Julia Strandberg, executive vice president and chief business leader of connected care at Royal Philips, told MobiHealthNews that key healthcare trends in 2024 included advancements in home-based care and digital health reimbursement. 

While these innovations aim to improve patient outcomes, she said, challenges remain in scaling care delivery and aligning incentives. However, progress in Medicare policies, such as expanded coverage for digital mental health treatment and remote therapeutic monitoring, signals growing acceptance of digital health tools.

Strandberg also highlighted rising cybersecurity threats and the growing role of AI in streamlining clinical workflows.

MobiHealthNews: What are some of your big takeaways from 2024?

Julia Strandberg: 2024 saw many significant trends and developments across healthcare, with one of the most significant being the continued evolution of care delivery models. 

Advancements in home-based care technologies highlight the industry’s mission to extend high-quality care beyond the walls of a hospital, helping to improve patient outcomes and reduce the strain on healthcare facilities. However, scaling this model continues to be a challenge. Key questions remain around the infrastructure required to support it, the incentive structures needed to drive adoption and how to deliver simplified and engaged workflows to support providers in addressing patients in a timely manner.

Another major takeaway from 2024 was the progress made in digital health reimbursement. Digital health tools are increasingly being positioned as critical enablers of patient-centered care models by improving patient outcomes, reducing hospital readmissions and enhancing care coordination. Additionally, the expansion of Medicare coverage for Remote Therapeutic Monitoring (RTM) signals broader acceptance of digital health in mainstream care delivery. We’re also seeing a rise in the adoption of AI-powered tools in reimbursement policies.

However, the industry must continue to ensure patients can easily navigate the system to minimize disruptions. This is why building a sustainable ecosystem that benefits all stakeholders and meets the needs of patients will require continued collaboration between MedTech, consumer tech, and public and private stakeholders.

MHN: What were some of 2024's biggest surprises/most noteworthy events?

Strandberg: The year brought two significant developments that will shape the healthcare landscape in 2025: evolving discussions around healthcare policy and patient-centered care and a sharp rise in cybersecurity threats across the industry. 

The transition to a new presidential administration has sparked debate about changes to healthcare policy with a renewed focus on integrating patient-centered care models. While the industry has acknowledged the potential benefits of this approach, such as improved patient outcomes and enhanced provider satisfaction, its widespread adoption has been slower than anticipated.

To achieve the full potential of patient-centered care models, we must reassess the U.S. reimbursement system to support health technologies that deliver care across multiple settings. We must also ensure that clinicians are adequately compensated for managing care beyond traditional hospital walls.

2024 saw an unprecedented volume of cybersecurity attacks targeting healthcare systems. Hospitals found themselves balancing the need to comply with evolving cybersecurity requirements while adopting new technologies to extend care delivery. Financial and resource constraints often hinder their ability to keep pace with these demands, exposing them to cyber vulnerabilities. 

In response to these attacks, the FDA took significant steps by tightening cybersecurity requirements for digital health technologies through 510(k) submissions, a move aimed at safeguarding both health systems and patients. 

As we look ahead to the future, collaboration between healthcare providers and technology partners will be essential to reinforce cybersecurity measures.

MHN: What do you think will happen with digital health funding in 2025?

Strandberg: Digital health is poised for continued significant growth. While the investment boom of 2021 saw tremendous funding, recent years have highlighted the challenges posed by gaps between FDA clearance and reimbursement. However, the industry has gained a better understanding of how regulatory pathways and reimbursement frameworks impact the safe and effective use of digital health tools and how to ensure their financial viability. Delivering care to where the patients are remains our North Star, and sustained investments will continue to drive innovation in this space.

2024 also saw important strides in digital health reimbursement.The Centers for Medicare & Medicaid Services (CMS) has finalized payment for Digital Mental Health Treatment (DMHT) devices, supporting psychotherapy access when these devices are part of a professional behavioral health treatment plan of care. This decision is a significant milestone for patients and may pave the way for reimbursement of other digital therapeutic devices. 

Additionally, CMS introduced significant updates to remote patient monitoring (RPM) codes for 2024 to simplify billing, enhance reimbursement, and support broader adoption of digital health services. New bundled CPT codes now consolidate services like device setup, patient education and data collection, reducing administrative burden. To bridge critical gaps in the healthcare system, it will be essential to build on these advancements by continuing to refine regulatory and reimbursement policies to support safe, effective and accessible care in 2025.

MHN: Will mergers and acquisitions remain a large part of the digital health space in 2025?

Strandberg: Yes. I believe we will continue to see mergers and acquisitions in digital health. However, I also think we'll see more of an ecosystem of partnerships among clinical technology vendors and providers. As we look to bridge healthcare gaps and improve patient outcomes, an ecosystem of partnerships will help address challenges by improving the availability of digital health solutions to reach more patients. 

For example, we have collaborated with AWS to integrate cloud-based diagnostics and generative AI into clinical workflows, helping to enhance efficiency, improve access to critical insights and drive better patient outcomes across radiology, pathology and cardiology. Other partnerships, such as Medtronic and Abbott, are bringing together Abbott’s technology with Medtronic's insulin delivery systems for an integrated continuous glucose monitoring system, ultimately working to provide expanded access to care for people living with diabetes.

MHN: How do you see AI's place in healthcare changing in 2025?

Strandberg: AI will continue to play a large role across several areas of healthcare, but where I see it having the greatest impact in 2025 is in its ability to streamline the amount of data clinicians must review, helping them make quicker, more informed decisions. For example, AI-enabled remote patient monitoring can evaluate patient data and generate actionable insights and recommendations, enhancing clinical decision-making. 

The increasing adoption of AI-integrated workflows will give valuable time back to clinicians and empower them with the high-quality information necessary to determine which patients can safely continue with at-home treatment versus those who require in-person attention.