The Pacemaker

AUTHORS

Andy-kach_thumbnail
Andy Kach
Principal
Bhargav_Mantha_thumbnail Brian_Chapman_thumbnail
Brian Chapman
Principal
Maria_thumbnail Matt-Scheitlin-London_thumbnail Tobi_Laczkowski_thumbnail Will_Randall_thumbnail

Latest Posts

Generating Value Through Digital and Connected Health Analytics

Posted by Vishal Srivastava on February 13, 2019



shutterstock_1108368677"Digitization" has been disrupting several parts of the economy, including the medical devices industry. Beyond the initial hype, we see several programs beginning to show real results and that look promising for improving quality and decreasing healthcare costs. The industry is beginning to look at digital health solutions to drive differentiation as it moves toward focusing on healthcare value and outcomes.

Clearly, data and analytics will play a turnkey role in enabling digital health solutions over the next few years, as also indicated by my colleague, Pete Masloski, in his conversation with Rock Health. Data and analytics have opened up a broad range of opportunities, not only for the digitally native companies that sell “smart” medical devices but also for many others that can now leverage a broad array of newer apps, data and platforms on the market. As such, the role of the analytics leader becomes very important in understanding the opportunities and investing in the right areas. 

Evidence generation is one important area where medtech companies have significant opportunities to generate long-lasting value for the organization. Companies are using device data combined with other real-world data sources to generate evidence on clinical and economic outcomes, and in turn to develop better products and enhance products’ value proposition for patients and providers. For example, one medtech company that sells connected devices is looking to validate a hypothesis about its device generating a positive impact on certain comorbid conditions. To do so, it’s integrating device-generated data and claims data and investigating the impact of device usage on various biomarkers. Once the story is developed, it will be able to proceed with label expansion and a differentiated value proposition, and thus drive product growth.

Along similar lines, in 2017 Medtronic leveraged the data generated from its MiniMed 670G device—a closed-loop insulin pump system—to demonstrate improvement in the percentage of time that patients were within the optimal glycemic levels. The system includes an algorithm that can adapt to fluctuating glucose levels and automatically self-adjust the insulin delivery. Medtronic looked at real-world clinical outcomes for 32,000 patients, including the data that patients voluntarily uploaded, to conclude that the usage of its device and the associated technology improves glucose levels and quality of life.

While the approach to use real-world data is not totally new, the availability of digital data, especially data generated from devices, significantly enhances by surfacing more granular patient data. Over a period, the regulators have become more patient-centric in the evaluation of treatments. For instance, the FDA has created a digital health unit within the Center for Devices and Radiological Health. The unit has expressed excitement over recognizing the power of digital health to gather the patient perspective.

Commercial execution is another important area driving significant opportunities. Data gathered from devices and other real-world data sources are enabling the generation of accurate and real-time insights around patient and HCP behaviors, and therefore more effective marketing and sales execution. The high-resolution patient behavior data captured—such as diagnostic readings, device or drug usage—and physical activity allow the generation of predictive insights about adoption of products, product adherence, patients ready to switch or drop off, and worsening or improving disease conditions. 

A large medtech company within diabetes is studying factors such as device usage, app usage, patient demographics, adverse events and product returns to predict adherence and develop promotional messages and local targeting strategies. In a highly crowded market, the company is expected to generate 1 to 3% in incremental revenue.  

Even in cases where the device is not as “smart” and not generating streaming data, we’re seeing companies leveraging data from apps, websites, EHRs and third-party data sources to create commercial value. Medtech companies are leveraging such analytics to develop insights and KPIs that provide ongoing evidence to payers in a value-based care program and to differentiate itself from the competition.

While several companies are experimenting with some of these ideas, the investment is mostly scattershot and siloed, and not purposeful enough to tap into the opportunities presented, primarily because the digital and connected health analytics area is still new and evolving, and the value isn’t very well-known. On the other hand, a handful of organizations have made strides in successfully deploying digital health analytics solutions.


RELATED CONTENT 

BLOG POST: Five Analytics Trends on the Horizon in Medtech

BLOG POST: Into 2019: Risk, Uncertainty and a Return to Product Focus


 

Topics: Life Sciences, Analytics, medtech, digital health, digital health solutions, product value, digital connected health, medtech analytics, DCH, digital connected health analytics

Click here to subscribe to The Pacemaker

Leave a comment

AUTHORS
Brian_Chapman_thumbnail
Brian Chapman
Principal,
ZS Associates
Tobi_Laczkowski_thumbnail
Tobi Laczkowski
Principal,
ZS Associates
Will_Randall_thumbnail
Will Randall
Manager,
ZS Associates
Matt-Scheitlin-London_thumbnail
Matt Scheitlin
Associate Principal,
ZS Associates
Andy-kach_thumbnail
Andy Kach
Associate Principal,
ZS Associates
Bhargav_Mantha_thumbnail
Bhargav Mantha
Associate Principal,
ZS Associates
SUBSCRIBE

Get 'THE PACEMAKER' Updates

Subscribe to receive email notifications whenever new blog posts are published.

×

Subscribe by Email

Search by Topic

see all