ISG Provider Lens™ Healthcare Digital Services - Germany 2020 - Payer Digital Transformation Services
The COVID-19 Crisis Offers Additional Opportunities for Digitization Vendors in the Healthcare Sector.
The COVID-19 pandemic has placed high demands on the healthcare sector in Germany. The situation is increasingly exposing vulnerabilities in healthcare providers and payers (health insurance companies and insurers) that existed before the crisis. This promotes the shift to digitized processes and services and accelerates digitization in the German healthcare system.
Even more than before, increasing efficiency is the goal of those responsible for IT at healthcare providers and payers. Cost reductions and improved customer and patient service, optimized patient care and support for medical diagnoses, and increasingly telemedicine - both during the coronavirus crisis and in the long term for better medical care in rural areas - are further goals of healthcare sector CIOs.
The main digitization solutions that support the achievement of these goals are systems for automation, solutions based on artificial intelligence and the provision of resources from the cloud. The latter topic touches on a point that poses particular challenges for CIOs and vendors of digitization solutions in the healthcare sector: Healthcare is one of the most heavily regulated industries in Germany, so service providers must demonstrate not only deep and comprehensive technical knowledge, but also a profound knowledge of the industry and its statutory regulations. One area where this is critical is in the protection of patient data.
However, legislation is not just a limiting factor for digitization in the German healthcare sector. It also stimulates the market with the electronic patient record, which has been mandatory since Jan. 1, 2021.
Efficiency pressure in the healthcare sector is driving demand for provider digital transformation services: In the context of the COVID-19 crisis, weak points of the healthcare system in Germany became apparent that had not yet been so strongly revealed in normal operations. Furthermore, under the current pressure to make the healthcare sector as efficient as possible, it is becoming clear that analog processes can be a stumbling block.
A constant ongoing theme for CIOs, even independently of the COVID-19 crisis, is the need to increase the efficiency of the healthcare system, including through greater automation.
Thus, one consequence of the pandemic will be that digitization in the German healthcare system will proceed at an accelerated pace. As it does, providers of provider digital transformation services will have an advantage if, among other things, they can offer a broad portfolio of services. In addition, in-depth industry knowledge and business and IT-related consulting skills are helpful for the market success of service providers.
Seven vendors were able to position themselves as leading providers of provider digital transformation services in Germany in this study: Accenture, Atos, CANCOM, Computacenter, Deutsche Telekom (Telekom Healthcare Solutions), DXC and IBM. ISG identified Cognizant as a Rising Star.
Competition among payers is a key driver for the payer digital transformation services market: Health insurance providers, and especially health insurers in Germany, are already more advanced overall in terms of digitization than are healthcare providers. Competition among payers is forcing increased efficiency and improved customer service. The quest for efficiency gains is driving demand by health insurers and health insurance companies for digitization services. In addition, the legislature is bringing about more digitization measures, for example with the electronic patient file, which has been mandatory for all health insurance companies and health insurers since the beginning of this year. However, digitization projects must also take into account the specific restrictions imposed by statutory requirements for the industry.
Thus, CIOs expect providers of payer digital transformation services not only to have IT experts with a broad portfolio, but also to have experts in industry-specific requirements and regulations.
Six providers were able to position themselves as leading providers of payer digital transformation services in Germany in this study: Accenture, Atos, CANCOM, Computacenter, Deutsche Telekom (TSI) and IBM.
A wide range of requirements are placed on providers of Payer BPaaS: Business process as a service (BPaaS) offerings help payers automate business processes to reduce costs, streamline services and modernize their operations. Operational flexibility is another benefit in times of pandemics. Cloud delivery helps modernize operations and increase business agility.
This means that vendors who can demonstrate strong competencies with regard to migration to the cloud can make their mark in this market. A comprehensive scope of services and experience, with solutions in data analytics, automation and artificial intelligence, also have a positive effect for providers. The providers of BPaaS must also comply with the special statutory requirements for Germany and the corresponding compliance guidelines. Therefore, healthcare payer CIOs are looking not only for powerful BPaaS providers but also for experts in industry-specific requirements and regulations.
Two vendors were able to position themselves as leading vendors of payer BPaaS in Germany in this study: Accenture and Cognizant.
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