Innovational advancements have been prioritized in the healthcare industry after the COVID’19 pandemic, Fintech has contributed to this, by identifying major issues with the industry and solutions to resolve them.
FREMONT, CA: After the COVID'19 lockdown, an outbreak for innovation leading to an enormous inflow of capital was promoted by the demand for delivering affordable and the quest to provide more accessible healthcare has also increased. By the rise in digital health VC investment, this outbreak can be determined as it rose from 7.7 billion dollars in 2019 to 14.6 billion dollars in 2020. Furthermore, in the first half of 2021, it has reached 14.7 billion dollars. The modification of the healthcare industry can be marked as a catalyst by the collaboration with fintech. The major issue of changing dynamics between payers, patients, and providers, and how the electronic health records (EHRs) payments flow between them, are being resolved by the growing number of startups that are now leveraging the fintech playbook. Additionally, there is a requirement for new technologies and platforms to help with the massive shift to the latest billing and engagement models that providers are dealing with.
Fintech has identified key issues with the healthcare industry and the major trend that impacts this industry the most, is the continuous rise of chronic illnesses. The most responsible factor for 100 billion dollars of healthcare spending and 100,000 deaths yearly is the patient's reluctance in obeying medical guidelines. By 2025, it is estimated that nearly half of the US population would be affected by chronic illness owing to the constant spending streak as people are getting sick for longer durations. Now it is a priority to educate and incentivize patients to avoid re-admissions or ER visits, as around a fifth of them never fill their prescriptions. To help build healthy habits, behavioral economics and gamification can be used to incentivize patients and even several startups are aiming to curb the rise of chronic illnesses and the associated recurring costs. For instance, companies like Sweatcoin in Europe, Betterfly in Latin America, and Paceline in the U.S., rewards such as fitness and financial are combined for gamification.