FDA clearance of devices could save health industry $100B in next 3 years
By Katie Dvorak 06/05/2015
Digital health solutions regulated by the U.S. Food and Drug Administration could save the U.S. billions, Accenture says in a recent report.
In a graphic outlining its research, Accenture says through clearance of digital health devices by the agency, the healthcare industry could save up to $100 billion by 2018. While last year the FDA only cleared 33 devices, it is on track to clear 100 or more by 2018; with Accenture anticipating about 45 could be cleared this year.
The FDA is currently at a crossroads of sorts when it comes to wellness devices and the regulation of the tools; and so far, it intends to do too little instead of too much, FierceHealthIT previously reported.
The agency in January published draft guidance documents that propose to regulate medical device accessories based on risks they present when used as intended with their parent devices, and not to regulate products intended only for general wellness.
Accenture says in an additional report that funding for digital startups will double to $6.5 billion by 2017. The momentum in the industry will stem from "opportunities to 'fix' the U.S. healthcare system," the report says.
Health IT overall saw record venture capital funding in 2014, raking in more than double the amount it did a year prior. Mobile health technology and personal health technology were two of the sectors that brought in the most cash. However, that amount of funding dropped off in the start of this year, dipping by about 35 percent.
Between 2008 and 2013, according to Accenture, markets that saw the most growth included:
Infrastructure, such as analytics tools and interoperability initiatives, with $2.9 billion in funding
Treatment, including telemedicine, personalized care and care coordination, with $2.6 billion
Engagement, through mHealth and incentive programs, with $2.6 billion
Diagnosis, such as remote monitoring, with $2.1 billion
This digital disruption will impact most healthcare players--vendors, providers, life sciences, payers and pharma--and cause them to need to think up new strategies and ways to be relevant to their consumers, the report adds.