The health tech industry is an independent sector within healthcare that involves the use of technology in products and services that can be used within or outside a conventional hospital setting. A notable exception is a hospital and practice management software which automatizes and streamlines billing and administrative functions.
Since its inception, health tech has broadened into different independent sections, from MedTech, digital Artificial Intelligence (AI), and Robotic Process Automation to consumer health, amongst several others.
Oftentimes, digital health is confused with health tech, but they are quite distinct from one another. Digital health refers to the combination of health and technology to produce better health deliveries. Therefore, it can be assumed that health tech stretches from the digital health Industry.
Digital health utilizes digital platforms and tools to provide personalized patient healthcare by expanding the patient access to useful related apps or using neural networks for complex disease diagnosis and lots more.
During and shortly after the COVID-19 pandemic, there has been a noticeable increase in the level of dependency on digital technology and the internet. Several businesses had to switch from the conventional physical marketplace to a more digitalized one, and those who couldn’t comply folded up.
In the health world, the switching trend began due to inadequate healthcare providers. This birthed a technology that can be accessed virtually by anyone around the world. Since digital healthcare was introduced, health tech has proven to be the “messiah” of the healthcare industry.
In this article, we’ll look at some of the economic effects of health tech and startups in the healthcare industry.
Economic Advantages of Health Tech Startups
1. Increased Accessibility To Marginalized Communities
Health tech startups are able to serve more people, especially less privileged citizens or dwellers of marginalized communities, due to digitalization. This could be through telemedicine, online consultation, or any other means of communication.
Health tech also has the potential to improve access to care for underserved populations. This could involve using mobile health solutions to improve access to care in remote and rural areas. Additionally, Health tech could be used to improve public health initiatives, such as immunization campaigns and public health surveillance. Through health tech, there’s been a massive reduction in health disparities majorly in rural environments.
2. Decreased healthcare costs for both patients and providers
Healthtech is a more convenient and cheaper means of healthcare delivery to patients and healthcare providers. The innovation of technology in healthcare gives access to increased efficiency in service delivery. Health tech could be used to identify areas of cost savings, such as reduction in administrative and other relevant costs, etc.
The new system also leaves room for the use of new payment models and structures like subscription plans, etc., that are largely affordable.
3. Improved diagnoses through machine learning algorithms
Due to digitalization, the boundaries of impossibilities have been pushed beyond normal in the healthcare industry. Every time, fresh ideas and innovations in treatment tools and methods are generated to help improve the quality of care patients receive from healthcare facilities.
Proper and accurate diagnoses of rare diseases have also been made possible through technology.
Health tech also has the potential to improve population health. By leveraging data and analytics, health tech can help identify trends in health and target interventions to help prevent and manage chronic diseases. This could involve the development of personalized health plans that are tailored to an individual’s lifestyle, genetic makeup, and medical history.
As startups grow larger, there’s a need to expand and explore more areas of the sector. This also creates more job opportunities and boosts the economy of nations. For people hoping to break into Tech or Healthcare industries, Health tech poses as another edge to explore.
4. Increased Level of Innovation
Since the industry keeps growing, new ideas and innovations are brought to create a better patient experience. There is almost no limit to what can be achieved in technology, especially with the advent of Artificial Intelligence (AI). In healthcare, technology is implemented for the development of new treatments and tools and to improve the overall quality of patient care experience.
Today, the most impressive breakthrough yet in healthcare technology is the artificial pancreas. This is a hybrid insulin delivery system designed to treat type 1 diabetes.
The device is connected to a glucose meter and an insulin pump which then directly measures and monitors the levels of insulin.
Other notable innovations are in nanomedicine, the Internet of Medical Things (IoMT), 5G mobile technology, Blockchain in Healthcare, and many more.
Blockchain In Healthcare
Blockchain is useful for a lot of things in healthcare, from securing patient medical records and data to managing pharmaceutical supply chains and medical transactions. Since Blockchain has the ability to safeguard and decentralize data, it has become the go-to technology for security in the healthcare industry.
Due to blockchain’s decentralized makeup, it allows patients, doctors, and other related healthcare providers to share the same information quickly and safely. It’s a very important tool in telehealth due to the COVID-19 pandemic.
Health Tech Startups Growth During COVID-19 Pandemic
The break of the COVID-19 pandemic exposed the healthcare Industry and the world at large to unprecedented challenges. As the global healthcare system has been pushed to its limits, healthcare startups have become vital resources in providing innovative solutions to the problems caused by the pandemic.
The shift from the conventional physical walk-in hospital to a digitalized type affected a lot of healthcare centers and providers. But how have healthcare startups been impacted by COVID-19, and what strategies have they deployed to ensure steady growth and success?
Before the pandemic, healthcare startups were already making strides in the industry, developing technologies and services to improve patient care, reduce costs, and increase efficiency. The pandemic has only accelerated this growth as startups have become essential in providing solutions to the challenges posed by the crisis.
In terms of health tech, many startups have found success by developing new solutions to help track and monitor the spread of the virus. Some health tech startups, such as Kinsa, which created a smart thermometer to monitor the fever of patients, have seen a huge surge in demand for their products and services.
Another startup, SureSwift Capital, which helped healthcare organizations detect and manage infectious diseases, also saw a tremendous increase in demand. Other startups, such as Flatiron Health, have focused more on providing solutions to help healthcare organizations manage large amounts of data, provide insights on patient care, and reduce costs.
The pandemic has also created opportunities for startups to help improve access to care. For example, telemedicine solutions (also called Telehealth) have become increasingly popular as they allow patients to access healthcare services in the comfort of their homes.
Startups such as Teladoc and Babylon have likewise seen tremendous success in providing such services, as they have seen a massive increase in demand for their products and services.
Speaking in view of innovations, the pandemic has also created opportunities for startups to develop value-based solutions to help healthcare organizations manage the surge in patient demand. For example, startups such as Healthify have developed solutions to help healthcare organizations better manage patient wait times.
Similarly, startups such as Voalte have developed solutions to help healthcare organizations better communicate with patients.
On the flip side, the pandemic has also forced many healthcare startups to reevaluate their business models and rethink their strategies for growth. Startups have had to become more agile and innovative to stay competitive and relevant in the ever-changing healthcare landscape.
Many startups have shifted their focus to developing solutions that address the challenges posed by the pandemic, such as developing technologies to facilitate remote patient care.
Is Health Tech The Future of Health In The World?
Health tech is an exciting new field that has the potential to revolutionize the health industry in the future. It is an interdisciplinary field that combines technology, data, and health to create new solutions for improving health outcomes.
Considering the results that health tech has produced since its inception, it is assumed that it can successfully take over the role of physical medicine in the years to come. However, technology doesn’t impact the world positively alone. Let’s hope that the innovation will succeed and continue to give positive healthcare outputs as the industry gets bigger yearly.
This is a mission that we at Maryland Innovation Center would love to partner with. We believe In nurturing and supporting startups like yours to lead stronger in your respective roles and create more successful paths for the generations to come. Our team of experts have dedicated time and resources to help you achieve your best.
We have world-class entrepreneurs and partners who have decades of experience in a wide array of industries. Therefore, we can assure you that we will provide you with the best support to guide you through the process.
In conclusion, Health tech has the potential to revolutionize the way that healthcare is delivered around the world. By harnessing technology and data, Health tech could improve access to care, reduce costs, and improve population health outcomes. It is an exciting field that is rapidly growing, and it has the potential to transform the future of healthcare.