Health care is shifting to be more like traditional service industries and that means more value will (and must be) delivered through technology and lesser-trained clinical personnel.
With increased government control of health care, a predicted shortage of 65,000 primary care physicians (PCPs) by 2025 will mean a greater need for leveraging technology solutions. The role of the primary care physician, though not eliminated, will certainly change.
According to a survey sponsored by Cisco, 70 percent of patients would trust an automated device for diagnosis and advice on whether to see a doctor. Far greater than a generation ago. The geographic shift of growth in health care spending is changing as well. From 2010-2020, the compound annual growth rate (CAGR) of Asia-Pacific's total healthcare expenditure is projected at 9.2 percent, which is 2.3 times that of the G7 nations (U.S., UK, France, Germany, Italy, Canada and Japan) at a 4.0 percent CAGR. These financial trends continue to drive the movement of medical device manufacturing and research into the developing world, as has occurred in other industries.
"What was once a payment is now a cost. What was once a cost is now a potential savings. Is this a revolution, or evolution with an accelerated adoption curve?" asked Frost&Sullivan Vice President of Healthcare and Life Sciences Greg Caressi, during the opening of his speech at the 18th Annual Medical Devices 2013: A Frost & Sullivan Executive MindXchange.
Resources limitations will eventually constrain the ability to support lagging business models so healthcare companies will have to de-emphasize clinicians and products, and capitalize on rising connected health solutions, data exchange and interoperability. You can't have free health care for everyone and personalized attention. Device companies will also need to determine how their products add value in a world driven by data and analytics, with the goal of providing a holistic view of the patient.
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