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April 15, 2020
 
R2G Blogpost Digital health companies see a positive impact of the Corona crisis on their business
 
 

The coronavirus pandemic is causing upheavals in healthcare delivery in every corner of the world, but those hailing from digital health firms are more optimistic than others within the industry that these changes will ultimately benefit their long-term business, according to a recent survey and white paper released by Research2Guidance.

The market analysis and consultation firm polled 513 health company representatives between March 24 and April 8.

Fifty-one percent of these respondents were from digital health companies, with the rest representing organizations such as research institutions and universities (11%), healthcare providers (9%), pharmas (8%), accelerators and venture funds (5%), and other groups. These respondents' organizations were primarily headquartered in the E.U. (49%) and North America (26%), although Asia/Pacific (8%), non-E.U. European (7%) and Middle Eastern (7%) companies also had some representation.

Overall, 34% of respondents said that COVID-19 would have a positive impact on their business, while 31% predicted a negative effect. Those from digital health companies had the highest hopes (with 44% positive, 11% neutral, 22% negative and 24% unsure), while hospitals and other healthcare providers were much more pessimistic (with 9% positive, 67% negative and 24% unsure).

“COVID-19 has dented our business plans in the short term, but in the long run we firmly believe that the situation will result in the acceleration and wide adoption of digital solutions, especially those with a remote care component,” an unnamed respondent from a digital health company told Research2Guidance for the survey.

On the subject of digital services adoption, 53% of all respondents said they expect the pandemic to increase digital health acceptance among patients, while 42% and 39% said they expect positive changes to the regulatory environment and payer acceptance, respectively.

Unsurprisingly, telehealth was singled out as the major benefactor of the crisis, with 65% of respondents saying that these services will see the greatest impact. This was followed to a lesser extent by remote monitoring, self-testing, data analytics and symptom checkers. In addition, 62% of companies said that they have either launched or are planning to launch new digital-service offerings specific to coronavirus.

WHY IT MATTERS

The survey highlights the long-term COVID-19 mindsets of digital health and adjacent companies. For Research2Guidance managing director Ralf-Gordon Jahns, the confluence of new COVID-19 services and general anticipation of long-term digital health adoption is likely driving the increased optimism among many respondents.

"Companies speculate that the greater acceptance and attention during the [coronavirus] crisis can be transferred to other areas and that the trend will continue after the pandemic has subsided. And if digital solutions are becoming the norm in healthcare, this will translate into business," Ralf-Gordon Jahns, managing director of Research2Guidance, told MobiHealthNews in an email. "If companies succeed in converting the currently high level of acceptance and simplified regulatory framework into increased long-term use for other services, the [coronavirus] pandemic will in retrospect be described as the breakthrough point of the digital health industry."

And although Asia/Pacific companies saw less representation in Research2Guidance's survey, the research firm reported disparities among their responses compared to the broader sample. These respondents more often anticipated that COVID-19 would have a negative impact on their business, but also expected the pandemic's impact to be shorter lived than other regions.

"Two factors might play a role in explaining why Asian companies are more hesitant when it comes to the long-term impact the pandemic has on the digital health industry," Jahns said. "First, they have a few more weeks of experience with the current outbreak. Second, lessons learned from former epidemics (SARS 2002-2004, or swine flu 2015). These might be two factors why more Asian companies envision that after the hype, business will go back to normal."

THE LARGER TREND

The companies' expectation of greater digital adoption falls in line with a recent consumer poll suggesting that the majority of people would prefer remote health consultations prior to in-person appointments, in light of COVID-19. Consumers participating in this poll also said that, while there is still room for improvement, their remote-services experience with healthcare has been better than those of other industries such as banking and telecom.

Similarly, the regulatory and reimbursement situation has also been shifting toward the side of greater digital health access.

In the U.S., CMS has temporarily expanded telehealth benefits, the FDA has enacted emergency policies permitting wider use of connected remote vital-sign monitors, and the FCC is bankrolling a major investment in telehealth infrastructure across a variety of provider organizations. Numerous European countries, meanwhile, are following WHO's recommendations for increased telehealth access and support.

 
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Whether it's tracking the prevalence of an airborne virus or figuring out the best way to shed those last holiday pounds, healthcare impacts everyone on the planet. 

Today HIMSS launched its Digital Health Indicator, a measure of progress towards a digital health ecosystem that allows the patient to manage their own health with digital tools. 

The organization describes it as “an ecosystem that connects clinicians and provider teams with people, enabling them to manage their health and wellness using digital tools in a secure and private environment whenever and wherever care is needed. Operational and care delivery processes are outcomes-driven, informed by data and real-world evidence to achieve exceptional quality, safety and performance that is sustainable.”

As the coronavirus continues to spread with nearly two million cases worldwide, digital tools have become a popular way to provide care to people in their homes and to manage new costs. 

“Healthcare is incredibly meaningful, valuable and important for every global citizen. There isn’t a country that doesn’t see that as important, but health systems are very expensive,” Anne Snowdon, director of clinical research at HIMSS, told MobiHealthNews. 

This comes at a time when technology has made its way into everyday life, so it’s no surprise that it has also begun to disrupt the healthcare industry.

“People have started to change and shift in what they expect of health systems. They live in a very connected digital world," she said. "They have expectations for healthcare. We [in healthcare] haven’t been as connected and digital as citizens have become very used to in virtually every other business.”

Today, hospital systems around the world are looking at ways to use tech in response to some of their biggest challenges, including caring for an aging population, reaching remote communities and treating individuals with chronic illness. Snowdon noted that HIMSS is looking to use its global reach to move the dial on digital advancements in healthcare. 

“HIMSS is the only global network I can find that has the reach to well over 50 countries and is growing, and has a mandate to advance those digital technologies and innovations for the sole purpose of supporting the health and wellness of every global citizen,” she said. “That is a very aspirational mandate, but one that I see as desperately needed  now probably more so than even a few years ago.”

Snowdon said that, if used correctly, these new technologies could help alleviate the pressures on the healthcare system and improve patient health around the world. 

“Not only how do we mobilize and take advantage of these impressive digital technologies that are really coming on the market faster than we can imagine what they can achieve, but how do we ... get health systems to leverage those same digital technologies to help people manage their own health and wellness and stay well?” she said. “That has the double advantage. When you keep populations healthy and well they have a much better quality of life, they have much greater economic potential and opportunity, and at the same time reduce demand for disease care because people can manage their health and wellness even if they do have a diagnosis and are less heavily relying on health systems.”

But no country can go it alone. Snowdon stressed the importance of international collaboration, and in particular the Digital Health Indicator initiative. 

“This is a strategy, a model, a framework and a measurement tool called the Digital Health I[ndicator]," she said. "It really starts to shine the light on a way ... to become extremely high performing health systems, [and] engage the global population and individual people specifically, ... and achieve a sustainable health system in terms of cost.”

She said despite the cultural differences in every healthcare system, countries can learn from each other. 

“So even though every country, like Finland, Sweden, Canada, Australia, Argentina, have very unique cultures and populations, and that will never change, every one of those same countries … are all challenged by the same [issues]: growing populations with chronic illness that are very complex and difficult to treat once they progress to a certain point, and the need to transform ways to deliver models of care that are much more connected to every individual.”

She gave the example of indigenous health, which is relevant in many countries around the world. 

“For example, Finland has many indigenous remote communities that are difficult to access and there are very few specialty care [providers] or clinicians they can even get close to when they need help,” she said. “Canada is a huge land mass, huge population if someone is not living in a big city with very little access to care. Same with Australia, same in [the] US. So although the context and culture are very different, the challenges and the types of transformational models that every country needs are remarkably similar.”

In the future, she said she sees collaboration as the way to accelerate health innovation. 

“There are things we can learn from each other. There are transformational models of care that are going to benefit many different populations, and HIMSS is in this very unique role to help systems learn from other systems because of its global reach," she said. "So, if Finland figures out an amazingly effective and possible virtual delivery model, then the HIMSS network is an incredible opportunity to scale that success story and help Canada, Australia, India, wherever, translate it into their unique context and achieve the same, or even greater, outcomes and benefits.”

 
 
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Just as it's doing with nearly every facet of society around the world, the COVID-19 crisis will radically transform approaches with patient engagement and pop health. From telemedicine and remote patient monitoring to AI and advanced analytics, healthcare was already in the midst of big changes in how it manages the health of patient populations.
 
 
 
 
 
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