The Future of Digital Health he health care market has focused in recent months Tech advances in general will unlock many new opportuni- on how to navigate a post-COVID-19 world. During ties in digital health. Virtual reality will offer new approaches T the pandemic, digital health options led to great for treating mental health conditions, and the health care opportunities for physicians to reach patients through industry will embrace more use cases for digital twins in telemedicine and remote monitoring, and paved the way clinical trials, hospital operations, and disease modeling. for new approaches to providing better care. Unsurprisingly, We see a push for smarter clinical development, and investments flowed into digital health care as the pandemic organizations are already testing ChatGPT, the generative spread. They began to slow in the second half of 2022, AI technology, in developing therapeutic ideas, analyzing however, as investors’ focus gradually shifted from exciting medical data, and identifying patterns. We also expect new ideas to demonstrated outcomes and evidence, with more tech-related advances to focus on reducing consumers’ startups being asked to show value and a business model required out-of-pocket spending for health care. out of the gate. Even as the flow of investment into startups decelerated, several nontraditional players made significant Meanwhile, digital tools will improve health equity over moves into the health care market in 2022 (as we anticipated), the coming year by helping to bridge care gaps, expand partnering with traditional players in an effort to create access, enable more personalized treatment, and eliminate new channels and markets and to advance the new hybrid geographic barriers. Mental health services, in particular, health care environment. will benefit, with more options becoming available to those seeking care. Still, the industry must contend with a cloud As we enter 2023, many trends in digital health that of economic uncertainty—and even though health care is the pandemic inspired and spurred on continue to gain typically resilient in this type of climate, we can expect traction, but other developments are beginning to play a some important shifts, including the following. role as well. In this latest edition of “The Future of Digital Health,” experts across BCG and BCG X—BCG’s new tech • The focus of digital-health investments will move from build and design unit—delve into what will define the top-line growth to profitability, following the number of space in the year ahead. big bets made in recent years. Home-based health care will keep gaining momentum • Pharma IT will become more attractive to healthtech after strong growth in 2022, due in part to the aging companies, given the current need for more comprehensive baby boomer population and to powerful technological and industry-specific digital solutions. advances—especially as the industry moves toward more “patient-led” delivery. We also expect alternative care • Strategic investments and M&A in the healthtech models and new entrants in the health care space to arena will increase even as financial investors pull emerge (watch for Microsoft and Apple), while retailers back somewhat. such as CVS, Walgreens, and Walmart further develop their health care strategies. We are extremely excited about the ongoing evolution of digital health and—given the following developments The women’s health arena will continue to attract and trends highlighted by our global team of experts— attention, investment, and innovation in 2023. We see expect 2023 to be a transformative year. exciting trends in fertility options, community-based care, and support for the underserved, among others. Femtech products and solutions (technology that specifically addresses women’s health needs) will grow at a rapid pace, and femtech businesses will compete to develop hybrid, one-stop shops.