Baird Global Healthcare Report 2016-2017 Global Healthcare Report - Page 8

Patients, payers and healthcare providers will all benefit as technology and conventional healthcare continue to converge. BILL SUDDATH As the broader Healthcare environment continues to change, the reality is that technology is what will help the industry adjust to some of these secular shifts and what will separate the more successful providers and payers from the less successful. Technology is becoming valuable for physicians as well, as it helps them manage the self-pay portion of their practices. Today, physicians receive roughly 30 percent of their gross revenue from their patients’ pockets. Consequently, they need to figure out how to use technology to motivate patients to pay, make it easy to submit payment and help patients truly understand what they are paying for. A number of companies are also entering into partnerships and joint ventures to codevelop innovative medical solutions that leverage technology and traditional device expertise. In just the past few years, Google has partnered with Novartis to develop smart contact lenses and with Dexcom to develop miniaturized, disposable blood glucose monitors. WHO DO YOU BELIEVE WILL BE THE BIGGEST LONG-TERM BENEFICIARIES OF THE CONTINUING COEVOLUTION OF TECHNOLOGY AND HEALTHCARE? 6 On the payer side, technology is becoming equally critical and valuable because more and more of the Medicare and Medicaid population is moving to managed care models. There is a greater need to capture data about that population, which in turn impacts the subsidies the U.S. government pays to managed care providers. So what this means is that payers are now equally very focused on getting data to manage patient populations, implementing solutions to change their behavior and simultaneously improving the quality of care while decreasing its cost. RYAN MAUSEHUND From a patient standpoint, advances in technology certainly yield better outcomes. In turn, payers are gaining the ability to identify patients earlier and treat them with better therapies. This could help bend the cost curve as well.