Digital transformation in hospitals: evaluating the ROI of IT investments in health systems
Year: 2025
Type: article
Abstract: Digital transformation of hospitals is transforming the provision of healthcare services through the incorporation of sophisticated information technologies into clinical, operational, and administrative hospital systems. However, even with such heavy investments in the digital health infrastructure, one everything seems to be persistently missing: the ability to accurately assess the return on investment (ROI) of such technologies both in financial performance and patient care outcomes. The research question of this paper is the ROI of IT investments in hospitals; the multidimensionality of the impact of digital systems (Electronic Health Records, Clinical Decision Support Systems, telemedicine platforms, and data analytics dashboards) will be considered. With the quantitative research design, the research study will examine the data provided on the financial reports of the hospital, operational and clinical outcome indicator data to quantify the cost-effectiveness and value-creating measures. The main findings indicate that hospitals at the stage of a developed digital ecosystem are characterized by a significant increase in budget efficiency, a decrease in errors, an increased productivity of the staff, and an increase in the recovery rates of patients. Another revelation of the study is that ROI is not just about financial benefit but also includes benefits in workflow streamlining, decision correctness, and long-term viability. This study adds to this body of evidence by synthesizing, in financial, clinical, and operational spheres, an overall structure of IT investment assessment in health systems. This research is also novel because of its data science approach, cross-functional analysis, and prescriptive recommendations that can be used by hospital managers and health policymakers. The results highlight a strong necessity of systematic ROI assessment plans that will direct prospective digital spending plans and align them with institutional objectives. The paper is an essential source of reference in accelerating evidence-based IT adoption in healthcare and achieving optimum value on digital transformation initiatives.
Authors: Kazi Sanwarul Azim, Maham Saeed, Keya Karabi Roy, Kami Yangzen Lama
Institution: St. Francis College
Language: English
Subfield: Health Information Management
Field: Health Professions
Domain: Health Sciences
Open Access status: diamond
OpenAlex ID: W4413306557