E-health: why 2016 will be the year of the rise
The year 2015 will remain as a decisive year for the e-health sector. In the third quarter, a record was even broken. At the end of the year, 1.5 billion dollars were raised by companies in the sector, according to the report Digital Healthcare of the investment bank Gpbullhound, specializing in mergers and acquisitions. US companies have attracted the most investor interest, but the study points out that some European nuggets need to be watched closely.
By way of comparison, France concentrated 2% of M&A operations in the sector in 2015, when the United States represented 63% of deals, followed by China and Great Britain tied (8%). .
This year, technology has responded even more to the challenges of the sector. It is this match between the market and the opportunities that arouses the interest of large investment funds. Because behind a patient, there is also a consumer ready to offer the best services. In 2013, health spending reached 7.2 trillion dollars worldwide, representing 10.6% of global GDP, the study recalls. However, these expenses must increase by 5% per year by 2018. Among the main factors, the lengthening of the lifespan.
Another particularity revealed by the study, it is first and foremost SMEs, and not large groups, which are in the process of demonstrating their potential and validating their model in the eyes of investors. What are their business models? The report identifies four business models:
Telemedicine: these are remote consultations and care, via mobile interfaces. “The reduction in the need for human interactions is particularly interesting from an economic point of view”, underlines the study which notably cites the American company Teladoc which markets patient monitoring by video, remote control, but also GPS. This economic model also accounted for 60% of mergers and acquisitions in the second half of 2015.
A company offers to provide treatment and diagnostics digitally. When the smartphone, for example, is able to transform into an otoscope (to examine the ear canal with the mobile camera), as the start-up Cupris Health proposes. Enough to open up areas that would not have access to these specialist doctors.
The marketplace: it connects patients with healthcare professionals. Its advantages: transparency on the service and competitive bidding. The French Doctolib, cited in the study, for example targets the same market as its American or British counterparts.
Finally, the software sector represents the other growing model. In data management, the opportunities are indeed massive. By 2020, new connected services in the e-health sector will have produced 25,000 petabytes of data, according to The Economist Intelligence Unit.
The e-health revolution which is in the process of being played out is also initiating a complete overhaul of health systems. “The lack of interopability between software, databases and general procedures is perhaps the greatest barrier among all the reasons capable of preventing innovation from taking place”, explains the study of the present bank in London, San Francisco, Stockholm, Berlin, Manchester and soon Paris.
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