Invest in medical telemonitoring


Medical telemonitoring could be an attractive investment for years to come (photo credit: GettyImages)

The e-health sector was already dynamic before the Covid-19 pandemic. However, it has experienced a historic acceleration since the health crisis. Telemonitoring is a branch of telemedicine. It offers good prospects for savers who want to invest in these technologies of the future.

Summary:

  • What is medical telemonitoring?

  • The legislative and regulatory framework is conducive to the development of telemonitoring

  • Medical telemonitoring represents a high potential market

  • Synergies between the public and private sectors multiply

  • Medical telemonitoring: what investment opportunities for savers?

What is medical telemonitoring?

Telemonitoring refers to an act of telemedicine. According to article R. 6316-1 of the Public Health Code, “it is intended to allow a medical professional to remotely interpret the data necessary for the medical follow-up of a patient and, if necessary, to take measures related to the care of this patient .The recording and transmission of data (through digital medical devices or DMNs) can be automated or performed by the patient himself or a healthcare professional”.

Remote monitoring is particularly suitable in the context of a chronic pathology, or after hospitalization. However, it can be offered to any patient who needs a period of medical follow-up. Remote monitoring can quickly detect any change in the patient’s health status and adjust its management. In addition, the patient’s quality of life improves thanks to better prevention of complications and care closer to home. Thanks to the regular monitoring of a professional, telemonitoring can contribute to the stabilization of a disease, or even improve the patient’s state of health. In addition, it helps to strengthen coordination between different health professionals. Thus, the expected effects of medical telemonitoring relate to accessibility, organization, quality and safety of care.

The legislative and regulatory framework is conducive to the development of telemonitoring

Launched in 2021, the Health Innovation 2030 plan offers a favorable context for the development of medical telemonitoring. Digital health is one of the three main investment areas identified by the government. 650 million euros will be allocated to so-called “5P” medicine: preventive, personalized, predictive, participatory and evidence-based.

Between 2014 and 2021, telemonitoring was the subject of a program called “Telemedicine Experiences for the Improvement of Health Courses” (ETAPES). This program focused on five pathologies. The results should have been drawn in mid-2021, but the Covid-19 epidemic messed up the schedule.

The Social Security financing law for 2022 enacts the entry of telesurveillance activities into common law. From now on, the service is open to reimbursement by Health Insurance. In January 2022, the Haute Autorité de Santé (HAS) published four guidelines corresponding to the pathologies for which remote monitoring will be covered by Health Insurance. These pathologies are: chronic heart failure, chronic respiratory failure, chronic renal failure and diabetes. A fifth standard was published in early March. It is intended for patients with implantable cardiac prostheses for therapeutic purposes (defibrillator and implantable cardiac pacemaker). Each reference defines the conditions for prescribing remote monitoring, the minimum technical specifications required for medical devices, monitoring the use of medical remote monitoring, etc.

Reimbursement for medical telemonitoring was supposed to go into effect by July 1, 2022, but its implementation has been delayed. Indeed, the decrees defining the procedures for evaluating and recording telemonitoring activities, the tariff system and coverage conditions were not published in time.

Medical telemonitoring represents a high potential market

The global e-health market has been accelerated by the Covid-19 pandemic. However, he was already very dynamic before. In 2019, the firm McKinsey estimated it at 350 billion dollars, with annual growth of around 8%. The application potential of this technology is vast: care for the elderly, monitoring of chronic diseases… Therefore, this market attracts multiple players. These come from the telemedicine, home healthcare, e-health and medical technology markets. Growing strains on traditional health systems are accelerating their potential.

A study by the DealRoom platform states that Europe is the area with the highest growth worldwide in the

health technology

(health technologies) in 2021. European start-ups specializing in e-health would have raised €7.2 billion (+370% compared to fundraising in 2016). The young French offspring occupy the fifth position with a raise of 885 million euros. This figure has quadrupled in the last 5 years. According to DealRoom, remote monitoring and

clothing

(wearable devices) is the fastest growing sub-sector.

This analysis is shared by Xerfi. In a study published at the end of 2020, the company considers that medical telemonitoring constitutes a “high potential and highly strategic” market. In fact, people with chronic illnesses represent 35% of the insured. They represent €100 billion in spending each year, or more than 60% of total health insurance spending. Consequently, the recent French medical telemonitoring market could reach more than 400 million euros.

However, the market for medical telemonitoring has grown less rapidly than that for teleconsultation. According to the company Xerfi, the reason for this delay is due to an unfinished reimbursement framework. However, in the future, the market could represent 682 million euros. This estimate for 2023 is based on the five pathologies treated within the scope of the ETAPES experiences, and projects a 5% equipment rate for the target populations. Diabetes (53% of the values) and chronic respiratory failure (38%) are the two segments with the greatest potential.

Medical telemonitoring, an answer to the challenges of our health system?

Remote monitoring (and more generally telemedicine) provides solutions to the challenges our healthcare system faces. By offering remote monitoring for patients suffering from chronic illnesses, it compensates for the lack of healthcare professionals. Facilitates access to care in a context of medical desertification. In addition, many countries are facing the explosion of health expenditures linked to the aging of their populations. Remote monitoring offers a solution to this phenomenon, helping to keep dependent people at home longer.

Synergies between the public and private sectors multiply

The Ministry of Health wants university hospital centers (CHU) to be able to invest in start-ups. A first project was selected within the scope of a call for expressions of interest “Digital Health”. This is a partnership between Lifen, Nouveal, Implicity, Nabla and Withings. Gathered in the Hôtel-Dieu incubator, they work on innovative solutions for remote patient monitoring.

At the end of 2021, the digital health research campus, PariSanté Campus, moved temporarily to Issy-les-Moulineaux. In 2028, the latter will move to the site of the former army training hospital in Val-de-Grâce. The campus brings together actors in training, research, innovation and entrepreneurship. The aim is “to create synergies on the same site to support and promote the digital transformation of the health system”, according to Antoine Tesnière, its director. Campus PariSanté is supported by five public players: Inserm, the University of Paris Sciences & Lettres (PSL), Inria, the Digital Health Agency and the Health Data Hub. According to the Ministry of Health, the campus must play “a key role in structuring the offer” and act as a “one stop shop for start-ups”.

Medical telemonitoring: what investment opportunities for savers?

Want to invest in medical telemonitoring? Several options are available to you:



Private capital

Recently opened to private investors, investment capital or private equity is becoming more democratic. This type of investment is ideal for anyone looking to diversify their assets and invest their money in so-called “start-up” companies. La FrenchTech brings together many start-ups in the medtech, healhtech or e-health sectors that are just waiting for financial backing. Why not invest directly in one of them? In addition, this business support allows you to be rewarded through an income tax reduction of up to 25% of your investment.

In 2021, fundraising by French startups reached a record 11.57 billion euros, or 115% more than in 2020. This is proof of investors’ enthusiasm for these promising national companies.



Thematic mutual funds (FCP)

A thematic fund is a mutual fund specializing in companies listed on the stock exchange, selected according to their size or industry, for example, according to the “bias” of the fund. Health and technological innovation, particularly medical, are two of the most promising sectors in terms of investment. The specifications of these funds are generally very open in terms of company size or geographic area in particular. Thus, the portfolio of a thematic fund focused on innovation can include stocks and bonds of companies that work with artificial intelligence, robotics or connected objects. This can range from a multinational to an American, French or Asian start-up.

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