Healthcare: The Next Tech Boom?

As the healthcare landscape is changing and encountering a generation of aging baby boomers, the need for innovation and efficiency is rapidly increasing. Healthcare is facing a challenge to provide expanded services to an aging population with a decline in Medicare reimbursements of up to 35% by the year 2015. As a result, a healthcare technology boom is in the making as providers and payers are turning to technology to better coordinate care and explore new delivery alternatives.

Technology companies like Google, HP and Intel are investing millions of dollars in research and development to invent new smart devices and other technologies. These devices range from advanced sports equipment that will measure muscle contractions to programmable coffee mugs for Alzheimer’s patients. Digital Connect magazine estimates that U.S. revenue from digital home-health devices could quadruple to exceed $2.1 billion by 2010. These smart devices will play an increasing role in orchestrating patient wellness at home and hospitals. New possibilities are created such as monitoring blood pressure and sending the information in real-time to a physician. Another new possibility is to build a network of wireless medical devices to be used at home, clinics and hospitals.

In addition to smart devices, consumers, providers and payers are exploring new self-service options and online health alternatives. Kaiser Permanente has begun rolling out self-service kiosks designed to speed the physician office visit check-in process at 60 medical clinics in Southern California. And, in April of 2008, Kaiser also announced that more than 2 million members are actively using their personal health record which offers appointment scheduling, prescriptions, eligibility, lab results and email communication with physicians. Furthermore, in January of 2009, Cigna and Aetna will pay for online visits in attempts to improve efficiency and prevent costly problems. Medem, a provider of online services for physicians, serves 70,000 physicians and expects the number of e-visits to exponentially grow over the next few years.

Healthcare is heading toward an exciting wellness movement with the help of a momentous technology revolution. Smart devices are creating new possibilities that were non-existent before and consumers are taking action into their own hands by using the internet. Care providers and payers who embrace innovative technologies will find new ways to provide better care and position themselves as leaders in the industry.