The general definition of cost-effective concerns whether a product, process, solution, etc., saves or makes money when compared to the costs needed to provide it.
Innovators must identify whether the cost of their products (price, burden on staff, etc.) is worth the outcome. Because of the continually rising costs of healthcare, there are many opportunities for digital solutions to help streamline processes that save staff and financial resources as well as reduce overall healthcare costs through better diagnostics, treatments, and preventative care.
If a technology does increase costs for a payer, this needs to match proportionally with its increased benefits or investment. For example, an expensive treatment earlier prevents more substantial services like emergency room visits later.