The healthcare sector is rapidly embracing digital technologies, with electronic health records (EHRs) leading the way. Since 2009, the use of EHR systems has surged dramatically—by 10 times in hospitals and 5 times among physicians. According to a study titled The Evolution of Health Information Technology for Enhanced Patient-Centric Care in the United States: Data-Driven Descriptive Study, this growth has made it possible to share health information electronically, including e-prescribing, public health data exchange, and providing patients and caregivers easy access to essential health data.
In 2023, 70% of hospitals were using interoperable systems, meaning their systems could easily communicate with each other. Nearly all pharmacies and 92% of prescribers now have e-prescribing capabilities, a major increase from 2008. Patient access to medical records has also greatly improved. In 2013, only 40% of hospitals and one-third of doctors allowed patients to view their records online.
In 2023, 97% of hospitals and 65% of physicians had systems in place that gave patients access to their medical records. In 2022, 75% of patients had access to online portals, with over half (57%) actively using them. Additionally, electronic public health reporting has seen widespread participation from hospitals and physicians.
In this article, we’ll explore why interoperability in healthcare is essential for digital health startups and how it can give them a competitive edge in the market.
What is Interoperability in Healthcare?
Interoperability in healthcare refers to the ability of different health information systems, devices, and software applications to work together and share data seamlessly. This concept allows healthcare providers, patients, and even insurers to access, exchange, and use health data across different platforms and systems. Interoperability isn’t just about technology; it’s about ensuring that critical health data can flow smoothly across the entire ecosystem, from the hospital to the pharmacy, and even to the patient’s smartphone.
Interoperability is especially important because it ensures that the right information is available at the right time for clinical decision-making. In a world where patient health data is spread across multiple systems, making those systems work together efficiently is key to improving healthcare delivery.
5 Reasons Why Interoperability in Healthcare is a Competitive Advantage for Digital Health Startups
- Faster Market Adoption
For digital health startups, gaining adoption among healthcare providers can be challenging. Hospitals and physicians often stick to established systems, and switching to new technology can be challenging. If a new product doesn’t integrate well with their existing infrastructure and workflow, it can create unnecessary barriers. This is where interoperability becomes a game changer.
When a startup designs its solution to work seamlessly with systems already in use—such as electronic health records (EHRs) or health information exchanges (HIEs)—the adoption process becomes much easier. Providers don’t need to worry about overhauling their entire system or spending extra time learning new processes. They can quickly incorporate the new tool into their daily workflow, which reduces resistance to change.
At Estenda Solutions, we know that making healthcare technology easy to adopt is crucial. By prioritizing interoperability in the solutions we develop for our clients, we help healthcare providers get up and running faster. This means digital health startups that embrace interoperability are lowering the barrier to entry for healthcare organizations, making it easier to grow their customer base. With smoother adoption, these startups can accelerate market entry and scale more quickly.
- Improved Patient Outcomes
The primary goal of healthcare is to improve patient outcomes, and interoperability plays a key role in achieving that. When patient data can flow freely between systems—whether it’s lab results, prescriptions, or medical histories—healthcare providers get a more complete and accurate view of the patient’s health.
Having all this information in one place allows doctors to make more informed decisions, leading to better treatments and improved health for patients. Startups that offer solutions with interoperability can make a clear case for how their products help improve patient care. Healthcare providers are more likely to invest in a product that directly contributes to better patient outcomes.
In our work with healthcare organizations, we’ve seen firsthand how critical real-time access to patient data is. Solutions that make this possible can greatly enhance patient care, and startups that offer these kinds of solutions stand out in a competitive market.
- Regulatory and Payer Readiness
The healthcare industry is heavily regulated, and one of the most significant regulations for digital health startups to consider is the 21st Century Cures Act, which promotes data sharing and interoperability across the healthcare system. By prioritizing interoperability, digital health startups ensure their products comply with these regulations, positioning them as forward-thinking and aligned with federal requirements.
Additionally, many healthcare payers (like insurance companies) are moving toward value-based care models, which focus on patient outcomes rather than the volume of services rendered. Interoperability makes it easier to track and measure patient health outcomes, which is a requirement for value-based care programs. Startups that build solutions with interoperability in mind are better prepared to partner with payers and gain reimbursement opportunities that competitors may miss.
The regulatory environment is only going to get more complex, and startups that aren’t prepared for these changes will quickly find themselves left behind.
- Enhanced Trust and Credibility
The healthcare industry tends to be cautious when it comes to adopting new technologies, especially from startups. Hospitals and health systems want to be sure that any new solution they use will be reliable, secure, and able to integrate easily with their current systems. That’s where interoperability comes in.
When a startup builds its product to meet established industry standards, such as HL7 FHIR (Fast Healthcare Interoperability Resources), it sends a strong message that the product is trustworthy and scalable. This can help the startup gain credibility with potential clients. Providers are more likely to trust solutions that align with industry standards and that they know will integrate well with their existing systems.
We’ve seen how important it is for startups to establish credibility early on. By demonstrating that their product meets these key standards, they’re more likely to gain the trust of healthcare providers and build long-lasting partnerships.
- Easier Scaling and Partnership Growth
Scaling in the healthcare industry can be challenging due to the complex and fragmented nature of the sector. However, interoperability makes scaling significantly easier. Once a digital health startup builds an interoperable solution, it can integrate that solution across a wide range of healthcare systems and platforms without the need for major redevelopment.
This opens the door to partnerships with larger healthcare organizations, EHR vendors, and digital health ecosystems. As the startup’s solution is able to integrate with multiple systems, it can expand its reach and revenue potential exponentially. The ability to scale quickly and seamlessly is a key factor that sets successful digital health startups apart from their competitors.
In our experience, we’ve seen that interoperability is not just a technical feature—it’s a strategic advantage. It enables startups to grow faster, partner with bigger players in the healthcare space, and capture more market share. For startups that can scale quickly, the potential for success is much greater.
Take Your Digital Health Startup to the Next Level with Interoperability
At Estenda Solutions, we’ve seen firsthand how crucial interoperability is for success. With over 20 years of experience in digital health and 13 years of ISO 13485 certification, we’re here to help startups and healthcare organizations create solutions that lead to better care and more efficient outcomes.If you’re ready to move forward, contact us at info@estenda.com. We’re here to help you develop scalable, interoperable solutions that will allow your startup to succeed in today’s fast-evolving healthcare environment.
