At LSI Europe ‘23 medtech conference, experts from various sectors gathered to discuss the evolving landscape of digital transformation in healthcare. The panel included insights from Yosef Safi Harb of HappyTech, Carlos Nueno of TelaDoc Health, and Dr. Hemal Desai, an advisor at Nina Capital. They explored the impacts, challenges, and future directions of digital transformation within the medtech market. Here are the key takeaways from their discussion.

Defining Digital Transformation

Digital transformation is a term that varies in definition depending on the organization and its current stage in technological adoption. At its core, it involves integrating digital tools to enhance operational efficiency and achieve strategic goals. "Digital transformation is a journey from A to B, where an institution or organization wasn't working with any digital tools, and then implements those tools, learns how to work with them, and then can transform the organization to work ideally in a more effective and more cost-effective way to reach a certain goal," explained Yosef Safi Harb. Carlos Nueno added, "Transformation depends on how mature or transformed you already are. We were born as a mobile-first, virtual-first company."

Impact of COVID-19 on Digital Transformation in Telehealth

The COVID-19 pandemic significantly accelerated the adoption of telehealth services, showcasing the necessity and effectiveness of virtual care. TelaDoc, for example, saw an unprecedented surge in demand.

"We work with many providers and payors around the world—and this has been the biggest transformation in that space over the last five years. COVID-19 created an immediate need. Many patients may not have thought about virtual as an option, but all of a sudden, they had no other option as providers were closing physically," Carlos Nueno recounted. This surge in demand underscored the importance of virtual care, with Nueno noting, "87% of patients that had had a virtual health care visit preferred it."

Clinician Perspective on Digital Transformation in Healthcare

For this digital transformation to succeed in clinical settings, it must prioritize safety, efficacy, and seamless integration into existing workflows. Dr. Hemal Desai emphasized the critical considerations from a clinician's viewpoint.

"Adopting a new EHR system, for example, is a significant challenge, and when additional tasks are added, it makes patient care even more difficult. If it doesn't seamlessly fit into my workflow, no matter how great the idea, it will be hard to adopt," he noted. Dr. Desai added, "It has to be within my workflow—and it has to work. Otherwise, it's just another thing to do."

Provider and Patient Perspective on Digital Transformation in Healthcare

The successful implementation of digital tools must improve both patient care and clinician efficiency. This often requires significant changes to traditional practices and processes.

Yosef Safi Harb highlighted the importance of understanding and improving patient pathways. "Whatever you're bringing is not about the tech; it's about which patient pathway you are providing and how you can make my life easier," he explained. "But, the digital transformation is when you are able to work closely together and empower each other."

Trends in Virtual Care and Chronic Disease Management

Chronic disease management and mental health have emerged as critical areas where virtual care has seen substantial growth and patient preference. Carlos Nueno discussed the impact of this trend on TelaDoc's operations.

"We completed 60 million virtual visits just some months ago, and 21 million were done last year alone," he shared. Nueno emphasized the growing demand for virtual care in managing chronic diseases. "Chronic care is the one area that can avoid a lot of unnecessary hospitalizations. We are seeing great demand, and we are going to see even greater demand."

Regulatory and Legal Challenges in Digital Transformation

Navigating the legal and regulatory landscape is crucial for successfully implementing digital health solutions, particularly regarding data privacy and compliance. This is a significant concern for medtech companies and investors alike.

Carlos Nueno highlighted the complexity of international regulations. "There are many regulations internationally that prohibit access to care or make it so difficult," he said. Dr. Hemal Desai stressed the importance of data protection. "You may not have all of the answers as a company, but it should be on your list of things you’ve thought about, and depending on which stage you’re at, you actually have a solution in place to protect the data. Because it could jeopardize your business and your ability to grow."

Conclusion

The discussions at the LSI Europe ‘23 medtech conference accentuate the potential of digital transformation in healthcare. As medical device investors and industry leaders navigate this evolving landscape, understanding these key insights and addressing the associated challenges will be crucial for sustained success and innovation in the healthcare sector.