Wearables, Virtual Hearts and Brains, and AI Engagement Platforms are Disrupting the Slow-Moving Industry
By Tripp Baltz, Head of Research, Boomtown Accelerators
The U.S. health care industry is enormous — it’s the nation’s largest employer, and health spending in 2021 accounted for a 19.7% share of GDP, according to the Centers for Medicare & Medicaid Services.
It’s also growing: the CMS added that national healthcare expenditure — which stood at $4.1 trillion in 2020, or about $12,530 per person — will reach $6.2 trillion by 2028.
This growth is matched by a surge in health tech. Wearables, virtual hearts and brains, and platforms for patient engagement data are among the digital health innovations that are disrupting the industry, according to MIT. Citing data from Global Market Insights, Inc., MIT projects that the worldwide digital health market will hit $504.4B by 2025.
One of the leading health industry developments in 2022 will be an increase in “do-it-yourself” health — with informed consumers, empowered by tech — taking control of their treatment and spending decisions.
It’s one of five major trends driving the future of health, according to a panel of distinguished policy experts who spoke at the 2022 Consumer Electronics Show in early January in Las Vegas.
Panelist Lynne Sterrett, principal with Deloitte Consulting LLP, said one of the biggest challenges facing health care is how to make data more interoperable — and therefore widely usable.
“We are rich in data, but light in insights,” she said. “But radically interoperable data can be a reality.”
She described the trends as:
- Interoperable data & data sharing: The global health care data interoperability market will double between 2020 and 2028.
- Equitable access to care: an estimated $134B would be saved in annual health disparity costs and excess medical costs with the elimination of racial bias in health systems, according to Deloitte’s research. Related lost productivity savings would amount to $42B.
- Empowered consumers: The U.S. will see a 300% increase in personal data stewardship practices between 2019 and 2023. This fits within the trend of increased health consumerism – a rise in the number of consumers taking charge of managing and paying for their health.
- Consumer behavior change: 83% of consumers say they are likely to continue using telemedicine, even after the Covid-19 pandemic is over. Consumers also are trying to change their sleep habits, diet, and exercise regimens, as well as quit bad habits such as smoking and excessive alcohol use.
- Scientific breakthroughs. For example, there will be an expected $42B investment in regenerative medicine market size by 2031, enabling regrowth and repair of damaged cells, organs and tissues.
Note: This article was originally published on LinkedIn