Digital Health and its new pathways for funding and reimbursement
The rise of digital health technologies has opened new doors for healthcare providers. This allows for improved patient outcomes, efficient care delivery, and reduced costs. To incentivize the adoption of such technologies, healthcare systems in the United States and Europe have introduced a range of novel reimbursement codes and funding mechanisms. In this article, we will explore two key examples. These illustrate how these new pathways are shaping the digital health landscape.
United States: New CPT Codes for Remote Patient Monitoring
In the United States, the emergence of digital health technologies has led to the creation of new Current Procedural Terminology (CPT) codes for remote patient monitoring (RPM). These codes enable healthcare providers to be reimbursed for monitoring patients outside of traditional face-to-face consultations.
By embracing RPM technologies, physicians can more closely monitor patients and intervene early when needed, leading to improved health outcomes. Additionally, by reducing the number of face-to-face consultations, healthcare providers can free up resources and lower costs. The adoption of these new CPT codes demonstrates a clear shift in the US healthcare landscape, highlighting the value of digital health and RPM.
Germany: The Digital Healthcare Act – Paving the Way for Apps on Prescription
In 2019, Germany passed the ‘Act to Improve Healthcare Provision through Digitalization and Innovation’; (Digital Healthcare Act – DVG). This enables healthcare providers to prescribe certified digital health applications (DiGA) to patients. This groundbreaking legislation has paved the way for greater adoption of digital health technologies. How? By integrating them into the country’s renowned healthcare system, with annual spending exceeding 410 billion Euros.
Since summer 2021, physicians in Germany have been able to prescribe a certified DiGA to any of the 73 million statutory-insured German citizens. Among these there are apps designed to support the treatment of various conditions such as mental illnesses, diabetes, migraines, insomnia, and obesity.
This innovative funding mechanism demonstrates Germany’s commitment to embracing new technologies. This can offer improved healthcare experiences to its citizens, signaling a promising future for the digital health industry.
Conclusion
The ever-evolving digital health landscape is presenting new opportunities for medical technology companies to explore. As reimbursement codes and funding mechanisms incentivize the adoption of digital health technologies, companies within the medtech space are recognizing the potential of digitalizing their product portfolios. By adapting to this new era, companies can tap into new revenue streams. This allows them to reach more patients and providers, which better position themselves to capitalize on the rapidly growing digital health market.
ValueConnected serves as a trusted partner to prepare medical technology companies for the Digital Health era. As healthcare systems and reimbursement mechanisms become increasingly complex, it is essential for companies to understand and navigate this intricate landscape. Our industry knowledge and expertise equip us in helping clients identify and seize the opportunities offered by the digital health revolution. By working together, we can ensure your company’s growth and success in this fast-paced, ever-changing industry.
