A closer look at DiPAs: The new wave of digital health ventures
by Tim Bogdan and Nele Stahlmann
True user-oriented experience and patient empowerment have yet to be achieved in nursing care. However, there is a road map forward, one which will be defined by DiPAs (dt. Digitale Pflegeanwendung). Digital care applications possess amazing potential for personalized and seamless quality care and offer incredible market opportunities in Germany. As the third largest segment in healthcare and with new laws coming into effect, now is the time to address the challenge of our ever-growing elderly population and the nursing care they require.
We here at FoundersLane offer our expertise and experience to succinctly explain (1) what DiPAs are, (2) why they are crucial to addressing this challenge, and (3) the benefits for producers who are willing to invest now.
“Good care requires human attention. However, useful apps and digital applications can help people in need of care to better manage their everyday lives.” — Jens Spahn, German Federal Minister of Health
1. DiPA: What it is and why it is important?
The population is getting older, and the number of people who require care is rising. In Germany, this adds up to 4.1 million, 80% of which are cared for at home. The result is a 1:8 nurse-patient ratio.
However, on January 20, 2021, the German federal cabinet approved a draft law on the digital modernization of care and nursing (DVPMG), which will likely come into effect midyear. This law entitles insured persons to care with digital care applications (DiPAs). These applications serve to support those who need care, as well as relative/caregiver interactions, in specific situations with guidance and assistance or by helping maintain independence. As their name implies, DiPAs are based on digital technologies, and they are either software- or web-based.
A digital directory for approved DiPAs will be established by the Federal Institute for Drugs and Medical Devices (BfArM). Requirements for DiPAs will include: safety, functionality and quality; data protection; and proof of nursing benefit. Since the nursing benefit is not yet defined, initial ideas for measurement concern increased independence (e.g. strengthening cognitive capabilities), safety (e.g. fall prevention), and mobility.
To date, Germany will be the first country to reimburse DiPAs, making it a pioneer in the care of aging societies. It will be interesting to see if countries like Japan and Portugal will follow.
2. DiPA Benefits
What benefits do DiPAs offer to people in need of care, as well as producers of care like startups, care chains, or pharma/health insurance companies?
Benefits for person in need of care
Quality improvement of care - Digital applications support a holistic care concept that can be individually tailored. For instance, data could more accurately identify needed services. Further, DiPAs could foster interactions between traditional and digital care activities, ensuring a certain continuity of care and that patients are not dependent on only one provider. An additional benefit, in case of queries doctors/experts could be consulted more easily.
Care on demand - This means that access to care is not limited by scarce resources. Activities that would otherwise require a caregiver/relative could be done by the person in need of care. They could determine the timing of care services and these services could be obtained nationwide. This ability to act in a more self-determined manner fosters patient empowerment.
Benefits for producers (startups, pharma, insurance, care chains)
New customer access point - Customers could be reached through new channels. This presents possibilities for different players (like incumbents, pharma, care chains) to interact with customers on a continuous basis and offers an attractive platform for products (e.g. cross-selling of DiGAs/private paid services).
Great market potential - The nursing care sector represents the third-largest segment of the German healthcare market and demand continuously increases. Between 2018 and 2030, market volume is expected to grow from EUR 53 billion to EUR 66 billion. By that time 100,000 additional caregivers will be needed; however, finding qualified personnel is difficult and capacity bottlenecks could worsen.
3. Use Cases
People in need of care and their caregivers are facing real challenges that can be alleviated with DiPAs. Based on these challenges, which correlate with the top three fears of elderly people (Visualisation 2), we have identified the potential use cases below:
- delaying cognitive decline to preserve self-determination
- proactively obtaining access to quality care
- maintaining independent living with disability or illness
- participating in social life and keeping in contact with others
- gaining mobility while feeling comfortable and safe
- aging in familiar environment
- preventing exclusion at work and financial vulnerability
- maintaining physical and mental well-being
Here are two examples of how digital care solutions, Care Predict at Home and Nui-Pflege, tackle these challenges by targeting specific use cases.
Care Predict at Home - Monitors seniors at home to notice changes before dangerous situations emerge. This smart wearable technology runs an AI algorithm to follow habits like eating, sleeping, and activity, and learns continuously. Alerts are sent to care circle if deviations arise.
Nui-Pflege - A digital companion supporting family in their caregiving by providing tailored and timely information. The app offers care advice/expert chats, and it helps build and coordinate a support network.
There is enormous market potential for DiPAs due to the ever-growing demand for care and the numerous use cases, so keep in mind these key facts:
- Legal requirements: Finalized application requirements will be available soon with next milestone of coming into force in mid 2021
- Key target group: People in need of care with the potential for improved quality of life
- Opportunities: Offers a wide range of potential use cases and a new customer access points
4. Conclusion
The elderly care market offers enormous opportunity and the time for early mover advantage is not over yet. However, finding one’s niche is not so easy. If you are a digital health entrepreneur looking for exciting ventures, a care supplier looking to expand services, or a pharma company interested in innovative possibilities, there are numerous options.
Our co-creation startup alley—a digital assistant for hip arthrosis patients—has proved that the most important aspect is understanding customer needs and building elderly-friendly solutions. Established companies have the perfect opportunity to seize the moment. Don’t hesitate to contact us: We are poised to develop new solutions together with you to ensure an equitable, effective care system for our elderly populations.
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About Us
Nele Stahlmann is a venture developer at FoundersLane with a strong passion for entrepreneurship. She is convinced that startups, with their innovative products and business models, can solve existing problems today. Before dedicating herself to corporate venture building, she supported a large pharmaceutical and diagnostics company in the Digital Health Accelerator program by setting up pilot projects with startups. Likewise, she has driven digital product innovation in other industries, such as home appliances. Nele is also the founder of a digital therapeutics marketplace and co-conceptualized a health data commons that was introduced at the AI for Good Summit.
Tim Bogdan is a digital health entrepreneur and senior venture developer at FoundersLane. His passion and focus are on building digital ventures in the health space; for example, alley.de. Tim is also a co-founder of an elderly care startup that simplifies access to care services. In previous roles, he worked as a strategy consultant in digital innovation, as chief of staff to the management board of a global professional services firm, and as project lead in an innovation lab.
FoundersLane, the leading Corporate Venture Builder for climate and health, was founded in 2016 by Felix Staeritz, Andreas von Oettingen, and Michael Stephanblome. The team develops digital business models in the health and climate sector by combining the agility and the mindset of technology entrepreneurs with the strength of corporations. FoundersLane draws on more than 20 years of experience by the founders in building up new companies.
FoundersLane creates new, fast-growing digital companies in categories that are highly topical and current. FoundersLane counts more than 100 founders, experts and entrepreneurs with great expertise in the fields of medicine, health, climate, disruptive technologies such as IoT connectivity, AI, and machine learning. Clients and partners include SMEs and corporations as well as more than 30 Forbes listed companies, such as Trumpf, Vattenfall, Henkel and Baloise. FoundersLane is active in Europe, MENA and Asia with offices in Berlin, Cologne, Vienna and London.
