Digitization of Healthcare
Key Highlights and Key Stats
The digital revolution has entered healthcare, offering transformative solutions that disrupt traditional care delivery models. Players across the healthcare ecosystem, from start-ups and tech companies to traditional healthcare providers, are leveraging digital health to redesign care and create value for patients, providers, and payers. Here are some ways these stakeholders penetrate traditional healthcare to bring about innovation.
Telemedicine
Telemedicine has been a game-changer in democratizing healthcare access. Platforms like Teladoc and Doctor On Demand have made it easier for patients to consult doctors without leaving their homes. During the COVID-19 pandemic, this technology proved invaluable, allowing uninterrupted care while reducing exposure risks. This shift has resulted in cost savings and better resource management for healthcare providers.
Statistics: Source (https://www.now-health.com/en/blog/9-statistics-about-telemedicine/)
- 80% of people have accessed care via telemedicine at least once in their lives (a Rock Health report published in February 2023)
- 74% of millennials prefer teleconsultations to in-person appointments (A GlobalMed report)
- Only 5% of virtual healthcare appointments result in the need for an in-person appointment (the trends identified by the American Academy of Neurology)
Wearable Devices
Companies like Fitbit and Apple have created wearables that monitor vital statistics, track physical activities, and detect abnormalities like irregular heartbeats. These devices are making patients more proactive about their health while providing healthcare providers with data that can be invaluable for personalized treatment plans.
Statistics: Source (https://www.statista.com/topics/1556/wearable-technology/#topicOverview)
- Global wearables unit shipments 2024: 560m
- Well-being device revenue 2024: 74.6bn USD
- The global revenue in the ‘Smartwatches’ segment of the digital health market was forecast to increase continuously between 2023 and 2028 by in total 18.3 billion U.S. dollars (+41.45 percent). After the ninth consecutive year ofe, the indicator is estimated to reach 62.46 billion U.S. dollars and, therefore, a new peak in 2028.
Remote Monitoring Tools
Remote patient monitoring tools are transforming chronic disease management. Companies like Medtronic offer remote monitoring for diabetes management, where glucose levels can be monitored in real-time, allowing immediate adjustments to treatment; reducing hospital readmissions, improves patient outcomes, and lowers healthcare costs.
Statistics: Source: (https://www.researchandmarkets.com/reports/5354340)
- RPM and telehealth services have increased 38x since 2020.
- By 2025, an estimated 70.6 million U.S. patients, or 26.2% of the population, will use RPM tools.
- The global RPM market is projected to grow at a compound annual growth rate of 30.7%, with predicted RPM growth reaching a value of nearly $189 billion by 2028.
- The government has declared a funding authorization of $500 million to invest in remote patient monitoring programs through 2030.
- A KLAS Research survey found that 38% of healthcare organizations running RPM programs focused on chronic care management reported a reduction in admissions, while 17% reported reduction in cost.
- The newest research into RPM tools, specifically for hypertension, correlates these devices with improved patient outcomes, demonstrating that those using RPM have better blood pressure control (72.6% vs. 65.6%) and lower systolic blood pressure (132.3 vs. 136.6 mm Hg) compared to normal controls.
Artificial Intelligence
AI technologies are penetrating various aspects of healthcare, from diagnostic imaging to drug discovery. IBM's Watson Health has been assisting clinicians with evidence-based treatment options for cancer patients. Google's DeepMind has made strides in AI-based protein folding, a foundational element in drug development.
Statistics: Source (https://radixweb.com/blog/ai-in-healthcare-statistics)
- The global healthcare AI market is expected to reach $188 billion by 2030, increasing CAGR of 37% from 2022 to 2030
- Implementing AI in healthcare has reduced around 20% of physicians’ time spent on administrative tasks.
- The market for Artificial Intelligence in healthcare is projected to grow to $20.65 billion in 2023.
- 90% of hospitals will use AI-powered technology for early diagnosis and remote patient monitoring by 2025.
- AI can potentially lower the cost of finding new drugs by 70%.
- AI might save $16 billion by reducing medication dosing errors.
- By 2030, the market for AI in precision medicine is anticipated to grow to $14.5 billion.
- AI and machine learning are expected to help reduce healthcare costs by $13 billion by 2025.
EHR and Data Analytics
Electronic Health Records (EHR) systems, enhanced with data analytics, are redefining administrative tasks and patient management. Companies like Epic Systems are at the forefront, providing robust EHR solutions that streamline operations and improve patient care through data-driven insights.
Statistics: Source (https://www.healthit.gov/data/quickstats)
- As of 2021, nearly 4 in 5 office-based physicians (78%) and almost all non-federal acute care hospitals (96%) adopted a certified EHR. This marks substantial 10-year progress since 2011, when 28% of hospitals and 34% of physicians had adopted an EHR.(Health IT Quick-Stat #61)
- As of 2021, nearly 9 in 10 (88%) of U.S. office-based physicians adopted any electronic health record (EHR)[2], and nearly 4 in 5 (78%) had adopted a certified EHR[4]. This is a consistent trend since 2015. Since 2008, office-based physician adoption of any EHRs has more than doubled, from 42% to 88%. (Health IT Quick-Stat #50)
Partnerships and Collaboration
Partnerships between traditional healthcare and tech companies are vital for successful digital transformation. A notable example is the collaboration between Google and Ascension, aiming to optimize patient care through data analytics and AI. Such partnerships combine tech companies' technical prowess with traditional players' healthcare experience.
Statistics: Source (https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10119433/)
- The Moorfields Eye Hospital in the United Kingdom provided the UK-based company DeepMind Health with a database of retina scans from their patients. DeepMind developed an artificial intelligence (AI) algorithm to help identify potentially blinding eye diseases. In return, Moorfields can use DeepMind’s trained AI model for future non-commercial research efforts.
- Thirty Four collaborations were identified between technology companies and healthcare institutions. Of these, Google and its subsidiaries accounted for 12 entries (Verily with two and DeepMind with one), followed by Microsoft with nine, Amazon with six (through Amazon Web Services), IBM with three, NVIDIA with two, and Apple and Samsung each registering a single entry.
Regulatory Changes
Regulators are gradually updating guidelines to facilitate digital health innovations.The U.S. FDA, for example, has introduced a Digital Health Innovation Action Plan to provide more apparent paths for digital health technologies to enter the market.
Statistics: Source (Link)
- EU Medical Device Regulation (MDR): The European Union extended the EU MDR transition periods on 15 March 2023. This extension is for devices transitioning to the EU MDR from 26 May 2024 to 26 May 2026 for class III implantable custom-made devices. (tga.gov.au)
- AI/ML in Medical Devices: Regulatory bodies face challenges with the increasing use of artificial intelligence and machine learning (AI/ML) in medical devices and digital health. A significant concern is the lack of generalizability of AI/ML, as different jurisdictions struggle with defining AI versus software as a medical device (SaMD) and managing the inevitable changes in AI/ML devices as they evolve. The FDA has been actively working on a framework to ensure the safety and effectiveness of AI/ML devices and, in April, issued final guidance titled “Marketing Submission Recommendations for a Predetermined Change Control Plan for Artificial Intelligence/Machine Learning (AI/ML)-Enabled Device Software Functions.”
- IMDRF: The International Medical Device Regulators Forum (IMDRF) released the document “Principles and Practices for Cybersecurity in Legacy Medical Devices” (IMDRF N60), which outlines foundational security principles and best practices covering the entire product lifecycle.
Challenges and Future Outlook
While the digital health landscape is promising, challenges like data security, interoperability, and the digital divide must be addressed. However, the benefits, including increased access, personalized care, and cost-efficiency, far outweigh these challenges.
In conclusion, the permeation of digital technologies into traditional healthcare is irreversible. By leveraging innovations like telemedicine, wearables, remote monitoring, AI, and data analytics, stakeholders across the healthcare ecosystem are contributing to a paradigm shift that is not only improving patient outcomes but also revolutionizing the very fabric of healthcare delivery.
HLWF ™ Alliance
No more silos, just solutions! | Interdisciplinary outcomes uniting healthcare and wellness practices.
Our community of women leaders, health heroes and wellness wizards take a holistic view working on the intersections of health and wellbeing — join us at HLWF ™ Alliance.
