Digitalisation is expected to transform the way we produce and provide services. Digitalisation encapsulates a wide range of systems including e.g. IoT systems with the choice of sensory equipment, algorithms and AI, data storage and integrations into ecosystems of health data. While the sector is developing smarter and digital solutions, less is known about the operation of such systems and the area of Product Service Systems (PSS). The research project includes practical operations of digital solution in the hospital service sector and includes the evaluation of environmental and the social benefits of home monitoring solutions. The research method is based on an LCA approach. The system includes IoT, AI and health service. The functional unit is multi-functional and include digital service and the service provided for patients. We used a modular approach and use several functional units to overcome the methodological challenges. By that we can relate results to different part of the digital service, or the health service provided. The preliminary results show that home monitoring will increase the use of digital equipment and data storage, while reducing transport of patient to and from the hospital. This has highlighted implications on both the product design (direct effects) and the service design (indirect effects). In hospital routine situations, the time is saved to a large extend, and IoT used for providing better service, while patients transport, and climate impacts are reduced. In an emergency, home monitoring might prevent the hospital transports and climate impacts reduced to a larger extend.