Peterson Center on Healthcare launches US$50m institute to assess digital health tools

The Peterson Center on Healthcare is to launch a nonprofit organisation to provide independent evaluations of innovative technologies in healthcare.

Launched with a commitment of US$50m, the Peterson Health Technology Institute (PHTI) aims to deliver evidence-based assessments to analyse the clinical benefits and economic impact of digital health solutions, as well as their effects on health equity, privacy and security.

Digital health technologies have vast potential to improve US health system performance by revolutionising delivery, advancing better outcomes, enhancing the patient experience, and promoting equity—all while lowering costs.

Yet, patients, providers, payers, and investors have limited information about the efficacy and performance of the many digital health tools entering the sector.

PHTI says it aims to fill this information gap with independent, publicly-available evaluations. The organisation will establish an original assessment framework developed specifically for digital health tools, in partnership with the Institute for Clinical and Economic Review (ICER).

“Technology has the power to transform healthcare, improving outcomes for millions of Americans while also reducing our rapidly growing delivery costs,” says Michael A. Peterson, CEO of the Peter G. Peterson Foundation.

“It’s clear that digital tools and artificial intelligence can provide a range of benefits to patients, but we have an inadequate understanding of what works and how much it should cost.

“By producing independent, evidence-based research on emerging technologies, the Peterson Health Technology Institute will help improve and accelerate healthcare innovation in the United States.”

The institute, Peterson says, will monitor the evolving pipeline of emerging digital health technologies to better inform the purchaser and investment community.

It will then collect and analyse evidence about the clinical performance of health technologies to ultimately identify promising digital health innovations and expose those not delivering their stated benefits.

Caroline Pearson, executive director of the Peterson Center on Healthcare, said: “As digital health tools replace and augment traditional healthcare, they should both deliver better health outcomes and improve affordability.

“In order for technology to successfully contribute to the goal of a more effective and efficient healthcare system, patients, providers, and payers need better information about what works.”

By 2030, the global digital health market is expected to reach US$1.5tn. Over the past decade, investment in digital health in the US has increased nearly tenfold, to US$15.3bn.

However, despite this significant investment, many experts argue that most digital health tools lack sufficient evidence to support their claims about clinical benefits.

“The Peterson Health Technology Institute can play an essential role in cutting through the hype surrounding new digital health technologies and the commercial interests behind them, providing independent, evidence-based evaluations of their potential for improving care and lowering costs,” said Drew Altman, president and CEO of KFF and a member of the Peterson Center on Healthcare’s advisory board.

Helen Darling, former president and CEO of the National Business Group on Health and a member of the Peterson Center on Healthcare’s advisory board, added: “The independent evaluation of digital health tools is not only a great public service and resource, but it can also help drive the industry to be more rigorous and focused on contributions that meet the most urgent needs for information, quality care, effectiveness and efficiency.”