A Proposal for the Use of Wireless Technology in Healthcare

Abstract

The annual healthcare cost in the United States is a staggering $2.6 trillion USD or over 17% of the gross domestic product (GDP). Research consultancy firm McKinsey reports that remote patient monitoring of chronically ill patients alone could reduce healthcare costs by as much as $200 billion per year. Enhancements in mobile communication devices and networks make them on par or more advanced than some of the standard instruments used in healthcare today. In addition, these devices are available at much lower costs than traditional healthcare devices. Thus, leveraging these devices and wireless networks could significantly reduce the cost of healthcare delivery and expand coverage. Wireless operators have the distribution channels and marketing capability to reach the majority of the population. Wireless operators are looking to vertical industries like healthcare for future revenue growth due to saturation in the consumer market (greater than 103% penetration). Mobile operators have networks that cover over 97% of the total US population. In addition, they have a large employee base to leverage for m-health trials. With their large employee base, mobile operators have influence over large health insurers such as United Healthcare, Wellpoint, Kaiser and others. Since healthcare insurers and the Center for Medicare and Medicaid Services influence the industry through reimbursements for services, gaining their acceptance is tantamount to success.