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The Digital Transformation Reshaping Hospitals and Medication Management

admin, January 21, 2025

Digital transformation is a non-linear journey. New technologies are introduced, but there are often growing pains and delays before they’re fully functional and integrated. Fortunately, we’re at a pivotal time in the healthcare industry. Data and technology such as artificial intelligence (AI) are uniting to up-level our processes, capabilities, and—most importantly—patient care. Below is a look at some of the major shifts happening in the delivery of care and the management of medications navigating their way through complex supply chains and into hospital systems.

From basic automation to intuitive, responsive, and visual assistance

The use of automation technology in healthcare has exploded in the 21st century. However, early versions are not without their challenges. Within hospital pharmacies, many efficiencies have been realized, yet the technology has created another issue: communication overload.

A lot of systems were built to provide communication, but some may have been configured by teams that didn’t fully understand how hospitals and healthcare systems work at a fundamental level. The result is a lot of unnecessary communication. That, in turn, creates staff burnout. We see this quite a bit, especially in the pharmacy where staff are inundated with competing notifications and messages that aren’t relevant to them or that they don’t draw any value from. There’s a real need to invest in systems that are more adaptive to how a person wants to interact.

Technology is inching toward that goal. Now, with AI, technology can be readily customized to the user. The features and notifications won’t be designed around what the developer knows the tool is capable of—they’ll respond to what the user actually wants and needs.

We see this as the next frontier in hospital-based digital transformation. The information is still there, but the access to the information and how we interface with the technology will change.

Individuals outside of the healthcare industry may question why this customization is critical. Consider an anesthesiologist in an operation room. They may be juggling more than a dozen different tasks in parallel. They need to interact with the patient’s electronic health record (EHR), while keeping track of their vitals and how the drip they administered is progressing to ensure the patient is adequately sedated—the list goes on. All that information is currently coming from different sources. We need to take that information and serve it to the provider, how and when they need it. The long-term vision is for technology to be an extension of the provider, with innovations such as virtual reality and augmented reality glasses that can empower them in real-time with the information they need.

Unleashing the power of predictive forecasting and inter-hospital collaboration

Accurate forecasting and management of pharmaceuticals are critical for both business success and patient well-being, yet even the most seasoned pharmacists may struggle to find the daily balance between over-ordering and stock-outs.

Unfortunately, drug shortages continue to be a major issue in the healthcare industry. The American Society of Health-System Pharmacists (ASHP) tracked a record-high 323 active drug shortages in the first quarter of 2024.1 On the flipside, hoarding critical supplies can have far-reaching consequences (a lesson we all learned during the COVID-19 pandemic). Nowadays, excess products may expire, or hospitals simply carry the cost of that inventory for an extended period of time.

Supply chain management and forecasting are a natural fit for machine learning (ML) models. It all starts with data centralization. This involves integrating technologies across a health system so that data can be pooled into a single unified repository. This repository of standardized data can then serve as the single source of truth for inventory, including pharmaceuticals. Pharmacists are able to gain real-time visibility into every corner of their facilities, as well usage trends, expirations and recalls, and many other important attributes.

ML algorithms thrive when exposed to this holistic data. These models can transform usage data into analytical insights and predictive modeling to anticipate future needs and guide optimal ordering. Pharmaceuticals can be dispersed more efficiently through hospital systems and pharmacists can focus more attention on individual patient care—the outcome that matters most. It’s early days, but with AI, there is near-limitless potential for building on those kinds of operational insights.

Thinking bigger, there’s an opportunity to collaborate across hospital systems as technology moves to the clouds. Five to 10 years ago, all of a hospital’s data was siloed in a data center. The only entity that had visibility of that information was the hospital itself. By expanding into the cloud and expanding into data centers without borders, we can operate with patients and communities at the forefront of decision-making. It’s mutually beneficial, especially when it comes to managing sometimes unpredictable pharmaceutical supply chains. Often, the larger health systems with greater buying power have preferential access to pharmaceuticals in limited supply. If they end up excessively stockpiling, the smaller hospitals may miss out, while much-needed products sit idle in the bigger hospital across town. It’s inefficient for everyone, and it risks patient safety.

If there was shared visibility, potentially life-saving therapies could be shared during shortages and emergencies. Moving data out of silos into more centralized locations can enable that visibility right now. It creates an additional safety net, helping to reduce the fear that drives the hoarding of supplies.

The need for ethical transformation

The key for hospitals entering this new phase of digital transformation is to ensure they have an adequate plan for cybersecurity. Nobody wants to introduce technology that breaks trademarks, doesn’t do what it’s supposed to, or that discloses sensitive patient information. Unfortunately, software bugs and breaches are commonplace today, as noted by the HIPAA Breach Reporting Tool, which lists 864 combined breaches reported in 2023 and 2024.2 Part of the challenge is AI models finding and exploiting backdoors in software quicker than our existing tools.

Hospitals must be incredibly vigilant around software and vendors—both new and old. Oftentimes, technology already in hospitals is built on legacy systems that don’t attract the same scrutiny as new software and tools because they don’t have competition. In addition to vetting the technology, it’s important to hire the right people and establish cybersecurity governance, risk, and compliance (GRC) programs to make sure all the technology operating in the hospital—and in the cloud—is appropriately vetted. Likewise, all vendors ought to be in compliance.

When done thoughtfully and safely, this digital transformation can do everything from increasing operational efficiency through better medication management, to alleviating stress on staff, allowing them to focus more on the clinical aspect of their responsibilities. That, in turn, benefits patient care. If we can make the patient experience better within hospitals, that’s the biggest win of all.

About the Author

Jeff Webber is the Chief Technology Officer of Intelliguard, a provider of hospital medication management and data intelligence solutions.

References

1. ASHP reports record high number of drug shortages. American Hospital Association. April 12, 2024. https://www.aha.org/news/headline/2024-04-12-ashp-reports-record-high-number-drug-shortages#:~:text=ASHP%20tracked%20a%20record%20323,demand%20for%20essential%20drugs%20spikes.

2. HIPAA Breach Reporting Tool. US Department of Health and Human Services Office for Civil Rights. April 12, 2024. https://ocrportal.hhs.gov/ocr/breach/breach_report.jsf

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