Based on a recent study by Global Industry Analysts, the global market for wearable medical devices is projected to eclipse $4.5 billion by 2020.1 In the United States, the predominant market in this space, it is estimated that roughly 20% of Americans currently own a wearable fitness device.2 As questions on how to rein in increasing healthcare costs continue to mount, and politicians focus on passing legislation and targeting the pharmaceutical industry, a possible solution may be wearable health devices. A three-year study by Northwestern University of employees using wearables showed a 44% decrease in the number of sick days. The study also anticipated that over 25 years, these devices could help decrease healthcare costs by $200 billon.2
Wearables can have an impact far beyond counting the number of steps you’ve taken or calories you’ve burned. These devices can also be used to address chronic conditions such as heart disease, asthma, and diabetes. Medical device companies are catching on to the financial potential of these devices and are beginning to add medical wearables to their product lines. Before progressing further into this discussion, it might be helpful to point out the key differences between medical wearables and devices available in the consumer market. The main differentiator is that while consumer fitness trackers can assist individuals in keeping in peak physical condition, medical wearables have the ability to detect life threatening diseases, provide pain relief, manage chronic illnesses, and collect a variety of biometric data. A secondary, yet important, difference is the detailed safety and regulatory standards that must be adhered to for all medical wearables in comparison to their consumer counterparts.
An Endeavors Market Survey determined that a key driver for consumer adoption of medical wearables is the ability to diagnose, monitor, and treat conditions that cannot be addressed with a typical smartphone app.3 As the number of patients with illnesses requiring 24-7 monitoring increases, medical wearables will become even more widely adopted.
Potential Benefits
What makes this developing market so dynamic is the wide array of medical wearables, from implantable devices to ingestible ones, that have the potential to track all kinds of patient data including drug adherence.4 For example, Abilify MyCite is a pill that is used to treat psychiatric diseases like schizophrenia and bipolar disorder. The pill includes an ingestible sensor that sends a signal to a mobile application when digested.4 Another unique technology, discussed recently by Dr. Rick Burnett COO of CompleteRx, is a new smart patch that could administer drugs subcutaneously soon after a diagnosis. As time goes by, the possibilities seem to be truly endless.5
Medical wearables can collect a pleothra of clinical data about patients. These data points include things such as glucose levels, blood pressures, heart rhythms, patient behavior, and breathing patterns. The goal now is to create a seamless way to input this data into patient electronic health records (EHR) where doctors can access it to make data driven decisions. While we haven’t solved the riddle of how to sync this data with EHRs just yet, there is a mechanism in place for these devices to be used in clinical trials. Wearables can be used in clinical trials to collect information such as sleep, activity level, and heart rate. This passive collection of data can provide a more holistic and accurate view of how an experimental therapy or device is impacting a patient.
According to physicians at Cedars Sinai Hospital, the ability for these devices to improve patient outcomes isn’t yet clear as the technology is still in its early stages.6Despite this, insurers and employers are taking advantage of a provision in the Affordable Care Act that allows employers to offer financial incentives, paid for by the insurance companies, if employees agree to wear a fitness tracker. Offers include things like gift cards and small cash payments for meeting certain daily fitness goals.
Hurdles to Overcome
Medical wearables will be most successful when they can not only collect medical data, but are supported by a sustainable business model that enables healthcare providers to bill for their services. When this will happen is unknown, however there are a number of important hurdles that must be overcome first.
The first issue to consider is making sure that the data being collected is medically relevant. If a device is unable to collect clinically relevant data then it may not be possible to bill patients for it. While current devices can capture important vital signs and other fitness metrics, their ability to diagnose and treat chronic conditions is currently limited. I would argue that the copious amounts of data the devices can currently capture isn’t yet clinically valuable due to a lack of consistency and accuracy. Physicians aren’t going to risk misdiagnosing or mistreating patients based on possibly inaccurate data produced by current devices.
An equally important concern is making sure that access to and privacy of the data is secure. Since data is so easy to copy, technologists and healthcare professionals are rightly concerned that the information could be used inappropriately if it falls into the wrong hands. For example, an insurance company that gains access to a person’s health records could use information about a pre-existing condition to limit the insurance coverage it offers. Tech firms will need to make data security a top priority if they want to penetrate the healthcare market.
Lastly, it is important to figure out how to include wearables into the billing process. A few months ago, the Center for Medicare and Medicaid Services began supporting providers who use remote monitoring tools.7 These devices include smart home devices and medical wearables. The idea is to incentivise real time patient monitoring that can produce data for the clinician. If medical wearables are able to meet important clinical benchmarks and become FDA approved, then the insurance and healthcare industries will quickly move to create a billing system for medical-grade wearables.
The future is bright for wearables as many tech firms are jumping into the market. As this multi-billion dollar market continues to grow it’s obvious that its progression will be driven by medical applications.
Kevin Anderson is a graduating medical student at Duke University School of Medicine and will be starting at LEK Consulting later this year. He’s most passionate about healthcare redesign, patient engagement, and the life sciences. His free moments are spent traveling and enjoying sporting events with his wife and daughter.
Image: Pixabay
References:
- “Wearable Medical Devices Market Trends.” Global Industry Analysts, Inc. June 2015. https://www.strategyr.com/MarketResearch/Wearable_Medical_Devices_Market_Trends.asp
- “Wearable Devices in the Healthcare Industry.” Advanced MP Technology, 2018, advancedmp.com/wearable-devices-in-healthcare/.
- https://endeavour.partners/
- Caffrey, Mary. “FDA Approves First Pill That Tracks If You’ve Swallowed It.” AJMC, 14 Nov. 2017, ajmc.com/focus-of-the-week/fda-approves-first-pill-that-tracks-if-youve-swallowed-it.
- Burnett, Rick. “The MedTech Boom: Five Considerations to Optimize Viability of Health Innovations.” AJMC, 13 Dec. 2017, ajmc.com/contributor/rick-burnett,-pharmd-fache/2017/12/the-medtech-boom-five-considerations-to-optimize-viability-of-health-innovations
- Ely, Kaitlynn. “Wearable Biosensors Have No Significant Impact on Clinical Outcomes.” AJMC, 19 Jan. 2018, ajmc.com/newsroom/wearable-biosensors-have-no-significant-impact-on-clinical-outcomes
- Wicklund, Erik. “CMS, AMA Look for Common Ground on Remote Patient Monitoring.” MHealthIntelligence, MHealthIntelligence, 7 Nov. 2017, com/news/cms-ama-look-for-common-ground-on-remote-patient-monitoring.
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