Barriers to Digital Transformation in Healthcare: How to Overcome with Minimum Risk?

As researchers in the recent Gartner survey have indicated, cloud computing technologies have already moved beyond their initial purpose of serving as a platform for applications. Today, clouds are the cornerstone of business sustainability and digital transformation in healthcare. By 2026, 75% of companies will take on a cloud-based digital transformation model. 

As an expert in the health tech domain, I notice those tendencies in our clients’ projects. There is no easy path to success, and many cases prove that digital transformation in healthcare often stumble upon certain barriers. In this post, I share my insights regarding technological progress based on my experience in the software development company Belitsoft. 

What is meant by digital transformation?

Traditionally, by digital transformation, we mean technological tools, programs, and devices that help people cope with their routine chores. In the past, IT professionals focused more on the data centers’ functionality. Now, CIOs are more actively involved in internal hospital processes. IT teams plunge into building the solutions for end-users, i.e., doctors, patients, and administrative staff. Digital transformation in healthcare implies concentrating on improved performance, accelerated processes, and satisfied staff. As a Chief Innovation Officer (CINO), I can say that IT experts are now much more integrated into internal healthcare issues.

To achieve business goals and benefit from a digital transformation in healthcare, health tech companies provide solutions centered around cloud hosting, data analytics, artificial intelligence (AI), and automation. Further on, we will concentrate on the issues that complicate the progress in those areas.

What are the challenges and solutions?

1. Fixed business mindset

Carol Dweck, in the book “Mindset: How You Can Fulfill Your Potential,” explains the difference between fixed and growth mindsets. With the first, you are concentrating on the result that seems ideal to you. If you encounter any difficulties on the way to achieving it, you give up. With a growth mindset, you focus on the process and take every obstacle as a chance to improve your potential. The book is totally applicable to business processes. Healthcare institutions are often afraid of implementing technological advancements, as they do not trust modern solutions, think their old systems are fine, and cope with the demands.

However, legacy systems demonstrate security failures, the impossibility of updating or scaling, and, as a result, a lack of competitive advantages. That is why it is vital to modernize obsolete applications in a timely manner. For instance, health tech businesses can learn how to migrate from .NET Framework to .NET Core. Developers widely use the .NET platform for building applications. They appreciate the following features of this platform:

• Flexibility: medical providers can optimize the software products according to their unique workflows.
• Adaptability: the .NET Core creates cross-platform applications.
• Safety: Modern healthcare cloud security measures are applied while developing or migrating to the cloud.

Modernizing existing applications is less stressful for business. Plus, it encourages a growth mindset. It is easier to eat an elephant one piece at a time, i.e., make small steps on the way to full digitalization.

2. Data security and privacy

Data is the main asset in healthcare. Data analytics aid medical providers in diagnosis, optimizing patient flows, registration, and other specific areas. 

Statistics say that in 2023, the number of data attacks in the healthcare sector was more than 809, the highest of all time. In May 2024, two medical organizations suffered from the ransomware group Black Basta which was also called a major threat to the industry. The increased number of attacks indicates an alarming situation in healthcare data security.

The information in the cloud is easily accessible, i.e., users can share and manage it from any location. However, neglecting security measures may lead to data leakages, identity thefts, or malware. Such unpleasant consequences spoil the reputation of medical enterprises and disappoint patients. A carefully developed roadmap of relevant cyber security measures protects the sensitive information of patients and doctors and builds reliable partnerships between health-tech providers and medical institutions. There are various methods, to mention a few of them:

• Access control and authentication. Mutual authentication is used in the Internet of Medical Things (IoMT). The protocol checks the user’s (doctor or patient) legitimacy before assigning a session key. It helps to achieve confidentiality and integrity of data.
• Data encryption. It aids in storing and extracting the data safely from the cloud.
• Application programming interfaces (APIs). Tools and devices communicate with each other with the help of APIs. In medicine, for example, sensors send notifications about a patient’s condition to a nurse’s application. APIs integrate firewalls into programs and apps. Besides, APIs share information about security threats between systems, rapidly spreading an alert.

3. Budget limitations

Even though the advantages of cloud technologies are broadly discussed on IT resources, I still meet organizations that are hesitating. They are concerned with managing cloud spend. According to Statista, 84% of technical executives and managers find budget constraints a serious challenge. 

Any transformation requires some time to demonstrate the first results. When companies perceive digitalization as an operational expense, they do not allocate a sufficient amount of money to it. As a result, it delays the development. Conversely, any digital improvements are strategic goals, i.e., they will pay off in the long run as they need continuous testing. The Mayo Clinic has recently formed a partnership with Google for a 10-year period. The tech giant will guide the clinic in implementing cloud hosting, data analytics, machine learning algorithms, and artificial intelligence (AI).

As an outcome, I would recommend companies develop a careful transformation strategy and estimate all the risks. In the long run, digital transformation in healthcare allows medical providers to:

• improve productivity thanks to automation tools that take part of the chores off the staff’s shoulders;
• cut costs of the manual work because agile digital systems phase out manual input of the data, which leads to optimized administrative workflows;
• increase customer satisfaction thanks to data analytics tools that analyze patients’ typical queries, complaints, etc., enabling medical providers to develop a personalized approach to each patient;
• reduce human errors because the software does not feel stressed or exhausted, so it does not make mistakes.

Final thoughts

Cloud hosting, analytics, AI, and automation are changing the medical landscape just now. As the process continues, companies of all sizes realize the benefits. The challenges do exist, and the number of them spreads far beyond those mentioned in this post. However, a proper strategy, careful investigation of the options, expert advice, and a competent IT partner ensure the pros of digital transformation in healthcare far outweigh the cons.