Spending on digital health solutions is poised for continued growth in the coming year, with nearly all purchasers maintaining or increasing expenditures.
“Commitment to digital health investment remains strong across all segments, though spending patterns vary by purchaser type,” according to the 2025 State of Digital Health Purchasing report from the Peterson Health Technology Institute. “The primary driver of increased spending is expanding digital health portfolios, followed by greater user engagement.”
The report is based on a survey of more than 300 decisionmakers for health plans, employers and health systems that asked about purchasing approaches, contracting processes and future plans.
Purchasing approach. Purchaser interest in digital health solutions remained strong over the past year, with most maintaining or increasing spend. Employers leaned toward maintaining, while health plans and health systems continued to expand. Top clinical areas of focus continue to be diabetes, mental health and primary care. AI integration is now mainstream, with most health plans and health systems incorporating AI-powered solutions to drive measurable impact.
Contracting process. Purchasers are using short-term contracts and rely on multiple performance metrics, including user engagement, clinical metrics, plan adherence and financial metrics. Nearly half of purchasers now use performance-based contracts, with a majority planning to use these contracts in the next year. Few purchasers are fully satisfied with current agreements and see opportunities to improve outcome performance thresholds (such as what population change is necessary to receive performance payments), payment models and attribution methodology.
Future plans. Over the next year, health plans expect to increase spending, while employers and health systems plan to maintain current spending levels. Improving access to care is the top priority among purchasers, with health plans focused on competitive benefits; health systems on reducing administrative burden; and employers on enhancing user experience. Purchasers will continue to maintain focus on many current clinical priorities while exploring obesity and substance use disorder solutions.
Spending varies significantly by industry segment. Employer spending on digital health solutions has leveled off, with just one-third reporting an increase. By contrast, health plans (84%) and health systems (79%) continue to see strong momentum. This shift reflects employers’ focus on maintaining their current suite of digital health solutions.
Among those increasing spending, purchasers say they are offering more digital health solutions and seeing more user adoption. Purchasers believe these digital tools improve health outcomes (84%) and reduce costs (68%). Health plans and health systems are more likely than employers to report they have seen these improvements.
Clinical priorities for 2025 remain largely consistent with 2024 expectations, showing stability in purchaser focus areas, with some modest shifts in emphasis. Diabetes solutions are a particular priority for health plans, with 91% currently focusing on diabetes compared to employers (32%) and health systems (76%).
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