Why Digital Health?

To effectively address the looming crisis in U.S. healthcare, it is imperative to embrace digital health innovation and private market-driven solutions. These advancements offer the potential to transform the healthcare system, making it more efficient, accessible, and cost-effective.
This sector of the industry is growing rapidly for a number of reasons, including:

Macroeconomic Imperative in Healthcare

The U.S. spends more on healthcare than any other country in the world. This spending is projected to increase at a substantial rate but produce no better—and indeed sometimes worse—outcomes in the coming years. With national healthcare expenditure estimated to reach $7 trillion by 2030, public policy experts, government officials, healthcare leaders, business executives, and ordinary citizens share mounting concerns about the country’s ability to provide healthcare services that are fiscally responsible and attain acceptable levels of quality, effectiveness, and equity.

Geopolitical Pressures

With several cold and hot wars happening in the world, the U.S. will likely need to dramatically increase military and defense spending soon. Considering the country’s current state of high interest rates, a spiraling deficit and low tax revenues, the government will likely look for ways to make substantial cuts in Medicare and Medicaid spending. 

This scenario could force the closure of up to a third of our nation’s 6,000 hospitals in a very short period, pushing healthcare spending back on individuals and families who are already at a breaking point. 

Rise of AI

The initial phase of healthcare digitization in the 2010s paved the way for more sophisticated technologies including GenAI and Telemedicine. The ongoing evolution of healthcare technology reflects a broader trend toward deeper integration of and reliance on digital tools in healthcare delivery.

Clinician Shortages and Demographic Changes

With only about 1MM physicians in the country and a growing aged population, the shortage of caregivers will hurt the health of our citizens. Most estimates suggest the U.S. will need at least 150,000 more physicians by 2034, yet fewer and fewer people are choosing to go into medicine.

At the same time, Millennials have overtaken Baby Boomers as the largest living generation. This group embraces technology and doesn’t want to be slowed down by manual processes. As the Millennial generation becomes the driving force for voting and expectations of the healthcare system, we expect that dramatic changes will be forced upon the industry.

Health System Dissatisfaction 

Despite having the best system in the world as it relates to advanced care, R&D, and new treatment methods for certain diseases, the United States’ performance against other first-world countries in basic public health measures is abysmal. A large portion of the population remains uninsured. Data shows U.S. life expectancy, general mortality, maternal mortality, and infant mortality are all substantially worse than other Western democracies and, in many cases, third-world countries. 

In the meantime, the U.S. spends twice the money as a percentage of GDP on healthcare than any other Western democracy. Yet less than half of Americans view their healthcare experiences as positive.

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