Summary And Insights From McKinsey Health Institute’s Report On Building Interoperability In Healthcare Systems

5 min read
Editorial Avatar

(Care City Media Editorial Team)

Share this Article


As digital health continues transforming the global healthcare landscape, the push for interoperability—the seamless exchange and use of data across systems—has never been more urgent.

In a comprehensive report, the McKinsey Health Institute explores the pivotal role of interoperable health systems.

It provides an in-depth analysis of how different countries are navigating the complex journey toward achieving it.

What Is Digital Interoperability, And Why Does It Matter?

At its core, digital interoperability is the capacity of diverse organisational and technological systems to communicate, share, and meaningfully use data in real-time.

According to the World Health Organization, it is the “ability of different applications to access, exchange, integrate, and cooperatively use data in a coordinated manner… to optimise health outcomes.”

In practical terms, interoperability ensures that health information can follow a patient across different care settings, systems, and even countries—delivering more personalised, coordinated, and effective care.

Unlocking The Value: The Tangible Benefits Of Interoperability

The potential gains from achieving interoperability are significant and far-reaching.

The report highlights five key stakeholder groups and the benefits each can derive:

  • Patients And Communities

Interoperability empowers patients with access to their health data, enabling more informed decision-making and smoother transitions between care providers. It enhances continuity of care, especially for those with chronic conditions or complex medical needs.

  • Clinicians

Healthcare providers can experience greater efficiency in data collection, reduced administrative burdens, and improved collaboration with other professionals. Access to complete patient records can also support faster, more accurate diagnoses and treatment plans.

  • Healthcare Organizations

Both public and private healthcare systems stand to reduce costs by eliminating duplicative procedures, minimising unnecessary hospital visits, and optimising resource allocation.

  • Health Authorities

Aggregated and high-quality data enables smarter public health strategies, more responsive policymaking, and streamlined regulatory compliance.

  • Researchers

With access to large datasets, researchers can accelerate the development of innovative treatments, track disease trends more accurately, and generate real-world evidence for policy or clinical decisions.


What To Read:

FUTURE-AI Guideline, An International Consensus Framework For Trustworthy And Deployable Artificial Intelligence (AI) In Healthcare


Real-World Impact: Early Success Stories

Several countries are already seeing the dividends of interoperability:

  • Canada: A 2018 analysis suggested that full-scale interoperability could save the Canadian healthcare system up to CA $4 billion annually, largely by avoiding redundant testing and lowering hospitalisation rates.

  • Estonia: Known for its advanced digital infrastructure, Estonia has streamlined services like e-prescriptions and emergency response through robust interoperability, improving efficiency and patient outcomes.

  • Tanzania: Even in resource-limited settings, interoperability is showing promise. In Tanzania, clinicians have reported significant time savings thanks to automated data exchange via their national Health Information Mediator (HIM).

No Universal Blueprint: Context Matters

A key takeaway from the McKinsey report is that interoperability is not a one-size-fits-all endeavour.

Each country’s unique political, financial, technological, and social context demands tailored solutions. To illustrate this, the report dives into three country case studies:

  • Canada: With a decentralised healthcare system, each province builds its own interoperability framework under the guidance of Canada Health Infoway, a federally supported, not-for-profit organisation.

  • Estonia: Operates under a highly centralised model. The government-owned TEHIK (Health and Welfare Information Systems Centre) manages the national health data infrastructure, enabling seamless digital coordination.

  • Tanzania: Driven by donor-supported development, Tanzania is integrating interoperability use cases into a national data-sharing platform (HIM), addressing needs at both local and national levels.

These examples underscore the importance of governance structures, financing models, and available resources in shaping a country’s health path.

Seven Design Dimensions For Building Interoperable Systems

Interoperability

The report outlines seven key design dimensions grouped into three overarching categories.

These dimensions serve as a roadmap for countries aiming to develop effective, sustainable interoperability.

Strategic Approach

  • Governance And Operating Model

Should governance be centralised or decentralised? The answer depends on a country’s existing healthcare landscape. Centralised models often accelerate decision-making, while decentralised systems benefit from local adaptability. Regardless, strong leadership and multi-stakeholder collaboration are critical.

  • Timing, Phasing, And Financing

Countries with centralised authority and funding may lay down foundational infrastructure upfront. Others may adopt a phased approach, proving the value of interoperability through pilot use cases before scaling up.

Architectural And Technical Design

  • Architecture, Data, And Infrastructure

Key choices include adopting open vs. proprietary standards, ensuring backward compatibility with legacy systems, and selecting secure data storage and hosting solutions—cloud-based or on-premises.

  • Identification Mechanism

A national digital ID system can significantly enhance interoperability. If unavailable, countries may create health-specific identifiers with plans to integrate them into broader national ID systems over time. Ensuring inclusion for migrant and marginalised populations is essential.

User Engagement

  • Adoption

Successful adoption often relies on a mix of regulatory mandates, incentives, and trust-building. Ensuring patient control over data and encouraging provider participation is vital.

  • Capability Building

Governments and healthcare organisations must invest in the training and development of personnel to implement and maintain interoperable systems. Ongoing education ensures systems remain functional and relevant.

  • Monitoring And Adaptation

Though not explicitly listed in the original report, continuous monitoring and agile adaptation to new technologies and needs can be inferred as an underlying dimension crucial for long-term success.

Conclusion: A Custom-Fit Future For Digital Health

Interoperability is not a final destination—it is an evolving process that must align with each country’s healthcare ecosystem, capabilities, and goals.

While challenges such as limited connectivity, workforce shortages, funding gaps, and fragmented governance persist, they are not insurmountable.

The McKinsey Health InstInstitute’sort makes it clear: there is no singular path to achieving interoperability, but there are multiple successful routes.

What matters most is a strategic, inclusive, and context-aware approach that goes beyond simply building a platform. To realise the full potential of digital health, countries must invest in scalable, secure, and user-centred systems that prioritise long-term outcomes over short-term gains.

Read the full report here to dive deeper into the future of connected healthcare.


View Selected References

Hartenstein, L., Wilson, M., Bode, M., & Kumar, P. (2025, March 17). Building interoperable healthcare systems: One size doesn’t fit all. McKinsey & Company. https://www.mckinsey.com/mhi/our-insights/building-interoperable-healthcare-systems-one-size-doesnt-fit-all?cid=other-eml-alt-mip-mck&hlkid=a4a567da66534ee3975a6930a6a28cff&hctky=16208440&hdpid=b2afd516-8a84-4926-b5b0-f42dcac763f1

Join our growing community on Facebook, Twitter, LinkedIn & Instagram.

If you liked this story/article, sign up for our weekly newsletter on Substack, “Care City Weekly”, a handpicked selection of stories, articles, research and reports about healthcare, well-being, leadership, innovation, entrepreneurship and more from leading websites, publications and sources across the globe delivered to your inbox every Saturday for free. 

Build & Grow With Us:

Media Kit.

Events & Webinars.

Care City Media Partner Press.

Guest Author & Contributor Porgramme.

Editorial Avatar

(Care City Media Editorial Team)