E-Health: Impressive growth perspectives for the telecommunications industry
According to the OECD, the healthcare market makes up an average of 10% of the gross domestic product (GDP) of Europe and is thus a key component its economies – and demand will rise as the population ages. However, since budgets are stagnating at the same time, the industry is being forced to become more efficient. Information and communications technology (ICT) can help achieve the necessary efficiency. According to a study by Roland Berger Strategy Consultants, the market for electronic healthcare services (eHealth) offers the telecommunications industry huge potential. However, many companies are still hesitating to offer their services because the market is very complex. And differences in the level of development and financing within Europe are preventing rapid market penetration. A clear strategy, differentiated offers for potential customers and investors, new value-adding services and quick market entry through collaborative efforts can help conquer the market.
"Both healthcare systems as well as telecommunications markets in Europe are facing dramatic changes," says Alexander Mogg, Partner in the InfoCom Competence Center at Roland Berger Strategy Consultants. "To continue growing successfully, telecommunications providers are currently scoping out new business segments." The healthcare sector is one such growth segment: The OECD reports that the healthcare market makes up an average of 10% of Europe's gross domestic product (GDP) and is thus a key component of Europe's economies. Dr. Joachim Kartte, Head of the Pharma & Healthcare Competence Center at Roland Berger says "And if you include self-pay patients, this figure is even over 12% in Germany. Our estimates show that rising interest in healthcare, technological developments and an aging population will drive this share up to about 16% by 2020. The industry will increasingly have to use information and communications technology (ICT) to help care for more and more older people while budgets remain unchanged." These developments will drive the eHealth segment, which will the use of modern information and communication technology in the healthcare sector. Objectives include better interaction between patients and providers of healthcare services, faster and more secure data transfer and efficient processing and storage of large data volumes. This all leads to cost efficiency.
Possible areas where eHealth products can be used
"Information and communications technology can support the healthcare system on all levels," says Kartte. "On a macro (federal) level across the regions, by linking healthcare providers, and on a micro level (i.e. individual clinics, private practice doctors or pharmacies)."
eHealth is comprised of three components:
- Clinical information systems with special outpatient data processing and storage applications that general practitioners can access.
- Integrated healthcare information networks make accessing relevant healthcare data easier and prevent duplicate examinations. Internet portals for private use, such as Google health, help patients help themselves; platforms such as the teledermatology platform hosted by the Medical University of in Graz (www.teledermatology.org) helps researchers share information.
- For outpatient care, "e-Care" products can support nursing staff and relatives through video consultation or with special platforms for maintaining electronic patient records.
Double digit growth through 2014
Experts forecast stable annual growth of 4% for all four eHealth segments: from EUR 21.0 billion in 2006 to EUR 24.6 billion in 2010. Subsequently, growth will accelerate considerably: by 2014, the EU Commission expects annual growth of 11% for the entire eHealth market. However, the telemedicine and e-Care segment will then leave the rest of the market behind with an annual growth rate of 19%. Already in 2007, the EU had classified the eHealth market as one of the six lead markets, i.e. an especially promising economic sector. The EU Commission is hoping that 230,000 new jobs can be created in this area by 2020.
Four areas of actions to realize fast growth
Insufficient financing, fragmented markets, insecurity about legal changes and high fragmentation in demand and sourcing are currently preventing fast growth. "Four steps are elementary for telecommunications providers," says Mogg. "First, they need a clear strategy. Second, they must be clearly positioned in the market. Third, they will need to develop offers for potential customers and investors that stand out from the crowd. Fourth, they must broaden their product range to provide value-adding services such as call center or video consultation." Initial steps have already been taken in Germany: The introduction of an electronic health card in Germany is currently one of the world's largest IT projects. When this project is wrapped up, this card will serve to link 70 million patients, roughly 200,000 physicians and pharmacists, 2,000 hospitals and approx. 200 health insurance companies.
"Both healthcare systems as well as telecommunications markets in Europe are facing dramatic changes," says Alexander Mogg, Partner in the InfoCom Competence Center at Roland Berger Strategy Consultants. "To continue growing successfully, telecommunications providers are currently scoping out new business segments." The healthcare sector is one such growth segment: The OECD reports that the healthcare market makes up an average of 10% of Europe's gross domestic product (GDP) and is thus a key component of Europe's economies. Dr. Joachim Kartte, Head of the Pharma & Healthcare Competence Center at Roland Berger says "And if you include self-pay patients, this figure is even over 12% in Germany. Our estimates show that rising interest in healthcare, technological developments and an aging population will drive this share up to about 16% by 2020. The industry will increasingly have to use information and communications technology (ICT) to help care for more and more older people while budgets remain unchanged." These developments will drive the eHealth segment, which will the use of modern information and communication technology in the healthcare sector. Objectives include better interaction between patients and providers of healthcare services, faster and more secure data transfer and efficient processing and storage of large data volumes. This all leads to cost efficiency.
Possible areas where eHealth products can be used
"Information and communications technology can support the healthcare system on all levels," says Kartte. "On a macro (federal) level across the regions, by linking healthcare providers, and on a micro level (i.e. individual clinics, private practice doctors or pharmacies)."
eHealth is comprised of three components:
- Clinical information systems with special outpatient data processing and storage applications that general practitioners can access.
- Integrated healthcare information networks make accessing relevant healthcare data easier and prevent duplicate examinations. Internet portals for private use, such as Google health, help patients help themselves; platforms such as the teledermatology platform hosted by the Medical University of in Graz (www.teledermatology.org) helps researchers share information.
- For outpatient care, "e-Care" products can support nursing staff and relatives through video consultation or with special platforms for maintaining electronic patient records.
Double digit growth through 2014
Experts forecast stable annual growth of 4% for all four eHealth segments: from EUR 21.0 billion in 2006 to EUR 24.6 billion in 2010. Subsequently, growth will accelerate considerably: by 2014, the EU Commission expects annual growth of 11% for the entire eHealth market. However, the telemedicine and e-Care segment will then leave the rest of the market behind with an annual growth rate of 19%. Already in 2007, the EU had classified the eHealth market as one of the six lead markets, i.e. an especially promising economic sector. The EU Commission is hoping that 230,000 new jobs can be created in this area by 2020.
Four areas of actions to realize fast growth
Insufficient financing, fragmented markets, insecurity about legal changes and high fragmentation in demand and sourcing are currently preventing fast growth. "Four steps are elementary for telecommunications providers," says Mogg. "First, they need a clear strategy. Second, they must be clearly positioned in the market. Third, they will need to develop offers for potential customers and investors that stand out from the crowd. Fourth, they must broaden their product range to provide value-adding services such as call center or video consultation." Initial steps have already been taken in Germany: The introduction of an electronic health card in Germany is currently one of the world's largest IT projects. When this project is wrapped up, this card will serve to link 70 million patients, roughly 200,000 physicians and pharmacists, 2,000 hospitals and approx. 200 health insurance companies.
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