Anticipated Consolidation in Digital Health: Key Areas to Watch in the Upcoming Year
Discover the four pivotal areas in digital health poised for consolidation. Insights from top health leaders reveal the sectors to monitor closely.
In a recent gathering at the HLTH conference in Las Vegas, the editorial team of MedCity News sought insights from a diverse group of healthcare leaders. Their primary query revolved around the potential areas within digital health that are likely to experience consolidation in the forthcoming six to twelve months. As reported by MedCity News, the insights are both enlightening and indicative of the rapidly evolving digital health landscape.
Generative AI and Clinical Documentation
The buzz surrounding generative AI is palpable. Dr. John Halamka, the esteemed president of the Mayo Clinic Platform, observed a proliferation of generative AI at the HLTH conference. However, he candidly remarked on the conspicuous absence of sustainable business models. Dr. Halamka anticipates a significant shakeout, with only a handful of early adopters thriving in niches such as clinical documentation, radiology interpretation, and digital pathology. Echoing this sentiment, Dr. Shaun Miller, the chief medical information officer at Cedars Sinai, envisages consolidation in the realm of AI-enabled clinical documentation.
Behavioural and Mental Health
The behavioural and mental health sector has witnessed a surge in investments. Brad Smith, the CEO of Main Street, believes that this domain will inevitably see some consolidation. Christine Lemke, co-founder and CEO of Evidation Health, also identifies behavioural health as a prime candidate for consolidation. Sofia Guerra, vice president at Bessemer Venture Partners, foresees a merger of mental health platforms, especially those that excel in recruiting top-tier therapist talent.
Care Delivery and Virtual Care Platforms
Missy Krasner, venture chair of Redesign Health, predicts a wave of consolidation sweeping across virtual health platforms. These platforms, which offer white-labelled tech solutions for asynchronous and real-time virtual health, are on the cusp of a transformative phase. Nworah Ayogu, chief medical officer of Amazon Clinic, highlighted the recent mergers in the care delivery market, such as Amazon's acquisition of One Medical and CVS Health's purchase of Oak Street. Michelle Davey, co-founder and CEO of Wheel, envisions a future where niche care delivery platforms amalgamate, offering consumers a unified platform for diverse healthcare needs.
Digital Therapeutics
The trajectory of digital therapeutics has been tumultuous. Following the challenges faced by pioneers like Pear Therapeutics, the sector has been marked by numerous failed collaborations between pharma and health tech entities. Chris Hogg, CEO of Marley Medical, anticipates that pure tech providers in digital therapeutics will merge with virtual care platforms.
The upcoming year of digital health promises to be dynamic, with significant shifts and consolidations. Dr. Halamka of the Mayo Clinic advises stakeholders to brace themselves for a turbulent year ahead.
The anticipated consolidations within the digital health sector underscore a broader trend: the maturation of the industry. As digital health moves from its nascent stages filled with myriad startups and experimental solutions, it's entering a phase of maturity where only the most viable and scalable solutions will thrive. This consolidation is not just about mergers and acquisitions; it's a testament to the industry's evolution. Those who can adapt, offer tangible value, and seamlessly integrate into the broader healthcare ecosystem will shape the future of digital health.