Digital Health Monetization Strategies

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A decade into digital health, innovators and their investors still wonder how they will be rewarded for their investments. The million-dollar question remains: “How do we get paid?” Although payor reimbursement is valuable, there are many other strategies, according to experts from the consulting firm Simon-Kucher & Partners. Companies can advance by stacking multiple payment models for multiple customer targets and various strategic goals. By Chuck Gammal, Jan Bordon, and Chris Barr.

Successful medtech products have traditionally rested on four pillars: clinical validation for important medical needs, regulatory approval, reimbursement, and physician adoption. Now, as medical technology companies approach digital health, the commercial considerations are becoming much more complex, involving new constituencies, new care delivery settings, and more often than not, a lack of clear models by which they can get paid for their innovation.

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