Digital Health v HealthTech: What is the difference?
Exec Summary:
Digital Health is a subset of Healthtech.
Digital Health focuses on the individual patient, while Healthtech focuses on the entire healthcare ecosystem.
HealthTech is defined by the World Health Organisation (WHO) as ‘the application of organised knowledge and skills in the form of devices, medicines, vaccines, procedures and systems developed to solve a health problem and improve quality of lives’.
This umbrella term incorporates a diverse range of products ranging from over the counter consumer devices for health monitoring (e.g. smart phone apps, pregnancy testing) to complex robotic surgical systems used by specialist clinicians.
HealthTech spans the entire health continuum of disease prevention, diagnosis, treatment and maintenance incorporating a number of industrial sectors including MedTech, digital, Artificial Intelligence, Robotic Process Automation, and consumer health, with recent advances often sitting at areas of convergence between different clinical disciplines and between industries.
Healthtech is a broad term that encompasses the use of technology to improve healthcare. It includes a wide range of products and services, such as:
Medical devices: These are devices that are used to diagnose, treat, or monitor a medical condition. Examples include pacemakers, insulin pumps, and surgical robots.
Software: This includes software that is used to manage patient records, provide remote care, or deliver educational content.
Wearable devices: These are devices that are worn on the body and can track health data such as heart rate, sleep, and activity levels.
Telehealth: This is the delivery of healthcare services remotely, using technology such as video conferencing or phone calls.
Artificial intelligence: This is a rapidly developing field that has the potential to revolutionize healthcare. AI is being used to develop new diagnostic tools, personalise treatment plans, and improve the efficiency of healthcare delivery.
Digital health: This refers to the use of technology to deliver healthcare services remotely. Examples include telehealth, e-prescriptions, and patient portals.
Biotechnology: This is the use of living organisms to develop new medical products and services. Examples include vaccines, gene therapy, and personalised medicine.
Health information technology (HIT): This refers to the use of information technology to store, manage, and analyze healthcare data. Examples include electronic health records (EHRs), clinical decision support systems, and population health management systems.
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International definitions of HealthTech:
Government Organisations:
The World Health Organization (WHO): defines healthtech as "the application of organized knowledge and skills in the form of devices, medicines, vaccines, procedures, and systems developed to solve a health problem and improve quality of lives."
The US Food and Drug Administration (FDA) defines healthtech as "the use of digital technologies, such as software, hardware, and connectivity, to enhance the delivery of healthcare."
The UK National Health Service (NHS) defines healthtech as "the use of technology to improve health and care."
Commercial Organisations:
PitchBook: defines "HealthTech includes as any technology-enabled healthcare product and service that can be delivered or consumed outside of a hospital or physician's office."
DealRoom: defines "HealthTech as a synonym of Digital Health, the intersection of Health and Technology. It is a broad term that encompasses the use of technology to improve healthcare delivery."
Goldman Sachs defines healthtech as "the use of technology to improve healthcare delivery and outcomes."
Healthcare providers
Kaiser Permanente defines healthtech as "the use of technology to improve the health and well-being of individuals and communities."
The Welsh NHS defines healthtech as "any technology, including medical devices, IT systems, algorithms, artificial intelligence (AI), cloud and blockchain, designed to support healthcare organisations."
The Hospitals Corporation of America (HCA) defines healthtech as "the use of technology to improve the delivery and management of healthcare."
What is the difference between Digital Health and Healthtech?
While often used interchangeably, Digital Health and Healthtech have subtle distinctions:
Digital Health
Focus: Primarily on the use of technology to improve individual health and well-being.
Scope: Includes a wide range of technologies, from wearable devices and mobile apps to telehealth and remote patient monitoring.
Goal: Empower individuals to manage their health, prevent diseases, and access healthcare services efficiently.
Healthtech
Focus: Broader term encompassing the use of technology to improve the overall healthcare delivery system.
Scope: Includes digital health technologies but also extends to areas like medical devices, AI-driven diagnostics, and administrative systems.
Goal: Enhance the efficiency, effectiveness, and quality of healthcare services for both providers and patients.
In essence:
Digital Health is a subset of Healthtech.
Digital Health focuses on the individual patient, while Healthtech focuses on the entire healthcare ecosystem.
How is healthtech evolving?
Healthtech is evolving rapidly, driven by advances in technology and the growing demand for better, more affordable healthcare. Some of the key trends in healthtech evolution include:
The rise of digital health: Digital health is the use of technology to deliver healthcare services remotely. This includes telehealth, mobile health apps, and wearable devices. Digital health is becoming increasingly popular, as it allows patients to access care more conveniently and at lower cost.
The growth of personalised medicine: Personalized medicine is a field that uses genetic information to develop treatments that are tailored to individual patients. This is made possible by advances in genomics and big data analytics. Personalised medicine has the potential to revolutionise the way we treat diseases, making it possible to deliver more effective and targeted treatments.
The increasing focus on value-based care: Value-based care is a system of healthcare delivery that rewards providers for providing high-quality, efficient care. This is in contrast to the traditional fee-for-service system, which rewards providers for the number of services they provide, regardless of the quality or efficiency of those services. Value-based care is gaining momentum as a way to improve the quality of care and reduce costs.
The use of artificial intelligence (AI): AI is being used in a variety of ways to improve healthcare delivery. For example, AI can be used to analyze medical images, diagnose diseases, and personalize treatment plans. AI has the potential to revolutionise the way we deliver healthcare, making it more efficient, effective, and personalised.
These are just a few of the key trends in healthtech evolution. As technology continues to develop, we can expect to see even more innovative ways to use technology to improve healthcare delivery.
Here are some of the specific technologies that are driving the evolution of healthtech:
Mobile health apps: Mobile health apps are becoming increasingly popular, as they allow patients to track their health, manage chronic conditions, and connect with healthcare providers.
Wearable devices: Wearable devices, such as fitness trackers and smartwatches, are gathering data that can be used to improve health and fitness.
Virtual reality (VR): VR is being used to train healthcare providers, simulate surgery, and provide pain relief.
3D printing: 3D printing is being used to create custom medical devices, such as prosthetics and implants.
Blockchain: Blockchain is being used to track patient data and payments.
HealthTech 2030: Trends that are likely to shape the future of healthtech
The landscape of healthcare is undergoing a dramatic transformation, driven by rapid advancements in technology. As we look towards 2030, several key trends are poised to reshape the industry:
1. Artificial Intelligence (AI) and Machine Learning (ML)
Precision medicine: AI will enable tailored treatments based on individual genetic makeup, lifestyle, and environment.
Drug discovery: AI-powered tools will accelerate the drug development process by analyzing vast datasets.
Diagnostic imaging: AI algorithms will improve image analysis, leading to earlier and more accurate diagnoses.
2. Telehealth and Virtual Care
Remote patient monitoring: Wearable devices and sensors will collect real-time health data, enabling remote monitoring of chronic conditions.
Virtual consultations: Telehealth will become the norm, expanding access to care, especially in rural and underserved areas.
Mental health support: Virtual therapy and counselling platforms will provide accessible mental healthcare.
3. Wearable Technology and IoMT
Preventive healthcare: Wearables will monitor vital signs, activity levels, and sleep patterns, empowering individuals to take proactive steps for better health.
Chronic disease management: Wearable devices will support the management of conditions like diabetes, heart disease, and asthma.
Elderly care: Wearable technology will enable independent living for seniors by monitoring their activities and providing alerts in case of emergencies.
4. Blockchain and Cybersecurity
Data privacy and security: Blockchain will enhance data security and privacy, protecting patient information.
Supply chain transparency: Blockchain can track the movement of medical supplies and drugs, ensuring authenticity and reducing counterfeit products.
Interoperability: Blockchain can facilitate seamless data sharing between healthcare providers while maintaining patient privacy.
5. Genomics and Personalised Medicine
Genetic testing: Advances in genomics will lead to more affordable and accessible genetic testing, enabling personalised treatment plans.
Gene editing: Technologies like CRISPR-Cas9 could revolutionise the treatment of genetic diseases.
Pharmacogenomics: Understanding how genes influence drug response will optimize medication effectiveness and reduce side effects.
6. Augmented and Virtual Reality (AR/VR)
Medical training: Immersive VR experiences will enhance surgical training and medical education.
Pain management: VR can be used as a distraction technique for pain relief during procedures.
Mental health treatment: VR-based therapies can address conditions like phobias, anxiety, and PTSD.
7. 3D Printing in Healthcare
Prosthetics and implants: Customised prosthetics and implants can be created using 3D printing technology.
Organ and tissue engineering: 3D printing could revolutionize organ transplantation by creating biocompatible implants.
Drug delivery: 3D-printed drug delivery systems can enable precise medication administration.
Challenges and Considerations
While these trends hold immense promise, they also present challenges such as:
Data privacy and security: Protecting sensitive patient information is paramount.
Ethical considerations: AI, gene editing, and other emerging technologies raise ethical questions that need careful consideration.
Digital divide: Ensuring equitable access to technology and healthcare services is essential.
Regulatory landscape: Keeping pace with the rapid evolution of technology requires agile regulatory frameworks.
By addressing these challenges and embracing these trends, the healthcare industry can create a future where patients receive personalised, efficient, and accessible care.
Nelson Advisors work with Founders, Owners and Investors to assess whether they should 'Build, Buy, Partner or Sell' in order to maximise shareholder value.
Healthcare Technology Thought Leadership from Nelson Advisors – Market Insights, Analysis & Predictions. Visit https://www.healthcare.digital
HealthTech Corporate Development - Buy Side, Sell Side, Growth & Strategy services for Founders, Owners and Investors. Email lloyd@nelsonadvisors.co.uk
HealthTech M&A Newsletter from Nelson Advisors - HealthTech, Health IT, Digital Health Insights and Analysis. Subscribe Today! https://lnkd.in/e5hTp_xb
HealthTech Corporate Development and M&A - Buy Side, Sell Side, Growth & Strategy services for companies in Europe, Middle East and Africa. Visit www.nelsonadvisors.co.uk
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