Health Care: A Long-Term ROI Commitment
To understand the impact that service providers can have on the health-care industry, it is helpful to examine the costs and effects of one of the most widespread diseases in the U.S.: diabetes.
Currently, more than 26 million people in the U.S. have been diagnosed with diabetes, representing more than 8 percent of the country's population. Another 7 million people are undiagnosed, and 79 million others are considered "pre-diabetic." In 2010 alone, there were more than 2 million new cases of diabetes in people older than 20.
The costs to combat diabetes are astronomical. Monetarily, diabetes costs about $180 billion a year in terms of medical costs, loss of work and disability, accounting for about 20 percent of all health-care expenditures in the U.S. Furthermore, the disease creates costly and serious residual issues – heart disease, stroke, blindness, kidney disease, loss of income and more.
These staggering statistics – as well as those for obesity, heart disease and other chronic conditions – are the primary drivers of solutions that provide better, cheaper access to the health-care ecosystem. At no other time have service providers, technology vendors and members of the health-care ecosystem (doctors, hospitals, insurance providers, etc.) had a better opportunity to create and develop networks and solutions that address the health-care industry.
Such solutions and opportunities for service providers are the focus of the newest Heavy Reading IP Services Insider, "Healthcare Sector Requires TLC From Network Operators." This report examines the opportunities for service providers in the health-care vertical, including areas with the most growth and potential for the next 24 months. It includes an analysis of potential customers and provides examples of current solutions and case studies. It also examines the geographic landscape of the market for service providers, challenges the industry presents, and trends expected in the health-care vertical.
Companies analyzed in this report include: ANT+; Avaya Inc. ; Cisco Systems Inc. (Nasdaq: CSCO); Cox Communications Inc. ; Diversinet Corp. ; Ericsson AB (Nasdaq: ERIC); Juniper Networks Inc. (NYSE: JNPR); Motorola Inc. (NYSE: MOT); Oracle Corp. (Nasdaq: ORCL); and Sprint Corp. (NYSE: S).
As the report shows, service providers have a tremendous opportunity in the health-care vertical, especially in terms of creating bandwidth and networks, as well as in developing new applications and services, including medication and appointment reminders, access to physicians, hospital and insurance administration and much more.
Taking advantage of these opportunities, however, requires a new revenue paradigm for service providers. They must be willing to invest in these technologies today, with the knowledge that return on investment (ROI) will likely not be for years. Most service providers are eager to take on verticals that will provide the quickest financial reward, often foregoing the long-term viability of those verticals and technologies. But the service providers that are willing to invest in health care today – despite elongated ROI – will be those that reap the rewards for decades to come.
— Denise Culver, Research Analyst, Heavy Reading IP Services Insider
The report, Healthcare Sector Requires TLC From Network Operators, is available as part of an annual subscription (6 bimonthly issues) to Heavy Reading IP Services Insider, priced at $1,595. Individual reports are available for $900. For more information, or to subscribe, please visit: www.heavyreading.com/entvoip.