Will AI-Powered Consumer Technology Disrupt Healthcare?

Thank you for reading NewHealthcare Platforms' newsletter. With a massive value-based transformation of the healthcare industry underway, this newsletter will focus on its impact on the medical device industry reflected in the rise of value-based medical technologies, and platform business models that are significantly transforming payer and provider healthcare organizations. I will occasionally share updates on our company's unique services to accelerate and de-risk the transition!

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Hello again friends and colleagues,

Apple's recent announcements of the sleep apnea detection functionality for the Apple Watch and the FDA-approved hearing aid functionality of the AirPods Pro have sparked a conversation about the growing role of AI-powered consumer devices in healthcare. These developments, along with similar moves by other technology companies, suggest that we may be on the cusp of a significant shift in the balance of power between consumers and the healthcare industry.

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Apple's Move into Healthcare?

The introduction of sleep apnea detection on the latest Apple Watch is a notable development in the detection of a condition that affects tens of millions of Americans and in the many cases goes undetected with significant health consequences. By using the watch's accelerometer to monitor wrist movements associated with breathing disturbances during sleep, and analyzing this data over a 30-day period, the device can detect signs of moderate to severe sleep apnea. This feature, expected to receive FDA clearance soon, could help millions of people identify potential sleep disorders and seek appropriate treatment.

Similarly, the FDA's authorization of the "Hearing Aid Feature" for AirPods Pro 2, making them the first FDA-authorized over-the-counter hearing aid software device, could significantly improve access to hearing assistance. Adults with mild to moderate hearing impairment can now take a hearing test using their AirPods Pro 2 and customize their audio settings accordingly.

These innovations demonstrate the potential of AI-powered consumer devices to democratize access to health monitoring and assistive technologies, providing users with valuable insights into their health and wellbeing without the need to seek services from healthcare providers!

Medical Technology Companies Entering the Consumer Space

It's not just technology companies like Apple that are making moves into the consumer healthcare space. Traditional medical technology companies are also beginning to explore opportunities in this area.

For example, both Dexcom and Abbott have recently received FDA clearance for over-the-counter continuous glucose monitors (CGMs) designed for people with Type 2 diabetes who don't use insulin. These devices, which don't require a prescription, could make it easier for millions of Americans to access CGM technology and better manage their diabetes.

Dexcom's Stelo is set to be available for online purchase starting in summer 2024, while Abbott's Lingo and Libre Rio systems are also poised to enter the market. These companies see significant potential in expanding CGM technology beyond traditional diabetes management to broader consumer markets, including people with prediabetes and those interested in monitoring their metabolic health.

These developments suggest that the lines between medical devices and consumer health products are beginning to blur, as companies seek to make their technologies more accessible and user-friendly.

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Lessons from the Newspaper and Camera Industries

The potential impact of AI-powered consumer devices on healthcare can be understood by looking at the disruption of the newspaper and camera industries.

The rise of the internet and digital publishing transformed the newspaper industry, as readers increasingly turned to online sources for news and information. Many newspapers struggled to adapt to this new landscape, leading to declining revenues and significant job losses.

In the camera industry, the advent of digital photography and the increasing capabilities of smartphones disrupted traditional camera manufacturers. Companies like Kodak, which were slow to embrace digital technology, saw their market share erode as consumers embraced the convenience and accessibility of digital cameras and smartphone cameras.

These examples highlight the disruptive potential of new technologies and the importance of adaptability in the face of changing market conditions.

Risks and Opportunities for the Healthcare Industry

The growing capabilities of AI-powered consumer devices present both risks and opportunities for the healthcare industry.

On the one hand, these devices could potentially disrupt traditional healthcare services, as consumers increasingly turn to them for health monitoring and management. If healthcare providers fail to adapt to this changing landscape, they risk losing relevance and market share to technology companies and startups that are better positioned to leverage these new technologies.

On the other hand, healthcare providers that proactively embrace these technologies could find significant opportunities to enhance their services, improve patient outcomes, and reduce costs. By integrating data from AI-powered consumer devices into their care delivery models, providers can offer more personalized, data-driven care and reach underserved populations.?

The key for healthcare providers will be to find ways to leverage these technologies to augment and improve their services, rather than seeing them as a threat.

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Disruptive Innovation and the Innovator's Dilemma

Clayton Christensen's work on disruptive innovation and the innovator's dilemma provides a valuable framework for understanding the challenges facing the healthcare industry.

Christensen argues that disruptive innovations often start at the bottom of the market, offering simpler, more affordable, and more convenient solutions. Over time, these innovations improve and move upmarket, eventually displacing established competitors.

This poses a dilemma for incumbent firms. They are often reluctant to invest in disruptive technologies, seeing them as lower-margin, lower-quality alternatives to their existing offerings. But by the time the disruptive technology has improved enough to threaten their core business, it's often too late to catch up.

For healthcare providers, the message is clear. They must proactively embrace AI-powered consumer devices, experimenting with new technologies and business models, even if they appear to undermine their existing offerings. They must focus on the "jobs to be done" - the underlying needs and desires of patients - rather than clinging to traditional modes of care delivery.

Conclusion

Apple's recent announcements, along with moves by other technology and medical device companies, signal a growing convergence of AI, consumer technology, and healthcare. As AI-powered consumer devices become more sophisticated and widely adopted, they have the potential to reshape the healthcare landscape, much like how the internet and digital technologies transformed many other industries.

For healthcare providers and medical technology companies, navigating this changing landscape will require adaptability, innovation, and a willingness to embrace new technologies and business models. By finding ways to leverage AI-powered consumer devices to enhance their services and improve patient outcomes, these stakeholders can position themselves for success in the future of healthcare delivery.

At the same time, it's important to approach these changes with a measured perspective. While the potential benefits are significant, there are also risks and challenges that will need to be addressed, such as ensuring the safety and efficacy of these technologies, protecting patient privacy, and managing the ethical implications of increased data collection and analysis.

The future of healthcare will undoubtedly be significantly impacted by the convergence of AI and consumer technology. The goal of the healthcare industry should be to harness the power of this convergence to create a more accessible, affordable, and patient-centric system. The fate of other industries that failed to adapt should be a strong motivator!

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See you next week,

Sam