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Analysis

Life sciences and health care M&A update: Q2 2019

With the continued growth of technology and society’s need for connection, we believe the introduction of smart health communities (SHCs) has begun to change the way people assess their medical situation and, ultimately, make decisions. These communities combine digital technologies and groups of people focused on well-being to help individuals with their health challenges. This life sciences and health care mergers & acquisitions (M&A) update provides Deloitte Corporate Finance LLC insights and market data analysis that shed light on M&A trends in the life sciences and health care industry.

How 3D printing can revolutionize health care

Smart health communities1

Expanded connectivity and the exponential growth of technology are enabling smart health communities (SHCs), which could offer a modern take on community-based well-being and disease prevention. SHCs are characterized by the following features:

  • They empower individuals to proactively manage their health and well-being.
  • They foster a sense of community and belonging.
  • They use data to meaningfully improve outcomes.
  • They use digital technology and behavioral science.
  • They create new and innovative ecosystems.

Technology driving the shift2

A significant body of research shows that about 80 percent of health outcomes are caused by factors unrelated to the medical system. Nontraditional players, including public, nonprofit, and commercial enterprises, are establishing “communities” focused on prevention and well-being.

Digital technologies have significant potential to bring community-based solutions to scale, hugely increasing their impact. In 20 years, technology may allow for SHCs to become more integrated into our daily lives, allowing for more preventative and personalized health interventions that can exist alongside or in collaboration with our existing health care structures.

Digital technology and behavioral science3

SHCs are able to leverage new technologies and behavioral science to:

  • Increase access and convenience.
  • Inform behavioral interventions.
  • Facilitate data collection.

Meaningful use of data to improve outcomes4

As technology makes data collection and data sharing easier, SHCs can utilize data to:

  • Predict risk.
  • Create a continuous learning loop through experimentation and innovation.
  • Conduct research and evaluation.

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References

1 Deloitte Insights, "Smart Health Communities and the Future of Health," July 2019.
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