Blog

Ralf-Gordon Jahns, managing director of R2G

For many companies, 2020 was a devastating year due to the consequences of the COVID-19 pandemic. While this also applies to the digital health sector, the pandemic also paved the way for unexpected and extraordinary business opportunities in 2021.

In 2020, digital health startups and more established companies have suffered, as have other companies from various industries. We have seen governments set up rescue funds for startups, including those that provide services to the healthcare industry.

On the other hand, the pandemic has been an accelerator for the integration of digital health solutions into traditional health systems around the world. This opened up new business opportunities for a range of digital health services directly related to the pandemic that will last in 2021 and beyond. Which segments will offer significant business opportunities for the digital healthcare industry in 2021?

Top 5 Business Opportunities That Will Offer Significant Business Opportunities to the Digital Healthcare Industry in 2021:

1) COVID-19 monitoring and quarantine management, tracking of vaccination symptoms and digital health services “back to work”: The market has been boosted by companies like Salesforce, Verily, and hundreds of other digital health monitoring tools who have quickly translated their existing products into COVID-19 tools. The main target groups for these solutions were governing bodies or hospitals.

Related topics: R2G’s whitepaper Digital Health in Corona Times: How Can Digital Health Support the Management of the Pandemic?

With the expected decrease in new infections in 2021, the focus will shift to digital health applications.

– – Back to the labor services: Back-to-work services will flourish. Digital health solutions have been sold to employers for years, but during the current return to work, the employer channel has never been better. The technology is developed and tailored to the core needs of employees. An untold number of employers around the world are in need of tools and services that enable their employees to return safely to offices and factories. This includes health checkups before entering the workplace, monitoring services such as sensors that track biometrics and alert you to a change in health, contact tracing, tests, solutions for employee safety education, communication between employees and employers, mental and emotional health services, solutions for Employers to track workplace and community health data and manage back-to-work processes.

– – Symptom tracking services for vaccination campaigns CROs, pharmaceuticals, government agencies, hospitals like Self Care Catalyst or Well Me will come to the fore as the whole world demands. It will be great.

– – Vaccination Administration Support Services: Other possibilities arise from the fact that providers must carry out the most complex vaccination initiative in history. Services include identification of patients eligible for the vaccine, scheduling and reminders for a second dose. At the same time, data is passed on to the provider’s EHR in order to keep track of their vaccinated patients. Notable Health and Zocdoc are two of the first companies to recently launch their service offerings for this market.

2) Telehealth services: The second wave once again increased the acceptance and use of telemedicine worldwide. In most of the mature western countries, the proportion of telemedicine visits rose to more than 10% (R2G research 2020). Governments have dropped restrictions and released reimbursement codes for licenses and service offerings for telehealth technologies around the world. With the second and possibly third wave of high numbers of infections well into 2021, the legal framework for telehealth services will continue to be positive. In addition, telemedicine users have gained confidence in these services and will continue to use them in the post-pandemic world.

A global R2G survey on telemedicine and HCP in 2020 shows that 66% of telemedicine users say they will use the service more frequently in the future. New users, as well as the acceptance of telehealth services by HCP, will lead to significant business opportunities in 2021 for companies offering technical licenses, advisory services or prescription services, to name just a few of the possible business models for telehealth.

3) Remote Monitoring Service (RPM): If 2020 was the breakthrough year for the telehealth service, 2021 will be the year of revs. This is mainly being carried by technology providers, hospitals and the increasing use of digital services by HCPs as well as new RPM reimbursement codes in the US and other western countries. DTX providers like Tactio or Biobeat have started to take over RPM services themselves or have licensed their tools to hospitals and health care providers.

The potential revenue per user per month for the RPM service is high (50 to 150 PUPM). compared to the average price for digital health services (5 to 70 PUPM).

4) Home fitness: Home workout technology is a great opportunity for digital health companies in 2021, fueled by months of deadlocks behind and ahead of us. One-on-one fitness coaching (e.g. future), paired fitness machines, and virtual classes from companies like Pelotonas well as Apple’s Fitness + platform for Apple Watch, which contains monitored video-based fitness tutorials, only provide a glimpse of potential service options that will be in high demand in 2021.

5) Investors: Investment funds have always been a great source of income for digital health startups and established businesses. The hype about digitally assisted remote patient care peaked in 2020, partly due to the pandemic. “In 2020, startups raised a record $ 14.1 billion in venture funding – 1.7 times the previous 2018 high water mark” (Rock Health). A few dozen IPOs of digital healthcare companies also show investors that a successful exit is possible within a short period of time. All of the drivers of the hype will remain in 2021, creating a significant funding opportunity for digital health companies. Update your pitch deck!
The increased demand for digital services will continue beyond this year. Nevertheless, the course is set for 2021 (e.g. contracts with vaccination centers, insurance companies or CROs). Companies that want to benefit from these megatrends must now adapt their services and go-to-market approaches.

About Ralf-Gordon Jahns, managing director of R2G

Ralf-Gordon Jahns is co-founder and managing director of Research2Guidance, a leading market analyst and strategy consultancy for the global digital health market. He recognized early on the key role digital technologies will play in disrupting the healthcare industry. Since 2008, Ralf has been strategically advising companies and start-ups in the healthcare sector to better understand the value of introducing digital innovations, navigating untapped / new market opportunities, and developing first-class digital healthcare solutions to significantly improve people’s quality of life.

Ralf is passionate about digital health and is a firm believer in giving back to the growing global digital health business. In 2010 he launched the mHealth Developer Economics research program, the world’s largest digital health research program, with annual publications available to the global health community.