5 Truths About the Changing Health Landscape

‍1. Design can help us move beyond point solutions

Right now, we’re seeing a lot of standalone digital platforms tailored for different diagnoses, different age groups, and different patient populations. While this approach can better align with the way payments work in the healthcare system and result in more easily-proven health outcomes, it often feels like we’re reinventing the wheel over and over. You see this especially in mental health—solutions for youth, solutions for kids, solutions for employees, etc. Larger organizations across payers, medtech, and pharma, are starting to ask, “What is actually generalizable here?” And, “Can a connected experience better fit the patient's needs?” “Does everything have to be custom-built for every drug, every piece of equipment, and interventions?” That’s costly, not only to operate but also to sustain. Why don’t we already have frameworks that are broad but adaptable? With all the research and data we have, we could create a shared understanding that we can tune to fit specific needs. Theoretically, we have the data; we know what works and what doesn’t. There are systemic reasons—proprietary systems and data hoarding come to mind. But still, if we could create a more universal approach, we could make an enormous difference.

‍2:  We need to use AI to upskill healthcare workers, not replace responsibilities

‍The way we’re using them now, AI tools primarily aim to speed up workflows and improve operational efficiencies—whether it’s faster prior authorizations or streamlined documentation through AI scribes. But without careful implementation, these efficiencies could merely increase volume without enhancing care quality. Accelerating prior authorizations might lead to more requests and denials, rather than improved outcomes. Saving time on documentation might enable doctors to see more patients, but it doesn’t necessarily mean better patient interactions. We need to look beyond low-hanging fruit to achieve lasting impact. The industry must ask itself: Will widespread AI adoption genuinely drive health outcomes? And crucially, how do we encourage buy-in in a field where practitioners—trained over decades to rely on their own expertise—may resist technology-driven changes? At IDEO, we recently worked with a large payer organization to develop an internal AI strategy, focusing on how to foster acceptance across all employee levels. Building comfort with AI requires thoughtful design that respects existing expertise while gradually upskilling, rather than displacing, responsibilities.

‍3: “Practical innovation” may just be a buzzword

‍On the ground, we heard a lot about the challenge of sustaining innovation as budgets tighten across the healthcare landscape. Our conversations with people driving innovation at health systems and large organizations revealed not only budget cuts, but also a shift toward tactical, outcome-driven approaches. Organizations that we spoke with are increasingly looking to “practical innovation” to kick start their innovation cycle. Practical innovation in its original definition ensures a focus on commercial impact vs. innovation theater–a concept that we bring to each of the challenges we take on–but we shouldn’t allow the push for pragmatism to result in innovation falling into a trap. In this climate, innovation teams are expected to tie their work to key metrics prematurely, and reach scaled efficiency too quickly. This results in fewer bets, lower tolerance for risk, and a short runway to demonstrate outcome-focused results. Design has a crucial role to play in avoiding potential traps and increasing impact. For instance, by leaning into co-design and creating products alongside providers and patients, we can significantly de-risk innovative products and services. During our partnership with Kooth to create a mental healthcare app for youth in California, we worked directly with a youth council of 50 diverse young people to launch and validate a proof-of-concept, before then getting full investment for a state-wide launch.

‍4. Hospitals are recognizing their power as innovative forces in the healthcare ecosystem

‍Shaking off the antiquated image that they’re bureaucratic dinosaurs, hospitals across the country are setting their sights on innovation and beginning to think of themselves as engines of impact across the healthcare ecosystem. Whether that’s lending their space and access to incubate startups or giving their skilled medical talent the time and resources they need to conduct research and development activities, hospitals are eager to deploy their assets in new ways to unlock new value and drive exponential impact by improving healthcare experiences and outcomes.

‍5. The time for good health is (always) now

‍Every year, we see, hear, and feel a sense of urgency around solving large, intractable problems, and every year we feel the collective disappointment that we are falling short of the progress we hope to see. Over the course of our week in Las Vegas, we spoke to thousands of people from across the healthcare ecosystem about novel ideas, genuine patient needs, product innovation, and promising new therapies. Each and every person wants to make an impact to improve the lives of those we serve—and it is true that we are seeing some remarkable progress. But good health remains elusive for many. We are working with clients in every corner of the sector to make good health a reality—innovating patient care, supporting carers to deliver on the purpose that drove their choice in vocation, partnering with life science companies to deliver innovative care to patients, and digital health companies to make huge leaps in how we deliver care. Our goal? To make healthier human futures a reality of today, not the hope for tomorrow.