BearingOn.Health Original Contribution

April 2024

by Adam Pellegrini, Jasper Health, CEO

In late 2022, I was asked what my prediction was for 2023 as it relates to the Digital Health market. My response was simple, we are approaching the “serious” time in Digital Health. 2023 and 2024 proved that to be the case. 

Now, the prediction wasn’t scientific or deep, but I did go on to explain what I meant. I have been in what we call Digital Health for over 23 years (pre-iPhone), working at the largest organizations in the space and now some of the smallest. 

One thing remains true throughout that journey, Digital Health is an evolutionary business.  

Digital Health 20 years ago

In the 2000s, my work in Digital Health (or eHealth at the time) really seemed to focus on informational websites, like www.cancer.org from the American Cancer Society, or transactional websites trying to figure out the health aspect of eCommerce. Later, we moved into connected health (I was working at Microsoft HealthVault at that time) and ultimately into the earliest forms of telemedicine (HealthyCircles as one example).  

The industry seemed to mature in evolution. Each evolution was marked by either governmental legislation (reimbursement and deregulation) or economic discoveries and success. 

Post-pandemic Digital Health evolution

We are now in what I call the post-pandemic evolution of Digital Health. This evolution has already seen the seriousness of riding a wave of funding during the pandemic only to see those companies experience a major wake-up call. I called this the “COVID Bump and Slump”. 

Funding during the pandemic flowed like water to any company that focused on telemedicine, at-home testing, or remote health. Many companies rode the COVID uptick to generate hundreds of millions of dollars only to see that P&L crash when lockdowns lifted. Even during the early phases of COVID-19, many industry veterans predicted the slump and predicted telemedicine to return to roughly 20% above pre-pandemic baselines. 

This seems to have come true.

So, what does that mean for the industry today? It means funding is scrutinized to a degree only seen before the pandemic. P&Ls are more disciplined with true pressure testing, and healthy skepticism has returned. 

We are in a new evolution where we will continue to see a consolidation of solutions that fill gaps for each other (not a bad thing) and the emergence of amalgamated companies that successfully provide more end-to-end experiences. We will also start seeing a greater focus on outcomes and how digital health interventions are truly driving down medical costs.

Evolutions benefit the patient

The bright side of this evolution is what this means for the patient. I believe the current and last evolution of Digital Health not only educated the mass consumer of its value (why drive two hours for a consult that doesn’t require physical examination) and an infusion of next-generation technology into healthcare IT including AI and advanced learning models. 

Without the rapid build-out and focus in the Venture space on healthcare brought on by the pandemic, Digital Health could have remained a hobby for large organizations — now it is table stakes.

To me, this is a win for the industry and will set up the next evolution of the space.

About Jasper Health

Jasper Health provides the high-touch guidance that people living with cancer deserve through one-on-one navigation, personalized information, and smart planning. Jasper Health doesn’t stop there – we act as the central connector – bringing together oncologists, care management teams, specialty pharmacists, caregivers, and more, to deliver whole-person care.