In the staggering wake of COVID-19, the lingering strain left by the pandemic on healthcare systems worldwide is still keenly felt. Wracked by challenges such as high turnover rates, reduced morale, and unprecedented labor shortages, the industry struggles to keep pace with patient demand.
By 2030, the global healthcare sector is expected to face a deficit of over 10 million workers, particularly in nursing and primary care. Due to this chronic understaffing, burnout is a persistent issue; in about 90% of developed countries, physicians report feeling dissatisfied or burnt out.
In addition to taking its toll on healthcare professionals, patients are on the receiving end of a less than satisfactory experience, often facing difficulty getting doctors’ appointments, long wait times, as well as delays in diagnosis, treatments, and follow-up care.
Simultaneously, high costs and inconvenience further compound this inaccessibility, with approximately one in four individuals reporting that they forgo healthcare due to these factors.
Reasons for Healthcare Inaccessibility
1. Cost
Cost has always been one of the primary barriers to healthcare access, particularly in largely privatized systems like that of the United States. Since 2020, this problem has only intensified, illustrated by the increasing health expenditure per capita across most countries. Inflation has caused drug prices to spike, while labor shortages drive up labor costs.
Meanwhile, lower-income countries have been hit even harder, further widening the gap in healthcare access. In developing nations, only about 16% of individuals have received a COVID-19 vaccination dose, compared to 80% in high-income countries.
2. Convenience
Inconvenience and long travel times deter people from addressing health concerns promptly, particularly for those in rural or underserved areas.
Even for urban dwellers in closer proximity to healthcare facilities, obstacles such as long wait times and the need to take time off work can make treatments or routine check-ups feel burdensome, leading to delays or neglect in seeking care.
While these issues were amplified tenfold during COVID-19, they are not novel; the pandemic has merely highlighted the pressing need to remedy these long-standing concerns.
Technological Advancements Revolutionizing the Space
Remote Care
Telemedicine’s extensive history can be traced back as far as the early 20th century, but its current ubiquity is a relatively recent development that emerged in tandem with the popularization of remote work during the extended COVID-19 lockdowns.
No longer a niche offering but a primary pillar of care delivery, remote care frees up resources for more critical care and thus relieves the strain on manpower, with 89% of healthcare leaders reporting that it has effectively reduced the need for in-person visits.
In non-urgent cases, patients benefit from remote care in several ways. Virtual care can:
Increase the accessibility and convenience of healthcare for underserved populations, particularly in regions where healthcare facilities are few and far between.
Eliminate travel time and expenses, as well as time spent in waiting rooms.
Minimize exposure to contagious illnesses–crucial during pandemics like COVID-19.
Facilitate follow-up appointments without the need for in-person visits, which could be especially helpful for patients with chronic conditions.
Enable the provision of healthcare at more affordable prices.
Artificial Intelligence
In the past few years, the capabilities of AI have made significant strides. Virtually every sector is vying for a slice of the pie, a testament to its revolutionary impact. Naturally, the healthcare industry is also witnessing a burgeoning interest in this innovative technology, though use case development and implementation are still in the early stages. From 2019 to 2022, over $31.5 billion was invested in healthcare AI.
1. Improving Care
Research has shown that AI can improve quality of care. Through extracting insights from patient data to predict outcomes, AI-driven clinical decision support systems are employed to aid diagnosis and treatment planning. For instance, deep learning models are now being utilized to predict hospital readmission risks with up to 79% accuracy, outperforming conventional statistical methods by 12%.
2. Increasing Efficiency
Deploying automation to handle repetitive tasks is a strategy widely adopted across many industries, and can be beneficial in addressing healthcare’s staff shortage. By streamlining routine administrative tasks–for instance, scheduling appointments, documentation, and insurance claims–valuable manpower in the understaffed industry can be redirected to focus on more impactful patient care.
3. Cost Savings
The application of AI in predictive analytics alone is anticipated to save the U.S. healthcare system approximately $360 billion annually by improving operational efficiencies and reducing medical errors.
4. Research & Development
AI and machine learning are opening new doors in the research process, empowering scientists to address complex diseases, accelerate drug discovery, and explore challenging therapeutic targets. From neuroscience to infectious disease research, AI-powered tools are optimizing drug design, identifying new antibiotics, and decoding intricate biological networks. With the ability to analyze massive datasets at unprecedented speeds, these technologies are uncovering novel insights into human biology.
Patients will therefore benefit from faster, more accurate diagnoses, personalized treatments, and increased access to new medicines.
Corporate Partner Case Study: Roche
Roche and Genentech collaborated with Recursion Pharmaceuticals, leveraging AI and machine learning to advance and expedite the development of small molecule medicines.
Unlike traditional methods that focus on known targets, this partnership analyzes large-scale cellular and genetic data to create detailed maps of human biology. These maps help uncover new biological connections and potential drug targets, accelerating the development of better treatments. By combining high-resolution imaging and AI analysis of cellular responses to genetic changes and small molecules, this innovative approach helps identify new medicines which were previously unattainable.
Our Portfolio
Plug and Play Portfolio Startup: Aaron.ai
Aaron.ai is a Berlin-based healthtech company founded in 2015 by Tobias Wagenführer, Iwan Lappo-Danilewski, and Richard von Schaewen. The company specializes in developing AI-powered telephone assistants for medical practices, aiming to alleviate administrative burdens on healthcare staff and enhance patient communication.
Key functionalities of Aaron.ai’s AI-based telephone assistant include:
24/7 Call Handling: The AI assistant manages incoming calls around the clock, addressing routine inquiries such as appointment scheduling, prescription requests, and sick notes.
Integration with Existing Systems: Designed to work alongside current practice management systems, Aaron.ai’s solution ensures seamless adoption without disrupting existing workflows.
Patient Communication: The assistant facilitates efficient communication by transcribing patient requests, categorizing them, and enabling responses via SMS or callback, thereby reducing wait times and improving patient satisfaction.
In May 2024, Aaron.ai was acquired by Doctolib, a leading European healthtech company. This strategic move aims to integrate Aaron.ai’s AI-driven telephone assistance into Doctolib’s practice software, streamlining patient interactions and reducing the time medical staff spend on phone calls. Prior to the acquisition, Aaron.ai secured €3.5 million in funding in May 2022. The investment was led by BonVenture, IBB Ventures, and Futury Capital, supporting the company’s expansion and product development efforts.
By automating routine administrative tasks, Aaron.ai’s technology allows healthcare professionals to focus more on patient care. The integration with Doctolib is expected to further enhance operational efficiency in medical practices across Europe.
The New Healthcare Frontier
At its nascent stage, the integration of technology and AI in healthcare already appears to be more substantial than a mere fad, signifying a transformative shift that holds immense promise for the future of medicine.
While not a panacea for the systemic issues that plague the healthcare system, these innovations could ease many pain points for both workers and patients while paving the way for new opportunities and discoveries. As technology continues to evolve, it reveals its potential to define the next era of healthcare.
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References:
Deloitte Global Healthcare Outlook 2024 https://www.deloitte.com/global/en/Industries/life-sciences-health-care/analysis/global-health-care-outlook.html
Philips Future Health Index 2024 https://www.philips.com/a-w/about/news/future-health-index.html
COVAX calls for urgent action to close vaccine equity gap (World Health Organization) https://www.who.int/news/item/20-05-2022-covax-calls-for-urgent-action-to-close-vaccine-equity-gap
Amazon closes deal to buy primary care provider One Medical (CNBC) https://www.cnbc.com/2023/02/22/amazon-closes-deal-to-buy-primary-care-provider-one-medical.html
2024 healthcare services outlook: Challenges and opportunities (McKinsey & Company) https://www.mckinsey.com/industries/healthcare/our-insights/2024-healthcare-services-outlook-challenges-and-opportunities
Harnessing the power of AI (Roche) https://www.roche.com/stories/harnessing-the-power-of-ai
Aaron.ai Joins Forces with Doctolib: A Strategic Move for Healthcare Innovation (Knight Capital) https://www.knight.capital/post/aaron-ai-joins-forces-with-doctolib-a-strategic-move-for-healthcare-innovation
Doctolib acquires Aaron.ai, maker of AI-based telephone assistance (Tech EU) https://tech.eu/2024/05/22/doctolib-acquires-aaronai/
German startup Aaron.ai raises €3.5M for its AI digital medical practice assistant (Tech Funding News) https://techfundingnews.com/german-startup-aaron-ai-raises-e3-5m-for-its-ai-digital-medical-practice-assistant/
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ARTICLE CONTRIBUTED BY: JEZ CHIN, IERAN PEREZ
Jez Chin, Marketing Associate, Plug and Play APAC
Ieran Perez, Ventures, Plug and Play APAC
