Mobile Health – how to make it pay

Mobile health (mHealth) offerings promise to improve healthcare delivery and provide revenue for service providers – but adoption and monetizing the opportunity will require changes to the way the industry does business

London (11 February 2011) — Global management consulting firm A.T. Kearney today releases a research report, commissioned by the GSMA, which looks at how operators can best approach the market for Mobile Health.

The market for Mobile Health has been estimated at $30bn or more. However, many telco’s have struggled to build commercial businesses. The report discusses why this has been the case and what the barriers to uptake of new technologies in healthcare are. It outlines the range of value added services that can be provided and how services need to be positioned to turn Mobile Health from an opportunity into a reality.

The report also discusses the best potential targets for Mobile Health, and how these applications vary between established and developing countries. It investigates the opportunity for Mobile to lower the cost of health interactions all along the patient pathway, especially in chronic conditions such as diabetes, respiratory and cardiac disease. It also describes how the vast majority of global health spend is incurred in the established health systems of the developed world and is reimbursed by healthcare payers, either governments or insurers and that if mobile health is to reach its full potential it will need to move into this environment. For developing countries, A.T. Kearney has identified that there is a clear opportunity to position mobile health as an alternative to investment in more conventional health infrastructure.

Jonathan Anscombe, Partner, A.T. Kearney, said:
“Mobile health is big news in the telecoms industry, with estimates of potential revenues of at least $30bn a year, and many estimates far higher. However, many telco’s are finding it hard to build a commercial business. Take up of innovation in healthcare is slow, and solutions will need to demonstrate they can address real health needs if they are to achieve uptake. To build significant revenues, companies will also need to move beyond connectivity to providing value-added services, which might range from traditional telecom provision through to clinical services. Solutions will need to be scalable, addressing multiple applications across global markets.”

Jonathan Anscombe concluded:
“Overall, mobile health is an emerging technology which is likely to take time to mature. Eventually, Mobile Health applications will become established into mainstream healthcare delivery. It is likely that a relatively small number of significant players will emerge to provide mobile health reforms. While companies will need to be in it for the long term, the eventual prize could be substantial for the winners”.

Read the full report here.

About A.T. Kearney

A.T. Kearney is a global management consulting firm that uses strategic insight, tailored solutions and a collaborative working style to help clients achieve sustainable results. Since 1926, we have been trusted advisors on CEO-agenda issues to the world’s leading corporations across all major industries. A.T. Kearney's offices are located in major business centers in 36 countries. For more information, please visit www.atkearney.com.