Digital health to save $100B over next four years

FDA-regulated digital health solutions are expected to save the U.S. healthcare system about $100 billion over the next four years, according to research released by Accenture. 

“A digital disruption is playing out in healthcare, as witnessed by the emergence of new business models and technology that will change the nature of patient interactions, alter consumer expectations and ultimately improve health outcomes,” said Rick Ratliff, managing director of Accenture's digital health solutions.
 
The company estimates that such tools achieved $6 billion in cost savings in 2014, primarily driven by medication adherence, behavior modifications and fewer emergency room visits. Accenture expects that figure to rise to $10 billion in 2015, $18 billion in 2016, $30 billion in 2017 and $50 billion in 2018, and also predicts that FDA approvals of digital health solutions will triple by the end of 2018, to 100, from 33 last year.

Regulatory guidelines for low-risk devices that provide more clarity around FDA oversight and expedited regulatory pathways are responsible for some of the growth, along with higher rates of health IT adoption among providers, increasing demand for self-management of care and the transition to value-based payment models.