Digital Healthcare Trends 2022: The Growing Power of Tech

The Expanding Landscape of Digital Healthcare

A significant transformation is currently underway within the healthcare sector, driven by digital innovation. This revolution is expected to accelerate throughout 2022 as both healthcare providers and patients actively seek enhanced methods for delivering and receiving care.

Organizations demonstrating robust capabilities, effective leadership, and sound financial standing are well-positioned to realize substantial gains in this evolving market.

Record-Breaking Investment in Healthcare Startups

The period from January to September 2021 witnessed a surge in healthcare-related transactions. Venture capital funding totaled $21.3 billion, distributed across 541 deals.

This figure significantly surpasses the prior high of $14.6 billion recorded in 2020, as reported by Rock Health.

The Role of Emerging Technologies

Despite substantial investment, startups will remain at the forefront of innovation. This will be achieved through the implementation of technologies like AI, the Internet of Things (IoT), and advanced data analytics.

The increasing importance of data within healthcare means it is rapidly becoming the most valuable asset.

Key Trends to Watch in 2022

Considering the current dynamics, the following six emerging trends are being closely monitored for their potential impact in 2022.

• Innovation will continue to be driven by startups.
• Data will become increasingly central to healthcare operations.
• AI, IoT, and data analytics will be key enabling technologies.
• Investment in the digital healthcare space is expected to remain high.

These trends indicate a dynamic and rapidly evolving healthcare landscape.

The Evolving Role of Telemedicine in Chronic Disease Management

The recent pandemic dramatically illustrated the transformative potential of telemedicine, fundamentally altering perceptions of healthcare delivery. Virtual consultations experienced a nearly forty-fold increase, as reported by McKinsey data.

While initial growth focused largely on addressing immediate, acute health concerns, realizing the complete benefits of telemedicine necessitates increased and sustained patient engagement, particularly in the context of ongoing chronic conditions.

Rising Costs and the Aging Population

Healthcare expenditures related to chronic illnesses are projected to escalate as the baby boomer generation ages, placing increased demands on the healthcare infrastructure.

Diabetes represents a key area where telemedicine is expected to have a significant impact. This expectation is underscored by Teladoc Health’s acquisition of Livongo last year in a substantial $18.5 billion deal.

Expansion into Cardiology and Beyond

Throughout 2022, both entrepreneurs and investors are anticipated to broaden the application of telemedicine to encompass a wider range of chronic care areas, notably cardiology.

Currently, a heart attack occurs every 40 seconds in the United States, and the economic burden of heart disease amounts to approximately $219 billion annually.

Telehealth provides a practical and economical method for both diagnosing and managing cardiovascular ailments. Patients residing in geographically isolated or rural locations, for example, can now access specialized cardiological care without the need for extensive travel.

Future Outlook for Telehealth in Chronic Care

A significant expansion of telehealth services across the spectrum of chronic disease management is anticipated throughout 2022.

Leading telehealth providers are expected to strategically develop and enhance their offerings to address the growing needs within the chronic care landscape.

The Transformative Potential of Digital Therapeutics in Healthcare

Digital therapeutics represent a groundbreaking advancement within the healthcare landscape, poised to fundamentally reshape the delivery of patient care. This sector stands out as particularly ripe for both innovation and substantial investment in the near future.

Data from CB Insights indicates a significant surge in funding, with a 79% increase observed through the third quarter compared to 2020. Projections estimate the global digital therapeutics market will reach $13.1 billion by 2026, a considerable rise from its $3.4 billion valuation in 2021.

Enhancing Patient Engagement and Care

A key benefit of digital therapeutics lies in their capacity to facilitate consistent patient engagement, leading to improved health outcomes. Consequently, both telemedicine and medical device companies are actively pursuing strategies to integrate these solutions, extending care beyond conventional digital tools.

Our firm previously invested in Welldoc, a pioneer in the field, being the first to market with an FDA-approved digital therapeutic application for diabetes self-management. Clinical evidence now demonstrates that patients utilizing Welldoc can achieve reductions in their A1C levels, enhance their dietary and exercise habits, and even potentially reverse type 2 diabetes.

Expanding Applications in Mental Health and Substance Abuse

The coming year is expected to witness notable progress in the application of digital therapeutics within the realms of mental health and substance abuse treatment. A significant advantage of these therapies is their ability to substantially broaden the scope of data collected from both individual patients and broader populations.

This expanded data collection enables the development and implementation of more targeted and effective treatment strategies. Pear Therapeutics, while not within our investment portfolio, recently secured breakthrough device designation from the FDA for a digital therapeutic designed to address alcohol use disorder.

The Future Role of Pharmaceuticals

The pharmaceutical industry is also anticipated to increasingly explore the development of digital solutions. These solutions aim to optimize existing therapies and catalyze the creation of novel treatment approaches.

Ultimately, digital therapeutic applications are expected to encompass a wide spectrum of therapeutic areas, particularly as they consistently demonstrate positive and quantifiable results for patients.

• Digital therapeutics are a rapidly growing field.
• Investment in the sector is increasing significantly.
• These therapies offer the potential for improved patient engagement and outcomes.

Achieving Health Equity Through Addressing Social Determinants

Social determinants of health (SDH) encompass the non-medical elements that significantly shape health outcomes. These factors include financial security, educational attainment, health literacy, and even geographical location. A multitude of these influences can profoundly affect an individual’s overall well-being.

Consider the case of the 34 million Americans currently living with diabetes. Despite understanding the importance of physical activity and a nutritious diet, adherence to these practices may be hindered by various social determinants. Is access to affordable, healthy food available to them?

Proximity to sources of healthy food options is also a critical factor. If such options are not within convenient reach, is reliable transportation accessible? These are genuine challenges that contribute to the substantial healthcare costs associated with diabetes, exceeding $325 billion annually in the United States for treatment and complications.

The Growing Focus on SDH in Healthcare

Looking ahead to 2022 and beyond, healthcare organizations are increasingly recognizing and working to resolve inequities and systemic obstacles within the healthcare landscape. A central component of this effort involves the increased sharing of data pertaining to SDH.

The application of data and analytics will be instrumental in pinpointing areas where social risks are prevalent and in evaluating the impact of these risks on communities. This insight is crucial for developing targeted interventions.

Data-Driven Approaches to Disease Management

This data will prove particularly valuable in managing conditions such as type 2 diabetes. By identifying individuals at risk and gaining a deeper understanding of the socioeconomic factors influencing their health improvements, healthcare providers can enhance the effectiveness of care delivery.

Ultimately, a comprehensive approach that addresses social determinants of health is essential for fostering greater health equity and improving outcomes for all populations.

The Expanding Role of Remote Health Monitoring in Healthcare

Contemporary medical devices are characterized by their reduced size and enhanced capabilities, enabling the collection of substantial data volumes. These devices possess the functionality to measure and track a wide array of physiological parameters across diverse therapeutic applications.

The global market for remote patient monitoring was estimated at $975 million in 2020. Projections indicate a significant increase to $3.24 billion by 2027. The acquisition of Preventice Solutions, a firm specializing in cardiovascular monitoring, by Boston Scientific for $1.2 billion – with Massachusetts General Hospital’s investment fund (MGHIF) as an investor – serves as validation of the market’s potential.

Benefits Beyond Patient Convenience

While frequently presented as a means of extending care beyond traditional hospital settings, remote monitoring offers compelling clinical and economic advantages. These benefits extend beyond simply increasing patient accessibility to healthcare services.

The implementation of remote monitoring systems is poised to not only enhance patient outcomes and reduce healthcare expenditures, but also to revolutionize clinical development processes within the pharmaceutical industry. Data gathered through remote monitoring can be instrumental in accelerating drug discovery and facilitating the rapid development of vaccines and novel therapies.

Furthermore, this data contributes to a more comprehensive understanding of a patient’s medical background. Subsequent analysis can identify individuals facing elevated health risks, allowing for proactive intervention.

Applications and Future Trends

The wealth of clinical data generated by remote monitoring devices holds considerable significance. A particularly prominent application anticipated in the near future lies within the field of oncology.

For example, many individuals undergoing chemotherapy experience debilitating side effects such as neuropathy. Continuous monitoring during treatment is therefore crucial for managing these complications effectively.

Ultimately, success in this evolving landscape will be achieved by a diverse range of organizations. Some will specialize in the direct provision of monitoring services, while others will focus on the advanced data analytics necessary to predict impending medical events.

The Power of Real-World Evidence

A significant increase is being observed in the quantity of health-related data gathered from mobile devices, wearable technology, and various sensors. This expanding pool of real-world data is opening doors to answering questions that were once considered impossible to address.

Consequently, this data is being transformed into actionable insights, ultimately contributing to improvements in both clinical care and patient outcomes.

Future Success Hinges on Data Mastery

Organizations capable of combining, accumulating, and integrating health data are poised for continued success. Those who truly unlock value will be the businesses possessing comprehensively labeled, long-term, and diverse datasets.

A clear distinction will emerge in the next twelve months between companies simply offering data access and those delivering meaningful insights derived from that data.

Key Factors for Value Creation

• Data Annotation: Complete and accurate labeling of data is crucial.
• Longitudinal Data: Tracking data over extended periods provides a richer understanding.
• Multimodal Data: Integrating data from various sources enhances analytical capabilities.

Firms excelling in these areas will be best positioned to capitalize on the growing importance of real-world evidence.

A Shift Towards Patient-Focused Healthcare

The trend of healthcare becoming more focused on the consumer will gain significant momentum in the coming year. A heightened emphasis will be placed on recognizing patients as central to the delivery of care.

Success within the healthcare market will increasingly depend on a company’s ability to redefine patient interactions with the system.

This transformation necessitates structuring operations around the patient experience, guaranteeing optimal care at the most affordable cost.

Enhancing Patient Access and Control

Offering supplementary services is crucial. These include user-friendly online self-scheduling platforms, simplifying the appointment booking process for patients.

Interactive systems that direct patients to the most appropriate provider, based on their specific requirements, will also be vital.

Empowering individuals with greater autonomy over their healthcare choices, and enabling them to participate in the financial advantages of informed decisions, is paramount.

The Rise of Personalized Medicine

Companies focused on developing personalized medicine technologies will be highly favored. These engines aim to expedite patients’ access to the most effective treatments.

We anticipate a surge in personalized medicine startups pioneering novel drug therapies tailored to individual patient profiles.

Such therapies promise to be safer, more cost-effective, and ultimately more impactful due to their precise alignment with each person’s unique genetic composition.

Digital Transformation and Investment

The healthcare sector is undergoing a necessary evolution, driven by the demand for enhanced and more readily available digital solutions.

Forward-thinking investors are actively capitalizing on this trend, seeking returns while simultaneously fostering innovation and, crucially, improving patient care.

Agile investment is proving essential in powering this transformation.