Digital Transformation in Healthcare – Opportunity or Challenge?

Electronic health records are replacing paper files, telemedicine is shortening queues for specialists, and artificial intelligence is helping doctors with diagnostics. Over 70% of medical facilities in Europe have already implemented digital systems for managing patient data.

Technologies streamline patient service, reduce medical errors, and lower administrative costs. However, implementation requires system integration, compliance with regulations, and data security. So how exactly is digitalization changing healthcare – and what challenges lie ahead for medical institutions? Let’s explore.

Which Areas of Healthcare Are Being Transformed?

Electronic Health Records (EHR/EMR)

EHR systems eliminate paper-based records and improve access to patient history. In Denmark, all primary care physicians have been required to use electronic medical records since 2004, making it one of the most digitalized healthcare systems in Europe. While there's no exact data on how many physicians use EHRs actively, Denmark’s health system is built on widespread access to digital medical services.

Platforms like Epic and Cerner allow for data integration across institutions, automatic appointment reminders, and real-time access to test results.

Automated Imaging Analysis

AI algorithms analyze X-rays, CT scans, and MRIs, detecting abnormalities that doctors might miss. The Qure.ai system significantly improves tuberculosis detection in X-rays, reducing diagnosis time from days to minutes. In the UK’s NHS hospitals, AI accelerates stroke analysis, allowing for immediate assessment of brain damage.

Surgical Robots

The da Vinci system is a surgical robot used in many countries to enhance precision and reduce patient recovery time. In the US, a growing number of urological surgeries are assisted by da Vinci, which helps lower complication rates and shorten hospital stays. In Japan, HOSPI robots transport medications and lab samples, reducing staff exposure to infectious materials.

e-Prescriptions and Electronic Medication Management

Digital prescriptions eliminate errors from illegible handwriting and improve pharmacy operations. In Poland, the e-prescription system has shortened patient service times and reduced medication dispensing mistakes. In Estonia, nearly all prescriptions are digital, allowing patients to pick up medications from any pharmacy without needing a paper copy.

ICU Patient Monitoring Systems

Modern hospitals use real-time patient monitoring systems with sensors and predictive algorithms. Technologies like Philips eICU enable remote supervision of patients’ conditions and faster response to deterioration. These systems have improved ICU resource management and care efficiency in hospitals that have adopted them.

Digital transformation is no longer optional in healthcare – it’s a strategic shift redefining how medical services are delivered, making care faster, safer, and more accessible. But adoption must be handled responsibly, with a focus on data security, regulatory compliance, and staff training to ensure success.

Benefits of Digital Transformation in Healthcare

Faster and More Accurate Diagnoses with AI and Data Analytics

Artificial intelligence supports doctors in detecting diseases at early stages. Algorithms that analyze X-rays and CT scans enable quicker and more precise assessments of pathological changes. Google’s DeepMind system can diagnose eye diseases with accuracy comparable to top specialists. In India, Qure.ai’s lung scan AI reduced the analysis time from several days to just a few minutes.

Increased Efficiency of Medical Staff

Hospital management systems automate documentation, reducing time spent on administrative tasks. The implementation of EHR in the U.S. saved physicians an average of 2 hours per day. In Finland, the centralized Kanta system provides instant access to patient data, cutting emergency diagnosis time by 30%.

Improved Patient Access to Medical Services

E-prescriptions, telemedicine, and online patient portals allow patients to access medical services without needing to visit clinics physically. In some countries, digital e-prescription systems enable patients to collect medications from any pharmacy without a printed document. Medical data management systems store visit histories, lab results, and referrals in one place, making healthcare more accessible and seamless.

Reduced Operational Costs for Healthcare Facilities

According to available data, automating administrative processes in healthcare—as seen in the U.S. with digital hospital management systems and Estonia, where full medical documentation digitalization has been implemented—significantly lowers operating costs. In Estonia, digital systems provide easy access to patient records, contributing to savings across the national healthcare system.

Better Data Management and Personalized Treatment

EHR platforms enable the analysis of large datasets to tailor treatments to individual patient needs. In oncology, AI facilitates personalized cancer treatment based on genetic profiles, improving therapy effectiveness. In Finland, a unified EHR system allows immediate data exchange between hospitals, shortening response times in emergencies.

Digital transformation brings measurable improvements to healthcare: faster diagnostics, reduced costs, and more efficient workflows. Facilities that embrace these technologies increase operational effectiveness and improve the overall quality of patient care.

The biggest barriers to digital transformation in healthcare

Patient data security and GDPR compliance

Attacks on medical data are one of the biggest threats in the process of digital transformation in healthcare. According to the 2023 ENISA report, as many as 46% of cyber incidents in the healthcare sector involved data breaches, and 43% of ransomware attacks were related to the theft of patient information. Even worse, 72% of medical facilities do not have dedicated cybersecurity teams, which increases the risk of data leaks. To minimize the risk, it is necessary to implement advanced security systems, conduct regular audits, and train staff in data protection.

That’s why implementing electronic document management systems requires compliance with strict standards such as GDPR and the NIS2 Directive, which involves investing in advanced encryption mechanisms, security audits, and regular system resilience tests.

Every medical facility processing patient data must implement procedures that minimize the risk of leaks – including access segmentation, EHR encryption, and user activity monitoring mechanisms. However, data protection is not only about technology – even the best systems can fail if the staff is not properly trained in cybersecurity.

Medical errors resulting from automation and AI

Artificial intelligence and digital systems can reduce the number of medical errors, but their effectiveness depends on data quality and clinical oversight. AI algorithms supporting oncology diagnostics show high effectiveness, but studies indicate that their accuracy may decrease when models are trained on limited datasets or don’t consider the patient's clinical context.

Full automation of medical decisions carries risk if doctors rely too heavily on AI system recommendations without verifying them. Predictive models should be treated as support, not as a replacement for clinical judgment. Every new medical technology requires gradual implementation, real-world testing, and regular validation to minimize risks and ensure patient safety.

Legal regulations – a complex and costly implementation process

Implementing new medical technologies is subject to strict regulations, making the process both complex and expensive. In the European Union, the Medical Device Regulation (MDR) 2017/745 applies, requiring manufacturers to conduct a certification process for medical devices. The duration of this process depends on the product's risk class and procedural complexity and can take from 6 months to 2 years. Certification costs vary depending on many factors, such as company size, process complexity, organizational structure, product portfolio, and device risk class.

An additional challenge is the dynamically changing legal framework. The upcoming EU AI Act aims to ensure that artificial intelligence is used safely, ethically, and responsibly. The new regulations are intended to protect fundamental rights and freedoms, such as the right to privacy, non-discrimination, and equal treatment. AI systems used in medicine will be classified as high-risk systems, which means meeting strict requirements such as detailed testing and certification to ensure their safety and reliability. Facilities that invested in technology a few years ago may face the need to modernize them to comply with new regulations, which generates additional costs.

High implementation and maintenance costs of systems

Digital transformation in healthcare is a complex and costly process that involves not only the purchase and implementation of IT systems, but also their maintenance, updates, and integration with existing infrastructure.

Costs of implementing IT systems

The cost of implementing IT systems in medical facilities varies and depends on many factors, such as the size of the facility, the scope of the implemented functionalities, or the level of technological advancement. For example, in 2013, the Voivodeship Specialist Hospital No. 4 in Bytom allocated PLN 4.4 million for the implementation of an IT system including 19 modules supporting various areas of the facility’s operations, such as patient flow or the pharmacy. In another case, the Voivodeship Combined Hospital named after S. Rybicki in Skierniewice completed a project involving the purchase and implementation of an IT system worth PLN 2,091,000, 85% of which was co-financed by EU funds.

Maintenance and system update costs

In addition to implementation costs, facilities must also account for expenses related to the maintenance and updating of IT systems. The annual cost of maintaining equipment is estimated at around 20% of its purchase value, and standard software licenses generate additional costs. Moreover, systems must be regularly updated to remain compliant with current regulations and compatible with new tools.

Investments in IT infrastructure and staff training

Implementing modern technologies also requires investments in IT infrastructure, such as upgrading the telecommunications network or purchasing servers and computers. Additionally, it is necessary to employ cybersecurity specialists and regularly train medical staff to use the new systems. In facilities with limited budgets, such investments may be difficult to implement without public support or EU funding.

Summary

Digital transformation in healthcare is not only about improving diagnostics and medical processes, but also about adapting to new standards. Electronic medical records, AI, and automation reduce the risk of errors, increase efficiency, and improve access to care. However, implementation requires investments, compliance with regulations, and protection of patient data.

Facilities that invest in technology improve service quality and manage resources more effectively. Don’t wait for technology to outpace you. Contact us to learn how to implement digital solutions that will improve your healthcare facility.