Digitalization Equipping German Healthcare for Change

Providers of care and insurance are modernizing systems to address growing regulation, rising customer expectations, ISG Provider Lens report says

Healthcare organizations in Germany are using new digital technologies to enhance their existing capabilities for improving care and patient experience, according to a new research report published by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

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“New technology is a major driving force for improvements in German healthcare”

The 2022 ISG Provider Lens Healthcare Digital Services report for Germany finds that the country’s healthcare market, the second largest in the world, is undergoing significant changes that include mandatory adoption of electronic medical records and a recently passed law, the Future of Hospitals Act (KHZG), that provides funds for digitalization of hospitals.

“New technology is a major driving force for improvements in German healthcare,” said Andreas Fahr, partner and managing director, ISG DACH. “Service providers have the power to help companies modernize in many areas.”

Healthcare providers are still affected by the COVID-19 pandemic while also facing growing customer expectations for convenient services, transparency about data exchange and easy access to and control of personal records. Companies need to meet these demands while reducing costs and serving the needs of an aging population, all in the midst of an increasing shortage of qualified personnel, ISG says.

An expanding array of state and federal regulations accelerate the need for digitalization. New directives aimed at ensuring patients’ personal data is not misused have imposed strict limits on healthcare providers and insurance organizations. One technical challenge caused by regulation is that few providers have state-certified cloud solutions for the handling of patient data, the report says.

The IT skills shortage is a continuing challenge for organizations looking to adopt new applications, so many IT departments are focusing mainly on ensuring smooth and cost-effective operations while introducing needed tools for security, communication and patient services, ISG says. However, with help from service providers, companies are planning digital transformations at a strategic level and implementing them over time.

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The key technology developments that will help the German healthcare industry advance include machine learning, AI, IoT and network infrastructure using new capabilities such as 5G, ISG says.

“Predictive models enabled by AI can improve patient care with earlier detection of disease,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “IoT is already integral to data collection and likely to keep expanding in the years to come.”

The report also explores other technology trends affecting healthcare in Germany, including the drive among providers for decarbonization and the relative shortage of technology providers specializing in healthcare compared with those supporting other German industries.

The 2022 ISG Provider Lens Healthcare Digital Services report for Germany evaluates the capabilities of 32 providers across two quadrants: Payer Digital Transformation Services and Provider Digital Transformation Services.

The report names Accenture, Atos, CANCOM, Deutsche Telekom/T-Systems and IBM as Leaders in both quadrants. It names Capgemini and DXC Technology as Leaders in one quadrant each.

In addition, Arvato Systems, Deloitte and TCS are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

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