Lack of reimbursement will limit the impact of digital therapeutics in global healthcare market

A major barrier to the widespread use of digital therapeutics (DTx) is the limitation or lack of reimbursement by public and private health insurance providers, says GlobalData, a leading data and analytics company.

Digital Therapeutics (DTx) have been defined by the Digital Therapeutics Alliance (DTA) as “delivering evidence based therapeutic interventions to patients, that are driven by high quality software programs to prevent, manage or treat a medical disorder or disease. They are used independently or with medications, devices, or other therapies to optimize patient care and health outcomes.”

Alessio Brunello, Pharma Analyst at GlobalData, comments, “Due to increasing levels in healthcare spending combined with declining R&D returns, DTx represents a new way of treatment for Pharma companies in which regulatory approved digital systems are used to treat medical conditions as prescribed therapeutic interventions.”

GlobalData’s latest report, ‘Digital Therapeutics and Their Impact on Healthcare’ reveals that there is an unmet need for patient-centered care and DTx implementation is designed to fill that need to deliver reliable, evidenced-based interventions with a high control of the quality of personalized care based on individual patients’ needs. Moreover, DTx have the opportunity to speed up clinical trials and create a more fit for purpose approach through improved recruitment and retention of patients. 

Brunello continues, “The industry’s interest in value-based care and patient centricity is helping drive the adoption of DTx as insurers and payers can use data and analytics to manage healthcare costs and help patients to receive appropriate treatment. This will drive the adoption of DTx as healthcare stakeholders are placing increasing emphasis on cost-effectiveness.”

DTx can be used to prevent, manage, or treat diseases across diverse indications, particularly chronic conditions, such as diabetes, respiratory diseases, and mental health conditions and neurological disorders. They are prescribed as monotherapy (standalone) or together with other therapies (adjunctive or add-on) or devices to optimize health outcomes.

Brunello adds, “Despite DTx technologies potentially reducing total health care costs, increasing trial efficacy and improving patients’ health, there are a few challenges to address before they become an integral part of modern medicine, such as better alignment between providers, pharmaceutical companies and payers.”

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