus on stealing patient records such as their medical information, and such attacks not only violate patients’ privacy but also damage the hospital's reputation.  

Healthcare digitalization is a lifesaver option, but you need to adhere to comply with legislations such as HIPAA, CCPA, and GDPR. That's why healthcare professionals should adopt stringent cybersecurity measures to protect the patient's medical information. 

2.  Resistance to change 

Digital transformation in healthcare becomes successful when you train medical professionals about digital tools and the adoption of secure data management procedures. 

However, this training aspect is often overlooked. 

A study from KPMG and Forrester states that 57% of people in the healthcare sector resist adopting digital tools and technologies because training is not provided to them. This resistance makes it difficult for them to implement digital practices. 

It can be because they don't find time for learning new systems, or it might be because they have a fear of adopting digital tools in their workflows. 

Though the implementation cost is quite high, the timely adoption of such digital infrastructure allows healthcare staff to adapt to the needs of patients. However, successful adoption requires addressing the human element first. 

The best way to overcome this resistance is to educate your healthcare staff, make them aware of how digital technologies can save their time, make them more productive, and improve patient health. 

3. Interoperability issues 

In healthcare, different systems should work together and talk to each other, but when this doesn't happen, it results in data siloes. 

According to Dr Arup Roy, Chief Strategy and Medical Officer of Elemeno Health, says   

Healthcare digital transformation is less about converting paper to pixels; it's more about making information accessible, easy to find, and easy to act on. It's more about improving processes or refining treatments.  

If the healthcare systems don't follow the standards or communicate with each other, then it means two systems are not interoperable, and this results in treatment delays and inefficiencies.  

This is why doctors had to spend more time on accessing 2 different systems. The only way they can benefit from digitalization is by seeing whether the new software can be integrated with existing systems. 

Whatever new software your organization wants to deploy, make sure it’s interoperable, meaning healthcare service providers can access the data and can make informed decisions. 

4. Adapting to technological changes 

The healthcare industry needs to constantly adapt to the latest technological innovations, such as machine learning, health information technology, etc. 

They can keep themselves updated with digital innovations by partnering with a technology vendor who can align them towards the accomplishment of digital transformation initiatives. 

The vendor should create a digital strategy, lay out KPIs, and ensure that the organization can succeed on the ladder of the digital journey. 

What key technologies drive digital transformation in healthcare? 

Here are a few digital technologies that are changing the healthcare industry -  

1. Telemedicine 

With digital transformation, healthcare is now beyond the four walls of the hospital. Through cloud communication tools and virtual consultations, healthcare has become more accessible.   

This means patients can talk to medical staff through video calls, virtual consultations, even if they're located in remote areas.  

Result – More quality patient care + Reduced waiting time + Higher patient satisfaction  

2. Electronic health records  

Electronic health records make patient information more accessible and manageable, and healthcare service providers can communicate in one place.   

Initially, these EHRs required investing in on-premises architecture, but now everything has shifted to cloud-based EHR solutions. 

 3. Artificial Intelligence and Machine learning  

Through artificial Intelligence and machine learning, clinicians can predict the likelihood of diseases, their genetic information, and determine which patients have a higher risk of diseases and then help doctors provide personalized treatments to patients. 

Result? Patients with high-risk histories can get an accurate diagnosis on time. 

 4. Cloud Computing and data analytics  

Healthcare organizations deal with a huge amount of data, but they don’t know what to do with it.

5. AR and VR technologies  

Surgeons can use AR and VR technology for conducting medical training and for surgery visualizations, such as the brain, heart, and eyes. They can conduct safer surgeries without even hiring extra staff.  

This saves them time and money.  

How can BigOhTech help you in your digital transformation journey?  

As a healthcare app development company, we create scalable mobile apps that connect healthcare staff with patients.   

Having worked in the healthcare domain for over 15 years, we care about safeguarding patients' information, so we create apps that are compliant with international healthcare standards such as HIPAA. 

Our dedicated development team has built a modern app that connects health caregivers and patients better, in just one click. 

Want to get similar results for your business? Reach out to our digital transformation consultants and mark your presence in health industry through revenue generating apps and devices. 

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