Vendors don’t always solve the challenges that providers consider the most significant. This leads to the proliferation of “solutions in search of a problem.” Not only do providers and vendors contend over which problems to address, but they also disagree on how to address them. This disagreement in approach is frustrating for providers because they can’t solve their problems, and frustrating for vendors because they struggle to make a sale.

How vendors view value: Vendors typically perceive “value” as the capacity to innovate and address perceived challenges in the healthcare sector. They focus mainly on developing advanced solutions that stand out for their distinctive features and capabilities.

The market penetration of a solution often determines its success, with a burgeoning customer base indicating the product's value. However, this viewpoint might result in overlooking the actual net value, as vendors might not consider the effort customers need to expend to implement and support the new technology.

How providers view value: Providers measure “value” as a solution’s ability to improve patient outcomes and operational efficiency. They focus on investments that promise a tangible financial return and fit within their financial constraints.

The success of the technology is closely tied to saving money. However, providers also view success as solutions that demonstrate enhanced care.

Healthcare providers often experience changes in their strategic priorities but don’t update their vendor partners. Without transparent communication, vendors might rely on outdated information and propose solutions that fail to meet the provider's evolving needs or strategic direction. To avoid the disconnect, it is crucial for providers to maintain an open dialogue with both existing and potential vendor partners, sharing updates on any shifts in strategy, constraints, and objectives. This proactive engagement ensures the solutions vendors offer remain pertinent and provide real value.

Communicating strategic priorities is often harder than it sounds because leaders at provider organizations don’t always have a clear understanding of their own goals and challenges. Leaders might end up investing in technologies or solutions that are not the best fit for their specific requirements, leading to wasted resources and potential operational setbacks. By not doing the inner work to understand their own goals and challenges, providers may miss out on solutions that could significantly improve patient care, increase efficiency, or reduce costs. Failing to implement tools that could give providers a competitive edge could result in a lack of innovation within their services.

The delivery of a vendor’s value proposition heavily influences its effectiveness. A strong value proposition can be misunderstood if not communicated appropriately. For that reason, it’s vital that vendors choose the right channels of communication.

Every provider we interviewed mentioned that cold calls and emails are less effective than referrals or in-person pitches. Emails often don’t reach the right people, and the brevity or embellishment can obscure the message. Even when vendors manage to get their foot in the door, decisions about next steps can be slow or stall all together because it takes a lot of time to coordinate between the many stakeholders involved in initial decisions.

Vendors and providers must fundamentally shift the way they communicate to forge successful digital health partnerships. This shift must involve a deep, empathetic understanding of each other's perspectives on value. Vendors need to innovate with purpose, tailoring technology to meet the evolving needs of healthcare providers. Providers must articulate their needs clearly and seek solutions proactively. By taking these steps, both parties can navigate the complex healthcare landscape to deliver solutions that truly resonate, drive change, and redefine the value of digital health technology.