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The digital doctor is in: Next wave in health care

Trisha Thadani
USA TODAY
CVS Health opened a new innovation lab in Boston.

There are countless tricks in the book that patients can use to cure themselves right at home: gargle salt water to curb a sore throat, prescribe Advil for a headache, settle an upset stomach with some bread and rice.

But there are also many other things that often warrant a trip to the doctor: A painful ear infection, an accurate diagnosis of a concussion, peace of mind over an unfamiliar mole.

In today's digitally focused world, there are some cases where a trip to the doctor can be easily replaced with the download of an app or the power of a text message.

The health-care industry is in the midst of a technological boom, a transition which physician Bob Wachter, author of The Digital Doctor, says is necessary – but no one has gotten it completely right yet.

"There are many things that patients can do to help themselves ... if armed with good algorithms and good backup plans," he said. "But the trick here is that you need to draw a line, and know how to tell when a patient needs to see a human, versus when they do not."

Investment in digital health startups was more than $2 billion in 2014, says Ahmed Albaiti, founder and CEO of Medullan, a digital health innovation lab in Boston. Many databases, he said, such as RockHealth, CBInsights and McKinsey & Company, say they've found more than 2,000 startups with the key words "digital health" and "new health care technologies."

Among the hundreds of companies focused on digital technologies, CVS Health is one of the latest businesses looking to bolster its image as a digital health-care powerhouse.

CVS Health recently opened up its Digital Innovation Lab, a warehouse-size space where innovators and entrepreneurs can come together, test new products and hash out ideas with each other, says Brian Tilzer, CVS' chief digital officer.

CVS' lab work includes:

• Connected otoscope: Looks into the ear canal and turns phones into a remote diagnostic device. Users can send videos and still images of the ear to medical professionals who can promptly address any issues and prescribe a treatment.

• Connected blood pressure monitor: Allows data to be shared with medical professionals, caregivers or other apps to help customers better manage their health.

• Apple Watch integration: Improves access to prescription notifications and other health care information through the Apple Watch app.

Connected otoscope looks into the ear canal and turns phones into a remote diagnostic device.

The lab's opening follows CVS' announcement last month that it bought Target's pharmacy business for $1.9 billion. With this deal, more than 1,600 Target pharmacies in 47 states will be re-branded as CVS/Pharmacy.

Regardless of how forward-thinking companies are, the digital health-care industry is both extremely competitive and incredibly complex.

Wisconsin-based health care provider, Aurora Health Care, announced last month that it is taking a lead investor role in StartUp Health, a long-term program focused on assisting new companies navigate through the fledgling digital health-care market. According to StartUp Health's 2015 midyear report, more than 7,500 startups around the world are developing solutions in digital health based on the company's insights and data.

Unlike more traditional hospitals and doctors, emerging startups and companies such as CVS have "more degrees of freedom to think what a new model of healthcare looks like," said Wachter, a professor and interim chairman in the department of medicine at the University of California, San Francisco.

Although the goals of health care will always be the same – to diagnose, treat and prevent sicknesses in the best way for the best price – the line of what a patient can or cannot do without a doctor is getting increasingly blurry.

"As long as businesses are aware that it is possible to take this transformation of the health care industry too far, it is a good move that more and more entrepreneurs and innovators are looking to push the boundaries and think up new models of care," he said.

Follow Trisha Thadani on Twitter: @TrishaThadani

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