The Healthcare Revolution

A N I N D U ST RY R E S E A R C H ST U DY
The Healthcare Revolution:

3 Reasons to Invest in Digital Health
We’ve done our homework...
This report will focus on Digital Health’s far-
reaching impact not just on patients, but on
payors and healthcare providers. Our perspective
has been formed by 15 years developing Digital
Health solutions, as well as primary qualitative
research conducted April – December 2021 with
healthcare industry experts, pharma innovators,
payors, and consumers. Rightpoint also
conducted quantitative survey research in June
2021 with hundreds of consumers across the US.
© RIGHTPOINT | WWW.RIGHTPOINT.COM 2
Digital Health is
expected to become a
$56B
Global opportunity by 2025
+57% CAGR
(2020-2025)
SO UR C E : I N S ID E R I N TEL L IGENCE D IGITA L TH ER A PEU TICS RE PORT, JULY 20 21
Four Macrotrends Driving
Digital Health:
1. Accelerated consumer adoption of
all-things-digital. Fueled in-part by the
pandemic, ecommerce expectations
now inform all consumer categories –
including healthcare.
2. Renewed focus on DIY wellness,

with minimal friction. Consumers
expect transparency when it comes to
their wellbeing. Increased access to
telemedicine, online portals and Digital
Therapeutics have bridged the gap in
both educating and treating underserved
patients across racial, socio-economic
and geographic groups.
3. Increased reliance on data-driven

decision-making. From symptom
tracker apps and monitoring devices,
to hospitalization rates and claim
processing times, data is the currency
that all three pillars of the ecosystem use
in optimizing patients’ care.
4. Blurred line between business strategy

and tech strategy. Business success
can be boosted – or hindered – by
technology decisions, with revenue goals
increasingly linked to tech capabilities.
At Rightpoint, we believe Digital
Health will revolutionize healthcare
through a thoughtful approach to
data and design, benefiting not just
patients, but healthcare providers
and payors as well.
This revolution will be difficult; myriad challenges
slow the widespread adoption of Digital Health
Payors require robust clinical Insurance coverage for Poor patient adherence has
trial data and FDA approvals many Americans is transient, made the industry question
before granting coverage. complicating the availability whether digital health tools
of consistent, trended will be consistently used by
patient data over time. patients long-term.
Platform interoperability is Regulations in both

elusive, impeding smooth industries – tech &
transfer of data between healthcare – are nuanced,
providers and payors. time consuming, and hard to
navigate.
What do these challenges mean
for Digital Health innovators?
The complexity of the market, combined with
regulatory requirements means that validating ROI for
Digital Health initiatives can be difficult for innovators,
device manufacturers, and pharmaceutical companies.
Despite these challenges, Rightpoint has uncovered
three key insights that demonstrate the value of
investing in Digital Health.
1. Patients are primed. Thanks to the pandemic, people are taking a more active role in their
health than ever, relying on digital devices to do everything from managing chronic illness,
to counting steps. Additionally, digital experiences from apps and connected devices are
rapidly improving.
2. Healthcare providers are clamoring for help. Providers are looking for platforms, products,
and processes that help manage patients’ health and treatment, but need them to be safe,
efficient, easy to use, and cost effective.
3. Payors are willing to cover Digital Health tools. Payors are ready to embrace software
solutions that are clinically proven to drive positive health outcomes that reduce costs on
reactive treatment.
I NSIGHT # 1
Patients are primed to rely on digital

tools to monitor their health.
Patients are primed now more than ever to leverage
digital tools to manage their health.
Since the outset of the Covid pandemic, more consumers are taking an active role in
monitoring their health; the subsequent boom in telemedicine has made reliance on digital
tools more commonplace.
54% 73%
Of users plan to continue
Leverage digital in some
or increase reliance on
way to track their health
telemedicine
THE CHALLE NGE
How do we ensure that digital health tools are not just some passing fad? Proper product
design and patient research must be done to understand unmet needs and pain points, whether
patients are dealing with acute chronic disease, or just want to stay on top of their health.
SO UR C E : R O C K HE A LTH , CONSU MER A D OP TION OF TEL EM E DI CI N E 20 21, DE CE M BE R 20 21; ROCK HE ALT H, DI G I TAL HE ALT H C O NS UM E R
A DO P T I O N R EP O RT, 2 020; R IGH TP OINT EX P ERT INTERV IE WS DE CE M BE R 20 21.
47%
Health condition management apps now account for 47 percent of the most
widely used digital health apps in 2020, up from 28 percent in 2015.
SO UR C E : IQV IA D IGITA L H EA LTH R EPORT, J U LY 2021

EXPERT P E RSP E CTI V E
“There is a big push to add

Digital Therapeutics into
treatment strategies to improve
patient outcomes and quality of
healthcare delivered.”
Director of Pharmacy & Clinical Care
Scriptcare
SO UR C E : R IGHT P O I N T EX P ERT INTERV IEW, D ECEMBER 20 21, SCRI PTCARE .

300% increase
RAP ID LY GROW IN G :
10% of US patients report using remote patient monitoring to track symptoms or a

condition and share it with their medical professional, up from just 3% in 2020.
SO UR C E : AC C E N TUR E H EA LTH A ND L IFE SCIENCES EX PE RI E N CE SURVE Y, JULY 20 21

I NSIGHT # 2
Healthcare providers see the potential that

digital tools have in creating better patient
outcomes, operational efficiencies, and
increased cost savings.
Healthcare providers are extremely time-pressured.
They must balance patient needs with the operations
of providing care.
Providers welcome the ability to streamline operations and have more productive,
predictive, and efficient number of appointments and length of visits for healthy patients.
57%
Of physicians view telehealth
more favorably than they did
before the pandemic.
THE CHALLE NG E
Digital Health tools generate a lot of data, but the challenge is understanding what data are
most important or predictive. Determining which metrics providers can leverage to streamline
operations and have more productive, efficient conversations with authorizing payors will be key
for any successful Digital Health tool.
SO UR C E : M C KIN S E Y & CO, COV ID 19 P H YSICIA N SU RV EY, M AY 20 20 ; RI G HT POI N T E XPE RT I N T E RVI E WS DE CE M BE R 20 21.
Providers and payors see potential to significantly
lower costs through widespread adoption of digital
health solutions.
Industry insiders estimate that more integration of Digital Health tools
could reduce healthcare administrative costs by 20% or more.
PR OVID E R P E RS P EC TI V ES
“If we really care about lowering costs of care, we need to

think about digital…capturing more patient info – thereby
streamlining visits – will potentially reduce overhead costs
by 20-30%, or more.”
Director of Pharmacy & Clinical Care
Scriptcare
“20-30% of time in an average week of treating patients

could be saved through DTx [Digital Therapeutics]…the
problem is getting it paid for.”
Medical Director
Kaiser Permanente
SO UR C E : R I G HT P O I N T EX P ERT INTERV IEW S, D ECEMBER 20 21, SCRI PTCARE & K AI SE R PE RM AN E N T E .

25%
Of US healthcare spending supports administrative activities that are not directly
linked to patient outcomes.
SO UR C E : M C K IN S E Y & COMPA NY, A D MINISTR ATIV E SIMPLI FI CAT I ON RE PORT, OCTOBE R 20 21.
“Connected devices will be a game changer

in many different respects. It’ll help us with
logistics… compliance and treatment delivery…
more seamless processes, less wasted time with
phone calls back and forth, especially [between]
pharmacies and insurance companies.”
Board Certified Immunologist
SO UR C E : R IGHT P O I N T EX P ERT INTERV IEW, A P R IL 2021, IM M UN OLOG I ST M D

Three primary benefits of reduced
administrative costs:
Staff time can be Improved accuracy. Shift from reactive to

re-directed and optimized. Enhancing processes and proactive support.
Digital Health can streamline data collection with Digital Digital Health gives providers
some current operating Health tools will minimize the data to better plan
procedures and facilitate human error and reduce treatment protocols, allowing
new ways to work. re-work. them to deploy preventative
care as opposed to reactive
or urgent care.
I NSIGHT # 3
Payors are increasingly willing to cover Digital

Health tools, provided they are clinically
proven to drive positive health outcomes that
reduce costs on reactive treatment.
Payors see the value in Digital Health tools, but still
require rigorous data and FDA approval to authorize
Digital Health tools.
While payors have started to cover Digital Therapeutics (DTx) across plan types, they’re
almost 2x as likely to express interest in doing so moving forward.
PAYORS OP E NNE S S TO DTX C OV ER AG E
56%
46% 47%
44% 45% 45%
30% 31% 31%

28%
26%
22%
Commercial Medicare Advantage Medicare PCP Managed Medicaid Public Health Private Health
Exchange Exchange
Provides
ProvidesDTx
DTx Coverage
Coverage Interested
InterestedininProdiving
ProvidingDTx
DTxCoverage
Coverage
THE CHALLE NG E
Regulatory requirements are perceived as a hurdle by Providers and Payors. But to bring digital
health tools to market, digital health innovations need to settle in for the long haul; the regulatory
approval process is extensive, technical, and time consuming―but it is necessary.
SO UR C E : C LA R I VAT E , U. S. PAY ER S A R E WA R MING U P TO COVE RI N G DI G I TAL T HE RAPE UT I CS, M ARCH 20 20

“The intent of building digital

solutions and putting them in the
hands of members is to keep
costs down [through] preventative
care ...helping manage treatment
so they don’t wind up in the
Emergency Room.”
Staff Software Developer
Verily Life Sciences
SO UR C E : R I G HT P O I N T EX P ERT INTERV IEW, D ECEMBER 20 21, VE RI LY.

“Digital Therapeutics could significantly

lower the cost of treating patients, if done
right – by incorporating products into clinical
trials and getting enough data on efficacy.”
Director for Clinical Services & Pharmacy
Aetna Health Care
9 in 10
pharmacy and medical directors, surveyed in June 2020, said their managed
care organizations (MCOs) either already had a policy in place for covering DTx or
expected to have one by June 2021.
SO UR C E : C LA R IVATE ACCESS & R EIMBU R SEMENT SU RV EY, JUN E 20 21

I MPL ICAT IONS
How can Digital Health innovators

win in this space?
The best Digital Health tools will take into account
the needs of these three primary groups:
1. Patients: Thoughtful UX design that takes into account real patient behaviors, pain
points, and unmet needs will ensure patient engagement long-term.
2. Healthcare providers: Understanding how providers leverage data from Digital Health
tools to make better informed care decisions is key for digital health innovators.
3. Payors: Acquiring FDA approval, clinical trial data, and a demonstration of reduced
healthcare costs will streamline payor authorization of Digital Health Tools.
“Tech companies don’t

necessarily know about the
FDA approval process, so
they need to get a partner
and product managers who’ve
worked in the pharma industry.”
Director for Clinical Services & Pharmacy
Aetna Health Care
SO UR C E : R I G HT P O I N T EX P ERT INTERV IEW, D ECEMBER 20 21, AE T N A.

Why Rightpoint?
Rightpoint is dedicated to improving lives by creating
Digital Health solutions at a greater speed to market.
Our passion is crafting experiences and products that
are effective, easy, and pleasurable to use. We partner
with Payors, Providers, Pharmaceutical, Diagnostic,
and Digital Therapeutic companies to understand their
needs today and their desires for tomorrow to help
shape their strategy and realize their product vision.
Rightpoint has been developing Digital Health

solutions for 15 years from patient experiences to
health & wellness applications, Digital Therapeutics
and everything in-between. Our award-winning design
expertise combined with our regulated development
capabilities allow us to create digital tools and
experiences that improve patient outcomes.
Capabilities
• Regulated Medical Software (SaMD, SiMD)
• Product, Business, Patient and Provider Strategy

and Research
• Clinician and Patient Experience Design
• Connected Device Integration (IoT, IoMT, BLE, NFC)
• Custom Mobile, Web and Cloud Applications
• EMR and Systems Integration
• Proven AR/VR, AI and Machine Learning Integrations
Our practice is ISO 13485:2016-certified, our processes are IEC 62304 and ISO
14971:2019 compliant allowing us to efficiently create software and experiences to
regulatory standards for medical products.

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A N I N D U ST RY R E S E A R C H ST U DY

The Healthcare Revolution:

SO UR C E : I N S ID E R I N TEL L IGENCE D IGITA L TH ER A PEU TICS RE PORT, JULY 20 21

2. Renewed focus on DIY wellness,

3. Increased reliance on data-driven

4. Blurred line between business strategy

Platform interoperability is Regulations in both

Patients are primed to rely on digital

THE CHALLE NGE

SO UR C E : IQV IA D IGITA L H EA LTH R EPORT, J U LY 2021

“There is a big push to add

SO UR C E : R IGHT P O I N T EX P ERT INTERV IEW, D ECEMBER 20 21, SCRI PTCARE .

10% of US patients report using remote patient monitoring to track symptoms or a

SO UR C E : AC C E N TUR E H EA LTH A ND L IFE SCIENCES EX PE RI E N CE SURVE Y, JULY 20 21

Healthcare providers see the potential that

“If we really care about lowering costs of care, we need to

“20-30% of time in an average week of treating patients

SO UR C E : R I G HT P O I N T EX P ERT INTERV IEW S, D ECEMBER 20 21, SCRI PTCARE & K AI SE R PE RM AN E N T E .

“Connected devices will be a game changer

SO UR C E : R IGHT P O I N T EX P ERT INTERV IEW, A P R IL 2021, IM M UN OLOG I ST M D

Staff time can be Improved accuracy. Shift from reactive to

Payors are increasingly willing to cover Digital

30% 31% 31%

SO UR C E : C LA R I VAT E , U. S. PAY ER S A R E WA R MING U P TO COVE RI N G DI G I TAL T HE RAPE UT I CS, M ARCH 20 20

“The intent of building digital

SO UR C E : R I G HT P O I N T EX P ERT INTERV IEW, D ECEMBER 20 21, VE RI LY.

“Digital Therapeutics could significantly

SO UR C E : C LA R IVATE ACCESS & R EIMBU R SEMENT SU RV EY, JUN E 20 21

How can Digital Health innovators

“Tech companies don’t

SO UR C E : R I G HT P O I N T EX P ERT INTERV IEW, D ECEMBER 20 21, AE T N A.

Rightpoint has been developing Digital Health

• Product, Business, Patient and Provider Strategy

• Clinician and Patient Experience Design

• Connected Device Integration (IoT, IoMT, BLE, NFC)

• Custom Mobile, Web and Cloud Applications

• EMR and Systems Integration

• Proven AR/VR, AI and Machine Learning Integrations

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