What's Happening?
The Peterson Health Technology Institute's 2025 State of Digital Health Purchasing report reveals a decline in employer spending on digital health solutions, with only one-third of employers increasing their investment compared to 75% last year. In contrast,
health plans and systems report increased spending. Employers prioritize cost when evaluating digital health providers, with two-thirds citing it as the top factor. Despite strong employee uptake of existing solutions, employers plan to maintain current spending levels in 2026, with only 14% anticipating increased investment.
Why It's Important?
The stall in employer digital health spending reflects broader economic concerns and the challenge of balancing cost with the need for innovative healthcare solutions. As healthcare costs rise, employers face pressure to manage expenses while providing effective digital health options. This trend could impact the availability and quality of virtual healthcare services, affecting employee health outcomes and satisfaction. The focus on cost may limit the adoption of new technologies, potentially stalling advancements in digital health.
What's Next?
Employers may need to explore strategic messaging to drive adoption and emphasize the convenience and cost-saving potential of digital health solutions. HR departments could play a critical role in securing leadership buy-in for ongoing investment in digital health offerings. As virtual care continues to evolve, employers might consider innovative approaches to integrate digital health solutions while managing costs effectively.
Beyond the Headlines
The report suggests a need for alignment between employer strategies and employee needs, highlighting the importance of data-driven decision-making to demonstrate the value of digital health solutions. The emphasis on cost over proven track records indicates potential challenges in adopting cutting-edge technologies that could enhance healthcare delivery.
