This Medical Economics article discusses four health technology trends expected in 2024, reflecting on the disruptions that occurred in 2023. The trends are as follows:
AI Integration: Generative AI, particularly Large Language Models (LLMs) and Large Medical Models (LMMs), is becoming a part of daily life. In healthcare, AI integration holds promise but faces safety concerns. Regulatory bodies lack comprehensive oversight, and guidelines fall short, hindering legitimate use in a privacy-sensitive sector. AI adoption is expected to increase in 2024, primarily in non-clinical applications like documentation and education.
Consolidation and Vertical Integration: In response to financial challenges, mergers and consolidations have become survival strategies for healthcare entities. Payers are becoming providers, health systems are expanding roles, and even venture capitalists are contributing to the creation of large, fully integrated healthcare systems. This trend forces digital health companies to redefine their strategies and find a place among these healthcare giants.
Macro meets Micro: The focus on AI sometimes overshadows addressing financial and structural challenges in the American healthcare system, such as reimbursement, alternative payment models, and economic strain. Healthcare transformation will follow a slower trajectory compared to Big Tech, with financial barriers to adoption and a continued emphasis on cost-effectiveness and proving return on investment.
AR/VR Technology: Augmented and virtual reality (AR/VR) technology is quietly entering the healthcare industry. Meta and Apple have introduced accessible AR/VR headsets with potential health care applications. These technologies could revolutionize medical training and clinical care, but similar to AI, they face privacy and safety concerns.
This article concludes that the theme for 2024 will be the tension between technological innovations and the complex realities of healthcare, including reimbursement structures, shifting infrastructure, and safety concerns. Resolving these tensions may take more than a year.