In the report, Ecosystm Predicts: The Top Healthcare Trends for 2020, we had noted the similarities between the healthcare and the financial services industries and that Healthtech will take lessons from the Fintech industry.
In the report, Ecosystm Principal Analyst, Sash Mukherjee said, “Fintech plays a significant role in driving greater inclusion, especially to drive the induction of the unbanked into the mainstream economy, give the underbanked more options to leverage the broader financial services available, and reduce disparity in the adoption of financial services by bridging the gender gap and differences based on ethnicity and socio-economic status. It is not hard to imagine a similar fate for Healthtech. As the industry focuses on value-based outcomes, governments put in more regulations around accountability and transparency in the industry, and people expect the customer experience that they get out of their retail interactions, Healthtech start-ups will become as mainstream as Fintech start-ups.”
However, Mukherjee notes that there might be some pitfalls in this journey, especially when organisations focus more on the technology and less on the actual application and benefits of the technology. “Innovators and start-ups need to align themselves early, with corporates and technology providers to gain a better understanding of the market and regulatory landscape.”
Singapore bringing key industry stakeholders together
The MoU between Alibaba Cloud, Pfizer and Singapore’s Fintech Academy announced yesterday, is a move in the right direction that promises to give early and necessary guidance to Healthtech start-ups. Under the newly formed Healthcare Fintech Alliance (HFA), Alibaba will provide infrastructural support and technological mentorship to the Healthtech and Fintech start-ups to help them leverage cloud, AI and other technologies for their future requirements. The Fintech Academy will guide these start-ups through talent management and venture building programs. Pfizer will provide thought leadership through its network of healthcare experts and opinion leaders, including guidance on commercialisation of the products and services. The Healthcare Fintech Alliance initiative will begin with a pilot in Singapore, Indonesia, and Vietnam before expanding to other regions – Malaysia and the Philippines.
Mukherjee says, “The healthcare industry, for all the cutting-edge research, that it represents, has been remarkably slow to transform. But the COVID-19 crisis has forced the industry to transform, without the luxury or time to think about it. While the implications on the life sciences and provider organisations is clearer, there has simultaneously emerged a need for transformation in the healthcare payer industry. There will be greater demand from consumers for micro-financing to tide over sudden healthcare crises and greater transparency in how these funds are managed. Again, there is an immense potential here for the industry to learn from Fintech.”
Healthcare Fintech Alliance Focus Areas
The focus areas for Healthcare Fintech Alliance shows the deep connection between Healthtech and Fintech.
- Healthcare Affordability. Micro-financing and other financial models involving patients, family members, payers, and other healthcare stakeholders
- Value Based Healthcare. Linking payment schemes to a drug’s effectiveness, health outcomes or utilisation
- Outcome Monitoring. Tracking and reporting of outcomes derived from patients, wearables, healthcare providers, R&D databases and real-world evidence.
- Personalised Healthcare. Using digital technology to tailor healthcare to individual needs
- Innovative Healthtech Devices. Driving adoption in digital tools, such as diagnostic tools linked to medicine access and reimbursement
- Population Health Management. Leveraging patient and associated data in a compliant way to better understand population health characteristics, for effective wellness programs, treatment protocols and cost management.
“Alliances such as these have potential benefits for the industry stakeholders such as Alibaba and Pfizer. Alibaba has been focusing on the Southeast Asia market – earlier in the month the Alibaba Cloud Philippines Ecosystem Alliance was formed to support digital transformation in start-ups and small and medium enterprises. Initiatives such as this is an effective way to associate themselves with the evolving start-up community in the region,” says Mukherjee. “Life sciences companies operate in an extremely competitive global market where they have to work on new products against a backdrop of competition from generics and global concern over rising healthcare expenditure. Against that backdrop, this alliance is the right go-to-market messaging for Pfizer as well.”
“However, the deepest positive impact of alliances such as these will be on the Healthcare industry as a whole. It makes concepts such as value-based healthcare, remote care and personalised healthcare achievable in the near future.”