Preventive care delivers personalized prophylactic care to patients and facilitates clinical decision support to practitioners, as opposed to reactive care, which intervenes after health conditions deteriorate. Preventive care technologies track physiological and biometric data through connected devices in real time and store them in a patient portal that houses electronic health records. This data is analyzed continuously by artificial intelligence (AI) algorithms to predict and warn patients and healthcare providers of potential health issues.
The growing frequency of chronic diseases and the rise in associated costs are a substantial burden to reactive care in the US. Many providers are now offering advanced preventive health solutions to individuals and corporate clients to mitigate risk of conditions such as cancer, diabetes, and heart disease.
We have identified six segments for the preventive healthcare industry. Direct primary care providers account for nearly one-third of companies in our coverage. The next largest segment consists of passive remote monitoring platforms that offer connected devices to track patient vitals. These startups compete with established clinics and hospitals which have also adopted a value-based approach to offer an extensive range of preventive care services.
We have also determined that many of the disruptors that offer direct primary care, digital therapeutics, and specialized chronic care platforms are in their growth stage, with funding directed towards scaling up operations to serve the rising demand for chronic care prevention and treatment as well as the escalating medical costs. However, most passive remote monitoring platforms and diagnostic tools are still in the early or seed stages.
The incumbents in the preventive care landscape are mainly established healthcare providers, who have expanded their scope to include preventive primary care in addition to their existing healthcare services. In-house developments and partnerships with tech companies remain the most popular entry strategies to the preventive care landscape. We expect leading incumbents such as Cleveland Clinic and Mayo Clinic to stand to benefit given their access to a larger patient pool and specialization in highly prevalent chronic conditions such as diabetes and heart diseases. Other incumbents that operate large drugstore chains such as Walgreens have also entered this space via partnerships with direct primary care providers.