{"id":7716342,"date":"2026-06-10T22:27:49","date_gmt":"2026-06-10T22:27:49","guid":{"rendered":"https:\/\/orionhealth.com\/?p=7716342"},"modified":"2026-06-10T22:27:50","modified_gmt":"2026-06-10T22:27:50","slug":"the-cost-of-poor-healthcare-interoperability","status":"publish","type":"post","link":"https:\/\/orionhealth.com\/uk\/blog\/the-cost-of-poor-healthcare-interoperability\/","title":{"rendered":"The interoperability tax: what broken data costs every health system every day."},"content":{"rendered":"<p class=\"wp-block-paragraph\">Every health system pays an interoperability tax. It is not always visible on a balance sheet, which is part of the problem.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It appears as repeated imaging, duplicated pathology, delayed referrals, incomplete medication histories, manual workarounds, and technology teams spending scarce resources integrating around legacy decisions. Patients repeat their stories, clinicians spend time hunting for information, and organisations absorb avoidable costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The evidence is increasingly clear that interoperability is not simply a technology issue. It is a clinical, operational, and financial issue.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is the interoperability tax in healthcare?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The interoperability tax refers to the hidden clinical, operational, and financial costs created when health data cannot move effectively between systems.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Patients often pay first. Information that already exists fails to reach the right person at the right time, leading to repeated tests, delayed care, fragmented experiences, and unnecessary frustration.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Clinicians face a different burden. Missing or incomplete information increases cognitive load, slows decision-making, and adds administrative work. For healthcare organisations, the consequences include higher operating costs, slower transformation, vendor lock-in, and lower returns on digital investment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The scale of this challenge is significant. The European Health Data Space impact assessment identifies fragmented systems, weak interoperability, and poor data portability as contributors to medical errors, repeated testing, administrative burden, and rising healthcare costs. It estimates that improved interoperability could generate annual savings of \u20ac4.6 billion for health services and \u20ac4.3 billion for patients across Europe (European Commission, 2022).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is why interoperability should be viewed as more than a technical requirement. It is a foundation for safer care, operational efficiency, and long-term sustainability of the health system.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Interoperability creates value when data becomes actionable<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Research supports the benefits of interoperability, but with an important caveat.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A systematic review of EHR interoperability in high-income countries found improvements in medication safety, patient safety events, data accuracy, and some cost outcomes. However, benefits were less consistent when interoperability focused solely on exchanging information rather than improving clinical workflows.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That distinction matters. Moving data is not the goal. Creating better decisions, safer care, and more efficient operations is.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many interoperability programmes underperform because they focus on interfaces instead of outcomes. The real challenge is ensuring information is clinically meaningful, available when needed, understood consistently, and governed appropriately.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Interoperability is more than standards<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Health data exchange relies on multiple layers working together, not just technical standards.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/orionhealth.com\/wp-content\/uploads\/Vital-Signs-Interoperability-Architecture-Patterns-in-Health-Data-Exchange.svg\" alt=\"\" class=\"wp-image-7716346\" style=\"aspect-ratio:2.968460111317254;width:840px;height:auto\"\/><figcaption class=\"wp-element-caption\"><strong>Interoperability Architecture Patterns in Health Data Exchange<\/strong><br>Source: Torab-Miandoab, A., Samad-Soltani, T., Jodati, A., &amp; Rezaei-Hachesu, P. (2023)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The literature shows interoperability depends on a combination of standards, knowledge models, APIs, service architectures, infrastructure, messaging frameworks, and clinical knowledge templates. Successful programmes treat these components as part of a broader ecosystem rather than isolated technology projects.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The industry is converging around modern interoperability<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Research trends suggest healthcare is moving towards more flexible and scalable approaches to data exchange.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/orionhealth.com\/wp-content\/uploads\/Vital-Signs-Health-data-standards-in-the-literature.svg\" alt=\"\" class=\"wp-image-7716347\" style=\"aspect-ratio:3.1088082901554404;width:840px;height:auto\"\/><figcaption class=\"wp-element-caption\"><strong>Health Data Standards in the Literature<\/strong><br>Source: Marino, C. A., &amp; Diaz Paz, C. (2025)<br><br>(A) Since its initial release, Fast Healthcare Interoperability Resources, or FHIR, has attracted rapidly growing scholarly attention,  substantially outpacing HL7 version 2, HL7 version 3, and Clinical Document Architecture standards.<br>(B) The United States, Germany, and Canada are the three leading contributors to published literature on FHIR<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">FHIR has attracted significantly greater scholarly attention than HL7 v2, HL7 v3, and Clinical Document Architecture standards, reflecting growing demand for modern, API-driven interoperability. The United States, Germany, and Canada are leading contributors to this body of work.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img decoding=\"async\" src=\"https:\/\/orionhealth.com\/wp-content\/uploads\/Vital-Signs-Thematic-Evolution-of-Interoperability-in-Health-Care.svg\" alt=\"\" class=\"wp-image-7716348\" style=\"aspect-ratio:2.968460111317254;width:840px;height:auto\"\/><figcaption class=\"wp-element-caption\"><strong>Thematic Evolution of Interoperability in Health Care<\/strong><br>Source: Nan, J., &amp; Xu, L. Q. (2023)<br><br>In the initial phase, 6 themes characterised the domain: eHealth, digital imaging and communication<br>medicine (DICOM), health care, semantic interoperability, EHRs, and ontology. Interoperability in healthcare reached a critical turning point in 2020; ontology remained a key term, while the other themes were replaced by interoperability, openEHR, and blockchain.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The focus of interoperability research has also shifted. Earlier discussions centred on eHealth, DICOM, EHRs, and semantic interoperability. Since 2020, attention has moved towards interoperability as a strategic capability, alongside openEHR and emerging approaches such as blockchain.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Interoperability is a strategic capability<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The commercial implications are substantial.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Health systems with fragmented data face higher costs, weaker evidence generation, slower innovation, and less flexibility to evolve care models. Technology suppliers face similar constraints when their solutions cannot operate effectively across diverse data environments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In both cases, interoperability becomes a measure of organisational maturity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The strategic takeaway is simple: broken data is a tax on care, capital, trust, and growth. Organisations that can make data move securely, retain meaning across systems, and generate value at the point of care will be better positioned to improve outcomes while controlling costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Interoperability is no longer a technical aspiration. It is foundational infrastructure for modern healthcare.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Learn More<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Discover how Orion Health helps healthcare organisations connect systems, unlock data value, and deliver more coordinated care through interoperable health information exchange solutions. Visit <a href=\"https:\/\/orionhealth.com\/uk\/solution\/interoperability\/\" type=\"page\" id=\"9499\">Orion Health&#8217;s Interoperability solutions<\/a> page.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Authored by&nbsp;<a href=\"https:\/\/orionhealth.com\/uk\/author-tom-varghese\/\" target=\"_blank\" rel=\"noreferrer noopener\">Tom Varghese<\/a>, Global Product Marketing &amp; Growth Manager at Orion Health.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">References: <\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Ait Abdelouahid, R., Debauche, O., Mahmoudi, S., &amp; Marzak, A. (2023). Literature review: Clinical data interoperability models. Information, 14(7), 364.<\/li>\n\n\n\n<li>European Commission. (2022). Commission staff working document: Impact assessment report accompanying the proposal for a regulation on the European Health Data Space.<\/li>\n\n\n\n<li>Kjelle, E., Brands\u00e6ter, I. \u00d8., Andersen, E. R., &amp; Hofmann, B. M. (2024). Cost of low value imaging worldwide: A systematic review. Applied Health Economics and Health Policy, 22, 485 to 501.<\/li>\n\n\n\n<li>Li, E., Clarke, J., Ashrafian, H., Darzi, A., &amp; Neves, A. L. (2022). The impact of electronic health record interoperability on safety and quality of care in high income countries: Systematic review. Journal of Medical Internet Research, 24(9), e38144.<\/li>\n\n\n\n<li>Marino, C. A., &amp; Diaz Paz, C. (2025). Enhancing interoperability for a sustainable, patient centric health care value chain: Systematic review for taxonomy development. Journal of Medical Internet Research, 27, e69465.<\/li>\n\n\n\n<li>Nan, J., &amp; Xu, L. Q. (2023). Designing interoperable health care services based on Fast Healthcare Interoperability Resources: Literature review. JMIR Medical Informatics, 11, e44842.<\/li>\n\n\n\n<li>OECD. (2024). Health at a Glance: Europe 2024.<\/li>\n\n\n\n<li>Torab Miandoab, A., Samad Soltani, T., Jodati, A., &amp; Rezaei Hachesu, P. (2023). Interoperability of heterogeneous health information systems: A systematic literature review. BMC Medical Informatics and Decision Making, 23, 18.<\/li>\n\n\n\n<li>Vorisek, C. N., Lehne, M., Klopfenstein, S. A. I., Mayer, P. J., Bartschke, A., Haese, T., &amp; Thun, S. (2022). Fast Healthcare Interoperability Resources for interoperability in health research: Systematic review. JMIR Medical Informatics, 10(7), e35724.<\/li>\n\n\n\n<li>World Health Organization Regional Office for Europe. (2024). Accelerating digital health transformation in Europe: A two year progress report.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>","protected":false},"excerpt":{"rendered":"<p>Every health system pays an interoperability tax. It is not always visible on a balance sheet, which is part of the problem. It appears as repeated imaging, duplicated pathology, delayed referrals, incomplete medication histories, manual workarounds, and technology teams spending scarce resources integrating around legacy decisions. Patients repeat their stories, clinicians spend time hunting for [&hellip;]<\/p>\n","protected":false},"author":47,"featured_media":7716349,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[1],"tags":[96],"region":[25,26,23,24,27,28],"class_list":["post-7716342","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-interoperability","region-au","region-ca","region-global","region-nz","region-uk","region-us"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Cost of Poor Healthcare Interoperability - Orion Health<\/title>\n<meta name=\"description\" content=\"Poor interoperability drives costs, delays care, and limits innovation. 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