March 6, 2023 | 6 minute

Why 2023 is setting off a digital transformation in hospital operations

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  1. Operating margins for US hospitals are down significantly and systematically. Hospitals are in imminent danger of failing. Reduced revenues, inflation, and the nurse shortage are key drivers.
  2. Care delivery in US Hospitals is costly and wasteful. The average nurse spends 75% of their time on administrative tasks and 25% providing care. Pre-covid, hospitals have gotten away with not addressing waste.
  3. Hospitals need to fundamentally transform and future proof their operations, now. enables the hospital of the future through digital transformation in hospital operations. We save hospitals millions by optimizing quality and efficiency of care.

Table of contents:

The health system world is changing for good.

The stats are alarming. If you operate a hospital in the US, you have likely lost money in the last few years, despite spending more than doubled in healthcare (18% of the GDP) than any other developed economy. Operating margins were down to -1% on average for all US hospitals in 2022, with just a handful of health systems like HCA nearing the 10%+ range.

In 2022 the industry waited for a post-Covid, V-shaped volume recovery that didn’t come. Discharges were down by 9% compared to pre-Covid times in 2019. Emergency department (ED) operating minutes (-2%) and ED visits were down (-3%). Labor costs are at an all-time high, up about 20% compared to 2019 due to inflation and an acute nurse shortage, laying bare an ailing healthcare system. Total labor costs continue to consume a higher percentage of operating budgets, up about 20% compared to 2019 due to rampant wage inflation and an acute nurse shortage. Higher costs and general volatility in maintaining staffing levels have created a destabilizing force. Addressing this has become mission-critical and one of the top priorities for hospital executives and boards.

These market dynamics of plunging revenue and soaring costs have exposed one of the industry’s most well-known but overlooked facts: Care delivery in US Hospitals is too costly. There is too much waste. The average nurse spends 75% of their time on administrative tasks and 25% providing care. The average utilization of medical equipment is below 40%. There are bottlenecks in the care delivery process everywhere. Patients spent most of their time waiting, reporting mediocre to poor experiences.

There’ll be winners and losers.

In the pre-covid years, hospitals have gotten away with not addressing waste. Sticking with the status quo means that hospitals are in imminent danger of failing. Marginal improvements won’t cut it.

While inflation and labor costs may remain beyond control, addressing wasteful spending and inefficiencies in 2023 can be achieved. In 2023, we will see robust and ambitious hospitals double down on their investments in digitally transforming their core operations. We will see weaker players further falling behind. In short, 2023 will accelerate the great divide – the healthy will get healthier, the sick sicker.

The Hospital of the Future

The smart hospital of the future to us means putting the patient and staff experience first by:

  1. Delivering outstanding, seamless experiences for patients and caregivers alike, with access anywhere at any time.
  2. Being cost-effective in running their operations, future-proof hospitals don’t waste resources. They don’t overspend. They don’t tolerate workflow inefficiencies or safety issues and the cost imposed on the patient and staff.
  3. They are ready for a digital-first era of health assurance and service delivery. They have the data capabilities to enable and embrace digital patient solutions. They are quantifying all interactions, leveraging cloud, AI, open standards, and interoperability, and putting data at the center of their operating models.

Path to the Promised Land through immediate Digital Transformation

To unlock the hospital of the future, hospitals need to make digital transformation in hospital operations. They can do that holistically with’s cloud platform and solutions.

Hospitals can use cloud, AI, and sensor technologies to measure and understand resource utilization and operational workflows to optimize clinical space, medical equipment, staff safety, patient flows, and patient experience. Care delivery becomes more efficient and seamless for both providers and patients.

Digital transformation helps eliminate waste on day one. Consider reducing costs that can be achieved by having full visibility into and control over medical equipment. On average, a 500-bed hospital saves $5 million with CapEx and OpEx combined over five years by:

  • Reducing search time for assets from 40 minutes per shift to under 5 minutes, for both biomed department and nurses.
  • Increasing asset utilization from 40% to 60%. Typical utilization rates for IV pumps and similar devices are below 45%, caused by a lack of an effective way to locate assets in extensive facilities.
  • Cutting CapEx on replacing “lost” assets. Inability to view or locate existing assets have resulted in massive over-purchasing.
  • Shifting focus to patient care and improving patient satisfaction. Spending less time searching for devices and automating specific administrative procedures mean that nurses have more time for better patient care, leading to an immediate increase in patient satisfaction and higher HCAHPS.

And this is just one of many use cases in hospital operations.

Why hospitals choose to partner with

The only way to enable the hospital of the future is to partner with a solution provider with aligned vision and strategy. Healthcare leaders choose to work with because they want to adopt an open, scalable, IT-friendly platform that is human-centric, reliable, easy to use, and delivers immediate outcomes with a strong ROI.

For too long, the industry has experienced frustration about point solution providers with proprietary technology, prohibitive cost and misaligned business models, only to fall short of the promises they delivered. These vendors won’t get you to the hospital of the future. They don’t help you digitally transform. Instead, they set you back and make things worse.

At, we have a proven track record of working with hospitals of all sizes to deliver tangible results as a service. Our deployments get results within the first 12 weeks, regardless of where you start. See why Veteran Affairs’ Health (VA) has chosen to transform their operations with here.

If you share our vision, we’re here for you. Schedule a 1-on-1 meeting with our Healthcare Practice Lead to calculate your ROI for 2023. The time to optimize quality and efficiency of care is now.

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