Home / Blog / Digital Transformation in Health Care – II

Digital Transformation in Health Care – II

The split of budget on health care in the USA in the various population age. Credit: IHME

What is the disruption that these devices will bring? Basically it is related to the de-localization of health care, moving out from the big health care institutions, like hospitals.

If you look at the map of how health care is provided today (segmented by age) you’ll see that the two main areas, in terms of budget, are the hospital (inpatient care) and ambulatory making up 2/3 of the total budget.

The evolution in medical devices for monitoring and the increasing possibilities of prevention and quick treatment are bound to decrease the need for hospitalization and ambulatory care, shifting budget from these areas to device manufacturers and service providers. The digital twins, looking at them in a future post, are going to play a significant role as “intermediaries” between the person (prospective patient) and the service providers.

Over time the cost of devices is expected to decease, as it happens with technology. On the other hand, the cost of hospitalization and ambulatory care is expected to increase, hence a shift of budget form the latter to the former will reduce the overall budget.

Interesting to notice in the figure the progression of cost to deliver health care as age advance. Proactive medicine (and better life style induced by continuous monitoring of health parameters) is expected to decrease this increase.

About Roberto Saracco

Roberto Saracco fell in love with technology and its implications long time ago. His background is in math and computer science. Until April 2017 he led the EIT Digital Italian Node and then was head of the Industrial Doctoral School of EIT Digital up to September 2018. Previously, up to December 2011 he was the Director of the Telecom Italia Future Centre in Venice, looking at the interplay of technology evolution, economics and society. At the turn of the century he led a World Bank-Infodev project to stimulate entrepreneurship in Latin America. He is a senior member of IEEE where he leads the New Initiative Committee and co-chairs the Digital Reality Initiative. He is a member of the IEEE in 2050 Ad Hoc Committee. He teaches a Master course on Technology Forecasting and Market impact at the University of Trento. He has published over 100 papers in journals and magazines and 14 books.