Smart Finance Key to Enable Projected Medical Technology Growth

• Pressure is mounting for healthcare organizations to accelerate adoption of digital and AI-driven technologies – proven to deliver significant benefits to delivery of care, patient outcomes, and operational costs
• To illustrate the breadth of the challenge, a new Insight Paper from Siemens Financial Services (SFS) estimates the market size and the projected growth rate for several key medical technologies including diagnostic imaging, smart hospital conversion, laboratory automation and telemedicine.
• However, the significant levels of investment required cannot typically be afforded through available healthcare capital budgets
• Given the projected market growth and urgent need for investment, the paper finds that specialist smart finance will play a crucial role in enabling the development and digitalization of healthcare systems all round the world.

Siemens Financial Services (SFS) has launched a new Insight Paper highlighting the pressing need for investment in key medical technologies that will enable the digitalization of global healthcare systems.

The paper, entitled Digital Transformation in Healthcare, explores the many areas where digital and AI-driven technologies can tangibly improve clinical efficiency, patient outcomes and cost optimization. Its applications range from replacing or upgrading ageing equipment to enhance diagnostics and throughput, to digitalizing infrastructure/buildings technology in the face of rising energy costs and emissions targets.

However, the research finds that given the myriad of pressures facing the sector – including pandemic backlogs and stretched budgets–current levels of funding will be insufficient to support the transformation. Private sector finance will be required to meet the investment challenges ahead in the face of rapid market growth to 2030.

The value of medical technologies’ markets is expected to continue to grow in the period 2022 to 2030. Among the fastest growing areas are Al in Diagnostics (32.5% CAGR), Telemedicine (22.9%), and Smart Hospitals (19.3%). The value of Telemedicine, for example is predicted to achieve 392.2bn USD from 75.3bn USD. Likewise, Smart Hospitals are estimated to reach a value of 239.6bn USD from their current 58.6bn market share.

Whatever the technology and its anticipated growth, each presents an investment challenge requiring smart private sector finance – whether coping with replacement/renewals or to take advantage of the rapid growth of novel technologies, or both. 

The report evidences the enabling power of smart finance for healthcare technology vendors and healthcare providers alike, providing an affordable and financially sustainable approach to acquiring digital and AI-driven technology. It outlines three main areas where smart finance makes investment possible, detailing the range of solutions and their benefits. These are:

1. equipment and technology replacement and upgrade
2. new technology acquisition
3. smarter building transformation

“Healthcare organizations are well aware of the benefits of digital adoption but many face real hurdles to investment in practice,” explains Chris Wilkinson, Siemens Financial Services, UK. “Smart finance can make acquiring technology cash-flow friendly, overcome limitation of constrained capital budgets and help providers achieve the best possible care and outcomes for patients.”

For further information, please see www.siemens.com/financing-digital-transformation-healthcare

For further information on SFS, please see www.siemens.com/finance