Overview of the health care revolution
Digital health is the convergence of computer programs, researchers from the human genome and health care. It incorporates the use of digital devices such as sensors, wearable devices, social networks, smartphone apps and others which affect the efficiency with which health care services are provided and hence leads to better and healthier human living. Digital health startups play a critical role in health care revolution.
The size has of the global digital health Market has grown ever since the value stood at the US $ 51.3 Billion in 2015 and was estimated to increase the CAGR by 25.9% from 2016 to 2024. The digital health equipment market includes eHealth records and electronic prescribing systems which significantly influenced the total revenue growth by 62% in 2015. The market size is projected at the US $ 116 Billion by the year 2024 with CAGR of about 16.7% over the stated period. This growth has been significantly influenced by the rapid improvement of the IT infrastructure, smartphone, and tablets technology along with supportive government initiatives.
How the startup applications disrupt digital health
The introduction of digital health startup applications such as the sensors, mobile apps, computer programs and wearable devices have enhanced the doctor-patient relationship.
The evolution of digital health startups has disrupted digital health in the following ways:
- New radical applications: The digital health startups are providing a new revolutionary form in the digital realm the most common being mobile health (mHealth). This system has made it possible for various new and sophisticated medical inventions and remedies.
- Reaching under-served markets: The startups are helping in the digital health objective of achieving the various under-served markets.
- Bridging the gap between groups: Through the digital health innovations, patients and doctors have been connected. Startup applications such as the VIOMEDO in German has served to bridge the gap between the physician community and the patients.
- Massively reducing costs: They have also significantly reduced the cost patients, and health service seekers spend on their quest to access health care. The applications also minimize time wastage as they are much time conscious. This has led to a total of US $ 700 billion in the United States alone.
- Enhancing speed and accuracy: The digital health startup applications especially the innovations in sensor and wearable technology has increased the accuracy of the data generated leading to correct and efficient diagnosis and medical prescription.
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Health care startup revenue generation
A report by the Price Waterhouse Coopers indicated that mHealth technologies would aid in trimming over 35% of the total cost incurred in the treatment of chronic ailments in Europe. About $700 Billion will be saved in equivalence to the 35% by the United States.
Regardless of the rapid plunging of other large health care companies into the mHealth platform, the digital health startups are way ahead and are enjoying the lion’s share. They are the businesses that are coming up with innovative medical ideas.
mHealth firms generated a total of $ 6.2 Billion in revenue in 2013 alone; the amount is projected to increase three-fold over five subsequent years according to a Dublin-based research firm. The total mHealth Revenue is expected at $23.5 Billion by 2018.
2016 was the digital health startup year, over 500 digital health startup companies were funded with a record $ 8 Billion. The startups attracted the investments of an increased number of investors which jumped by about 42%.
- MIMI is a German-based startup aimed at improving sounds by use of technology. It is a unique make for people with hearing disabilities. The startup was founded in 2014.
- VIOMEDO: This platform, also from Germany provides a connection between patients and clinical trials. The startup was founded in 2015 by Alexander Puchito.
- Practo: Founded in 2008 by Abhinav all & Shashank ND, practo is an Indian health startup that offers marketing tools, practice management, and CRM. It services as a blueprint for doctors to provide quality services; reaching a large number of the target patient population and increase revenue.
Importance of digital health startups
Patients and other individuals seeking medical advice had to curb with many hardships. First, people had to pay substantial sums of money as compensation for physician services. In 2015, a report by the Fortune magazine indicated that one in every four non-adult Americans had outstanding medical arrears. Secondly, patients will avoid the hassle they have to go through in wanting to find a doctor and meet him/her face to face.
A joint study between the global accounting firm-KPMG and the Federation of the Indian Chambers of Commerce and Industry (FICCI) which took the title Indian healthcare startups indicated that:
- Health startups are the perfect facilitators in helping better the provision of health care services to about 70% of the rural population.
- Digital startups can be used to harness the present day advancements in mobile and Internet technology to serve the large population as a backup to the limited physical facilities.
- These startups will be used as an approach unified enough to provide long-term solutions and help in optimizing disease-care for patient-centered services. This will be achieved through the data-driven and efficient technologies.
- The health care startups are unveiling the innovations in health practices necessary for better health care service outcomes.
The time for digital health startups to be disrupted was ripe long ago; health care provider is going the digital way. The increasing population is over-stretching the available physical facilities, this calls for a digital intervention. Governments and other players in the medical sector should harness the mobile technology power to make acquisition of medical services, a less hassle.
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