- Just like 2016, 2020 presidential candidates are likely to make healthcare costs a top priority. How to deal with rising costs remains to be seen, but the good news is technology is already helping in some key settings.
- Telehealth and remote patient monitoring have seen increased traction in recent years on the expectation that they can help keep patients out of hospitals, at home, and ultimately bring down costs individually and to the system. Companies that provide these services and enabling products, like Teladoc (TDOC) and BioTelemetry (BEAT) have seen their share prices rise dramatically as their revenue has grown.
- Biotricity Inc (BTCY) is rising as an early player in remote cardiology, the sector that has driven BEAT from $3 to $60. Biotricity is launching a new device that has received accolades, and they're planning another few medical devices, one of which could be approved by the FDA soon. BTCY could have a strong 2019 as a result.
NEW YORK, NY / ACCESSWIRE / March 26, 2019 / It was a top campaign topic in 2016 and it's likely to be again in 2020 - healthcare costs are out of control, say politicians and consumers. In February, a committee of senators publicly grilled CEOs of seven drug companies over how they price their drugs, and while Democrats and Republicans may disagree on how to handle healthcare costs change is probably coming.
One way insurance companies and the Centers for Medicare and Medicaid Services (called CMS) is already working to address healthcare costs is by pushing services out of the hospital and using telehealth or remote monitoring products, where doctors can evaluate patients without actually seeing them. Hospital stays are expensive, so if patients can recover or be diagnosed at home, the expectation is for the system to save money.
The remote monitoring and telehealth industries are taking off as a result, and government buy-in should add fuel to the fire. Medicare covers most adults over 65 in the U.S. after all. Shares in Teladoc Health Inc (TDOC), one of the most well-known telehealth providers, have gone from $15 to $60 in a few years; stock in Biotelemetry Inc. (BEAT), which provides remote monitoring devices for cardiology care, goes for $70 today, from a low of around $3.00 five years ago. The performance has been remarkable for some providers, thus its worth a look at some of the newer up-and-comers in this sector like Biotricity, Inc. (BTCY).
"Landmark Changes" To Telehealth and Remote Monitoring
Changes are happening at the government level that could spur greater adoption of virtual care and remote monitoring technologies.
Telehealth expert Nathaniel Lacktman, a partner and healthcare lawyer with Foley & Lardner LLP and chair of the firm's Telemedicine Industry Team, told mHealthIntelligence in 2018 that new proposed rules for CMS in terms of how they pay for telehealth are a major step towards acceptance of telehealth and remote patient monitoring:
"We may see more from Congress, but in the interim, CMS' proposed rule is a landmark change allowing providers to much more meaningfully use new technologies when delivering medical care." [1]
Lacktman is referring to guidance issued in November of 2018 by CMS that allows for better reimbursement of connected care services that let providers manage and coordinate care at home. [2] All of this is part of a broader move to bring down costs and provide great care for patients by keeping them out of the hospital, at home, or in smaller healthcare centers. It's showing up in the numbers as private industry innovates, and it could spur a multi-billion dollar shift in healthcare dollars in the coming years.
Cardiology Has Been A Major Benefactor Of Remote Technologies
Cardiology has been one of the biggest benefactors of newer technology. Patients with suspected irregular heartbeats, called arrhythmias, many times need to be monitored over time to diagnose the problem. Doctors need detailed EKG results, which evaluates the heart's electrical pulses. In the past, doctors relied on Holter and Event monitors that a patient wore for a few days or weeks while small electrodes kept track of their heart rhythm. The doctor could then look at the recorded data and get a sense for the problem.
This older technology is falling by the wayside as new, small devices, many with mobile connectivity, have emerged. These MCT (mobile cardiac telemetry) products are gaining steam for their ability to transmit EKG results in real-time, for a doctor or independent facility to evaluate.
For example, a portfolio of these devices has propelled the device company BioTelemetry (BEAT) to $399 million in annual sales. Their stock has risen from about $3 five years ago to over $60.
Another with a different technology using a chest patch, called iRhythm Technologies (IRTC), has driven to $147 million in yearly sales, and their shares have gone from $20 after their IPO to as high as $90 recently.
The total market for cardiac monitoring is expected to reach $25.12 billion by 2022 according to Markets and Markets research, so things could be just getting started for quality device companies. [3]
Biotricity Could Be A Lead Up-And-Comer
There's another newer company in the remote monitoring space that hasn't had much attention since launching their first MCT device in 2018, yet could be ready to take market share from rivals. Bioflux MCT is Biotricity Inc's (BTCY) take on remote monitoring, with a 3-lead EKG device that was awarded MedTech Breakthrough's for Best Remote Patient Monitoring Solution for 2018.
2019 is Biotricity's first full year as a commercial company selling Bioflux, thus it could be a big year as investors evaluate product up-take. The company said in January of 2019 that new device placements increased 182% from Q2 2018 to Q3 2018, based on the initial targeted launch executed in 2018 to ensure the product met or exceeded customer expectations. San Antonio Endovascular & Heart Institute's CEO and President Dr. R. Stefan Kiesz said in 2018, "I love the simplicity the Bioflux technology provides for my patients, which should encourage greater compliance and improved data collection. The device fit seamlessly with our practice and didn't interrupt our workflow whatsoever, in fact, it streamlined it. I'm also optimistic and excited about the prospects and applications of this platform in other medical markets serving outpatient treatments…" [4]
Biotricity is developing a second device called "Biopatch," an ECG patch that it hopes to release in Q1 2019 as an extension of the company's award-winning Bioflux. Biopatch offers an alternative to the 3-lead Bioflux that's ideal for patients with less complicated cardiac conditions. The company is also planning a portfolio expansion into fetal heart monitoring for use in the prenatal setting.
So what does 2019 look like for Biotricity? They're still early in the Bioflux launch process, which will take time and could be successful or not. They've also said that they expect an FDA filing for Biopatch early in the year, which could mean a FDA clearance after. Regulatory events are known to get investors watching these companies, as has been the case with Atossa Genetics, Inc. (ATOS) and Recro Pharma, Inc. (REPH). For Biotricity, it could just be a matter of time as they bring Biopatch and their fetal monitoring devices through the pipeline.
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Sources
1. https://mhealthintelligence.com/news/cms-makes-a-landmark-change-in-rpm-telehealth-reimbursement
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