Digital Health Reshaping MedTech Industry as Consumers Demand “Anywhere, Everywhere” Healthcare, Accenture and AdvaMed Report Finds

Rhea-AI Summary

The recent report by Accenture and AdvaMed reveals a significant shift in the MedTech industry, influenced by digital health and evolving consumer expectations. Over 75% of executives believe expanding care settings will reshape long-term strategies. Key trends include a focus on the 'Consumer Patient' model, increasing flexibility in care locations, and prioritizing digital health solutions. However, challenges persist, such as the complexity of implementation and evolving regulatory landscapes, with 87% of executives highlighting regulations as potential disruptors.

Positive

• 75% of MedTech executives expect expanding care settings to significantly influence their company's long-term strategy.
• 99% of executives reported accelerated development and commercialization of Digital Health solutions in the past two years.
• The report identifies rising trends in consumer engagement and digital health prioritization as factors for future growth.

Negative

• 86% of executives cited technology and collaboration challenges in implementing digital health solutions.
• 87% of executives consider government regulations a threat to their business, affecting adaptability to new technologies.

Shift away from traditional healthcare settings will impact long-term business strategies and models, according to more than three-quarters of MedTech executives surveyed

NEW YORK--(BUSINESS WIRE)-- The medical technology (MedTech) industry is being reshaped by digital health and consumers' expectations to receive care how, when and where they want, according to a new report from Accenture (NYSE: ACN) and AdvaMed.

The MedTech industry is being reshaped by digital health and consumers' expectations to receive care how, when and where they want, says Accenture and AdvaMed. (Photo: Business Wire)

The report, titled “Digital Health and MedTech – New Signals for Transformation,” based on a global survey of more than 150 MedTech executives, reveals a shift away from traditional healthcare models, with leaders adopting digital health as a core part of their approach to improving patient outcomes. More than three-quarters (75%) of the executives said that expanding care settings will significantly reorient their company’s long-term strategy and change business models.

“Healthcare is at a crossroads, facing unprecedented pressure and disruption — including affordability challenges, shifting patient expectations, and an increasing deluge of health data,” said Tim Durst, a managing director at Accenture who leads the global medical technology sector in the company’s Life Sciences practice. “With a unique understanding of therapeutics, patients and providers, as well as insights gained from digital devices in the hands of patients, MedTech companies are well-positioned to lead the transformation to digital health. However, companies will need the proper digital foundation to leverage the necessary insights and create a comprehensive digital health solution.”

The report notes that developing the right connected products, services and programs for patients and providers remains a hurdle, citing implementation complexity and the lack of the right partners as primary challenges. In addition, nearly nine out of 10 executives (86%) said that technology and collaboration are key to addressing these challenges.

The report identifies five key trends driving the future growth of MedTech:

• The Consumer Patient: Healthcare is no longer a one-way interaction with the patient only on the receiving end; it now requires continuous engagement between patient, provider and payer. Two-thirds (70%) of executives said that the Consumer Patient phenomenon is very relevant and expect it to significantly affect their firm’s long-term strategy.
• Care Anywhere, Everywhere: As consumers increasingly expect to receive care how, where and when they want, healthcare is increasingly expanding from hospitals to ambulatory and at-home care locations. The MedTech executives interviewed for the report said that while traditional products continue to drive revenues, the expansion of care to new settings is a key part of their growth strategies.
• The Rise of Digital Health: MedTech company leaders are prioritizing digital health by building capabilities in-house through investments in R&D, technology, digital and new business models; and by making asset acquisitions to expand their pipeline across therapeutic areas and add new capabilities to innovate faster or reach customers in new ways. Nearly all (99%) executives indicated that development and commercialization of Digital Health solutions has accelerated in the past two years.
• Converging Sectors: The rise of digital in healthcare is also fueling non-traditional deals, with future success dependent upon various sectors converging to develop products and services across the entire care continuum, according to nearly nine out of 10 (86%) executives.
• New Regulatory Pathways: Digital Health may fall outside the bounds of established regulatory pathways for untested technologies, requiring new approaches from the sector. Most executives (87%) identified government regulations as a threat and disruptor to their business. This may be due to the shifting nature of regulatory guidelines, as regulatory bodies work to keep up with the rate of new and emerging technologies and ensure they are safe and effective.

Scott Whitaker, AdvaMed president and CEO said, “AdvaMed members are at the forefront of innovation and improving patient health outcomes, and we are seeing some of the most exciting advancements in digital health. The report’s findings will help us plan for the future of our industry to ensure we can thrive and grow to meet the needs of the patients who rely on medical devices every day.”

Access the full report here.

About the Research
Accenture surveyed 150 MedTech senior executives globally (Germany, Japan, Netherlands, Switzerland, UK and US). The respondents were equally distributed across 30 med-tech companies with median 2021 global revenues of nearly US$10 billion. Two-thirds of the respondents had a tenure of 11-20 years’ experience in the MedTech industry. Accenture also interviewed 30+ C-suite and other senior executives from the MedTech and pharma sectors in AdvaMed’s Digital Health Center of Excellence to confirm survey findings and gain deeper insights. In addition, the researchers analyzed 100 M&A deals and more than 600 product launches from a subset of MedTech companies that took place between January 2019 and March 2022.

About Accenture
Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Technology and Operations services and Accenture Song — all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 721,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at accenture.com.

Copyright © 2022 Accenture. All rights reserved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221109005130/en/

Marchell Gillis

Accenture

+1 678 657 7515

marchell.gillis@accenture.com

Source: Accenture

FAQ

What recent report discusses the future of MedTech industry and digital health?

The report titled 'Digital Health and MedTech – New Signals for Transformation' by Accenture and AdvaMed highlights significant shifts in the MedTech industry.

How do MedTech executives view the impact of expanding care settings?

Over 75% of MedTech executives believe that expanding care settings will reshape their company's long-term strategies.

What key trends are driving the MedTech industry's growth according to the report?

The report identifies trends such as the Consumer Patient model, care flexibility, and prioritization of digital health solutions.

What challenges do MedTech companies face according to the survey?

MedTech companies face challenges such as implementation complexity, lack of the right partners, and evolving government regulations.

What percentage of MedTech executives reported an acceleration in digital health solution development?

Nearly 99% of MedTech executives reported that the development and commercialization of digital health solutions have accelerated in the past two years.