How digital health engagement cuts healthcare costs

Faced with rising healthcare costs, growing mental health demands, workforce shortages, and the widening gap between lifespan and health span, traditional healthcare models are struggling. While reforms are urgently needed, the debate continues over what shape these changes should take.

Faced with rising healthcare costs, growing mental health demands, workforce shortages, and the widening gap between lifespan and health span, traditional healthcare models are struggling. While reforms are urgently needed, the debate continues over what shape these changes should take.

Digital health engagement is emerging as a frontrunner. By harnessing technology to manage health and wellness continuously, it shifts the focus from reactive, expensive care to proactive, cost-saving prevention.

Platforms such as dacadoo’s Digital Health Engagement Platform (DHEP) offer a compelling solution for insurers and healthcare providers seeking to implement value-based care.

Independent research has highlighted the tangible benefits of consistent digital engagement.

Studies show that dacadoo’s DHEP can deliver an approximate 5% reduction in basic healthcare costs. Savings are achieved through regular, personalised interaction with the platform, emphasising the importance of habit-forming digital design.

The platform also increases engagement with mental health services while stabilising overall healthcare spending, providing a model for early intervention that is both scalable and effective.

Mounting challenges

Healthcare systems have faced mounting pressures since 2019. The World Health Organization’s 2024 Global Health Expenditure Report revealed that global health spending reached USD 9.8tn in 2022, around 9.9% of global GDP.

Although investment surged during the pandemic, many governments have since reduced health budget allocations, tightening operating margins for payers and providers.

Rising labour costs, the prevalence of chronic conditions, inflation in operational and supply costs, surging mental health needs, and the gap between lifespan and health span all exacerbate financial strain on healthcare systems.

These challenges underscore the urgent need for preventative, technology-driven solutions.

Digital health platforms like dacadoo’s DHEP are demonstrating measurable financial impact. A University of Groningen-led study involving 47,874 participants found that active users of the platform experienced a 4.9% reduction in basic healthcare costs in the first year, rising to 5.3% in the second year.

Importantly, frequent engagement with the platform proved more effective than intensity of use alone, emphasising that consistent interaction drives lasting behavioural change.

Users also increased mental health service use without inflating overall costs, highlighting early intervention’s potential to prevent more serious, expensive conditions.

Inside dacadoo’s offering

The mechanics of dacadoo’s DHEP combine AI, behavioural science, and gamification to meet modern healthcare needs.

Its Risk Engine and dynamic Health Score provide actionable insights into a user’s physical, mental, and lifestyle health.

By encouraging small, frequent positive actions, the platform reduces future health events and lowers claims. It also alleviates workforce strain by handling low-acuity questions digitally, freeing clinical staff to focus on complex cases.

Gamification and lifestyle coaching promote mental well-being and healthier habits, supporting both extended health span and longevity.

With retention rates seven times higher than industry averages, the platform demonstrates that long-term, personalised engagement is key to cost-efficient, effective care.

Beyond individual outcomes, digital health engagement creates systemic benefits. For insurers, a ∼5% cost reduction translates into a clear return on investment.

The platform can scale to entire populations via API integration, white-label apps, or turnkey SaaS solutions, delivering personalised, preventative care at a fraction of the traditional cost. Its real-time data-driven insights enable targeted interventions, better risk management, and stronger user engagement, positioning dacadoo as a cornerstone for value-based care.

Closing thoughts

While dacadoo’s DHEP shows significant promise in improving health outcomes and lowering costs, the full potential of digital health engagement extends far beyond this discussion.

Its adoption could redefine how healthcare systems worldwide approach prevention, efficiency, and sustainable care.

Read the full blog from dacadoo here. 

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