Goldman Sachs says digital healthcare revolution could save America $300 billion
In a recent report, Goldman Sachs analysts predicted that digital healthcare will revolutionize the industry, both by increasing access to diagnostic, treatment, and preventative care, and by dramatically reducing costs.
“The report focuses on what they see as the “first wave” of healthcare IoT: technologies that bridge “the digital and physical worlds to change physician and patient behavior.”
Though the space is still in early stages of development, Goldman sees massive opportunities in Telehealth, behavior modification, and remote patient monitoring.
Telehealth allows patients to seek expert medical advice without having to visit a doctor’s office, while behavior modification encourages patients to take on healthier lifestyles with clinically validated methodologies.
Remote patient monitoring enables healthcare providers to frequently keep track of high risk patients. This sits “at the bulls-eye of the healthcare cost challenge” according to the report, because chronic disease management accounts for about 1/3 of all US healthcare spending. And most of that spending can be attributed to heart disease, asthma and diabetes.
“These disease states also represent the most fertile ground for digital health since data and modification of treatment paradigms have demonstrated improved patient outcomes, lower adverse events, and reduced costs,” the report said.
All-in-all, the analysts see the opportunity for $305 billion in savings from digital healthcare in the near future. As much as $200 billion of that could come from chronic disease management, largely due to the elimination of redundant and wasteful expenditures.”