Why it's time for change in healthtech
The ABHI is celebrating 30 years. Looking to continually improve its offering, the association has recently undergone change to reflect the evolving face of the health sector and its convergence with digital technology. Jonathan Evans explains.
This time last year, the ABHI started a process of change. Following a series of interviews with members, health technology companies and respected leaders in the sector, we looked at the future direction of our industry. What became clear was that technology and health industries are converging – brought together by trends like informatics, data, AI and digital health solutions.
As the lines between medical technology, devices, diagnostics and digital health all blur, new companies are entering the market seemingly every week. With businesses increasingly ‘digitalising’ their products and services, we at ABHI feel that the most apt description for this rapidly evolving sector, is ‘healthtech’.
It is why, in our 30th year as an association, we decided to recognise this by changing our name to the Association of British HealthTech Industries. This evolution signals our intent to focus more on how technology improves health, not just how it treats disease.
The numbers confirm this too. In the latest Office for Life Sciences annual Strength and Opportunity report, digital health is the now the single biggest employer within the broader healthtech industry. 10,000 people in the UK make up the sector, a sharp rise of 11% on last year’s figure. Truly highlighting the sector’s fledgling nature, over half of digital health companies were formed within the last decade, and the market’s growth shows no sign of slowing down.
In her recent speech where she announced an additional £20billion cash injection into the NHS, the prime minister outlined the need to focus on prevention, not just cures. In a world where health systems are facing unprecedented demand, there is a need to utilise these technologies to manage health in a holistic manner, rather than simply treating diseases, which can often be done too late, and at a high cost to the system.
Through patient monitoring, real time data analytics, predictive algorithms, and the emergence of AI, healthcare professionals, patients and providers now have more power than ever to monitor, manage and deliver effective healthcare. The crucial factor in all of this, is the ability to shift care away from the traditional clinical setting and move it to the home. Done well, it can empower the patient and alleviate strain on the system.
These solutions require investment and naturally, quality products may not necessarily mean they are the cheapest, but the overall savings and value to the healthcare system far outweigh that initial investment. It’s always better to take a value-over-price approach if long-term savings are to be realised.
In the last few years we have seen a boom in the number of wearable devices and apps, from equipment that monitors heart rate and blood pressure, to programmes that can track calorie intake and exercise. Such innovations allow a person to make changes to their lifestyle and plan a healthier future. It empowers the user to take ownership of their health and also acts as a preventative measure for any potential future health issues. Partnered with other monitoring systems and powered by real-time data, patients and medical professionals can quickly spot changes or new trends that require immediate attention, keeping small problems in the home. This avoids visits to the emergency room, costly treatments and long-term social care. It is where technology really comes into its own, as the potential savings are enormous.
With patients taking ownership of their own health more so than ever before, there is a genuine shift happening in healthcare. It’s not surprising then, that large technology companies are investing heavily in their healthcare side of the business.
With this in mind, ABHI has already been working on bringing the health and technology industries together with initiatives like the ABHI Innovation Hub at the Dell Medical School in Austin, Texas. Offering UK companies a base to grow their business stateside, the hub is part of the ABHI’s US Accelerator Programme. It provides companies with access to in-market experts and clinicians, ABHI’s highly developed Texan network, access to US trade missions and a range of other benefits. The initiative has proved so successful that following its launch in 2017, the hub is in the process of being expanded, with applications for a second cohort of members to join now being accepted.
In an increasingly connected world, the ABHI is always on the look-out for opportunities that will allow members to grow their business both in the UK and overseas. Whilst companies seek clarity around Brexit, the healthtech industry is resilient. For many, it’s business as usual and exports are strong.
The challenges the US faces are not unique, but the size of the country, its technology-driven cities and world-class academia, all mean one thing: it is the largest healthtech market in the world.
Over the past decade, we have grown our US activities, to provide tangible opportunities to UK companies seeking to increase their operations stateside. Taking a state-by-state approach, we have gradually expanded our programme across the country, developing a network of connections within local health systems, that include clinical heads and c-suite leadership teams. We have also cultivated relationships with Chambers of Commerce, key business groups and leading technology companies.
The Texas Innovation Hub is the latest offering in this comprehensive US market strategy and to support this, 2018 has seen ABHI grow its international function. With experienced industry figures joining the association to provide additional resource to companies looking for support with their export strategies, ABHI’s international division now boasts a wide-ranging menu of opportunities and support.
The recent launch of the ABHI SME Forum was another important milestone for the association. The healthtech sector is dominated by smaller businesses and this is reflected in ABHI’s membership, with 89% of members falling in this category. With this in mind, we have created a community of small and medium sized health technology companies to give a stronger voice and representation for this crucial engine of innovation.
Yet, cut ABHI in half and you will see regulation running through it. It was the genesis for ABHI’s creation 30 years ago and remains, for many members, the single most important reason for joining the association. Our industry is heavy regulated, and rightly so. Through our internal expertise, we help companies to understand this framework, so that patients can access healthtech safely and quickly.
Through insisting on the highest professional standards and ethical behaviour, driven by our Code of Ethical Business Practice, our work ensures healthcare professionals and the public have confidence in the integrity of our industry. It is critical that the healthtech industry is recognised as a trusted partner in healthcare.
And as we look to the future, it is critical that the industry’s trade body reflects the companies for which it is representing. By taking the lead through a number of initiatives, such as our Women in Leadership events, we are actively working to guide our sector to improve diversity and inclusiveness right across the sector.
These changes are just the start. ABHI is uniquely positioned to build connections across the healthtech sector, giving our industry the opportunity to grow in the UK and beyond. Together we can provide a louder voice to champion the power of healthtech to transform healthcare and improve patient outcomes.