2024 saw the digital health landscape experience advancements in technology, regulation, and accessibility driving progress across the sector. From the continued rise of AI to the increased focus on health equity, 2024 has been a year of significant evolution for digital health. These changes are not just reshaping the way care is delivered but are also influencing how healthcare systems, providers, and patients interact with and benefit from digital solutions.
In this article we take a look at the major milestones and trends that dominated the digital health industry in 2024.
CMS releases Final Rule CMS-0057-F (Interoperability and Prior Authorization Rule)
The year began with the release of the final CMS-0057-F rule, designed to enhance healthcare data sharing and improve prior authorization processes. The rule focuses on boosting healthcare interoperability, ensuring faster data exchanges, and streamlining healthcare workflows, all aimed at delivering a better patient experience. Compliance measures will be phased in over the next few years, with major implementation milestones set for 2026 and 2027.
This rule is a significant opportunity for pharma and medtech companies to proactively position themselves to thrive within a more interconnected and efficient healthcare ecosystem. Those who act now to adopt robust digital health strategies that involve leveraging real-world data, refining patient care offerings, and ensuring their technologies are seamlessly compatible with healthcare provider and payer systems will be primed to thrive in this new landscape.
Digital health investment rebounds
Digital health investment has witnessed a rollercoaster few years, reaching a height in 2019, driven by an increasing demand for digital transformation in healthcare. During the COVID-19 pandemic in the years that followed, there was a considerable surge in funding to meet the soaring demand for digital healthcare solutions and address healthcare delivery challenges in a remote setting. After these record-breaking highs, digital health investment significantly declined as the market underwent a correction phase, and this trend continued into 2023.
However, 2024 saw investment rebound, once again exceeding even 2019 levels, suggesting that the market is now stabilizing. The 2024 trend reflects a balance between cautious optimism and selective growth, with a focus on sustainable business models and digital health alignment with emerging AI technologies.
AI and Machine Learning continue to be major drivers of innovation
AI remained a dominant force in digital health in 2024, driving a wide range of innovations across various aspects of patient care, drug development, and healthcare management. Some key trends included the use of AI algorithms to create tailored treatment plans by analyzing vast amounts of patient data, improving early diagnosis and predicting health outcomes, improving overall patient outcomes, particularly for chronic conditions.
AI’s role in drug discovery and clinical trials also advanced, expediting drug development, identifying potential therapeutic targets, and optimizing trial designs, consequently reducing both time and cost.
Additionally, AI-powered remote monitoring tools became more widespread in 2024, particularly for managing chronic conditions. These tools provide continuous, real-time patient data, enabling healthcare providers to monitor conditions remotely.
EU AI Act comes into force
With AI continuing to dominate the healthcare landscape, 2024 saw important advances in the regulations around the use of AI. In August, the European Union's Artificial Intelligence Act (“AI Act”) came into force. This landmark legislation is a comprehensive regulatory framework that regulates the development and use of AI across all industries within the EI to ensure safe and transparent AI practices that respect fundamental rights.
The EU AI Act classifies many healthcare and medical AI systems as high-risk because of their significant impact on patient safety and outcomes. This classification means that any AI tools used in healthcare must adhere to strict standards for transparency, accountability, and reliability. Medical AI systems must now comply with both the existing Medical Device Regulation (MDR) and the specific requirements of the AI Act. These requirements include providing detailed documentation on the functionality of the AI tools, ensuring transparency for both patients and healthcare providers, and implementing strict data governance. Life science companies that are developing AI solutions must establish comprehensive compliance frameworks that align with these standards of transparency, accountability, and human oversight.
Expanded focus on health equity and digital accessibility
2024, saw a significant push to leverage digital health solutions to address healthcare disparities and enhance access and outcomes for historically underserved communities. Central to these efforts was the expansion of remote patient monitoring (RPM) systems, which have proven instrumental in closing care gaps for patients without reliable access to traditional healthcare services. By enabling continuous monitoring and personalized care for chronic conditions and other health needs, RPM systems have helped reduce hospital visits and improve patient outcomes. This technology has been particularly impactful for individuals who face lengthy travel to healthcare facilities or encounter socioeconomic obstacles to receiving timely care.
Efforts to improve digital accessibility have also focused on designing more inclusive and intuitive digital health tools. Developers are increasingly prioritizing user-friendly interfaces tailored to accommodate individuals with disabilities, limited health literacy, or minimal technology experience. This approach includes simplified interfaces, diverse language support, and accessibility features like screen readers, which make health management tools more usable for those with visual or hearing impairments.
Collaboration among policymakers, healthcare providers, and tech companies has further accelerated this movement. Initiatives aimed at providing affordable or subsidized internet access and digital devices in underserved communities are crucial components of the broader emphasis on bridging the healthcare equity gap.
Looking back at 2024, it’s clear that the digital health sector is on a path of rapid evolution, setting the stage for even greater changes in the years ahead.
Be sure to keep up to date with upcoming developments, by following our blog for further digital health insights.
