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.