2019 will be a year of value-based care as we will see the ‘outcomes-based care’ focus to globalize. By triggering maturation of risk-sharing in solution contracting between providers and drug/device original equipment manufacturers (OEMs),this will drive business value for providers.For the upcoming 2019 elections in emerging markets such as Asia, Africa and, Central and Eastern European countries, access to affordable and quality care will be key political agendas. Top predictions for global healthcare 2019 are as follows:
Digital health tech catering to out of hospital will grow by 30% and cross $25 billion.
The application of digital health will continue to go far beyond the traditional system this year and will empower individuals to be able to manage their own health. Estimates suggest that by the end of 2019, digital health tech catering to out of hospital settings will grow by 30% to cross $25 billion market globally. The chief driver for digital health solution such as RPM devices, telehealth platforms, PERS, and mHealth applications will be increasing cost burden from chronic health conditions and aging population. Additionally, to include behavioral health, digital wellness therapies, dentistry, nutrition, and prescription management, favorable reimbursement policies towards clinically relevant digital health applications will continue to expand care delivery models beyond physical medicine.
Asia becomes the New Local Innovation Hub for Global Drug and Device OEMs
A majority of medical innovation pipeline has flowed from West to East historically. A string of global drug and device OEMs are attempting to upend that trend with new products tailored to Asian bodies, lifestyles, and purchasing parity (affordability) owing to the emerging markets contributing 20-30% of the pharmaceutical industry’s value with double-digit growth (10-15%). Due to this, up to 10% of healthcare R&D is expected to be invested to localize innovation for emerging markets in Asia in 2019. Asia-pacific, the strongest market in terms of growth has more than 30% of the global late-stage trials for cell therapy alone. Moreover, the geography is expected to witness the genomics revolution in the next few years and particularly, China will take a leading role in Asia’s genomics space. There will be a rise in “unicorn start-ups” (valued over $1 billion) and foreign direct investment entailing this changing paradigm of product development and geographic rollouts and riding on increasing demand for healthcare services, an aging population, and rising income levels.
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