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Evidence, investment, scale: the route to digital health adoption

Digital health tools hold huge potential, and the evidence base is growing all the time – so what
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Digital health tools hold huge potential, and the evidence base is growing all the time – so what is holding us back and how does the sector overcome the multiple barriers to widespread adoption?

We are living through a digital health revolution, and the pace of change has been accelerated by the COVID-19 pandemic.

More than 90,000 health-related mobile apps were released onto the market in 2020 alone, according to an IQVIA Institute report,  that’s an average of 250-plus every day.

Yet despite the mounting body of evidence for their effectiveness and growing acceptance among healthcare professionals and patients alike, moving this emerging approach into the mainstream of healthcare remains a challenge.

During a webinar held last month, Digital Health Trends 2021: Innovation, Evidence, Regulation, and Adoption, expert panellists discussed the report’s findings, and how to overcome the multiple barriers to adoption.

Recognising the potential

Digital health has the potential to transform healthcare – but it will take a wholescale shift in approach to enable wider adoption, said the panellists.

Jennifer Goldsack, CEO of the Digital Health Society, said: “There’s enormous opportunity for us to redefine how we measure health and disease using these digital tools.

“There’s enormous possibility for us to come up with digital phenotypes to make more personalised diagnoses, and then deliver personalised care and therapies. There’s also an enormous opportunity for us to manage chronic conditions, like diabetes and hypertension, outside of the clinic.”

It’s all about “identifying and signalling illness much further upstream”, she added.

“We should be bold and say we can redefine what ‘good’ looks like: good should be that we’re keeping people healthy; we’re keeping them out of the clinic and out of the hospital.”

Marc Sluijs, M&A, stagey and partnerships at the Digital Health Network, agreed, explaining that digital health presented to opportunity to embrace patient centricity.

“We need to release that healthcare is a consumer service. One of the challenges pharma has is that it cannot be truly patient-centric because it starts with the molecule,” he said.

People, Slujis went on, should be the starting point if we are to develop comprehensive solutions that “address all their needs and expectations”.

Chicken and egg: Building the evidence base

There is huge receptivity for digitally enabled health, said Meg Baron, VP of digital health strategy at the American Medical Association (AMA), thanks to its ability to drive the “right care, right time, right modality” agenda.

“But it goes back to this key requirement of needing an evidence base… and sometimes that is a ‘chicken and egg’ situation. You need adoption first to be able to show outcomes, and you need outcomes in order to point to more adoption,” she said, adding that the AMA, curator of the Current Procedural Terminology (CPT) global physical code set, was working with industry to ensure there was an evidence-based, trusted standard.

“A lot of these companies are small, and health economics data is hard to get your hands on. Doing the studies is expensive, and meeting the endpoints that each stakeholder wants to see is complex.”

Pointing to the progress of the last year or so, Andy Moinar, CEO of the Digital Therapeutics Alliance, said that telehealth had been around for more than a decade – but it had taken a global pandemic to prove that people wanted it.

“It wasn’t until it became a necessity that it became mainstream,” he said, adding that many healthcare professionals “loved” the model.

“They are stressed, they are strapped for time, and these things help patients, which is what 99.9% doctors want. But that being said, there is this idea of building the proper body of evidence.

“A lot of these companies are small, and health economics data is hard to get your hands on. Doing the studies is expensive, and meeting the endpoints that each stakeholder wants to see is complex,” he said, calling for greater alignment across the various silos of hospitals, payors, and regulators.

Baron agreed, saying that collaboration was essential if the sector was to move forward with digital health adoption.

Reimbursement, investment, scale

The panellists spoke about a number of newly created app reimbursement pathways and models, in regions including the US, Europe, and Asia. But while progress in this area is welcomed, it does not solve the whole problem.

“I think the lack of scale is currently the biggest obstacle to adoption, not so much whether there are reimbursement codes,” said Slujis.

“There are examples of companies that have clinical evidence, market access, and reimbursement, but it doesn’t bring them any revenue. Basically, they are too small, and most are trying to market a small point solution in one indication. It is very difficult for them to do that in an economically viable way.”

In addition, regulators and payers often underestimated the costs associated with building digital health products, said Moinar.

“One thing we did recently in response to government policy changes was to actually lay out what it looks like to build and commercialise a digital therapeutic product,” he explained, explaining that the costs are often “in the tens of millions of dollars”.

“There is a perception that the rigour that goes into building the body of evidence is not that expensive … it is a perception that we are trying to change because it is holding us back.”

Slujis agreed, adding that it was “very important to make people aware of how much investment is going into the realm of digital therapeutics” – and that he only expected that to continue.

“Personally, I think we will see the emergence of larger digital health and digital therapeutics companies providing more complete solutions, funded by many of the large investors who are just dying to invest in healthcare,” he said.

“The private equity sector is sitting on record amounts of capital that needs to be invested, but they’re just waiting for this space to reach a certain minimum critical size.”

The future of digital health, then, could be about to explode, leading to wide-scale adoption that will could change the healthcare landscape for good.

About the author

Amanda Barrell is a freelance health and medical education journalist, editor and copywriter. She has worked on projects for pharma, charities and agencies, and has written extensively for patients, HCPs and the public

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Angry Shouting Aside, Here’s What Biden Is Running On

Angry Shouting Aside, Here’s What Biden Is Running On

Last night, Joe Biden gave an extremely dark, threatening, angry State of the Union…

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Angry Shouting Aside, Here's What Biden Is Running On

Last night, Joe Biden gave an extremely dark, threatening, angry State of the Union address - in which he insisted that the American economy is doing better than ever, blamed inflation on 'corporate greed,' and warned that Donald Trump poses an existential threat to the republic.

But in between the angry rhetoric, he also laid out his 2024 election platform - for which additional details will be released on March 11, when the White House sends its proposed budget to Congress.

To that end, Goldman Sachs' Alec Phillips and Tim Krupa have summarized the key points:

Taxes

While railing against billionaires (nothing new there), Biden repeated the claim that anyone making under $400,000 per year won't see an increase in their taxes.  He also proposed a 21% corporate minimum tax, up from 15% on book income outlined in the Inflation Reduction Act (IRA), as well as raising the corporate tax rate from 21% to 28% (which would promptly be passed along to consumers in the form of more inflation). Goldman notes that "Congress is unlikely to consider any of these proposals this year, they would only come into play in a second Biden term, if Democrats also won House and Senate majorities."

Biden also called on Congress to restore the pandemic-era child tax credit.

Immigration

Instead of simply passing a slew of border security Executive Orders like the Trump ones he shredded on day one, Biden repeated the lie that Congress 'needs to act' before he can (translation: send money to Ukraine or the US border will continue to be a sieve).

As immigration comes into even greater focus heading into the election, we continue to expect the Administration to tighten policy (e.g., immigration has surged 20pp the last 7 months to first place with 28% in Gallup’s “most important problem” survey). As such, we estimate the foreign-born contribution to monthly labor force growth will moderate from 110k/month in 2023 to around 70-90k/month in 2024. -GS

Ukraine

Biden, with House Speaker Mike Johnson doing his best impression of a bobble-head, urged Congress to pass additional assistance for Ukraine based entirely on the premise that Russia 'won't stop' there (and would what, trigger article 5 and WW3 no matter what?), despite the fact that Putin explicitly told Tucker Carlson he has no further ambitions, and in fact seeks a settlement.

As Goldman estimates, "While there is still a clear chance that such a deal could come together, for now there is no clear path forward for Ukraine aid in Congress."

China

Biden, forgetting about all the aggressive tariffs, suggested that Trump had been soft on China, and that he will stand up "against China's unfair economic practices" and "for peace and stability across the Taiwan Strait."

Healthcare

Lastly, Biden proposed to expand drug price negotiations to 50 additional drugs each year (an increase from 20 outlined in the IRA), which Goldman said would likely require bipartisan support "even if Democrats controlled Congress and the White House," as such policies would likely be ineligible for the budget "reconciliation" process which has been used in previous years to pass the IRA and other major fiscal party when Congressional margins are just too thin.

So there you have it. With no actual accomplishments to speak of, Biden can only attack Trump, lie, and make empty promises.

Tyler Durden Fri, 03/08/2024 - 18:00

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United Airlines adds new flights to faraway destinations

The airline said that it has been working hard to "find hidden gem destinations."

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Since countries started opening up after the pandemic in 2021 and 2022, airlines have been seeing demand soar not just for major global cities and popular routes but also for farther-away destinations.

Numerous reports, including a recent TripAdvisor survey of trending destinations, showed that there has been a rise in U.S. traveler interest in Asian countries such as Japan, South Korea and Vietnam as well as growing tourism traction in off-the-beaten-path European countries such as Slovenia, Estonia and Montenegro.

Related: 'No more flying for you': Travel agency sounds alarm over risk of 'carbon passports'

As a result, airlines have been looking at their networks to include more faraway destinations as well as smaller cities that are growing increasingly popular with tourists and may not be served by their competitors.

The Philippines has been popular among tourists in recent years.

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United brings back more routes, says it is committed to 'finding hidden gems'

This week, United Airlines  (UAL)  announced that it will be launching a new route from Newark Liberty International Airport (EWR) to Morocco's Marrakesh. While it is only the country's fourth-largest city, Marrakesh is a particularly popular place for tourists to seek out the sights and experiences that many associate with the country — colorful souks, gardens with ornate architecture and mosques from the Moorish period.

More Travel:

"We have consistently been ahead of the curve in finding hidden gem destinations for our customers to explore and remain committed to providing the most unique slate of travel options for their adventures abroad," United's SVP of Global Network Planning Patrick Quayle, said in a press statement.

The new route will launch on Oct. 24 and take place three times a week on a Boeing 767-300ER  (BA)  plane that is equipped with 46 Polaris business class and 22 Premium Plus seats. The plane choice was a way to reach a luxury customer customer looking to start their holiday in Marrakesh in the plane.

Along with the new Morocco route, United is also launching a flight between Houston (IAH) and Colombia's Medellín on Oct. 27 as well as a route between Tokyo and Cebu in the Philippines on July 31 — the latter is known as a "fifth freedom" flight in which the airline flies to the larger hub from the mainland U.S. and then goes on to smaller Asian city popular with tourists after some travelers get off (and others get on) in Tokyo.

United's network expansion includes new 'fifth freedom' flight

In the fall of 2023, United became the first U.S. airline to fly to the Philippines with a new Manila-San Francisco flight. It has expanded its service to Asia from different U.S. cities earlier last year. Cebu has been on its radar amid growing tourist interest in the region known for marine parks, rainforests and Spanish-style architecture.

With the summer coming up, United also announced that it plans to run its current flights to Hong Kong, Seoul, and Portugal's Porto more frequently at different points of the week and reach four weekly flights between Los Angeles and Shanghai by August 29.

"This is your normal, exciting network planning team back in action," Quayle told travel website The Points Guy of the airline's plans for the new routes.

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Walmart launches clever answer to Target’s new membership program

The retail superstore is adding a new feature to its Walmart+ plan — and customers will be happy.

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It's just been a few days since Target  (TGT)  launched its new Target Circle 360 paid membership plan. 

The plan offers free and fast shipping on many products to customers, initially for $49 a year and then $99 after the initial promotional signup period. It promises to be a success, since many Target customers are loyal to the brand and will go out of their way to shop at one instead of at its two larger peers, Walmart and Amazon.

Related: Walmart makes a major price cut that will delight customers

And stop us if this sounds familiar: Target will rely on its more than 2,000 stores to act as fulfillment hubs. 

This model is a proven winner; Walmart also uses its more than 4,600 stores as fulfillment and shipping locations to get orders to customers as soon as possible.

Sometimes, this means shipping goods from the nearest warehouse. But if a desired product is in-store and closer to a customer, it reduces miles on the road and delivery time. It's a kind of logistical magic that makes any efficiency lover's (or retail nerd's) heart go pitter patter. 

Walmart rolls out answer to Target's new membership tier

Walmart has certainly had more time than Target to develop and work out the kinks in Walmart+. It first launched the paid membership in 2020 during the height of the pandemic, when many shoppers sheltered at home but still required many staples they might ordinarily pick up at a Walmart, like cleaning supplies, personal-care products, pantry goods and, of course, toilet paper. 

It also undercut Amazon  (AMZN)  Prime, which costs customers $139 a year for free and fast shipping (plus several other benefits including access to its streaming service, Amazon Prime Video). 

Walmart+ costs $98 a year, which also gets you free and speedy delivery, plus access to a Paramount+ streaming subscription, fuel savings, and more. 

An employee at a Merida, Mexico, Walmart. (Photo by Jeffrey Greenberg/Universal Images Group via Getty Images)

Jeff Greenberg/Getty Images

If that's not enough to tempt you, however, Walmart+ just added a new benefit to its membership program, ostensibly to compete directly with something Target now has: ultrafast delivery. 

Target Circle 360 particularly attracts customers with free same-day delivery for select orders over $35 and as little as one-hour delivery on select items. Target executes this through its Shipt subsidiary.

We've seen this lightning-fast delivery speed only in snippets from Amazon, the king of delivery efficiency. Who better to take on Target, though, than Walmart, which is using a similar store-as-fulfillment-center model? 

"Walmart is stepping up to save our customers even more time with our latest delivery offering: Express On-Demand Early Morning Delivery," Walmart said in a statement, just a day after Target Circle 360 launched. "Starting at 6 a.m., earlier than ever before, customers can enjoy the convenience of On-Demand delivery."

Walmart  (WMT)  clearly sees consumers' desire for near-instant delivery, which obviously saves time and trips to the store. Rather than waiting a day for your order to show up, it might be on your doorstep when you wake up. 

Consumers also tend to spend more money when they shop online, and they remain stickier as paying annual members. So, to a growing number of retail giants, almost instant gratification like this seems like something worth striving for.

Related: Veteran fund manager picks favorite stocks for 2024

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