The medical device industry is evolving from product delivery to a more robust administration of services and solutions offering more involvement during the entire process of treatment.
Medical treatment is shifting from the hospital to the home as increased healthcare spending, demographic changes and technological advancements converge to spur growth in mobile health monitoring devices.
Americans spent $3 trillion on healthcare in 2014, up more than five percent over the prior year and accounting for a record-high 17.5 percent of our total economy. By 2024, spending on hospitals, doctors, drugs and other healthcare expenses is projected to consume 19.6 percent of our economy – approximately $9,500 per person per year. That cost nearly triples for the 65 and older age group, which currently represents nearly 15 percent of the total population, a ratio projected to increase to 20 percent by 2030.
The cost of managing chronic diseases is another factor driving up healthcare spending. An estimated 117 million Americans suffer from one or more chronic health conditions, and such care is expensive. The cost of treating people with chronic diseases accounts for 86 percent of U.S. healthcare spending.Value-based Healthcare Targets Better Outcomes
Remote Monitoring Facilitates Early Detection and Prevention
Here’s how it works: A diabetic patient with a wearable blood glucose monitor can have the information captured, stored and transmitted to care providers, who analyze the data and suggest corrective action, if required. Similarly, cardiac patients can be monitored continuously, having their heart rate readings sent to a central server that doctors can access to track the success of a treatment, or even use algorithms to predict impending problems.
Mobile health services work across wellness, prevention, diagnosis, treatment and monitoring, all while improving the efficiency of healthcare providers in care delivery. Its popularity with patients and caregivers alike indicates that the market will continue to grow in the near term. And as more and more patients choose to treat medical conditions in their own homes, it is likely that medical device manufacturers will see the need to continue developing new devices and applications that take advantage of remote access monitoring, data collection and analysis.
Companies that produce medical devices know they face stiff competition in this rapidly evolving industry. They need to stay ahead of demand for current products while they continue to innovate on new offerings, all while dealing with the pressure to maintain or decrease costs.
Many medical device manufacturers have seen the wisdom of partnering with an engineering service provider like EASi, which allows them to supplement their workforce in a sustainable and cost-effective way. With the flexibility of matching the workforce to the workload, these companies ensure they have the resources they need to continue developing the highest quality products.
Sources: Centers for Medicare and Medicaid Services, 2015; National Center for Health Statistics 2012; PWC Health Research Institute