Navigating the New Healthcare Landscape: Why Operations Lag in Digitization, but Can’t Afford To

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June 6, 2025

What are the barriers to digitizing healthcare operations, and why is there often resistance to these changes? What motivates stakeholders to “rip off the Band-Aid” and make the decision to challenge the status quo? How have you witnessed operational digitization transform patient care and internal processes in your career that you can articulate?

As a 25-year veteran of healthcare services across the managed care payer and provider industry, I’ve gathered some interesting perspectives on the ‘inside baseball’ of healthcare. Today we will talk about why healthcare operations are the last to digitize yet are the first ones to need it.

Let’s start with the most practical example using patient experience. Picture your doctor’s office that has been open for the last 15 years, such as your local pediatrician or OB/GYN. While they have upgraded software and hardware across different systems such as patient scheduling and payment collection, they also have 3rd-party services to submit your insurance claims and an after-hours call center to handle your after-hours needs.

Navigating the New Healthcare Landscape:  Why Operations Lag in Digitization, but Can’t Afford To

In comparison, a large corporation or hospital-based primary care center typically presents as fully integrated, with 24/7 staff that use the same electronic health record, full integration into affiliate systems that support your prescriptions and refills, and a sophisticated referral system that is faster than email or (heaven forbid) fax.

While the obvious observation behind these change drivers is cost, the more complicated answer is also the time, energy, and change management effort behind what it takes to fully digitize and transform your business. You see, system change — replacing processes and workflows that staff have been relying on for years — is not as simple as purchasing new software.

Decision-makers must evaluate the entire change lifecycle of digitization when pursuing an upgrade, and to be honest, it’s a lot easier to start from scratch than to pursue data conversion, training, and navigate the impacts to patient experience.

Author’s Recommendation

Healthcare is a complex industry that boils down to service and products. When it comes to someone’s life, we have minimal tolerance for mistakes or delays. In clinics and hospitals, patients have zero tolerance when their cancer diagnosis or lab result is delayed. Healthcare service leaders know the value of their brand, and every time a staff member can’t log in to their new EMR in order to start completing activities for the day, or a clinician cannot complete documentation before moving onto the next patient, it threatens brand and patient satisfaction.

Simply put, change is hard, especially in healthcare, but it’s one of the most important industries where digitization is critical, and often, for the very same reason: change.

System change — replacing processes and workflows that staff have been relying on for years — is not as simple as purchasing new software.

Charles Rosado

In Conclusion

Even though I am not a clinician, we support them every day, and there is a fascinating concept known as “whitecoat syndrome.” It’s the premise that because a professional has earned the title of Doctor or Psychiatrist, they must know everything, and when they graduated from medical school and completed internship, that may have been true. The reality is that as clinicians see more and more patients, they need help. They need systems to organize their tasks, and alerts to remind them about patients requesting medication refills.

Congruent to how algorithms have changed the landscape of social media, the healthcare industry is a machine that pumps out change faster than the human brain can comprehend. Whether it’s new prescription products, updated classifications of disease, or new systems to verify insurance status and eligibility, the healthcare service ecosystem is difficult for any one person to manage.

Along the difficult decision for stakeholders to manage: to digitize or not. Oftentimes, those decisions are birthed through negative operational experiences, such as a failed audit, or litigation that created penalties.

As healthcare service leaders, we must do better for our patient population, staff, and the communities that we serve. Proactive planning in the digital ecosystem, outlining technology roadmaps for multi-year strategies, and integrating data/services is critical to protecting the brand, meeting the needs of our staff, and delighting our customers. Without this focus, customer needs will continue to evolve, leaving clinicians and their practice behind.

Keona’s Reply

A heartfelt thank you to Charles for shining a light on healthcare's digital elephant in the room. Why are operations — the backbone of patient care — often the last to digitize when they need it most? It's like watching someone struggle with paper maps while their GPS sits unused in the glove compartment.

Navigating the New Healthcare Landscape:  Why Operations Lag in Digitization, but Can’t Afford To

The numbers tell the story: while 98% of healthcare executives are talking AI strategy, Brookings found that in 2022, only construction moved slower than healthcare in actually adopting these tools. We've all been there — enthusiastically downloading a fitness app, then leaving it untouched for months. Healthcare operations face the same human resistance, just with higher stakes.

Why are operations — the backbone of patient care — often the last to digitize when they need it most? It's like watching someone struggle with paper maps while their GPS sits unused in the glove compartment.

Stephen Dean

You absolutely nailed why this hesitation exists. Changing those deeply ingrained processes feels like performing open-heart surgery on your workflow while still seeing patients.

We get it! Nobody wants to be the doctor whose system crashes mid-appointment, leaving them smiling awkwardly with "The computer's just thinking...." But clinging to outdated systems is like asking your staff to run a marathon in lead boots — technically possible but painfully inefficient.

What if digitization could transform that administrative jungle gym into a smooth-running machine?

Imagine Maria, who waited 47 minutes for an appointment, becoming the last patient to face that frustration. That's not just better technology; it's giving your team the gift of time — time to actively listen, understand their fears, and provide the human connection that truly drives healing.

Ready to explore what this transformation could look like for your team? Let's talk about where to start.

Frequently Asked Questions

Why are healthcare operations the last to digitize?

Healthcare operations lag behind other industries in digitization for several compounding reasons:

  • Deeply embedded workflows that staff have relied on for years
  • Complex change management requirements
  • Significant costs for data conversion and training
  • A low tolerance for operational disruption when patient care is at stake.

Unlike industries where a system failure is an inconvenience, in healthcare it can delay diagnoses, impact medication refills, or compromise patient safety. That high-stakes environment makes decision-makers cautious about change, even when the status quo is clearly inefficient.

What is the cost of not digitizing healthcare operations?

The cost of not digitizing healthcare operations is both practical and reputational. Practices running on fragmented or outdated systems force staff to duplicate work, manually transfer information between platforms, and make scheduling or clinical decisions without complete patient context. This slows every call, increases error risk, and erodes staff satisfaction. For patients, it means longer wait times, more callbacks, and a service experience that falls short of what they receive in nearly every other industry. Brands that delay digitization risk falling behind competitors who have already made the investment.

What stops healthcare leaders from adopting new operational technology?

Three barriers tend to block or slow adoption: cost, change management complexity, and risk aversion. Replacing established workflows requires retraining staff, converting historical data, and managing the disruption to daily operations during the transition period. Many decision-makers find it easier to defer the investment than to absorb those short-term pressures, even when the long-term operational and financial case is clear. In many cases, the decision to finally act is triggered by a negative event, such as a failed audit, a patient satisfaction crisis, or a compliance penalty.

How does digitizing healthcare operations improve the patient experience?

When clinical and administrative systems are integrated, staff have immediate access to the patient context they need: visit history, outstanding balances, alert notes, and scheduling availability. This eliminates the back-and-forth that extends call times and increases patient callbacks. Agents can resolve more requests on the first contact, scheduling decisions improve, and patients spend less time waiting for answers. The downstream effect is a measurably better experience at every touchpoint.

What is the difference between digitization and true operational integration in healthcare?

  Digitization means replacing paper or manual processes with software. Operational integration means those software systems communicate with each other in real time, so staff are not toggling between platforms or re-entering the same information twice. Many practices have digitized individual functions, such as scheduling or billing, but have not integrated them. The result is a digital version of the same fragmented workflow. True integration surfaces the right data in the right workspace at the right moment, so clinical and operational teams can work without system-hopping. 

How does AI fit into healthcare operational digitization?

AI accelerates the value of an integrated operational platform by handling routine tasks: routing calls, surfacing relevant patient information, flagging scheduling conflicts, and prompting staff with next-best-action guidance. While 98% of healthcare executives report having an AI strategy, adoption in actual operations has lagged significantly. The gap between planning and implementation is where most practices lose ground. AI is most effective when it is layered onto a fully integrated operational foundation, not deployed as a standalone tool on top of fragmented systems.

What should healthcare leaders prioritize when building a digitization roadmap?

Start with the workflows that create the most friction for staff and the most delays for patients. Call center and patient access operations are a high-impact starting point because they touch every patient interaction and feed directly into scheduling, clinical documentation, and collections. Prioritize platforms with open API architecture that can connect to your existing EHR rather than requiring a complete system replacement. Define clear metrics before implementation, such as handle time, callback rate, and scheduling accuracy, so the operational impact of the change is measurable from day one.

Posted By

Charles Rosado

Charles Rosado Charles has almost 25 years in the healthcare services industry, spanning vertical roles across the healthcare payer and provider continuum. His journey began in the early 2000s after serving in the United States Marine Corps. Originally from Queens, New York, Charles moved into the Connecticut area, growing his healthcare knowledge and capacity through large payers such as Cigna and Anthem Blue Cross. In 2017, Charles shifted his focus into home health provider support, specialty pharmacy home infusion, and eventually, primary care. He is committed to strengthening the connection between operational execution and strategic vision, adding value to healthcare affordability, and improving healthcare outcomes for our community. When not advancing DCPCA and CCN mission, vision, and values, Charles is an active volunteer, and along with his wife, participate in career coaching and professional development for those without access to mentors. He also enjoys bringing his passion for education and training to the baseball field a baseball coach for 13-14u boys. Charles and his wife are avid pet lovers who also volunteer at their local humane society. Charles is an MBA graduate from Florida Atlantic University and holds project management and Six Sigma process improvement certifications. He is bilingual in Spanish, and when time allows, enjoys completing home improvement projects. Charles is now Vice President of Network Operations, DC Connected Care Network

The landscape has changed. Your patient access strategy should too.