Australia urged to rethink ROI in digital health push
SYDNEY, AUSTRALIA — Australia’s push to modernize its healthcare system is running into a critical barrier: how return on investment is measured, with experts warning that a narrow focus on short-term financial gains is slowing transformation and forcing providers to rethink operating models — including outsourcing and global staffing strategies.
According to a report from Healthcare IT News, healthcare leaders say the challenge is no longer funding digital initiatives but proving their value in ways that reflect long-term outcomes.
That shift is prompting hospitals and health systems to look beyond traditional cost metrics and toward more flexible delivery models that can sustain digital investments without adding financial strain.
Rethinking ROI drives new healthcare operating models
At the center of the debate is a growing consensus that digital health cannot be evaluated like a typical capital investment.
“In this ROI discussion, it is important to acknowledge several key factors,” said Dr. Amandeep Hansra, chief clinical adviser at the Australian Digital Health Agency.
“Australians are, on average, living longer and with more chronic disease… So when we talk about ROI, we must broaden the lens. It can’t just be about short-term financial gain,” Hansra added.
Instead, Hansra emphasized that value should include care outcomes, patient and clinician experience, and system sustainability.
“Digital health isn’t just a cost centre, it is an enabler of better care and system transformation,” she said, pointing to gains in reducing avoidable hospitalizations and improving care coordination.
For providers under pressure to justify digital spending, this broader definition of ROI is accelerating the adoption of new operating models. Many are turning to offshore healthcare business process outsourcing (BPO), shared services, and global staffing to manage non-core functions such as IT support, revenue cycle management, and analytics.
These approaches allow organizations to reduce unit costs and improve productivity without requiring additional capital investment — a critical advantage as digital transformation budgets tighten.
Workforce shortages and global talent reshape delivery
Australia’s healthcare system is also grappling with workforce and skills shortages across both clinical and IT roles, further complicating digital transformation efforts.
“Fragmentation persists because healthcare hasn’t historically been designed as a connected system,” Hansra said, underscoring the structural challenges providers face.
As a result, healthcare organizations are increasingly looking offshore to fill gaps in specialized digital capabilities, from data engineering to interoperability and AI support. This trend is not unique to Australia.
In the United States, hospitals and health systems facing similar ROI pressures are exploring outsourcing to stabilize costs while advancing digital priorities. By shifting administrative and back-office workloads to global delivery centers, providers can redirect in-house talent toward patient care and high-value clinical tasks.
The stakes are rising as AI adoption accelerates. “AI is only as effective as the data and systems it sits on, so getting the foundations right is critical,” Hansra said.
Ultimately, redefining ROI will require aligning investment with outcomes — and embracing more scalable, globally enabled operating models. Without that shift, the full value of digital health transformation may remain out of reach for providers worldwide.
