Healthcare providers can effectively connect with patients using digital technology. This paradigm shift has further accelerated consumer adoption of digital channels and shaped a new normal by reshaping the sector with virtual activities previously unimaginable. The goal is to deploy contactless technologies and remotely monitor patients. The healthcare delivery system will therefore undergo a great deal of change. Modern technology in healthcare is transforming traditional boundaries, bringing large-scale disruption everywhere. Healthcare providers and consumers are increasingly adopting digital health, which is driving growth in the industry. According to industry analysts, the health tech industry will reach $5 billion by 2023 with a 39% CAGR. How are investors going to embrace these changes in the digital health sector? Let’s explore.
The new opportunities
As a result of the change in the healthcare sector, innovators have come up with disrupting solutions to a sustainable healthcare future. A growing number of investors are investing in technologies that would provide proactive healthcare, particularly those based on machine learning, artificial intelligence, and the IoT. In contrast, startup companies and innovators are investing heavily to develop data-driven solutions and enable care. But, what is the source to keep the sustainability? Funding. As mentioned above, all the investors are eyeing this trend.
Funding for health technology keeps up!
Coronavirus outbreaks impacted the growth of startups in consecutive waves in the country. According to Silicon Valley Bank, the funding scenario for health tech startups is improving, with $15.3 billion from $10.6 billion in 2019. Additional funding from alternative care companies totaled $5.9 billion in mental health, primary care, and platform care deals. Digital health has experienced a boom in demand during the pandemic era, which explains the funding increase. Furthermore, large-ticket mergers, public offerings (IPOs), and acquisitions likely will gain momentum at an even higher pace following the explosion of digital health services.
The factors driving the digital transformation of healthcare
- Pre-pandemic, Amwell found 54% of US adults would use telehealth if it meant saving money. As providers continue to recognize the benefits of telehealth investments, costs will likely remain low.
- Millennials are increasingly seeking ultra-convenient health care, with nearly one-third saying they don’t feel comfortable going to the doctor. Millennials occupy the largest share of the US adult population, so providers are increasing their telemedicine and online digital health offerings to cater to their needs.
- Models based on value-based care: Insurance companies drive the shift towards value-based care (VBC), requiring providers to put patient outcomes over the volume of services before profit. In addition, digital tools like AI-enabled analytics are increasing the efficiency of care without increasing costs.
The examples of empowering digital health
There is no doubt that digital healthcare will be a wider part of healthcare in the year 2021. Telemedicine will remain an invaluable source of revenue for cash-strapped providers. They witnessed the advantage of telemedicine over the past few months. Let us explore some use cases of digital healthcare in recent times that explains the booming interest of investors in this sector.
Remote Patient Monitoring
Due to its large population and diversity, India has faced several challenges to equalize healthcare access. COVID, however, prompted the adoption of telehealth to track patients and revolutionized the industry. Through digital channels, healthcare and related services are accessible to all. In tough times, the telehealth systems provided equal access to healthcare among patients in different cities. Consequently, this lessened the burden on the already overburdened healthcare systems of the country.
Telehealth has revolutionized the healthcare sector, where the Indian Government also published Telemedicine Practice Guidelines to help healthcare utilize digital communication channels. In this context, startups have plenty of room to develop solutions and attract investors. According to the EY-IPA study, the telemedicine market will grow at a CAGR of 31% at $ 5 Bn by 2025.
Contactless technologies have been increasingly widely adopted, which has fueled health tech infrastructure growth. Healthcare institutions are implementing contactless technology solutions to allow staff and patients to communicate without touching a single device. IoT, AI, robotics, and ML technologies eliminate the need for physical contact while enhancing the effectiveness and efficiency of the system. In addition, these technologies aid doctors in addressing issues by collecting and analysis of complex patient data.
Using virtual healthcare infrastructure can improve performance within an organization and promote efficiency in health care delivery. Investments surge in startups that develop related solutions and tools. By doing this, they become the first movers in finding solutions to complex healthcare challenges and gaps. In the digital health ecosystem, innovation continues to grow at a non-stop pace today, with numerous innovators and large marquee investors joining forces with the ecosystem.