BCG Digital Ventures
Andre Heeg, MD, PhD
October 7, 2021
It’s World Mental Health Day this week.
Over the last number of years digital mental health solutions have gained considerable traction. The ‘Innovative legislative changes like this are paving the way. However there is much work to be done.
Established healthcare companies have a unique opportunity to contribute to this innovation and be a positive force in closing the global mental health gap.
- The Digital Care Act’ in Germany gives 73 million insured people direct access to prescribed digital treatments.
- Worldwide, Investors have already recognised the trend and reinforced it with massive funding this year. In the third quarter of 2021, $9.7 billion were invested in health innovation, bringing the year’s total funding to an all time high of $30 billion.
In Germany 73 million insured people will have direct access to prescribed digital treatments.
Worldwide,the year’s total funding — in health innovation — reached an all time high of $30 billion.
Each year, 25% of the population suffer from depression or anxiety.
Experts expect a substantive increase in mental health problems over the coming years, in part caused by the COVID-19 pandemic. From March 2020 onwards, the prevalence of anxiety and depression increased and in some countries even doubled.
Currently supply does not meet demand; there are too few therapy options for those seeking it.
There is also still a huge stigma attached to mental health.
It often takes many years before those affected can bring themselves to seek professional help.
And, if they do, they often have to wait months to get the help they need.
According to the American Psychological Association, there are roughly 34 licensed professionals for every 100,000 inhabitants of Germany.
To make matters even more complex, one has to coordinate matching and best fit with an available therapist.
Clear reimbursement processes:
The success of the digital health ecosystem is partially dependent on how lucrative it is. It needs clear and trustworthy reimbursement processes.
With the introduction of “apps on prescription” as part of the Digital Care Act, Germany is a global pioneer in this area.
Since the end of 2020, all people with statutory health insurance in Germany (73 million in total) are able to obtain digital healthcare solutions by prescription from their attending physician or with the approval of their health insurer.
The apps, such as deprexis, Mindable Health or somnio are then reimbursed accordingly.
A strict review by the regulatory authority (BfArM) ensures that only digital solutions that meet certain standards are certified and listed.
This helps eliminate the risk of potentially harmful products coming to the fore.
For healthcare providers, this opens up a unique opportunity; for the first time digital health apps will be equated with more traditional treatment methods such as medication and psychotherapy.
Since the end of 2020, all people with statutory health insurance in Germany (73 million in total) are able to obtain digital healthcare solutions by prescription from their attending physician or with the approval of their health insurer.
For healthcare providers, this opens up a unique opportunity; for the first time digital health apps will be equated with more traditional treatment methods such as medication and psychotherapy.
Addressing niche needs
These innovations must produce more applications that meet the needs of underrepresented groups traditionally ignored by healthcare providers.
- Gennev, which offers a telehealth service to women experiencing menopause, and
- Therapy for LatinX, which provides mental health resources for the Latinx community, are examples of solutions that address the nuanced health needs of underserved communities.
Mental health education & stigma:
Those who break their leg or arm do not hesitate to see a doctor.
Mental illness, however, is often a shameful topic that many people prefer to keep private.
- One reason for this is lack of awareness on the subject. Mental health and prevention should be a topic on school curriculums.
- Employers, too, play an important role in destigmatizing mental health conditions.
Rising sick leave and the resulting costs have become a concern among HR managers and executives.
According to the World Health Organization (WHO) depression and anxiety cost the global economy $1 trillion per year in lost productivity.
However, decision-makers still tend to ignore the “mental health problem” or accept it as a natural consequence of an increasingly accelerated and compressed working environment.
- Undoubtedly employers should strive to create a culture that has a positive effect on the mental health of their employees.
- In addition, they must also facilitate access to mental health resources and ensure mental health coverage is part of their health care plans.
These steps will help reduce stigma in the workplace.
According to WHO depression and anxiety cost the global economy $1 trillion per year in lost productivity.
Corporations have an unfair advantage
Big healthcare companies have an unfair competitive advantage when it comes to developing digital health solutions.
- They have deep knowledge and expertise,
- the necessary resources for clinical trials, and
- established customer relationships.
These are assets that startups do not have.
However they must uncover these assets and figure out how to leverage them. We would love to see big corporations using their power and contribute to this worldwide social challenge of closing the mental health gap.
BCG Digital Ventures is here to help.
Originally published at https://www.linkedin.com.
About the author
Andre Heeg, MD, PhD
Digital Healthist, Managing Director and Partner at BCG Digital Ventures
TAGS: Mental Health; Virtual Primary Care; Anxiety, Digital Mental Health;
