As digitization is spreading across health systems, many medical technologies are connecting to the information technologies (IT) that increasingly power modern medicine. In many Asian countries, this convergence is occurring at a rapid pace.
It improves patient outcomes, reduces costs and expands access to quality healthcare. However, it also presents security challenges that will require innovation and collaboration to be overcome, said Fredrik Nyberg, CEO of the Asia Pacific Medical Technology Association (APACMed) in a story published on August 6, 2017 on Enterpriseinnovation .net.
Medtech: business models focused on IT services
Multinational and local medical technology companies are responding to healthcare challenges across Asia, Fredrik Nyberg said. A majority of them now use digital applications for remote monitoring of equipment, health worker training, or data analytics.
As in the pharmaceutical industry, forward-thinking firms are exploring business models that focus on IT-enabled services rather than products. According to a recent survey conducted by PwC, 7 out of 10 major medtech companies are moving in this direction.
Platforms that lead to lower costs and better accessibility
This shift towards IT-enabled, services-based business models is partly explained by the fact that digital platforms tend to be highly scalable, which facilitates cost reduction and service provision in more remote geographies.
Medtech and IT: major international groups are attracted by Asia
To support the convergence of medical technologies and information technologies in Asia, global technology companies are increasingly interested in the region.
- IBM, for example, launched in 2016 the Watson Center at Marina Bay Financial Center (Singapore) to co-develop business solutions with the group’s cognitive, blockchain, and design capabilities in Asia.
- Microsoft is developing solutions that leverage new hardware, such as mixed reality headsets and tablet computers for clinical care settings.
Asian leaders invest in industry
Asian technology giants, such as Tencent and Softbank, have also started investing in the healthcare industry.
- In March, the Chinese group Tencent led a USD200 million (€170 M) series D round in Haodaifu Online, one of China’s largest mobile healthcare app, and have led in August with BlueRun Ventures a USD24 million (€20 M) in Shuidi, a crowdfunding platform within Tencent’s WeChat mobile app that helps people gain financial assistance to cover healthcare bills.
- The Japanese company Softbank has invested in October USD93 million (€79 M) in Petuum, an American start-up that simplifies the process for companies to use machine learning or deep learning applications at scale.
The public sector also invests in medical technologies in Asia
Some Asia-based provider networks are receptive to innovative medical technologies.
The Tan Tock Seng Hospital (TTSH) in Singapore, for example, is actively implementing new technologies to improve productivity and outcomes for patients. « According to Dr Eugene Soh, CEO of TTSH and Chairman of the Centre for Healthcare Innovation, many of these efforts centre on supporting health workers to adopt new technologies, learn new skills, and generally practice at the top of their license, Fredrik Nyberg said. TTSH has also embraced robotics and automation of repetitive tasks, such as packaging and medicine delivery at the hospital pharmacy. »
A dynamism that leads to the development of innovative start-ups
Some initiatives are helping to spawn exciting and potentially transformative companies. Mr Nyberg gave an example with Verb Surgical, a surgical innovation company founded in 2015 out of a partnership between Johnson & Johnson and Google.
« The company seeks to improve surgical care globally with robotics, visualization tools, machine learning algorithms, and other novel approaches. These technologies hold potential to expand access to surgical care in the many Asian countries where surgical capacity is severely limited. »
The boom of the in vitro diagnostic market
The expert also said that the in vitro diagnostic (IVD) market in Asia presents a fertile ground for IT-driven medical technology innovation.
« As IVD companies develop automation tools, data analytics platforms, and other technologies that will improve laboratory testing, many see big opportunities in Asia. This includes Asia’s emerging markets, where infrastructure and capacity gaps present ongoing access challenges, as well as developed markets, where many healthcare systems face pressures from ageing populations and shifting disease burden. »
Key challenge: to innovate while protecting patient data
These innovations will help healthcare providers improve efficiencies and reduce costs, the expert added, but they also present challenges, particularly in the area of cybersecurity, a central issue that requires « urgent collaboration between diverse industry stakeholders ».
As healthcare systems become more connected, the risk of data theft, illegal surveillance, ransomware and other threats is becoming more and more serious, Mr Nyberg warned the industry. « These risks also create new challenges for regulators, who need to strike a balance between enabling innovation and protecting patients. »
