In a study published in January 2017, Frost & Sullivan (F&S) warns that there is a scarcity of sustainable business models in the field of remote patient monitoring (RPM) and mobile health (mHealth).
Despite the increasing demand for products related to this sector, The US firm said that caregivers have always been looking for a business model that can best tap the monetization opportunities.
F&S reported that « Asia-Pacific is moving towards a platform monitoring model for chronic disease management, wherein devices will be provided for free and the revenue will be generated from monitoring services and data insights, » said Frost & Sullivan Transformational Health Industry Analyst Shalani Andria.
A refund system for telemedicine services?
Home health monitoring market is expected to generate nearly $2.2 billion (€ 2.073 billion) by 2020 in APAC.
« Despite the slow start to the market, savvy vendors are investing early as they detect potential for exponential growth once a funding model is established, » Shalani Andria said.
According to Frost & Sullivan, the issue of a scarcity of sustainable business models in the mobile health sector has become more important with vendors increasingly establishing partnerships and joint ventures with telecommunications companies, healthcare providers, insurance companies, governments and other stakeholders of the industry. « The inherent risks in such relations can be mitigated by choosing a business model that can best tap the monetization opportunities, » the firm said.
APAC Home Health Monitoring Market, Forecast for 2020, part of the Frost & Sullivan’s Connected Health Growth Partnership Subscription, finds that in Asia-Pacific, payers like insurance companies wille reimburse telemedicine services or will provide it for free to policy holders to reduce hospital admission claims.
Other areas of the healthcare industry « covered by the subscription include health IT, 3D printing, video telemedicine and automation robots, implantable electronics, and eHealth ».
Home care: there are inspiring business models in Asia-Pacific
F&S believes there are significant opportunities in the Asia-Pacific region. Certainly, the region is faced with the heterogeneity heterogeneity in regulations for remote monitoring and data sharing in individual countries, and also with a lack of clarity on government support. However, once these barriers are overcome, health professionals can develop a sustainable ecosystem in terms of revenue generation and deliver end-to-end home monitoring support.
The mHealth and RPM demand hotspots are India, China and Japan, which are becoming centers of business model innovation.
- India: government is multiplying initiatives to improve access to technology throughout the continuum of care and is pursuing an open door policy towards international vendors.
- China: the large size of the country and the development of the middle class with increased spending power are assets, Frost & Sullivan analyzed. The experts of the firm also noted that there is an increase in « international-local joint ventures in home care services due to the government’s privatization of home care services ».
- Japan’s growing elderly population and the high rate of new technologies adoption are two key factors encouraging innovation in terms of business model in the field of home care.
Moreover, collaborative initiatives like Australia’s National Telehealth Home Monitoring, South Korea’s National Telehealth Demonstration Project, or Singapore’s National Cardiac Monitoring,should drive the market for home health monitoring in APAC.
« [Evolving] from being tech companies to being clinical service providers » (Shalani Andria, F&S)
« Vendors are already incorporating Big Data, analytics and intelligence tools in home monitoring solutions, said Shalani Andria. They need to realize that the humanization of home monitoring solutions will continue to be an important factor in Asia-Pacific, and will have to evolve from being tech companies to being clinical service providers. »
