Introduction
Health sector is changing rapidly with the changing technological advancement in such a high level of globalization. The health sector has changed drastically over the past few years from analog to digital health. The numbers of patients are increasing and in the recent days, there has been a rise in the level of diseases. In some cases, the diseases require deep scanning and this can only be possible through modern tools and equipment. On this argument, digital tools and equipment can be described as the latest improvement in medical sector. The medical fees are extensively high and therefore the patients expect the best for the value of their money in return (Targett, 2011). In this regard, most of old business methods and policies are forced to be ever dynamic. The transformation must be rapid to enhance customer satisfaction on the same. The satisfaction of the customer equals a great deal between the two involved parties
Moreover, with the introduction of digital method of health care facilities, the patients have developed extra confidence in the health sector. The changes are so rapid and in most cases, it may cost the patient double the medical fee within a time range of two weeks. The old fashioned methodology to have their concentration on the main institutionalized structures is no longer reliable. In this view, most business centers base their main concern and concentration on institutionalized blocks for effective registration of success within the organization (Targett, 2011). The digital healthcare sector mainly focuses on mobility of the modernized equipments. The focus on structured medical centers and institutionalized hospitals has been withdrawn and the focus turned to new business model in digital health care sector on patients care with minimal struggles to register the same function as in institutionalized hospitals hence an economic growth is permanently registered.
The introduction of digital health sector has increased the chances to easy access of personal data and confidential information. The digitalization of information has increased the mobility of the equipments. The patient’s health status can be determined through digital methodologies (Finn, 2009). Therefore, with this in place, the patient satisfaction on the services delivered by the concerned health professional is enhanced and in the process an exchange of services takes place.
There are some reasons why new business models are required in relation to the introduction of digital health care. The most common are the technological advancement rising each and every time in our globalized health units. In addition to this, there is an intense increase in the economic pressures that changes with the changing technology. (Finn, 2009).
The development of IT services within the institutionalized hospitals and centers has led a rapid development in operating expenses that attracts international markets on the same (Gupta, 2007). In providing a live example on this argument, it is clearly evident that introduction of digital methods to control business and health sectors has a great significance to the level of economy in a nation. In a research conducted, it showed that the US based company Cerner registered an increase of 31% since the introduction of IT methodology within the organization back in 2007.
Additionally, the contemporary business world, technological advancements and civilization has made it very easy for many people to access medical information and care. There is a greater global demand for better health product that exactly matches the money being spent. It is due to this fact that the old-fashioned healthcare business model has been forced to transmute. For instance, 88% of physicians would like patients to be empowered to the extent that they will be able to monitor their health from home using Wi-Fi body scale and IOS devices. Half of the spending in this sector was traditionally nan-value added and only a small portion of national GDP was allocated to healthcare spending. These policies proved to be ineffective and unable to meet the divergent needs of the industry and reformation was not a choice but a necessity (Rock heath, 2012). Medical technology companies are moving towards being innovative, cost-effective, balancing their revenues and expenditures, addressing the varying needs, tastes and preferences of the growing range of constitutes and clients and also implementing leadership strategies for mushrooming markets (MaRS, 2013). Healthcare models have shifted from concentrating on volume to outcome per value of dollar spent. This shift can also be attributed to the resolution of the health care industry to embrace the 9 trends to effective business renovation. These developments are:
- Social media
- Managing cost & complexity
- Consumerisation of IT
- Convergence
- Data explosion
- Changing dynamics mostly G7 and E7
- Disruptive innovation
- IP and Data Protection
- Political and regulatory landscape
A major change that the industry has witnessed is the change in heal care financiers and delivery systems. Healthcare payers are designing products and high quality care at a low cost to make it affordable to mainly the low income earners who constitute a great portion of any population. This supports the relations with their associates and support providers with more effective care management tools and compensation schemes (Rock heath, 2012). The current healthcare systems are aligned to integrate care and take more accountability for patient outcomes and the cost of care.
The move of the healthcare towards better modern services and facilities that assures their clients of effective and efficient services can clearly be seen from the statistics provided by Cerner Corporation the 2nd largest provider of healthcare information technology in the US (Stock, 2012). Since 2005, the percentage of hospitals predominantly depending on HIT technology has increased by 28.4% as compared 18.4%, prior to 2005 (Stock, 2012). The aggregate growth in demand of the services that are provided by Cerner are further illustrated by the revenues that the company earned between the years 2005-2007.
This clearly indicates that the healthcare sector is changing its strategies and great plans are underway to digitalize the sector. This point is further reinforced by the increase in healthcare information technology (HIT) companies which continuously strive to dominate the HIT sector by gaining more market shares than the others and this can only be achieved by offering services to clients who in this case are healthcare centers (Stock, 2012). The market shares between the companies indicate a great competition in the HIT sector meaning that companies have to continuously come up with new strategies to survive the stiff competition (MaRS, 2013). This has had a positive effect on digital healthcare and the healthcare industry in general.
Future generations will enjoy quality, efficient and effective services at a lower cost due to the effect of application of technology in the healthcare sector (MaRS, 2013).
The business models in healthcare are being pressured by economic growth, demanded by demographics and enabled by technology. Digital health is already a reality to some extent and destined to greater heights.
References
Finn, N. B., & Bria, W. F. (2009). Digital communication in medical practice. London: Springer.
Gupta, S. K. (2007). Modern trends in planning and designing of hospitals: Principles and practice. New Delhi: Jaypee Brothers Medical Publishers.
MaRS Commons (2013, July 13). Shifting Left: Digital health for better care at lower cost - MaRS Commons. Retrieved December 7, 2013, from http://marscommons.marsdd.com/new-business-models-in-digital-health/shifting-left-digital-health-for-better-care-at-lower-cost/
Rock heath. (2012, May 30). Rock Report: Business Models in Digital Health by @Rock_Health. Retrieved from http://www.slideshare.net/RockHealth/rock-report-business-models-in-digital-health-by-rockhealth
Stock:Cerner (CERN). (2012, November 12). Retrieved December 7, 2013, from http://www.wikinvest.com/stock/Cerner_%28CERN%29
Targett, D., Grimshaw, D. J., & Powell, P. (2011). IT in business: A manager's casebook. Oxford: Butterworth-Heinemann.
