How to Make Sense of Wearables in Healthcare

Written by Special Guest Blogger Milos Todorovic, Lux Research

We are all witnessing the hype – the Apple Watch, Google Glass, FitBit, Samsung Gear — are just a few (almost) household names we are constantly bombarded with by both the mainstream media and technology-specific media outlets. How far can you walk? How fast can you run? Did your baby just turn in bed? How well do you sleep? Is the sunlight too intense today? How about estimating your calorie intake? There is a wearable (and an App) for all of that. And much more. While there are a few high-profile developers and devices, there are literally hundreds of companies developing wearable devices today. And new ones are springing up like mushrooms after the rain.

Wearables are an area of increasing attention and interest in healthcare, too, but the value proposition, uses, and devices are still unclear. The first level of confusion arises at the very definition of the boundary between consumer and healthcare – with the increased focus on preventive approaches, this line is increasingly blurred and many argue that monitoring/assessing any human activity that can ultimately affect health and wellbeing should be considered a part of healthcare. Even if we limit ourselves only to those uses of wearable technologies that squarely fall within the traditional definition of healthcare – namely the devices that are regulated and are intended for use within traditional care settings – we will still face a dilemma of how to define what the wearable is. Should we only consider devices such as Sotera Wireless’ ViSi Mobile vital signs monitor? Or should we look beyond and consider transdermal patches such as the sumatriptan iontophoretic transdermal system (Zecuity, NuPathe Inc.), a single-use, battery-powered patch for a migraine? How about implants, the ultimate wearables?

Regardless of how we define wearables in healthcare, there are several things developers should carefully consider before jumping on the bandwagon in this regulated market:

• Use case – Whether the device is intended for use in a hospital or at home can have important implications on the design parameters, from the battery life to the form factor to the type of data reported to the user. Can the device work in a standalone mode? Is it a companion diagnostics solution? Who is the operator/wearer? Who uses the data?

• Projected adoption rates – Is your device filling the gap or replacing the incumbent solutions? Is the fact that things can be done on a wearable sufficient to drive adoption – remember, this market is not driven by tech geeks.

• Regulatory approval – This one is self-explanatory, yet often overlooked early in the development cycle, especially by the companies not well versed in medical devices. Making the mistake of ignoring this important aspect of product development can have dire consequences on a company’s ability to even place the device on the market.

• Payers – Who ultimately pays for the product can determine a company’s ROI. Individuals are always more price sensitive than insurance companies; however, the latter are increasingly looking for the cost/benefit analysis to determine if they should cover the specific device.

In addition, the ease of use, seamless integration into a physician’s workflow/patient’s life, health care cost reductions, and improving outcomes are all important characteristics that can ultimately make or break a specific product. Juggling all these parameters is a fine art and requires a very good understanding of how healthcare works, in addition to technical acumen and business savvy.

While it is still too early to fully grasp the wearables market in healthcare, there is no doubt that the future is bright for this particular industry. However, there is still a lot of work to be done to establish the value of the wearables, as they often come at a higher per-test price point than existing solutions. The industry would be smart to fund multiple health economic studies to prove the cost-reduction and outcome-improvement benefits wearables can bring to healthcare, especially for those technologies that are aiming to replace established clinical solutions in vital signs monitoring and in-vitro diagnostics.

Until the fog clears, we are in for a joy ride on a rollercoaster of opportunities…

Milos Todorovic is an Analyst who leads Lux Research’s BioElectronics Intelligence.  Lux Research provides strategic advice and ongoing intelligence for emerging technologies. Leaders in business, finance and government rely on Lux to help them make informed strategic decisions. Through their unique research approach focused on primary research and their extensive global network, they deliver insight, connections and competitive advantage to their clients.