Data, AI Take Center Stage in U.S. Healthcare Modernization

Rhea-AI Summary

Information Services Group (ISG) has released its 2024 ISG Provider Lens™ Healthcare Digital Services report, highlighting the increasing adoption of digital technologies in U.S. healthcare. The report emphasizes how healthcare organizations are leveraging AI, machine learning, and data analytics to enhance patient care and operational efficiency.

Key transformations include the implementation of generative AI and data analytics for improved claims processing, cloud migration of Electronic Health Records (EHR) systems, and the development of AI-powered customer interaction tools. Healthcare providers are adopting cloud-based ERP systems to increase scalability and reduce infrastructure costs, while implementing AI-informed revenue cycle management (RCM) systems for better financial outcomes.

The report evaluates 54 providers across five quadrants, with Accenture, Deloitte, HCLTech, and Wipro named as Leaders in all five quadrants. Persistent Systems was recognized as the global ISG CX Star Performer for 2024 among Healthcare Digital Services providers.

Positive

• Multiple industry leaders identified across five service quadrants
• Implementation of AI and ML improving claims processing efficiency
• Cloud migration reducing infrastructure costs
• AI-powered predictive analytics enhancing revenue cycle management

Negative

• None.

Insights

Healthcare Technology Analyst

This report carries significant implications for Information Services Group (III) and the broader healthcare technology advisory market. The comprehensive analysis of 54 providers across five quadrants positions III strategically in the rapidly evolving healthcare digital transformation space.

The healthcare digital services market is experiencing a seismic shift, driven by three key factors:

• Data Monetization Opportunities: The emphasis on data as a strategic asset creates substantial consulting opportunities for III in helping healthcare organizations develop and implement data strategies.
• AI Integration Wave: The widespread adoption of GenAI and ML solutions in healthcare opens new revenue streams for advisory services, particularly in implementation guidance and vendor selection.
• Cloud Migration Momentum: The transition of EHR and ERP systems to cloud platforms represents a significant market opportunity for technology advisory firms.

The report's timing and focus are particularly strategic for III, as healthcare organizations increasingly seek expert guidance in navigating complex digital transformations. The company's research credibility is reinforced by identifying emerging trends like ethical AI practices and cybersecurity challenges.

From a competitive standpoint, III's position as the publisher of this comprehensive market analysis strengthens its authority in the healthcare advisory space. The report's extensive coverage of 54 providers demonstrates III's deep market understanding and positions the company as a trusted advisor for healthcare organizations seeking digital transformation partners.

The emphasis on efficiency and cost optimization in healthcare digital transformations aligns perfectly with III's advisory services portfolio. This creates opportunities for the company to expand its healthcare consulting practice, particularly in areas like vendor selection, transformation strategy and implementation oversight.

Emerging technologies help healthcare providers, payers deliver better patient/member service, ISG Provider Lens™ report says

STAMFORD, Conn.--(BUSINESS WIRE)-- Healthcare organizations in the U.S. are eagerly adopting emerging digital technologies as data becomes a critical strategic asset, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Healthcare Digital Services report for the U.S. says the industry is using AI and other digital tools and services as part of overall transformations to increase efficiency, improve outcomes and offer better patient/member service. New approaches such as value-based care (VBC), which prioritizes patient outcomes over traditional fee-for-service models, require advanced data capabilities.

“Healthcare providers and payers in the U.S. are expanding patient-centered care and service models to enhance everyone’s healthcare experience,” said James Burke, partner at ISG. “Smarter use of data is a key part of this transition.”

Both public and private payer organizations are implementing solutions based on generative AI (GenAI), machine learning (ML) and data analytics to extract insights from vast datasets, the report says. Using those insights, they are building more capable claims processing and personalized customer interactions. Electronic health record (EHR) providers are also transforming their systems, migrating to cloud platforms for scalability and flexibility while introducing interoperability for data-sharing among healthcare providers.

With an increasing focus on patient/member experience, payer organizations are using GenAI, ML and telehealth to improve overall service efficiency and delivery, ISG says. User-friendly digital portals and AI-powered chatbots make services and information more accessible, furthering omnichannel strategies that let members interact with care providers wherever and on whatever device they choose.

New technologies continue to improve the handling of healthcare financials. The report says enterprises are implementing modular and AI-informed revenue cycle management (RCM) systems. AI-based predictive analytics help healthcare providers identify potential denials of coverage before they occur and proactively try to resolve the issues.

Cloud-based ERPs and electronic health records (EHR) have significantly changed the operations of U.S. healthcare providers, increasing scalability and removing infrastructure costs, ISG says. Cloud ERP and EHR platforms also let providers quickly implement digital capabilities such as scheduling, billing and patient records access and make them available on any device.

“Efficiency is a major benefit of the digital transformations taking place in U.S. healthcare enterprises right now,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “New technologies are creating a culture of innovation and cost optimization that promises care improvements.”

The report also explores other trends affecting healthcare organizations in the U.S., including rising interest in ethical AI practices and efforts at improving financial systems.

For more insights into the challenges facing the U.S. healthcare sector, including rising cybersecurity threats and increasingly complex regulations, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Healthcare Digital Services report for the U.S. evaluates the capabilities of 54 providers across five quadrants: Payer Transformation — Public, Payer Transformation — Private, Provider Transformation — ERP, Provider Transformation — RCM and Provider Transformation — EHR.

The report names Accenture, Deloitte, HCLTech and Wipro as Leaders in all five quadrants. It names Cognizant as a Leader in four quadrants and Infosys as a Leader in three quadrants. Kyndryl, NTT DATA and TCS are named as Leaders in two quadrants each. CitiusTech, EXL, Firstsource, Genpact, KPMG, LTIMindtree, Optum, PwC, R1rcm and UST are named as Leaders in one quadrant each.

In addition, Tech Mahindra is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. CitiusTech, Firstsource and Innova Solutions are named as Rising Stars in one quadrant each.

In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2024 among Healthcare Digital Services providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

A customized version of the report is available from Wipro.

The 2024 ISG Provider Lens™ Healthcare Digital Services report for the U.S. is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250131362509/en/

Press Contacts:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What are the key findings of ISG's 2024 Healthcare Digital Services report for III?

The report highlights increasing adoption of AI, ML, and data analytics in U.S. healthcare, with focus on improved patient care, efficient claims processing, and cloud-based EHR systems. It evaluated 54 providers across five quadrants.

Which companies were named Leaders in all five quadrants of ISG's 2024 healthcare report?

Accenture, Deloitte, HCLTech, and Wipro were named Leaders in all five quadrants of the 2024 ISG Provider Lens Healthcare Digital Services report.

How is AI transforming healthcare services according to ISG's 2024 report?

AI is being used for claims processing, predictive analytics in revenue cycle management, chatbots for customer service, and data analysis for personalized healthcare delivery.

What benefits are healthcare providers seeing from cloud-based ERP systems?

Healthcare providers are experiencing increased scalability, reduced infrastructure costs, and improved access to digital capabilities like scheduling, billing, and patient records across devices.

Who won the ISG CX Star Performer award for Healthcare Digital Services in 2024?

Persistent Systems was named the global ISG CX Star Performer for 2024 among Healthcare Digital Services providers, earning the highest customer satisfaction scores in ISG's Voice of the Customer survey.