Medtech’s growing engagement with digital health companies offers the potential of earlier intervention on a patient’s behalf, and also the promise of diversified revenue streams. By Lisa Suennen, Manatt, Phelps & Phillips, and Chandana Fitzgerald, MD, HealthXL.
Medical device companies, with rare exception, are just beginning to enter into meaningful collaborations with digital health businesses, while pharmaceutical companies have been working in the digital sandbox for several years. Most medical device companies are just realizing that these partnerships can help them gain insight not only into the effectiveness of their devices and how best to improve them in future iterations, but also how their use can lead to a better understanding of a patient’s overall health beyond acute care engagement. This can potentially lead to earlier and different interventions as well as diversified revenue streams, particularly as organizations track patients and engage with them around device efficacy and long-term recovery and rehabilitation.