Welcome to the new year! With the recent conclusion of the 35th Annual JP Morgan Healthcare Conference, 2017 is off to an exciting and spirited start. Healthcare is an industry of discovery and progress – where etiology of disease is elucidated and therapies developed, causality debated and hypotheses pressure-tested. Healthcare is, by its nature, always forward-looking. In the face of uncertainty, healthcare remains a field of hope and possibility. Healthcare is an industry of impact. Whether one life or one million, it is ultimately about human life – restoring function, maintaining longevity, and striving to do well by doing good.
Healthcare is at a critical inflection point – US demographics have shifted towards an older generation that is living longer with a larger number of co-morbidities. The country’s ability to pay for its aging population is under pressure, and the industry has responded with new diagnostics, therapies, and management solutions that promise to improve outcomes and lower cost. Despite disclarity about the impact of ACA repeal, the construct of value-based care is well-positioned to thrive. If intelligently developed and implemented, technology enabled solutions that support this shift benefit all ecosystem stakeholders – patients, providers, and payers.
This is a great time for innovation: the intersection of computer-based technology & data storage, medical biosensing, and artificial intelligence forms a powerful foundation to address the country’s healthcare needs. As such, there is tremendous opportunity for health analytics, medical technology, and digital health to drive a value based construct. That shift has begun - in 2015, hospital expenditures on analytics were an estimated $5.8 billion - expected to more than triple ($18.7 billion) by 2020. The nudge of meaningful use and EHR adoption has created follow-on opportunities for interoperability, data integration, and smart algorithm development. According to Rock Health’s 2016 year end report, close to $350 million were invested in companies developing analytics-based and data aggregation solutions. Another $312 million were invested in wearables and biosensing, highlighting consumer interest in managing their health. And another $268 million were invested in companies developing clinically-validated technology solutions that support home-based monitoring or therapeutic management. While FDA regulatory positioning will have some bearing on how quickly these solutions may be commercialized, sector investment is strong and early signals suggest a balanced posture from the agency.
At Translation Health, we are exceedingly optimistic about the current and future opportunity for healthcare innovation – whether traditional medical device and diagnostics, health IT, or digital health. We exist to help translate your healthcare innovation concepts into patient-centric, profitable solutions through intelligent strategic planning, business development, and clinical commercialization. We believe that true innovation will come from companies that can intuitively distill the unmet need of their healthcare customers and develop operationally efficient and effective solutions. We look forward to listening to your goals, understanding your challenges, and collaborating with your teams to successfully execute on a shared platform of doing well by doing good.