By Emily May, Manager, Centre for Health Solutions, Deloitte

The Internet of Medical Things (IoMT) – the network of interconnected medical devices, software applications, and health systems and services - is rapidly transforming healthcare delivery, diagnostics and patient management through valuable data and insights. As we showcase in our 2030 Life Sciences and Healthcare Prediction on Realising the potential of the IoMT, advancements in digitalisation and connectivity are expediting the IoMT’s potential, paving the way for more patient-centric, efficient and connected monitoring and care delivery. Our US Center for Health Solutions have recently published a report exploring how medtech can help move the connected care industry forward. This blog explores the key findings of that report, examining the opportunities and challenges for executives revealed by their survey of medtech companies and healthcare providers. We cover the key barriers to adoption and highlight the importance of collaboration and alignment between stakeholders to unlock the full potential of this industry.

About our insights

In developing our above prediction we revisited our 2018 report Medtech and the Internet of Medical Things. Leveraging market research, a survey of 247 medtech companies, structured interviews with senior medtech executives and Deloitte’s medtech and healthcare expertise, we highlighted the challenges and opportunities for medtech companies as they navigated new business models, data security, and collaboration to transform healthcare towards a value-based, patient-centric future.  While we focused on the global market it's fascinating to see the developments in the US and the lessons from our US Centre’s research that could influence market growth worldwide.

About the US Center’s report and key findings

The Deloitte US Center for Health Solutions conducted two surveys, one of 50 executives from medtech companies and one of 50 IT, finance and procurement executives from provider organisations, supplemented by interviews. The research reveals growing recognition of connected medical device integration with 84 per cent of healthcare executives acknowledging clinical value and 74 per cent operational value. However, a disconnect exists between the challenges perceived by medtech companies and those experienced by providers. Medtech companies primarily cite interoperability issues, data security, and workflow integration as obstacles, while providers emphasise demonstrating value, workflow integration, and budget constraints. This disparity could hinder the connected care market’s projected growth, estimated to reach US$190 billion by 2032.

The potential of connected care

While many medical devices currently offer connectivity, they often function as isolated solutions. The true potential of connected care lies in seamless integration, creating a network that incorporates diverse medical devices and electronic health record data, enabling automation, scalability, and improved patient outcomes. Imagine an operating room functioning like a self-driving car; automatically adjusting infrastructure to surgeon preferences, administering medications based on real-time vitals, and providing personalised insights throughout the procedure. This promising future is hampered by the disconnects between medtech companies and healthcare providers.

Both providers and medtech companies expect connected care to drive clinical and operational value

While clinicians focus on patient outcomes and reduced administrative burden, financial decision-makers prioritise cost savings and reimbursement, and IT leaders address data integration and customisation when asked about priorities and success metrics for connected care. For medtech companies, connected care is a commercial imperative, with 96 per cent identifying it as a key focus area and over half already offering related solutions. This focus is expected to intensify, with 50 per cent of medtech leaders predicting connected care will dominate their portfolios within five years. Despite medtech optimism regarding improved patient outcomes and care delivery, provider adoption remains slower than anticipated, emphasising the need to align innovations with healthcare systems’ practical needs and financial constraints.

Medtech companies don’t fully understand providers’ challenges

While both medtech executives and healthcare providers acknowledge the value of connected care, they perceive barriers differently, see Figure 1. Medtech companies highlight technical challenges like interoperability, data privacy, and workflow integration, while providers focus on demonstrating value, workflow integration, and budget constraints. Specifically, finance and procurement leaders emphasise reimbursement, value, and budget, while IT leaders focus on interoperability, workflow integration, and demonstrating value. Reconciling these perspectives is key.

Figure 1. Perspectives on the challenges to adopting connected care hardware, software, and services

Achieving interoperability and workflow integration: While some integration with electronic health records (EHRs) exists (44 per cent of IT respondents believe their product is well integrated), true bidirectional interoperability, crucial for realising the full potential of connected care, is lacking. Data integration complexity, particularly setting up and maintaining data feeds (cited as a challenge by 36 and 24 per cent of IT provider respondents, respectively), adds to the challenge. A platform approach with shared assets and ecosystems could help, but it should simplify data access for overloaded clinicians and seamlessly integrate into clinical workflows, requiring collaboration across all stakeholders.

Demonstrating end-user value: While some connected care devices demonstrate clear value, broader adoption hinges on showcasing robust evidence of both clinical and operational benefits. Sharing robust research and evidence on improved patient outcomes and operational efficiencies are crucial for driving wider adoption and securing reimbursement.

Improving data privacy and security: Medtech companies (47 per cent of execs) perceive data privacy and security as a bigger challenge than providers (22 per cent). However, both need to prioritise resilient, secure-by-design connected care solutions with robust identity management, AI-driven cybersecurity, and data protection measures. Clarity on data ownership is also needed with differing views between medtech (42 per cent believe in patient ownership) and providers (64 per cent patient ownership and notably, 96 per cent of providers believe in hospital data ownership). Nevertheless, greater transparency about data usage is crucial, potentially shifting the focus to authorised use under HIPAA. Streamlining patient consent for research and product improvement is also essential, as insights from connected care data impacts both device development and patient care.

Budget constraints and reimbursement: While capital purchases dominate connected care device acquisition (72 per cent), subscription models are gaining traction. Offering flexible payment options, including ‘everything-as-a-service’ models, can benefit providers. Direct reimbursement remains uncertain, as insurers require evidence of improved outcomes. However, improved integration and communication will drive adoption and improve care quality and in turn drive demand, with costs absorbed by providers or through renegotiated risk contracts.

Medtech moves toward the future of connected care

Medtech companies developing connected care solutions currently prioritise clinical and device metrics data, along with provider-facing apps, but anticipate a growing focus on patient-facing apps in the coming years, see Figure 2.

Figure 2. Focus areas for medtech connected care solutions over the next three to five years

Interestingly, while data privacy and security are top concerns for medtech companies, interoperability with EHRs and other devices is less prioritised, despite being a key challenge for providers, see Figure 3.

Figure 3. Top challenges for medtech executives in connected care

To meet provider needs and demonstrate value, medtech companies should prioritise interoperability, internally and with external products. This shift could transform connected care from a cost centre to a profit driver. Recognising data’s importance, many medtech companies plan to leverage AI, generative AI, and partnerships to improve data management and interpretation. Investment in digital infrastructure is also key for navigating the challenges of connected care development.

Collaborating on connected care

Connected care offers significant strategic value, but widespread adoption depends on addressing key gaps: simplified workflow integration through interoperability and user-centric design; robust evidence of value; and clear data authorisation. Collaboration between medtech companies, providers, patients, and technology companies is crucial. This includes collecting real-world evidence, understanding provider IT strategies, focusing on end-user needs and collaborating on data privacy and cybersecurity. Addressing these challenges will enable connected care to evolve from isolated solutions to a fully integrated system, strengthening and informing the entire healthcare ecosystem.

Emily May, Research Manager, Centre for Health Solutions

Emily is a manager in the Centre for Health Solutions where she applies her background in both scientific research and pharmaceutical analytics to produce supported insights for the Life Sciences and Healthcare practice. Emily leads the research and publication of the life sciences insights, performing thorough analysis to find solutions for the challenges impacting the industry and generating predictions for the future. Prior to joining the centre, Emily worked as an Analytical Scientist conducting physical chemistry analysis on early stage drug compounds and previously lived in Antwerp, Belgium where she researched and developed water-based adhesive films.

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