With the pandemic taking its toll globally, the health care sector has made the scenario its perfect stage to develop and advance in the technological field. The investors’ interest in investing in the healthcare sector. Amid a pandemic healthcare is continually on the rise, that has put a spotlight on consultation, telemedicine, patient monitoring, and even digital health insurance.
- According to Mercom Capital Group, the Global VC funding to digital health companies reached $10.3 billion in the first nine months of 2020.
- With a market value of $141.8 billion in 2020, the digital health market is expected to increase at a rate of around 17.4% between 2021 and 2027. Few individuals can deny that healthcare affects every part of life around the world, including work, schools, leisure, and entertainment.
Companies that had focused solely on employee wellness during new employee orientation are now understanding how important it is to have a healthy workforce. Healthcare software development investors and innovators expect the number of deals and total invested cash to establish new benchmarks in an environment where launching healthcare technology solutions is growing easier.
Talking about telemedicine, then it has a lot of advantages. There are now gadgets that can monitor a patient’s vital signs in real-time, including such as RFID solutions, pulse and ECG. This information can also be saved and analyzed, improving patient safety and security at home. One of the most notable advantages of this new technology is the ability to provide a proper solution based on real-time information available on platforms.
Let’s know about the global market size.
As per the below figure and Mckinsey reports, the digital health value pools are expected to grow annually around 8% through 2024.
In this article we try to sum up the vital reasons that lead to the dramatic increase and attention towards healthcare tech companies.
Table Of Content
- Impact of COVID In The Health Sector
- Driving Forces- Payment Policy
- Remote Patient Monitoring Solutions
Impact of COVID In The Health Sector
Many people had their first virtual visit during a time when patients couldn’t see doctors face to face because of the infectious nature of COVID-19. Pre-pandemic, telemedicine visits accounted for only 1-2 percent of all ambulatory care visits; now, they account for 30% of all visits.
According to technological trends in healthcare, 66 percent of consumers want to adopt telemedicine, while up to 40% of primary care appointments might be conducted virtually. Between 2019 and 2020, investment in digital health solutions soared, from $1.1 billion to $3.1 billion.
The year 2020 will be remembered as a watershed moment for digital healthcare company. Funding increased by 72 percent from a record high, totaling $14 billion invested over 440 agreements, because of the COVID-19 pandemic.
With $4.3 billion in big tech investment in healthcare, telemedicine alone set new milestones. The total amount of money spent on digital health has reached an all-time high of $26.5 billion.
As per Deloitte, the venture funding for health tech innovators crossed a record US$14 billion in 2020.
Due to necessity and safety, tens of millions of people were obliged to try out this new digital approach to healthcare, and they liked it. Disruptors benefit from this because they don’t have to spend money on marketing to get patients into the market or risk being left behind, health systems and plans must aggressively invest in technology.
Wearables and digital health technology tools will play an increasingly essential role in monitoring patients, offering support, tracking behaviors, and transforming the healthcare industry—all from the comfort of one’s own home. The rise of digital indicators has the ability to facilitate remote diagnostics and broaden the scope of remote patient monitoring (RPM) applications.
Looking ahead, industry experts predict that the next hurdle will be figuring out how to provide fully blended care, which will include seamless assessment and referrals between remote and in-person treatment to assist improve the overall care journey.
Indu Subaiya, MD, is a senior advisor to HIMSS and the co-founder and president of Catalyst at Health 2.0. He believes that learning more about the many modalities of telemedicine—and moving further than just isolated video sessions by integrating telemedicine into an electronic operating system that matches treatment to specific needs and optimizes access to care—represents the biggest possibility.
Changes in payment policy from both government and commercial payers are driving investments in telemedicine, in addition to greater utilization. It was rapidly apparent that telehealth might increase efficiency and lower costs while also allowing for more access to care and a reduction in patient demand on institutions.
By engaging patients more frequently and at a lower cost, preventative care can help reduce preventable readmissions to the emergency department.
Global venture capital funding for digital health investments and healthcare startup funding has risen dramatically to $15 billion in the first half of 2021, propelled in large part by telehealth investment.
According to Mercom Capital Group, a global communications and research organization, fundraising activity surged by 138 percent in the first half of 2021, compared to $6.3 billion raised in the first half of 2020. It’s a wonderful time for the healthcare industry to consider investing in digital health applications as the adoption of healthcare technology rises.
As per the below figure and Deloitte reports, data and platform innovators received US$6.1 billion funding last year.
Remote Patient Monitoring Solutions
In 2020, total funding for RPM solutions will have increased by more than double, from $417 million to $941 million. Changes in reimbursement mechanisms, like telemedicine, aided this expansion. RPM solutions for chronic care management are expected to grow in popularity in 2021, according to the investors in healthcare startups. These digital health solutions help physicians gain access to patient data and enable preventative care paradigms as value-based care gains traction.
It’s been a year in the healthcare technology industry that will undoubtedly have long-term consequences. With telehealth’s rapid development and increased applications well beyond anything, we’ve seen before. The digital health technology market in the U.S. is estimated at US$80.2 Billion in the year 2021. While this transformation is not unavoidable, it will necessitate improved information interchange as well as increased access to and integration of technology.
As later-stage firms complete Series D and E rounds, the quantity of fundings is increasing, as is the amount. For instance, Ro, a direct-to-consumer virtual care provider, obtained $500 million in funding to extend its drug distribution network, improve its EHR system, bring remote monitoring, and add other features, according to the company.
Industry trends are capable of both fueling long-term innovation and creating hype that implodes. If coupled with conditions such as unjustifiably high valuations, a flood of new entrants, and a poor exit market, a growing market and rush of interest might signify over-enthusiasm.
Healthcare IT investment market research and fund strategy are in full swing now that the heat dies down, most of it should be centered on understanding and leveraging a healthcare app development services market that is both evolutionary and revolutionary.
Are you prepared for this change? If you think you are ready to imbibe the changes in your app or ideas then you can refer to appinventiv, a trustworthy and reliable company dealing with healthcare mobile app development company. A company that would help you expand your health tech journey.