Virtual care use climbs, but many health systems lose money on digital services

U.S. hospitals and health systems are expanding virtual care — telehealth, remote monitoring and digital front doors — but many still lose money on these services as reimbursement lags, margins tighten and operational costs rise. Providers report growing patient demand and higher visit volumes, prompting continued investment in platforms, staffing and digital workflows despite limited direct revenue and unfavorable payer policies.

Health system leaders are turning to AI, automation and analytics to scale virtual care, improve triage and reduce clinician burden, yet adoption raises costs for integration, governance and training. Experts say AI-driven tools can boost efficiency and patient access but financial sustainability depends on new payment models, better interoperability and measurement of clinical and economic outcomes to justify continued investment urgently.

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Healthcare Automation

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