1 . Regulatory “ brakes ”
The heterogeneous yet strict regulatory framework that still exists in Germany slows down the effective roll-out of digital infrastructures . In the US , telemedical players have already moved into higher-value care areas . For example , Cigna , the 4th largest medical insurer , has decided to play an active role by acquiring prominent telehealth providers such as MDLive in 2021 .
In China , the government has set a national goal of “ Healthy China 2030 ”. As a result , public efforts are made to improve the healthcare system through smart hospitals and telemedicine services . Private enterprises such as Tencent with its communication platform WeChat , are entering the healthcare market . It has integrated essential features like personal health records to become the central point of usage for personal health . In Germany , such integrations would not be possible due to strict data protection laws . As a result , key software for data exploitation is not based in Germany , but in Asia and North America .
2 . More venture capital inflows
Money flows where the attention goes - and vice versa . Looking at the current market size and expected market growth for digital health , the EU market in 2019 was € 6.8bn , expected to grow to € 33bn by 2026 . In contrast , in the US , the market accounted for € 84bn in 2019 ( China : € 34bn ), building up to € 220bn ( China : € 304bn ). This corresponds to an investment volume 5-12 times higher in the US and China and proves the delayed
SUCCESS FACTORS
for the long-term implementation of the hybrid patient journey
CONVENIENCE
END-TO-END THERAPY
PERSONALISED THERAPY / APPROACH
ASYNCHRONOUS COMMUNICATION POSSIBILITIES
TRUST
DATA PRIVACY
attention shift to digital health in Europe . Today , venture capital investment in Europe has reached record levels , and it has never been easier to obtain solid funding for European start-ups . A solid base is in place on which to build .
3 . A seismic cultural shift
With China ’ s utilitarian approach to digitisation for the greater good and the US openness to innovation and change , Germans lacked this particular attitude towards transformation until COVID broke the ice . German “ digital maturity ” took time to develop - but now it ’ s here , and patients are demanding change .
Thus , stakeholders will need to be objectively assessing their digital maturity and monitor their Net Promoter Score ( NPS ) with patients . Other industries , such as the eCommerce sector and online banking , are way ahead and setting a new standard in convenience . Convenience is indeed the key factor in the digital value chain , where ecosystems are built around the consumer . The same is true for healthcare : care provision will become much more patient-centric .
Therefore , players who add value by developing a convenient , personalised service for patients that is also trustworthy and evidence-based , will gain market share with patients . The patient journey will become a customer journey , allowing seamless and integrated access to healthcare products and services .
Source : goetzpartners
SUMMARY
THE AUTHORS
The American and Chinese examples show routes of transformation within the guard rails of regulation , innovation capital and cultural acceptance . However , this look abroad also reveals that in Germany , stakeholders must come up with solutions that comply with the more stringent local data protection framework and focus transformation on the many areas which are not encumbered by the slower speed of regulatory change .
Another prerequisite to achieve a seamless patient journey is cooperation between all stakeholders . We are convinced that strategic partnerships are the key to success here . To retain and gain market share , players will need to wake up , transform their traditional business models and reach out to new partners to compete in today ’ s world of emancipated and digitally native patients .
ULRICH KINZEL Managing Director , goetzpartners
DR . LARA MAIER Senior Consultant , goetzpartners
© goetzpartners , 2022