Goldman Sachs: $32.4 Billion Digital Health Market; Savings “Indefinitely Large”
Goldman Sachs analysts, covering medical technology, life sciences, capital goods, and healthcare supply chain and services, to produce a research report on the potential for the “Internet of Things” to disrupt health care.
The conclusion: The total addressable market is $32.4 billion, and the savings resulting from digitizing health care are “indefinitely large” (see Exhibit 2).
The Goldman Sachs analysts divide the market into three segments: Remote patient monitoring, telehealth, and behavior modification.
What is uniquely interesting about the Goldman Sachs report is that it discusses how incumbent market leaders, such as Medtronic or Siemens, might respond to the opportunities. Businesses entering the market also recognize five challenges, which Goldman Sachs summarizes nicely (see Exhibit 23).
The 54-page report is available from Goldman Sachs.
Yep, just like digitizing all of those OPM records saved billions.
Especially like patient monitoring. Don’t do what they say and they give you shocks?
I think there may well be too much optimism about how the technological revolution that has cut costs in other industries has finally come to health care. The current payment system virtually guaranees that almost all of the increase in economic rent will be captured by providers, not patients.