Approximately $4 billion was invested in digital health in 2014. That is 125 percent more than in 2013 and four times the amount of 2011. With figures like that, it’s no wonder digital health has the attention of venture capitalists and entrepreneurs.
Naomi Fried, PhD, vice president, medical information and innovation, Biogen Idec, cited these statistics at the MidAmerica Healthcare Venture Forum, held recently in Chicago. Biogen Idec is a Cambridge, Mass.-based biotechnology firm focused on therapies for the treatment of neurodegenerative diseases, hematologic conditions and autoimmune disorders.
The Forum, presented by MedCity News and Mid-America Healthcare Investors Network, brought together investors and healthcare start-ups to discuss technology as well as the best approaches to commercialization and new business models.
Fried used her presentation to answer five questions:
- What is digital health?
- Why are digital tools needed?
- What is the future of digital health?
- What are the barriers to digital health?
- What advice would she offer innovators and entrepreneurs?
What is digital health?
Digital health used to mean electronic medical records, said Fried. It still does, but it encompasses much more today. Telehealth – that is, the remote delivery of care – is one aspect. Using computers, cellphones, videoconferencing and other technologies, patients and doctors can confer remotely in “virtual clinical visits.”
Home health monitoring – another aspect of digital health – is catching on for chronic disease management. For example, patients with congestive heart failure monitor their weight daily, giving doctors a heads-up when unwanted fluid buildup is occurring.
Wearable devices that track our activities – running, eating, etc. – are also a growing part of the digital health landscape, Fried added.
Why are digital tools needed?
Today, people use their cellphones to check the weather, monitor their stocks, stay current with friends through social media, do their banking, and more, said Fried. But very little healthcare is delivered digitally. “I think that needs to change,” she said.
The reason is, digital solutions offer mobility and portability. “Doctors and nurses are busy and on the go,” she said. “It would be great for them to get information as they move throughout the day.” Digital data frees caregivers from their clinics and workstations. “Patients are also becoming untethered. This means they can get care where they are – at work, home, school.”
By migrating from paper-based data to digital data, providers can combine and analyze information in a way they never were able to before, she added. “The future of healthcare will be all about data mining and analysis, to help us prevent diseases and create new therapies.”
Digital health can lead to lower healthcare costs, said Fried. For example, providers can monitor patients with chronic conditions, heading off emergencies, which are traumatic for the patient – and expensive. What’s more, telehealth can spare patients and doctors the time and expense of personal visits, which often end up with referrals.
“Patient convenience is a huge piece, and a wonderful opportunity for cost-savings,” she added. For example, sick children can be cared for at home rather than being driven by their mom or dad to a tertiary care children’s facility. Home-based video robots can monitor patients in the days following surgery, sparing them the inconvenience of getting in the car and going to the doctor. “Employers are excited too,” because telehealth means fewer days off for employees.
What is the future of digital health?
“We will see clinically important information coming from wearables,” and not merely those found at the sporting goods store, said Fried. Google’s “smart” contact lens, which can measure glucose levels in tears, is an example of a promising technology under development. Fried foresees more usage of “smart,” sensored clothing and utensils. “Even our cars will be digitally enabled,” she said, with the capability of measuring blood pressure and other biometrics. These “invisibles” will be embedded in the environment, to help consumers track their health and stay healthy.
What are the barriers to digital health?
Technology hurdles aside, one question is the degree to which digital health will be regulated by the Food and Drug Administration and other agencies, said Fried. Heavy-handed regulation could hamstring the industry. But there are other barriers, including privacy concerns. “It’s imperative that any solution guard patient data; it can’t fall into the wrong hands.” Another barrier is the lack of interoperability among digital systems. Existing IT systems are complex, opaque and hard to access; moreover, a lack of standards hampers interoperability.
Words of advice for innovators and entrepreneurs?
Fried offered these suggestions to innovators:
- When developing a product or service, start with real healthcare problems. Patients are looking for convenience, and providers have to respond. Doctors’ most valuable asset is their time, and any technology that can save them time can be easily monetized. On-line access to new medical information is one example. Meanwhile, payers are demanding better outcomes, and technology can help. And who isn’t looking for ways to reduce healthcare costs?
- Build a team to work on these solutions. “Don’t innovate in isolation,” Fried advised. A variety of opinions and people strengthen innovation.
- Focus on human-centered design. “If you’re working on a solution for clinicians, think of their workflow and how the tool will work for them,” she said. “If you’re working on something for the patient or consumer, make it easy or even fun to use.”
- Start with an MVP – that is, a minimum viable product. Start with a basic solution to help you test your hypothesis. Keep it simple.
- Don’t be afraid of failure. “Failure is inevitable when innovating,” she said. “Very rarely do you get it right the first time.”
- Have fun. “Innovation can be hard and frustrating.” It’s important to introduce some levity into the process.