What are the top monetization approaches and customer targets for digital health solutions? A New R2G Survey Gives Answers.

Amidst the financial challenges faced by digital health companies, R2G has conducted a comprehensive survey on ‘How to make money in digital health’. One monetization approach and customer segment are specifically chosen by most of the survey participants.

In today’s rapidly evolving healthcare landscape, digital health solutions have emerged as powerful tools with the potential to revolutionize the way we deliver and access healthcare. However, even after over a decade of development, the economic integration of digital health in healthcare is still in its early stages, with considerable room for growth and advancement.

The impact of digital health, measured by metrics such as revenue, telehealth visits, app revenues or share of DiGA revenues remains rather relatively low. Currently, digital health revenue comprises only 2% of global healthcare spending[1], while DiGA revenues account for a minimal 0.01% of total healthcare spending in Germany[2].

Telehealth visits represent a mere 6% of total medical consultations in top European countries[3], and digital health app revenues amount to a meager 0.2% of out-of-pocket healthcare spending in the European Union[4].

Amidst the recent financial challenges faced by digital health companies, there is a growing need for sustainable monetization strategies to drive innovation and ensure long-term viability in the industry. In order to understand the opinion of digital health decision makers on how to effectively monetize digital health solutions with respect to payment structures, business models and more, R2G conducted a global survey on “How to make money in digital health?” The detailed results are published in the whitepaper Monetizing Digital Health Solutions – 2023.

Securing payment from health plans and government entities (38%) is the most viable approach to monetize digital health solutions. Alternatively, 24% of survey respondents believe that the core business, such as medical devices or medications, should be monetized while providing the digital health tool itself free of charge. Additionally, the survey results indicate that 16% of participants believe allowing consumers to directly pay for digital health solutions and 14% consider companies paying for these solutions as the best approaches to monetize them.

In general, digital health decision makers anticipate that the current payment structure for digital health solutions will remain unchanged. Health plans and government entities are expected to continue covering the costs.

In addition, when asked about the customer segment with the highest revenue potential for digital health solutions, 50% of digital health industry stakeholders identified health plans as the preferred target. This finding aligns with the prevailing belief that health plans should bear the costs of digital health solutions.

Healthcare providers were ranked second, with 34% of survey respondents considering them as a primary target group. Patients were also recognized as a significant customer segment, with 26% acknowledging their potential for revenue generation.

Overall, digital health decision makers recognize that the payer structure for digital health solutions will largely resemble that of traditional healthcare services and products, with health plans and government covering the costs. This understanding underscores the need for digital health stakeholders to navigate the current reimbursement landscape and align their monetization strategies accordingly.

Download your free copy of the whitepaper to gain valuable insights and stakeholder perspectives on effective monetization strategies, the best countries with reimbursement potential, successful business models, barriers in monetizing digital health solutions and much more!

R2G has been constantly monitoring the global digital health industry since 2010.  We provide strategic advice for how to build and grow a successful digital health business within all therapeutic areas, business models and regions. We are happy to talk and share our experience!

For more information reach out to [email protected]

[1] WHO 2020

[2] GKV report 2022

[3] Germany, France, the UK, Italy, Spain, Belgium, the Netherlands, Denmark, Norway, Sweden, and Finland; OECD Health Statistics 2021, R2G Telehealth Market Analysis 2022

[4] Eurostat 2021, R2G Estimates 2022

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