The consumerization of healthcare is reshaping how patients interact with the medical system. As more people take a proactive approach to managing their health, medtech companies have a unique opportunity to harness patient behavior and drive real value. At LSI Europe ’24, a panel of industry experts gathered to discuss the evolving landscape of consumerization in medtech and the need to understand and target patient behaviors to enhance health outcomes.

But what exactly is the consumerization of healthcare? It refers to the shift toward empowering individuals to actively engage in managing their health using digital health platforms like wearable sensors, apps, and remote monitoring systems. The goal is to make healthcare more accessible, personalized, and efficient, transforming passive patients into active healthcare consumers.

The Growing Demand for Consumer-Centric Healthcare

Sahir Ali, Founder & General Partner of Modi Ventures, believes the healthcare system must pivot from a disease-treatment model to one that actively engages consumers in staying healthy. “If you’re going to consumerize it, the word ‘patient’ itself indicates you’re sick. I think the trend of consumerization, at least the one that I particularly like to be engaged with, is how do you empower consumers who want good health?” he said.

Ali highlighted that many existing healthcare solutions are designed to meet regulatory requirements rather than genuinely address consumer needs. He pointed out that millennials and Gen Z, who are digital-first generations, demand accessible, personalized health solutions that integrate seamlessly with their daily lives.

“What ultimately a consumer wants in this space is health,” he added. “And if solutions are designed with that in mind, we can truly drive value.”

Katie Elias, former Managing Director at T1D Fund, acknowledged the importance of consumer-driven solutions but emphasized that healthcare systems must keep clinical efficacy at the forefront. “When we look at the impact of continuous glucose monitoring, we see there is absolutely a definite health benefit for patients using it. You can reduce your HbA1c levels, you can reduce hospitalizations, and ultimately, you can improve care and outcomes for these patients.”

Meeting Patients Where They Are

Owen Willis, Founder & General Partner of Opal Ventures, stressed that for medtech companies to be successful, they need to meet patients where they are.

“Patients will engage if you meet them where they are,” he stated. “If you’re building a mental health product for young men, you know that product needs to be able to insert itself into a video game and be happening alongside when they’re doing other activities and things they enjoy.”

Willis also highlighted the power of passive monitoring, where devices collect valuable health data without requiring active user participation. “Passive monitoring—like using radar technology to track heart rate, breathing, and fall likelihood in the elderly—has tremendous potential. The less effort required from the patient, the better the outcomes.”

Willis noted that the key is to make this data actionable. Health data must be presented in a way that allows users to make meaningful decisions about their health.

The importance of integrating seamless design principles into health technologies was further emphasized by Sahir Ali: “Tools that are so tuned with what a consumer wants, shipped in well-designed packages, are more likely to be adopted. This user-centric approach is essential to making wellness solutions accessible and appealing to broader audiences.”

The Wellness vs. Disease Management Debate

The consumerization of healthcare is not without its challenges. Many technologies in the market today are aimed at wellness rather than disease management. According to Thom Rasche, Managing Partner at Earlybird Ventures, this creates a significant divide between those who use health technologies to optimize wellness and those who genuinely need them for disease management.

“I actually believe that they will be less compliant with apps than they are with a pill because swallowing a pill is a nanosecond activity, whereas, with an app, you really need to get engaged and actually work with us,” Rasche said. “When we talk about those patients who are not compliant, that’s a bigger hurdle. It needs to be totally passive; we cannot expect patients to comply and work with us.”

Rasche argued that the technology itself is not the issue. Instead, the problem lies in integrating data and technology into existing healthcare systems effectively. “We are managing other people’s money. So if we are managing other people’s money, they want it back, best with a return. If we have the conviction that we would be investing in a sector which, in a time frame of five to ten years, would get you a high return on that investment, then we would do it, whether that is in the prevention space or not.”

Elias echoed this sentiment, stressing the importance of developing consumer-friendly technologies without sacrificing clinical efficacy. “I would love to see [consumer-facing technologies] be extremely successful so we can then take those insights and apply them to disease states.”

Looking Ahead

The consumerization of healthcare presents a massive opportunity for medtech companies willing to embrace change. However, achieving meaningful progress requires creating products that integrate seamlessly into consumers’ daily lives while also providing real clinical value.

Owen Willis’s comment about accessibility highlights a critical challenge: “A lot of what we think about as wellness is, in some ways, a luxury for people.” The high cost and complexity of many health-focused devices and services put them out of reach for the very populations that could benefit most.

The companies that can balance consumer-driven models with clinical efficacy will be the ones driving real value in the future of healthcare. By making health data understandable, relevant, and actionable for consumers, the medtech industry can move beyond traditional models and truly transform patient care.

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