Rock Health‘s “Digital Health at the Turn of 2024” report sheds light on trends shaping the trajectory of the healthcare industry in 2024. Drawing observations from an in-depth analysis of research, funding and partnerships, the report identifies noteworthy developments gaining momentum and facing challenges.
AI in Healthcare and Value-Based Care Enablement:
While AI in healthcare and value-based care enablement stand as burgeoning trends, the report highlights a current limitation in scalability. The authors emphasize crucial considerations for AI builders, addressing concerns such as algorithm bias and ethical implications. For stakeholders like providers, payers and life sciences companies, the focus is on establishing a robust AI governance framework and navigating trade-offs between platform-level integrations and specialized solutions.
Digital Obesity Care, Caregiver Solutions and Food-as-Medicine:
Gaining increased awareness in the market are areas such as digital obesity care, caregiver solutions and companies focusing on food-as-medicine, including players like Instacart. The concept of food-as-medicine involves leveraging nutritional interventions and recommendations to prevent and treat various conditions, extending beyond niche applications like type 2 diabetes to address a spectrum of health concerns from cancer to mental health disorders. The report underscores the growing role of Medicare Advantage plans as early adopters of food-as-medicine programs, while the caregiving-focused market is expected to expand amidst the challenges faced by caregivers in today’s macroeconomic conditions.
Retailers as Providers and Data Interoperability:
The report highlights the entry of retailers into the healthcare sector and underscores the crucial role of data interoperability. These areas have demonstrated significant activity throughout 2023, and as per the report, they are expanding with momentum. The emphasis is on how retailers are maturing their care models, especially in chronic disease management, and the ongoing efforts to enhance data interoperability in the healthcare ecosystem.
Outlook for 2024 and Beyond:
Reflecting on the shifts observed in 2023, the report anticipates that 2024 will be a period of recalibration and adjustment in digital health. It poses critical questions for industry leaders about necessary capabilities, partnerships and strategies to navigate the evolving landscape effectively. The overarching theme is one of continuous evolution, emphasizing the need to stay on top of industry advancements and seize early opportunities for those looking to get ahead.
In the broader healthcare context, noteworthy investments in AI-enabled companies, such as Hippocratic AI and Elucid, and multi-billion-dollar acquisitions by retail giants like Amazon, CVS Health and Walgreens’ VillageMD, underscore the dynamic nature of the industry.
Several value-based care companies have also received significant investments this year, including Aledade, which scored $260 million in Series F funding in June. The Maryland-based public benefit corporation works with primary care providers to build tech-enabled accountable care organizations. It noted it would use the funds to acquire and improve technology and services to support its value-based care solutions. Then, in October, venture capital firm General Catalyst announced its plans to purchase a health system that will put technology at the forefront of prevention and healthcare delivery, run through a value-based care model. The move toward value-based care brings with it both challenges and opportunities, paving the way for innovative and accountable care solutions.
