ur experts clearly see a number of major themes on • Think big but start small. The overall market bene- O the health care horizon in 2023, including an ongoing fits from big thinking, disruption, and new models for shift to in-home diagnostics, more alternative-care models providing care. Nevertheless, players must relentlessly and new entrants, technology advances that improve treat- focus on the true problem they are solving for patients, ment or reduce the share of patients’ wallet expended on consumers, care teams, or health care professionals. health care, and a greater emphasis on specific therapeutic They should run tests to establish a product fit with the areas such as women’s health. We are excited to watch intended user or users, and they should co-create where these themes as they emerge, evolve, and, in some cases, possible with that audience, with health systems, and consolidate to create meaningful impact for patients, with payers. Finally, they should choose the appropriate caregivers, and physicians. geographic focus, starting small and growing from there, rather than trying to boil the ocean in multiple markets. For quite a while, players in the digital health space have been attempting to bridge the chasm between digital and At BCG and BCG X, we are committed to helping organiza- in-person health care, most often by generating adoption, tions enable innovation at scale and unlock new possibili- engagement through real-world evidence, and compelling ties to reshape the health care ecosystem with digital tools, business models. Although the chasm remains, it is narrow- technologies, and solutions that empower patients, physi- ing steadily. Here are some ways for the digital health com- cians, care teams, and others who work in the field of munity to advance their collective journey: health. As we step into 2023, we look forward to collaborat- ing with you to create the next generation of digital-health • Seize partnership opportunities. Continue to observe solutions. larger shifts in the market with an eye toward how incumbents spend their time, money, and energy, while also looking for opportunities to partner or to create or join the respective ecosystems. • Demonstrate value. Be more judicious than in the past about demonstrating value, showcasing clinically validated outcomes, and creating sustainable business models. A number of health care companies have closed their doors in recent months because they did not move quickly enough to generate appropriate evidence for their solution and a scalable reimbursement model. Many companies have interesting ideas, but investors want to know who is going to pay for them and how they will generate value for all stakeholders.