Healthcare Predictions for the New Year
/Healthcare is quickly and continuously changing from new technologies to an explosion in demand. Experts from Frost & Sullivan discussed the most likely predictions for 2016.
1. Due to increased innovation, wearables are predicted to hit a $6 billion market. The clinical utility of wearables are becoming more actionable with more sophisticated sensing capabilities and analytic functions. Approximately 24% of consumers currently use mobile apps to track health and wellness according to a recent study from Frost & Sullivan. Meanwhile, 16% of consumers use wearable sensors. That trend is expected to continue with 47% of consumers already considering the use of wearables in the near future.
2. Retail Care is going mainstream with 35% expansion of in-store clinic presence. More retailers are likely to ramp up investment efforts in 2016 towards this form of primary care.
3. New Development Bank (NDB) is investing heavily in healthcare with a total capital of $100 billion. NBD is focused on improving healthcare dynamics as well as the lives of citizens in developing nations.
4. Rapid Expansion of Private Insurance is finally taping India’s healthcare market. The new government is prioritizing healthcare, through the National Health Assurance Mission, which will provide free drugs and diagnostic services,
5. Population Health opportunities are driving over $50 billion in healthcare M&A. Long term corporate strategy aligned with opportunities in population health management is expected to drive decision-making. Industry participants must evolve quickly or die out especially in an environment where compensation is now heavily tied to outcomes.
6. Less expensive and faster point of care (POC) testing enables new diagnostic care models. Commercialization of new POC test platforms with capabilities such as molecular POC, connectivity features, biosensors and microfluidics is able to drastically improve turnaround times and allow for more prevalent testing services.
7. Free preventative care services available to over 90% in the U.S. Everyone from payers, employers, and the government will be offering a wide range of technology and wellness enabled preventative services.
8. Healthcare IoT solutions attracts $10 billion in venture capital investments for healthcare startups. In order to break down outdated forms of care delivery, these startups are deploying approaches that optimize new tools and technologies.
9. Hospitals investing heavily in overhauling outdated facilities so as to avoid closure. Many hospitals are being forced to rethink everything in order to adapt to new forms of care delivery that emphasize efficiency and patient satisfaction. Dallas’s Parkland Hospital is overhauling their facilities with a whopping $1.3 billion.
10. The global regenerative medicine market is expected to reach $30 billion next year. With growing investments in this area, Pharmaco is expected to see growth rates of 22.4% from 2015 due to both favorable legislative policies and an increasing number of cell therapy marketed products. Companies should start asking questions such as, "How will the company monetize population health management to align with value based care models in the future?" as well as, "How to start the process of building a patient engagement platform that goes across the care continuum and look at it from the patient or consumer’s point of view, not a company perspective?"
All in all, 2016 is going to be the year for healthcare companies to start taking some big risks and investments to keep up. This is also the year for hospitals to decide between the fight or the flight, for industry players to build a better culture of collaboration, and for startups to continuously rethink care delivery in order to succeed in the new year.
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