Healthcare is the largest employer in the US. In 2020, national healthcare spending reached $4.1 trillion. By 2040, it could more than double to $8.3 trillion.
Adoption of emerging medical technology is a major driver of rising healthcare spending. While the adoption of new technology is expensive in the short run, US health providers think their investments will pay off. More patients will receive higher quality healthcare at a lower cost to themselves in the long run. 80% of healthcare providers plan to increase their investment into technology and digital solutions over the next 5 years.
Emerging technology in healthcare falls into 4 broad categories: telehealth, digital therapeutics/devices, artificial intelligence, and personalized healthcare. By now, most people are familiar with the remote delivery of health services that telehealth offers. 42 states plus DC now require private insurers to cover telehealth visits.
Therapy via software and apps is an emerging market yet to be approved by regulators to replace or complement existing treatment. Wearable sensors, however, were approved by the FDA in 2018. They can now be used to monitor health conditions throughout the day.
AI and PHC are even newer avenues. They have enormous untapped potential in healthcare.