This report explains the rise of tech-focused SDOH initiatives among US health insurers and hospitals, unpacks how these entities’ heavier focus on SDOH has ushered in opportunities for digital health vendors and tech companies operating at the periphery of healthcare to help address nonclinical health gaps, and lays out the factors driving the prioritization of SDOH and inhibiting these efforts’ growth.

Even though 73% of physicians say they try to address SDOH in their clinical decision-making, just 46% actually have access to the data that would allow them to do so, per a 2020 Deloitte report. Since SDOH heavily influence 80-90% of health outcomes, addressing them is key in a VBC model.

DTx companies can address this gap by tailoring their platforms to untapped consumers' SDOH needs. For example, Virta says it’s been able to reach underserved populations by offering continuous, round-the-clock remote care and by building health literacy and broadening channels of access. And DTx platforms that address SDOH will appeal more to payers.

For example, since mental health is often concurrently affected by chronic conditions, Headspace could be used as a supplement to many of Solera’s existing offerings like chronic condition management, SDOH services, and behavioral health programs.

Investors are also betting on startups using tech to help healthcare entities tackle SDOH:. Just this month, investors poured $150 million into SDOH platform Unite Us to help it create more comprehensive analytics. The startup provides the technical backend linking community organizations, providers, plans, and local government centers.

In addition to facilitating the exchange of health data among payers and providers, regional HIE programs are partnering with companies that address individuals’ SDOH-related needs.