Disrupting Healthcare or Another Big Tech Failed Attempt?

In an era where technology is reshaping every aspect of our lives, the remarkable efforts taken by the Big Tech companies - Alphabet, Amazon, Apple, and Microsoft - signal a transformative shift in how healthcare services are delivered and experienced. These giants are redefining the healthcare sector with their unparalleled technological prowess and innovative approaches. Their concerted efforts to integrate AI, cloud computing, and data analytics into healthcare are promising to enhance patient care, improve outcomes, and streamline operations for healthcare providers and insurers. 

What are you going to learn about reading this article?

-       Big Tech first attempt of investing in healthcare

-       Why did these companies choose this industry

-       Healthcare challenges

-       Investing in healthcare and what to look for 

What is interesting is that the Big Tech companies had a previous attempt to invest in healthcare services but failed. So what is different now? By Einstein's words, doing the same thing over and over again is insanity. Therefore, something must be different this time. But what is it? It's data and insightful analytics. The big technological advancements make disrupting a massive industry like healthcare with digital solutions and AI possible.

Why did they choose to invest in health tech?

The worldwide healthcare expenditure represents approximately 10% of global GDP. Yet, with over $10 trillion spent annually, operating rooms remain one of the most hazardous places, accounting for 7.7% of global deaths. These statistics can be changed. Almost half of surgical complications can be prevented, which is why the incentive for tech companies is to provide digital assistance to enhance patient outcomes.

According to the World Economic Forum, global healthcare challenges also include the wasteful allocation of $1.8 trillion, a healthcare workforce shortage of over 10 million by 2030, and the rise of chronic diseases.

For investors, this change is opening up substantial new opportunities not only to achieve a high ROI but also to make a real impact. The move towards using more data to predict outcomes, tailoring medicine more closely to individual needs, and making different systems work better together highlights a growing market that’s ready for investment. Specifically, their efforts to address problems in the healthcare system with emerging tech solutions signal a move towards more efficient and effective patient care management.

The results are nothing short of significant. According to the WEF report “Transforming Healthcare: Navigating Digital Health with a Value-Driven Approach”, using digital solutions in healthcare has led to:

            • Treatment times that are three times faster than the average in-person visit by digitalizing front-end processes.

            • A 73% reduction in time to neurological intervention through early treatment initiation facilitated by sensor monitoring.

            • 99.53% error-free diagnostic reports, through AI-assisted technology that matches diagnostic images with remote radiologists based on availability and subspecialty.

However, the entry of Big Tech companies into healthcare is not without challenges. Concerns over keeping patient information safe, earning the trust of users, and protecting against cyber-attacks are major issues these companies must navigate carefully. Yet, their move into healthcare could also offer new solutions to longstanding problems in the industry, providing new hope for patients and healthcare providers.

As investors, we’re at an important juncture where backing technology that integrates with healthcare could yield profits and also help build a healthier future. The efforts of companies like Alphabet, Amazon, Apple, and Microsoft in healthcare present a compelling reason for investors to consider the health tech sector not just as a venue for financial gain but as an opportunity to effect significant improvements in the world.

The healthcare landscape is dramatically changing and will continue to do so, driven by the tech innovations of the world’s leading companies. As investors, our role in supporting and facilitating this transformation is more crucial than ever. 

The convergence of technology and healthcare is set not just to redefine how healthcare is delivered but also to establish a foundation for a future where technology and health merge to create a better, healthier world.