Digitalization of service delivery and patient engagement in healthcare: a complementarity perspective

Purpose This study aims to conceptualize hospital digitalization in two dimensions: service delivery (supply side) and engagement (demand side). It empirically examines how the complementarity between these two forms of digitalization relates to hospital performance, especially in terms of experiential quality and financial performance. Design/methodology/approach The authors explore the complementary effect of service delivery and engagement digitalization by analyzing data from multiple sources on short-term acute care hospitals in the USA. The authors evaluate the research model using moderated hierarchical regression with robust standard errors. Findings While both service delivery and engagement digitalization are related to financial benefits, only engagement digitalization is associated with experiential quality, highlighting their distinct performance advantages. The analysis also reveals that the two forms offer complementary financial benefits. Practical implications The study supports the argument that digitally enabled care environments offer tangible advantages to health-care providers. Additionally, providers must recognize the distinct characteristics of service delivery and engagement digitalization and their impact on financial and care experience benefits. Given the empirical evidence of their complementarity, health-care providers should adopt an integrated approach to hospital digitalization. Originality/value This study offers a new perspective on the relationship between hospital digitalization and performance by conceptualizing hospital digitalization as service delivery and engagement. It also empirically examines their complementarity, revealing additional hospital digitalization benefits that have been overlooked in the literature.