Digital Health Adoption: Key Shifts and Outcomes over the Last 5 Years

Digital health has made huge strides over the past years, changing how clinics deliver care. With technological advancements and a strong focus on making healthcare more efficient, new tools like telemedicine, AI, and health monitoring devices have become key drivers for healthcare software modernization. 

However, these advancements also bring challenges, such as keeping patient data secure, meeting new regulations, and ensuring that quality care isn’t lost in the pursuit of digital transformation.

If you want to understand how key digital trends have impacted healthcare over the past five years, read this article. It will walk you through the major changes in digital health and their impact on the industry. You’ll also find out what health providers and tech leaders need to do to keep improving healthcare for patients.

This analysis uses data from trusted sources like the World Health Organization, HIMSS, and Statista, as well as our internal analytics database. By closely examining  this data, we can provide insights into what’s been driving the industry forward and what it means for the future of healthcare.

Digital Health Market: Overview, Growth, and Adoption Rates

The digital health industry has rapidly grown over the past years, driven by new technologies, rising demand for accessible healthcare, and substantial investments from public and private sectors. Here, we break down key trends and numbers that show how digital health has changed healthcare for providers, patients, and investors.

Global Market Growth Statistics: the US and UK in 2019-2024

Between 2019 and 2024, digital health has seen tremendous revenue growth, largely due to the popularity of tools like telemedicine, remote monitoring, and AI-powered diagnostics. In particular, the global digital health market increased from $175 bn in 2019 to $309.93 bn in 2023. 

In the UK, for instance, the digital health market is expected to reach $5.55 bn in 2024. This trend shows how the UK is adopting digital health solutions to create more efficient and affordable healthcare systems.

Looking ahead, healthcare SaaS companies can expect the digital health market to keep growing. By 2029, the market volume is projected to reach $258.30 bn worldwide, with the US leading the way. 

Digital Health Adoption Rates Among Healthcare Providers

The adoption of digital health tools has varied across different types of healthcare providers, reflecting changes in technology use and patient expectations.

Hospitals vs. Private Practices

Hospitals and larger healthcare systems with more resources and infrastructure have adopted digital health tech like EHRs faster than private practices. In the US, over 90% of hospitals used EHRs in 2021, while private practices adopted these tools at a slower rate, mostly because of financial constraints. 

For instance, the initial investment for a five-physician practice is estimated at $162,000, with annual maintenance costs of around $85,000 which can be a significant expense for most private practices. 

Consumer Adoption of Digital Health Apps and Wearables

Consumers are also embracing digital health. As of 2023, nearly 40% of Americans reported using health or fitness apps, and around 35% used wearable devices like smartwatches to monitor health metrics. This trend shows how patients moved towards more proactive personal health management, with apps and wearables tracking everything from exercise routine to sleep patterns.

Physician EHR Trends Adoption

In 2021, EHR adoption in office-based practices in the US reached about 88%. On the other hand, around 87% of UK clinicians reported using EHRs in 2020, with e-prescribing being adopted by 69% of medical workers. 

Investment Trends in Digital Health

Over the past few years, venture capital investments in digital health have surged. Funding among US-based startups reached a record of $29.1 billion in 2021. Though there was a slight drop in investment in the following years, key areas like telehealth, AI diagnostics, and mental health platforms continue to attract funding and are expected to drive future innovations in healthcare.

Established digital health companies like Teladoc Health are leading the industry in areas like virtual healthcare and health data management. Teladoc’s acquisition of Livongo, a chronic care management platform, for $18.5 billion in 2020 only highlighted the value that investors place on digital health solutions focused on treating chronic conditions. 

On the other hand, startups like Calm and Omada Health are carving out niches in mental wellness and preventative care. In February 2019, Calm was valued at $1 billion and also raised $116 million, while Omada Health closed a $192 million Series E financing round in 2022.

Major Trends in Digital Health in 2019-2024

Digital health has experienced a big change, with virtual health, AI-driven diagnostics, and machine learning becoming more common for clinics. 

Telemedicine, AI Doctors, and Machine Learning in Healthcare

AI software development is on the rise right now, as AI-powered tools have shown efficiency in helping physicians with more accurate and timely diagnoses of complex health conditions.

Utilization Rates by Specialty

Telemedicine has become a major part of healthcare, especially in areas like mental health and primary care. In 2019 around 57 million patients used online doctor consultations worldwide, and in 2024 their number surpassed 116 million. About 55% of mental health appointments are conducted remotely as of 2024.

Specialties like dermatology and endocrinology use telemedicine, giving patients easier access to specialists without needing to visit a clinic in person. For instance, telemedicine visits for Type 2 diabetes in endocrinology peaked at 84% from May to October 2020, dropped to 63% by April 2021, and settled at 41% by May 2022.

Diagnostic Accuracy Rates vs. Traditional Methods

AI-powered diagnostic tools are not only fast but also can be highly accurate — sometimes surpassing traditional methods. For example, AI can achieve accuracy rates of over 90% in diagnosing conditions like skin cancer. What’s more, AI-powered tools can achieve up to 98%  accuracy in virtual primary care cases, promising a possibility to improve patient triage over time.

Growth in Predictive Analytics and CDSS

Machine learning helps healthcare providers take a more proactive approach to care through predictive analytics. These tools help identify high-risk patients, forecast how diseases might progress, and plan treatments ahead of time. Clinical Decision Support Systems play a key role here helping analyze patient data to suggest possible diagnoses or treatments. 

In 2019, CDSS was used daily between 68% and 100% in primary care in the US, if a practice entirely relied on an EHR system. Globally, the market of CDSS was valued at $5.30 bn in 2023 and is expected to grow at more than 10% by 2030.

Wearable Tech for Remote Patient Monitoring

Wearable tech makes it easier for patients to track their health from home. With devices like smartwatches and fitness trackers, patients can monitor key health stats daily, and doctors can get a clearer understanding of patients’ overall health.

Adoption Statistics

The popularity of wearables has surged recently. By 2023, about 35% of US adults used wearables to monitor their health, and similar trends took place in the UK. The British market for smartwatches was expected to generate around 750 million pounds and grow steadily in the future. 

This rise is especially helpful for older adults and people with chronic illnesses who benefit from regular check-ins without visiting a doctor in person.

Privacy Concerns and Data Volume Generated

The healthcare sector generates about 30% of the world’s data, and wearable tech is one of the most rapid data generators. As more people use these devices, privacy becomes a bigger problem. 

Remote monitoring tools gather personal data, so managing and securing all this information can be challenging. To keep this data safe, healthcare providers and wearable companies are implementing safety methods like strong data encryption and policies to protect users’ privacy.

Blockchain for Secure Data Management

Blockchain technology offers a new way to secure patient data, making it more reliable and less likely to be compromised. By storing data in a decentralized system, blockchain can keep sensitive health information safe while also making data management more transparent.

Adoption Rate in Healthcare Data Security

Although still developing, blockchain is slowly gaining traction in healthcare. The global healthcare market spending on blockchain is expected to reach $5.61 bn already by 2025. No wonder, this technology has the potential to save the healthcare industry up to $150 bn per year, reducing the likelihood of breaches and lowering operational and IT costs.

The adoption rates, however, are still quite low. Only 36% of physicians were positive about using blockchain in healthcare in 2022, while 47% were somewhat positive about integrating the technology into the HIE settings.

Case Studies in Successful Implementation

Some healthcare organizations are already using blockchain with positive results. 

For example, the MediLedger Project is a collaboration between pharmaceutical companies in the US, including Pfizer and Genentech. The project was initiated in 2020 to secure the pharmaceutical supply chain using blockchain technology. By creating a decentralized and immutable ledger, the initiative aimed to prevent counterfeit drugs from entering the market and ensure the authenticity and safety of medications. 

In 2021, the UK’s NHS launched a pilot program using blockchain technology to monitor the storage and distribution of COVID-19 vaccines. The system was designed to provide real-time data on vaccine temperatures during transit, ensuring doses remained effective upon arrival. This initiative demonstrated blockchain’s potential to enhance transparency and trust in public health logistics.

Another remarkable case is Embleema — a U.S.-based company that developed a blockchain-based health data platform in 2019. It allows patients to securely share their medical records with researchers and pharmaceutical companies. This system empowers patients with control over their data and facilitates faster access to real-world evidence for medical research, potentially accelerating the development of new treatments.

Efforts Toward Digital Health Equity

As digital health grows, there’s a need to make sure that everyone — no matter where they live or what their financial situation is — can access medical tools. Although digital health solutions like telemedicine and health apps have changed healthcare, disparities still exist, particularly for underserved communities.

Access Statistics in Underserved Populations

Access to digital health tools remains limited for many underserved populations. About 24 million people in the U.S. lack access to high-speed internet, which directly affects their ability to get telehealth services. 

What’s more, Americans have low digital literacy — only 40% of people can answer questions related to modern tech correctly. The situation is similar in the UK, where about 10 million adults lack basic digital skills. Such a low level of digital literacy makes it difficult for people to use online health portals or apps. 

Impact of Initiatives on Reducing Health Disparities

Several initiatives are making progress in reducing health disparities by improving access to digital health tools:

• Broadband expansion programs: efforts to expand broadband infrastructure in rural areas are increasing telehealth access. They also help enable people in remote communities to consult with healthcare providers without having to travel long distances;
• Public-private collaborations: collaborations between public and private sectors have led to the development of low-cost health technologies and mobile apps designed for populations with limited access to smartphones or high-speed internet;
• Digital literacy training initiatives: programs offering free training on how to use digital health apps and portals have helped improve digital literacy among older adults and low-income families, empowering them to manage their health more effectively. 

Data-Driven Healthcare: Success Stories Behind Global Efforts

Some approaches in digital health have shown clear and positive results for patients and healthcare providers. By focusing on better patient outcomes and satisfaction, healthcare providers are seeing how data-driven tools can make a real difference.

Patient Outcomes and Satisfaction Rates

Digital health tools have helped improve patient care and create meaningful results that benefit everyone involved.

Reduced Hospital Readmissions

One of the biggest successes in digital health is lowering hospital readmissions, especially for patients with chronic conditions. With remote patient monitoring programs, hospitals could provide home-recovery programs to patients. In some cases, readmission rates dropped by up to 44%. Fewer readmissions mean that patients stay healthier and hospitals reduce their costs and resources, benefiting the entire healthcare system.

Boosted Patient Engagement

Digital health tools like mobile apps and patient portals are also helping patients stay more involved in their care. Studies show that patients who use these tools are more likely to follow through with their treatment plans and attend follow-up appointments. At the same time, hospitals with digital tools can see a significant improvement in patient engagement.

Cost Savings for Healthcare Providers

Digital health tools, like telehealth, are helping healthcare providers cut costs while improving patient access and care.

The Impact of Telehealth on Costs per Visit

Telehealth has made healthcare more affordable by reducing the cost per visit. Providers can save money by offering virtual consultations, which reduces expenses like rent for office space, utilities, and staff time. Since patients don’t need to travel, they’re more likely to keep their appointments, reducing no-shows. This helps providers use their resources more efficiently and see more patients without the added costs of running a physical office.

A study conducted among patients with cancer showed that telehealth can bring $1,637,407 in total savings in lost productivity due to travel and visit time. What’s more, it saved 29,626 hours of in-clinic visits. 

Real-Life Examples of Cost Reduction

Many healthcare organizations have already found success in cutting costs with digital health tools.

NHS England

The National Health Service in England adopted digital solutions to enhance operational efficiency. For example, the Maidstone and Tunbridge Wells Trust implemented real-time patient tracking using electronic wristbands and a central control room. Since adopting this system in 2020, the trust has significantly reduced waiting times and improved operational efficiency, resulting in cost savings and better care standards.

Cityblock Health

Cityblock Health used telehealth to improve care coordination for patients in underserved urban communities. By creating a comprehensive system that connects doctors with patients, they were able to integrate virtual care into their model. This approach eliminated barriers like transportation, allowing patients to receive care quickly and efficiently and also reducing costs.

Massachusetts General Hospital

Massachusetts General adopted telemedicine in neurology and stroke care, launching their teleneurology and telestroke programs. These initiatives provide patients, particularly in remote areas, with immediate access to specialists, ensuring timely and expert consultations. This also extended specialized services to distant locations, helping patients and the clinic reduce associated costs.

How Digital Tools Help Improve Chronic Disease Management 

Digital health solutions are making it easier to manage chronic diseases, helping patients stick to their treatment plans, and reducing the load on healthcare professionals.

Tools like health apps and wearable monitors help people with chronic conditions, such as diabetes or heart disease, follow their treatment plans more closely. For instance, tools integrated into antiretroviral therapy care already showed incredible results — over 75%  adherence and treatment retention rate.

Another remarkable example took place in Scotland. Patients with hypertension tracked their status via a mobile app, saving the NHS millions of pounds. The distribution of home blood pressure monitors to over 100,000 patients also led to the release of nearly 400,000 GP appointments.

Challenges and Areas for Improvement

As digital health technology grows companies put effort into EHR optimization, but there are still challenges to address. From keeping patient data safe to ensuring new tools work smoothly with existing healthcare systems, these areas need attention to keep digital health moving forward.

Data Privacy and Security

As more information goes digital, the chance of data breaches and cyber threats increases. As hackers develop new tactics, healthcare providers need to update their systems regularly and follow the latest safety trends.

Advanced Encryption

As healthcare providers manage vast amounts of sensitive data, advanced encryption techniques are essential for safeguarding patient information. Strong encryption ensures that data remains secure, even if unauthorized access occurs.

Multi-Factor Authentication

Multi-factor authentication is becoming a standard security measure. By requiring users to verify their identity through multiple steps, MFA adds a crucial layer of protection against unauthorized access to healthcare systems.

Real-Time Monitoring and Threat Detection

Real-time monitoring systems are now used to identify and respond to cyber threats as they occur. These systems help healthcare providers detect unusual activity early, allowing them to act quickly to prevent breaches.

Compliance with Data Protection Regulations

Compliance with regulations like HIPAA in the US and GDPR in Europe is vital for protecting patient data. Adhering to these standards not only ensures patient privacy but also helps healthcare providers avoid penalties and maintain trust.

Integration and Compliance Challenges

Connecting digital health tools with existing healthcare systems isn’t always simple. Different systems often use different data formats and standards, making it tricky to ensure everything works together seamlessly. On top of that, healthcare providers need to follow strict regulations, such as HIPAA in the US and GDPR in Europe, which have different rules for data privacy in various regions. 

To tackle these challenges, healthcare providers and tech developers need to work closely, creating custom enterprise solutions that meet compliance requirements while adapting to regional rules. Addressing data security, integration, and compliance issues will not only help protect patients but also make digital health tools more effective across different healthcare settings.

The Future Outlook: Expected Trends and Data Impact

New and exciting developments promise to make healthcare more personalized, accessible, and efficient. 

Personalized and Precision Medicine

Personalized and precision medicine involves creating treatment plans based on unique factors such as a person’s genes, lifestyle, and environment. This approach means more effective treatments and can help avoid unnecessary costs by focusing on what works best for each patient.

VR Medicine and AI-Driven Diagnostics

Virtual reality and artificial intelligence change how we experience healthcare. VR already helps with pain relief, supports physical therapy, and assists in educating patients and physicians. An AI-powered virtual doctor can help identify symptoms, make diagnoses, and even provide mental health support. As these tools get better, they promise faster and more accurate care, especially for people in remote areas with limited access to healthcare services.

Improving Patient Experience Through Integration

In hospitals, EHR API integration helps create a smoother experience for patients. When departments are connected, doctors and nurses can access a patient’s full medical history instantly, which reduces wait times and avoids unnecessary repeat tests. This approach not only saves time but also helps patients feel better cared for during their visit.

Managing Chronic Diseases More Effectively

Chronic diseases like diabetes and heart disease are still big challenges in healthcare. However, new digital tools offer hope for better management. Real-time monitoring, big data healthcare analytics, and early warnings can help doctors keep these conditions under control, potentially reducing hospital visits and improving patients’ quality of life.

How Medical Businesses Can Keep up with Digital Trends

Digital health is transforming the industry by making care more accessible and patient-focused. Key trends include telemedicine, wearable devices, digital therapeutics, AI, and predictive analytics that make possible remote consultations, continuous health monitoring, and personalized care.

As these changes take place, Jelvix helps medical businesses keep up with top digital trends by offering custom healthcare software development services. Whenever you need to integrate telemedicine, connect wearable devices, or enhance patient-clinic interactions, Jelvix is your trusted technical partner. By leveraging our expertise and qualifications, we deliver solutions designed to maximize ROI and drive successful digital transformation. Reach out to discuss how our professionals can bring value to your projects.