Ireland has a significant opportunity to differentiate itself as a centre of excellence for digital health innovation, according to Sinead Keogh, director, Ibec medtech and engineering. “We have seen how technology has revolutionised industries like retail and banking and we are seeing it move into healthcare now,” she says.
Keogh explains that digital health spans a wide range of areas including technologies, platforms, and systems that engage consumers for lifestyle, wellness, and health-related purposes; devices that capture, store, or transmit health data; and others that support life science and clinical operations.
It’s not just about snazzy technologies though. Digital health is already playing a role in addressing spiralling healthcare costs. “Governments around the world are grappling with rising healthcare spending,” she notes. “The rapidly growing global population coupled with changing demographics with people living longer is driving costs upwards. According to the OECD, global health expenditures are expected to increase to $11 trillion by 2030. That’s a huge challenge. Digital health is facilitating a shift to value-based care where healthcare providers get paid for outcomes. That requires them to measure treatments to understand how they are working and their impact on the patient. And digital health is providing the sensors and other technologies to do that.”
That technology is already being witnessed in the medtech space. “For example, the Abbott Freestyle Libre device measures blood sugar levels constantly and connects to a phone app to allow the patient monitor them and take medication as required,” Keogh explains. “Abbot has just announced a €450 million investment and the creation of 1,000 new jobs in Ireland to increase the production of these devices.”
The ultimate goal is improved patient outcomes. “Technologies like this give patients more ownership of their health data to better understand their own conditions and track them in real time,” she notes. “Some of these devices can deliver medication as well. Doctors get better access to data, the patient doesn’t have to be present and only needs to call in to the GP surgery, health clinic or hospital when necessary. That frees up healthcare settings for the patients who need to be there. The technology also helps patients avoid severe adverse reactions. And it lowers total cost of healthcare.”
Investors have taken note of this emerging sector. “They have identified it as one of the fastest growing segments in the healthcare market,” says Keogh. “According to research carried out by Deloitte, digital health venture funding globally is set to grow at over 17.4 per cent annually and will reach $426 billion in 2027.”
The healthcare industry is also responding. “We are seeing a lot of healthtech companies future-proofing their R&D departments by adding digital capability in order to develop complete care solutions which encompass digital health solutions and services. For example, Medtronic, the world’s largest medical device company, has now rebranded itself as a medical technology company. We are seeing others following suit and changing their positioning.”
Ireland is starting from a strong base when it comes to the development of the digital health sector. “We already have a unique life sciences and digital health ecosystem employing more than 84,000 people in over 700 companies,” she points out. “Nine of the world’s top 10 medtech companies have a base here and all of the world’s top 10 biopharma companies are here. We have one of the most productive and highly educated workforces in the world. We have an excellent education system and a highly networked collaborative research ecosystem with cross-disciplinary research taking place in key areas for digital health. And we have a number of very exciting home-grown digital health companies.”
These companies include Deciphex which has launched its virtual pathology service in the US and HealthBeacon which is now listed on the US Market following a successful IPO.
Ibec has brought together the Irish Medtech Association, Technology Ireland and BioPharmaChem Ireland in a cross-sectoral campaign to increase awareness of Ireland as a location for digital health investment, she adds.
“We produced the Where Digital Health Thrives report which sets out how Ireland can become a recognised global hub for digital health, where companies can develop and commercialise products, as well as attract projects and investments. The Connected Health Skillnet and the Irish Medtech Association will shortly publish a skills report to map out the talent needs of the sector in the coming years. We also need to ensure that we have the right business policies and conditions to grow the digital heath sector here and we know the Government understands this.”
She is confident that Ireland will succeed in developing a global digital health hub. “Our secret sauce is our highly networked and collaborative ecosystem, our can-do attitude, our ability to build relationships, and the way we can get stuff done.”