By Shachi Service provider, Vice President, Index Specialist, ROBO International
Healthcare is likely one of the few sectors of the financial system that has struggled to maintain tempo with right now’s applied sciences. Previous to the pandemic, we had hit an inflection level the place modernization was now not a selection, however a requirement. Now the necessity to digitize and innovate throughout the business has turn out to be dire. First, we should perceive the present panorama driving this demand—then we are able to comply with the investments and firms paving the trail to raised affected person care by means of prevention and elevated entry.
Understanding the present healthcare panorama and the necessity for innovation
Healthcare prices, each on a world and nationwide degree, are rising at unsustainable ranges. This is because of a confluence of things, together with the rising getting older inhabitants, enhance in power illness, scarcity of physicians and nurses, lack of entry to care, and enhance in digital demand by hospitals and sufferers.
The getting older inhabitants is anticipated to double within the subsequent 20 years.
The prevalence of power illness is rising, accounting for 81 % of U.S. hospital admissions, 91 % of all prescriptions crammed, and 76 % of all doctor visits.
A examine performed by consulting agency Mercer confirmed that the U.S. will face a scarcity of 400,000 residence well being aides and 29,400 nurse practitioners by 2025.
Digital medical file and digital well being file adoption is rising — 93 % of American hospitals now use EHRs, which represents an increase of 20 % within the final ten years. Laws slated to take impact in 2022 is evolving to satisfy elevated digital demand, permitting sufferers to obtain their EHRs onto digital units.
Along with all these elements, the COVID-19 pandemic shattered beforehand established obstacles to innovation and catalyzed digital well being. Innovation in healthcare is creating new avenues by means of which to deal with sufferers remotely, enhance affected person circulation by means of digital appointments, and cut back emergency care companies by means of predictive modeling, synthetic intelligence, and expertise.
A shift from sick care to preventative care
A highlight is on preventative drugs in an effort to fight power sickness administration, enhance well being outcomes, and cut back rising prices. As annual checkups and pressing care visits had been rescheduled and reshuffled by the pandemic, a number of firms emerged with modern approaches to tackling the continued healthcare disaster. Two fascinating examples of those expertise developments may be seen by means of using telemedicine and genetic testing within the major care setting.
The rise of the “digital physician” permits sufferers to entry physicians and clinicians by way of videoconferencing apps, normally on their smartphones and tablets, but in addition by way of conventional PCs. Telemedicine is extremely instrumental for these sufferers who’re unable to simply go away the house for a standard supplier go to and for individuals who dwell in distant or rural areas.
The HTEC index has a 1.41 % weight in Teledoc Well being, Inc. (TDOC), one firm that’s on the forefront of the telemedicine business. TDOC expanded its distant well being choices in 2020 by merging with Livongo, a digital well being firm and former HTEC member that builds out distant healthcare options for sufferers affected by diabetes and hypertension.
Genetic testing is a crucial medical device used to evaluate varied inheritable illnesses, circumstances, and cancers sooner than ever earlier than attainable. Early prognosis, typically even earlier than signs floor, helps to reduce the severity of signs in the long run and promote a greater high quality of life for sufferers.
The HTEC index holds a 1.30 % weight in Fulgent Genetics, Inc. (FLGT). Fulgent, along with its subsidiaries, gives COVID-19 testing and genetic testing companies to physicians with clinically actionable diagnostic data. Its expertise platform integrates knowledge comparability and suppression algorithms, adaptive studying software program, and genetic diagnostics instruments and built-in laboratory processes. The corporate primarily serves insurance coverage firms, hospitals, and medical establishments. Fulgent Genetics collaborates with PWNHealth to supply at-home COVID-19 check capabilities and has a strategic partnership with Helio Well being, Inc. to commercialize blood-based early most cancers detection checks.
Projected funding developments throughout healthcare expertise
Judging from supporting laws, the elevated want, and the present scarcity of healthcare professionals, healthcare innovation is right here to remain. This evolving business is creating an inflow of funding alternatives. The ROBO International Healthcare Expertise and Innovation Index (ticker: HTEC) gives traders with publicity to world well being tech firms which can be harnessing highly effective applied sciences to create services and products that profit each sufferers and suppliers.
Listed here are two of the most important offers and funding particulars that show that we’re within the midst of a healthcare revolution:
This yr, there have already been 73 offers (accomplished and pending) value $50.1B made by HTEC members as of August 30, 2021.
In the event you comply with the cash, all indicators level to progress and continued improvement on this planet of healthcare expertise. HTEC is a dynamic, world portfolio of firms working to vary the way forward for healthcare. Investing in innovation will affect us for generations—healthcare’s second is now.