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Digital health technology is revolutionizing healthcare, offering a plethora of opportunities for founders in this space. Telehealth and remote monitoring are gaining widespread acceptance, presenting founders with avenues to innovate and improve patient care (see Figure 1). This surge in digital health innovation is addressing critical challenges in the healthcare system, such as disparities in health determinants and accessibility issues.
Figure 1. RPM and RTM utilization in the quarters following reimbursement expansion (Source: Advisory Board)
Payers are increasingly embracing digital health technologies to enhance member satisfaction, improve access to care, and drive better health outcomes. This shift is expected to significantly impact health plan profitability, presenting founders with a lucrative market for their solutions (see Figure 2). Key focus areas for digital health technologies, such as chronic condition management, care navigation, and digital insurance and benefits, align closely with the priorities of health plans. This alignment suggests a wave of opportunities for founders to disrupt the health plan industry over the next decade.
Figure 2. The disruption phases of health plans’ net profit pool from 2021 to 2030 ($ billion) (Source: Deloitte)
Among the trailblazers in this digital revolution is UnitedHealth Group. UnitedHealth Group consists of both UnitedHealthcare, in charge of health benefits, and Optum, responsible for health service delivery. UnitedHealth Group has adeptly navigated macroeconomic shifts, such as those catalyzed by the Affordable Care Act and the COVID-19 pandemic, by broadening coverage, participating in exchanges, and investing in digital healthcare benefits (see Figure 3).
Figure 3. UHG, UHC, and Optum’s Investment Volume Over Time (Total Number of Investments Made per Business Unit)
Optum's inception was a strategic move to harness emerging technologies for operational and clinical improvements. Throughout the 2010s there were advancements seen in both expanding Electronic Health Records (EHR) and telehealth. Beginning in 2018, machine learning (ML) was being integrated across operations. These technologies are employed in predictive analytics to foresee health events, in personalized medicine, and in automating administrative processes to improve efficiency and patient care. Much of the digital transformation coming from UnitedHealth Group can be attributed to strategic partnerships with digital health technology companies.
Optum saw a rise in its investment initiatives beginning around 2019 and extending through 2023. These investments predominantly contributed to the expansion of Optum's healthcare offerings across diverse domains such as behavioral health, social determinants of health, and conversational AI. The diagram below outlines some of the significant investments made during this period (see Figure 4). Several of these investments targeted companies specializing in addressing specific health conditions, such as kidney care or eating disorder recovery, while others were directed towards companies with broader focus areas, including expanding resources for in-home care.
Figure 4. Optum’s Digital Health Tech Investments
Crucially, UnitedHealth Group's digital metamorphosis has been facilitated by strategic collaborations with digital health technology companies. These partnerships have enabled UnitedHealth Group to extend benefits beyond traditional healthcare services, amplifying its impact in the rapidly evolving digital healthcare sphere.
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