As the healthcare industry faces new and ongoing challenges, vendors have to adapt to shifting priorities to capitalize on potential partnership opportunities. Understanding health systems' mindsets when it comes to innovation, as well as the innovations they're prioritizing, will help vendors build partnerships more effectively.

As you seek health systems to partner with, it's important to understand the issues that are most pressing for them, as well as factors that impact their ability to grow.

Health systems are currently struggling with a wide variety of problems as they come out of the pandemic. While some of these problems are immediate (higher inflation, labor shortages), others are more longstanding (site-of-care shifts, payer mix shift).

Many of these issues have pushed health systems to focus their innovation efforts more narrowly on core operations rather than more broadly on several different areas. Currently, many health systems are prioritizing issues that are both urgent and have few existing solutions. Some of the top issues for health systems include inflation and margins, workforce shortages, AI, new market entrants, and physician alignment. They are also closely monitoring issues related to Medicare Advantage and cost-based networks.

In general, health systems are more interested in long-term solutions they can nurture over time rather than point solutions. Vendors that can offer support for a health system's long-term vision will be in high demand.

Here are two key considerations to keep in mind as you form partnerships with health systems going forward:

1. Risk-sharing with health systems will be crucial

Because there is more on the line with operations and initiatives than ever before, many health systems are looking for vendors who will match their buy-in when it comes to risk. Vendors who are not making similar commitments as health systems are less likely to be trusted.

Vendors can share risks with health systems by offering a free trial or rental period, or by putting their fees on the line. By committing themselves to similar risks, vendors can become a "can't lose, could win" partner for health systems.

2. You'll need to show that your product can deliver on what it promises

It's also important for vendors to have evidence that their products actually work. Seeing how a product can both achieve concrete goals and relieve the burden on workers will make health systems more likely to adopt certain innovations.

Vendors need to recognize, however, that new solutions targeted at one key challenge may sometimes inadvertently cause problems in other areas. For example, a generative AI notetaking tool may require clinician training and correction, which ultimately increases workloads and could harm staff retention.

Overall, vendors who have their "boots on the ground" will be better equipped to foster understanding of their products and drive more success in adoption. Ultimately, understanding the needs and priorities of health systems will allow vendors to identify new partnership opportunities and better position themselves in partnerships.