McKinsey Health Institute says private-sector engagement can help countries scale digital health in resource-constrained health systems, where workforce shortages, rising costs, and uneven access are colliding with tighter funding. The report cites a 44% decline since 2022

Become a Member

Members have access to all articles.

Membership
in health-related official development assistance for low- and middle-income countries (LMICs) and argues that targeted digital health deployments can expand healthcare worker capacity and reduce system costs in LMICs by up to 15%, depending on use case and execution.

In the report’s framing, the case for private-sector participation is partly structural: private actors account for 40%–60% of healthcare spending in many LMICs and remain a major source of financing, with global private investment in digital health reaching $25.1 billion in 2024. McKinsey Health Institute developed its guidance from more than 20 case studies across five countries (Canada, Estonia, Mexico, Tanzania, and Togo) and more than 50 expert interviews, with a design framework meant to help public-sector leaders choose partners, governance models, and financing structures that fit local infrastructure and capability constraints.

McKinsey’s analysis finds governments most often engage private partners for capabilities (in all case studies), with scaling and financing featuring heavily depending on ecosystem maturity. The report also highlights the upside it associates with sustained investment: it points to a WHO estimate that an additional $0.24 per patient per year invested in digital health could save more than two million lives from chronic diseases, while emphasizing that results depend on decisions around ownership, privacy guardrails, and long-term sustainability.

Read more