Novant Health is doubling down on its digital health initiatives

This is an excerpt from a story delivered exclusively to Business Insider Intelligence Digital Health Research subscribers. To receive the full story plus other insights each morning, click here.North Carolina-based health system Novant Health launched a digital health and engagement business unit that will bring its virtual care strategies under one roof and bulk up digital offerings for patients. Nearly 1 million Novant Health patients are currently connected to their providers virtually, and Novant likely sees bolstered digital services as a growth pillar.Committing to digital health strategies now could put health systems in a good position to reap the benefits of the imminent digital health boom: The global digital health market's projected to hit $380 billion by 2024, growing 26% annually, according to Market Watch.Here's what it means: Novant Health joins a rank of other health firms doubling down on efforts to streamline and build out digital offerings.Health systems have unveiled in-house innovation hubs to tap into the springing digital health boom. New York-based Mount Sinai announced last month that it's creating an innovative institute to develop digital health solutions to accelerate precision medicine, for example. And Atlanta-based Emory Healthcare teamed up with digital health company Sharecare to launch an innovation hub with the goal of developing strategies that will boost patient outcomes. Others are betting on digital health startups to harness the power of cutting-edge tech. Mayo Clinic selected a spate of digital health startups to take part in its MedTech Accelerator late last month — and many of the companies it tapped are leveraging buzzy tech like remote patient monitoring. And many US hospitals are pumping funds into health tech startups: The value of funding deals involving hospital-affiliated VCs surpassed $1 billion in 2018 compared with under $600 million in 2013.The bigger picture: Revving up digital offerings could help health systems engage their patient base and preserve revenue. Consumer appetite for digital health tools is on the rise. The share of respondents adopting at least one digital health tool climbed to 87% in 2017, up from 80% two years prior, pointing to growing demand, according to a 2018 Rock Health survey. Further, millennials — who account for the largest portion of the adult population — are more likely to seek out alternative modes of healthcare delivery: 40% of millennials say that telemedicine services are either “extremely” or “very” important, compared with only 27% of Gen Xers. As health systems look to find new ways to attract younger patients, focusing on digital health seems like a strong bet.And securing patient satisfaction is becoming increasingly important for health systems. A reimbursement model that's gaining momentum in healthcare ties a portion of providers' compensation to patient satisfaction, so providers will need to pay attention to consumer demand for a strong digital experience to hang onto patient loyalty: Shirking digital health offerings could leave health systems waving goodbye to patients, as 90% of patients say they don't feel obligated to stay with a provider who doesn't offer a satisfactory digital experience, per a Black Book survey cited in Patient Engagement HIT. Moreover, hospitals with “excellent” patient satisfaction scores report an average net margin of 4.7%, while hospitals with “low” scores report an average of 1.8%. So, hospitals can up the likelihood of hitting revenue goals by boosting patient satisfaction through robust digital offerings.Interested in getting the full story？Subscribe to a Premium pass to Business Insider Intelligence and gain immediate access to the Digital Health Briefing, plus more than 250 other expertly researched reports. >> Learn More Now