Big tech in healthcare: Searching for gold in digitizing healthcare

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  Quantumrun Foresight
• February 25, 2022

Insight summary

The rise of digital technology in healthcare, driven by consumer demand for convenience and speed, has led to significant changes in the industry. Tech giants have introduced solutions that improve data sharing, enhance telehealth services, and even aid in disease control, transforming traditional healthcare operations. However, this shift also presents challenges, such as potential disruptions to existing healthcare providers and concerns over data privacy and security.

Big Tech in healthcare context

Consumers' demands for convenient and fast healthcare services are pushing hospital and clinic networks to increasingly adopt digital tech solutions. Starting in the late 2010s, Apple, Alphabet, Amazon, and Microsoft have accelerated their pursuit of market share in the healthcare industry. The services and products championed by the tech sector over the past decade have helped carry people through the social distancing and workplace disruptions introduced by the COVID-19 pandemic. 

For example, Google and Apple came together to create an application that could leverage Bluetooth technology in mobile phones for contact tracing. This instantly scalable app pulled testing data and updated people if they needed to get tested or self-quarantine. The APIs that Google and Apple launched drove an ecosystem of tools that helped reduce the spread of the virus.

Outside the pandemic, big tech companies have also helped design and develop telehealth services managed by virtual care platforms. These digitized systems can help medical professionals provide proper care to patients who don't need an in-person visit. These companies have also been particularly interested in digitizing health records and providing the data management and insight generation services that these records require. However, US tech firms have also struggled to earn the confidence and trust of regulators and consumers as it relates to their handling of health record data.

Disruptive impact

Big Tech is offering digital solutions that enhance data sharing and interoperability, replacing outdated systems and infrastructure. This transformation could lead to more efficient operations for traditional healthcare players, such as insurers, hospitals, and pharmaceutical companies, potentially streamlining processes like drug manufacturing and data collection.

However, this shift is not without its challenges. The increasing influence of tech giants in healthcare could disrupt the status quo, forcing incumbents to rethink their strategies. Amazon's move into prescription delivery, for instance, poses a significant threat to traditional pharmacies. These pharmacies may need to innovate and adapt to retain their customer base in the face of this new competition.

On a broader scale, the entry of Big Tech into healthcare could have profound implications for society. It could lead to improved access to healthcare services, particularly in underserved areas, thanks to the reach and scalability of digital platforms. However, it also raises concerns about data privacy and security, as these companies will have access to sensitive health information. Governments need to balance the potential benefits of this transformation with citizens' privacy and ensure fair competition in the healthcare market.

Implications of Big Tech in healthcare

Wider implications of Big Tech in healthcare may include:

• Enhanced disease monitoring and surveillance at the national and international levels. 
• Greater access to health data through online telehealth portals as well as make new diagnostic tools and cutting-edge treatments more accessible by investing in medical technology companies. 
• Improved timeliness and accuracy of public health data collection and reporting. 
• Faster, cost-efficient, and more effective solutions for disease control and injury care. 
• The rise of AI-driven diagnostics and treatment recommendations reducing the workload of healthcare professionals, leading to changes in labor demands and job roles within the healthcare sector.
• A surge in demand for cybersecurity professionals, fostering job growth in this sector to protect sensitive health data.
• Reduced environmental footprint of the healthcare sector, as virtual consultations and digital records reduce the need for physical infrastructure and paper-based systems.
• The increasing sophistication of healthcare wearables capable of transmitting and analyzing real-time health information.

Questions to consider

• How do you think big tech companies are changing the healthcare sector? 
• Do you feel that the involvement of big tech in the healthcare sector will make healthcare cheaper?
• What might be the adverse effects of digital technologies in the healthcare sector?