The healthcare sector has been through a lot in the past few years. With the pandemic and all of its aftermath, healthcare technology has come to the forefront as a critical means of managing and protecting patients. In this blog, we will explore some of the key trends in healthcare technology that are emerging in response to the pandemic.
This blog post covers all my toughs from the Accenture talk at the Medtech conference in Boston. To do this presentation the Accenture team interviewed 30 Digital Health senior executives from the MedTech and pharma sector and analyzed 100 M&A deals and 600 product launches between 2019-2022.
These are the 5 trends:
1. The Patient is in Command
Healthcare has undergone a seismic shift in recent years. No longer is it a one-way interaction where the patient is on the receiving end. Rather, it is now a structure of continuous engagement. Here, the patient becomes the consumer. They actively demand and receive healthcare consistent with their broader expectations for non-healthcare services. This shift has been driven by a number of factors, including the increasing cost of healthcare, the prevalence of chronic conditions, and the growth of the internet and social media. As healthcare consumers become more empowered, healthcare providers must adapt to meet their needs. This new era of healthcare presents both challenges and opportunities for all involved.
Credit: GD2H (taken by Haoshu He)
Consumers are increasingly demanding their healthcare, and rightfully so. They want to be more involved in decision-making and have a say in their care. And as they become more health-conscious, they're also looking for ways to take more control of their well-being. This puts pressure on physicians to adopt digital tools to help them provide better care. But it's not just about adopting new technology. Physicians must also focus on creating better experiences and products that fit into their workflows and consumers' lifestyles. By doing so, they can drive better outcomes across the healthcare ecosystem.
Challenges to solve
- Many MedTech products fail: they go "product-first" instead of "value/outcomes-first." By failing to consider how their product will actually impact patients, companies doom their products to irrelevance. The next time you're looking at a new MedTech product, ask yourself: does this product have the potential to improve patient outcomes? If not, it's probably not worth your time.
- Implementation complexity and finding the right partners are one of the biggest hurdles today to making innovations succeed across the patient journey
2. Continuous Healthcare
Healthcare is evolving. No longer are patients content to receive care in a traditional setting like a hospital. Instead, they want care that is convenient and accessible, which means that healthcare is increasingly moving out of the hospital and into the community. This shift has been driven by the Consumer Patient, who is demanding care that is more convenient and less expensive. In response, healthcare providers are expanding their scope of practice to include ambulatory and at-home care. This trend is likely to continue as the Consumer Patient becomes increasingly empowered and demands more choices in how and where they receive care.
It's no secret that the healthcare industry has undergone a major transformation in recent years. The change was accelerated by the emergence of COVID-19. The pandemic amplified the demand and need for virtual care and remote patient monitoring. In 2020, just prior to the pandemic, only 7% of people participated in a virtual consultation with a healthcare provider. In comparison, 32% used virtual consultations in 2021. This shift is likely to continue in the years to come as more people become comfortable with the idea of receiving care from the comfort of their own homes. And while there are still some challenges that need to be addressed, such as ensuring privacy and security, it's clear that virtual care is here to stay.
The COVID-19 pandemic has had a profound impact on the healthcare industry, resulting in a sharp increase in the demand for patient monitoring products. According to a recent report, approvals for patient monitoring products in the US were 60% higher during the 18-month period between July 2020 and Dec 2021 compared to the 18-month period prior.
Challenges to solve
- Payment and contracts need to change to accommodate the shift in care.
- Continuous care is more labor-intensive, so providers need to be reimbursed fairly for the time and effort involved.
- Quality of care is a concern. It's essential that providers are properly trained and have access to the same resources in order to provide high-quality continuous care.
- Bias and inclusivity are important issues to consider. Continuous care should be available to everyone, regardless of race, ethnicity, or socioeconomic status.
- Practical considerations such as space and staff availability can also be challenging hurdles for continuous care initiatives.
3. The Rise of the Digital Health
In today's rapidly evolving healthcare landscape, the digital health agenda has become a top priority for hospital executive suites. By continuously generating insights, expanding services and products throughout patient care pathways, and deploying Telehealth technologies, digital health initiatives are being used to engage patients beyond the walls of the hospital. In doing so, healthcare organizations are shifting their focus to anywhere and everywhere care is delivered. This shift is empowering patients to take control of their own health and driving positive outcomes across the continuum of care. Thanks to digital health, the future of healthcare is looking brighter than ever before.
In the digital age, there are two primary strategies for expansion: build or buy. When it comes to buying assets, companies are looking to expand their pipelines and add capabilities to innovate faster or reach new customers. Fewer companies are pursuing a hybrid model of the two, preferring instead to focus on one primary strategy. When it comes to building digital health capabilities in-house, companies are making investments in R&D, technology, MedTech, and new business models. The goal is to create a competitive advantage by being first-to-market or by having a unique product or service. Whichever strategy companies choose, they need to be prepared to make significant investments.
Challenge
- The cost of digital health implementation can be prohibitive for some healthcare organizations.
- It can be difficult to keep up with the ever-changing landscape of digital health technologies.
- There is a risk of information overload when healthcare organizations try to integrate too many digital health solutions at once.
- Crucial datasets are not been used, such as voice, text, and video data. If companies can extract key insights from those and act on them, they may be able to deliver more comprehensive and better care.
4. Converging of Sectors
The healthcare industry is in the midst of a digital revolution. Thanks to advances in technology, healthcare providers are now able to offer patients a wide range of digital services, from online appointments and prescriptions to virtual check-ups and telehealth consultations. This shift to digital is fueling a wave of nontraditional deals in the healthcare sector, as various companies come together to develop products and services that span the entire care pathway. From diagnostics and treatment to prevention and wellness, the goal is to provide patients with a seamless, connected experience that meets all their needs. The rise of digital health is leading to some interesting partnerships – and some even stranger bedfellows. Convergence continues with non-traditional deals growing more than 25%. Who would have thought that Apple would be teaming up with Johnson & Johnson to develop an iPhone-connected hearing aid? Or that Walmart would be partnering with Humana to launch a primary care clinic? As the healthcare landscape continues to evolve, we can expect to see even more nontraditional deals – and even more, companies coming together to meet the needs of today’s patients.
One of the most interesting takes was that 86% of respondents from the Accenture Research Analysis, Evaluate Pharma, CapIQ agreed that future success for healthcare companies will depend on targeting the entire care pathway rather than specific products and services. It shows that people are starting to think beyond just product placement. It's no longer enough to simply have a great product; companies need to start thinking about how they can provide an integrated solution that covers all aspects of customer care. This shift in thinking could lead to some very interesting changes in the way businesses operate in the future.
5. New Regulatory Pathways
When it comes to digital health, we may be in uncharted territory. This is particularly true for any untested technologies used. As a result, new approaches from the sector may be required to help ensure the success of Digital Health. One possible solution is to create a special task force that would be responsible for testing and approving new technologies. This would help to ensure that only safe and effective products are used in the healthcare setting. Additionally, all Digital Health companies should be required to register with the task force. This would provide a measure of accountability and help to further safeguard against ineffective or dangerous products. By taking these steps, we can help to ensure that Digital Health technologies are used in a safe and responsible manner.
Yoshiyoshi Hirokawa/Getty Images
Challenges
- Continuous monitoring of digital health is challenging as they transform much faster than previous innovations.
- The rules for testing and approving new technologies are a necessary step in ensuring that only safe and effective products are used in the healthcare setting.
- Registering all Digital Health companies with the task force would provide a measure of accountability and help to further safeguard against ineffective or dangerous products.
Conclusion
Digital healthcare is rapidly evolving, as providers move to offer patients a wide range of services that are convenient and affordable. This shift is being driven by the Consumer Patient, who is demanding care that meets their needs in terms of location and cost. In response, healthcare providers are expanding their scope of practice to include ambulatory and at-home care. As digital health technologies continue to evolve, we can expect to see even more partnerships between healthcare providers and tech companies. New regulatory pathways may also be necessary to ensure the safe and responsible use of these technologies.
More about this topic:
For more details on Accenture's research check out this link: https://www.accenture.com/us-en/insights/life-sciences/rise-digital-health
Recommended content
- TED: Why Humans are the Future of Digital Health
- The Rock Health Podcast: The current state of digital health regulation
Whenever you're ready, there are three other ways we can help you:
1. Work with us 1:1: to bring the power of AI to your business.2. The Ark Library: Take a look at the free resources we have to bring AI to your day-to-day.3. Join our community for short and sweet tips: If you are the type of person who finds it helpful to receive short, daily tips, then follow us on LinkedIn. We post a few short tips each day.
If you enjoyed this newsletter, don't forget to share it with others and/or give us feedback so that we can improve it. Until next time!
Until next time,
