.png)
Introduction to Healthcare Data Monetization
According to Grand View Research, the global data monetization in healthcare market size was evaluated at USD 410.4 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 18.8% from 2023 to 2030. So it’s clear that healthcare data holds immense value.
This is because data has become one of the most valuable assets across industries, and healthcare is no exception. Healthcare data, ranging from electronic health records (EHR) to medical imaging, holds immense potential for improving patient care, enhancing operational efficiency, and driving innovation in the healthcare sector. However, unlocking the value of healthcare data requires effective monetization strategies that navigate the complexities of privacy regulations, ethical considerations, and technological advancements.
Healthcare data monetization involves leveraging patient information, medical records, and clinical insights to generate revenue or create value for healthcare organizations. This process encompasses various strategies, including personalized medicine, AI-driven operational enhancements, preventative care programs, anonymized data sales, collaborations with health tech innovations, and advanced analytics. While the opportunities are vast, healthcare data monetization also presents challenges such as ensuring patient privacy, maintaining data security, and addressing regulatory compliance.
With the right strategies, healthcare organizations can effectively monetize their data assets while ensuring compliance with regulations such as HIPAA and respecting patient privacy. Let’s look at five strategies for monetizing healthcare data effectively:
Strategy 1 - Establish Robust Data Capture and Governance
The healthcare data you’re monetizing is only as valuable as it is complete. Datasets in pharmaceutical datasets can be challenging in their complexity, but if any fields or attributes are missing or outdated, the entire dataset can become redundant. That’s why robust data governance and capture procedures are essential to ensure your pharmaceutical data products are complete.
There are numerous ways to ensure this so that you’re selling high-quality data products. For instance, through strategic partnerships with data governance and analytics platforms. This symbiosis ensures they keep your data complete and flag any breaches or missing fields, and in turn you supply healthcare data that enable them to improve efficiency and clinical outcomes. We saw such a partnership when biotech company Roche acquired Flatiron, data platform offering technology and operations that seamlessly integrate research into everyday clinical care. Roche captures data from hospitals and health centers, which is then stored securely in Flatiron. Both companies benefit from this robust data capture and governance process and technology. Roche ensures that the valuable insights it captures aren’t compromised, so that they have maximum monetization value. And Flatiron monetizes its data governance software by providing access to leading healthcare data providers, including Roche and many more.
Strategy 2 - Listing Your Products on Data Marketplaces and Exchange Platforms
The fastest way to achieve visibility for your data business and monetize data faster is by publishing your offering on healthcare data marketplaces or exchange platforms where healthcare organizations can securely buy, sell, or share anonymized data. These platforms facilitate transactions between data providers, such as hospitals, clinics, and research institutions, and data consumers, including pharmaceutical companies, insurers, and researchers. Implementing blockchain or other secure technologies can enhance trust and transparency in data exchange processes.
For example, Patientory is a blockchain-based platform that provides secure and decentralized storage for healthcare data. Its innovative approach ensures data integrity, transparency, and privacy, making it an ideal choice for companies seeking to monetize healthcare data while maintaining compliance with regulations like HIPAA. With Patientory, companies can leverage a trusted infrastructure to securely exchange, analyze, and monetize healthcare data, unlocking new revenue streams and driving innovation in the healthcare industry.
Strategy 3 - Offer Data-as-a-Service (DaaS) Solutions
Healthcare organizations can monetize their internal assets by developing Data-as-a-Service (DaaS) solutions that provide on-demand access to healthcare data insights and analytics. These solutions can range from predictive analytics tools for population health management to personalized treatment recommendations based on patient EHR data. By packaging data into actionable insights, healthcare organizations can create additional revenue streams while delivering value to clients and stakeholders.
There’s also DaaS solutions available to consumers. For instance, Open Health has launched a platform called PatientSphere that allows patients to monetize their personal health data. It works by connecting pharmaceutical companies or research institutions with people who fit the criteria for different studies or analytics. With this consumer data, pharmaceutical companies can provide more predictive healthcare offerings, detect disease outbreaks, and personalize offerings. We could see this as another instance of DaaS being monetized. We see this with digital health startup Huma, whose app collects data from wearables, mobile devices, and medical bodies and analyzes those data to prohibit chronic disease.
Strategy 4 - Leverage Advanced Data Analytics and AI
One of the most powerful indirect means of monetizing healthcare data is by optimizing your operations to improve your bottom line. Machine learning algorithms can identify patterns, trends, and correlations within large datasets, enabling organizations to optimize clinical workflows, improve patient outcomes, and identify cost-saving opportunities.
By leveraging advanced data analytics and AI, healthcare companies can gain insights into patient behavior, disease trends, and treatment efficacy, allowing them to tailor services and interventions more effectively. Additionally, predictive analytics can help forecast patient needs, streamline resource allocation, and reduce operational costs, ultimately enhancing the organization's profitability. This proactive approach to data-driven decision-making not only improves financial performance but also enhances overall patient care delivery, positioning the company as a leader in the healthcare space.
Strategy 5 - Keep Data Privacy and Security Paramount
Above all, prioritizing data privacy and security throughout the data monetization process is essential. Otherwise the monetization venture may eventually prove more costly than lucrative, if you face fines for breaching patient confidentiality. Implement robust encryption techniques, access controls, and anonymization methods to protect sensitive patient information. Conduct regular audits and assessments to ensure compliance with regulatory requirements and industry best practices. By demonstrating a commitment to data privacy and security, healthcare organizations can build trust with both data providers and consumers, fostering long-term partnerships and sustainable data monetization strategies.
To monetize healthcare data ethically and legally, it's crucial to establish robust data governance and compliance frameworks. This involves ensuring adherence to regulations like HIPAA, which safeguard patient privacy and data security. Organizations must implement stringent policies and procedures for data collection, storage, access, and sharing to mitigate risks and maintain trust among stakeholders.
Conclusion
The Future of Healthcare Data Monetization
As technology continues to advance and healthcare becomes increasingly data-driven, the future of healthcare data monetization holds immense promise for transforming the way we deliver and experience healthcare. From personalized medicine and AI-driven operational efficiencies to preventative care programs and collaborative partnerships, the possibilities for leveraging healthcare data to improve patient care and drive innovation are virtually limitless.
Key Takeaways for Healthcare Organizations
In summary, healthcare organizations must embrace data-driven strategies to unlock the full potential of healthcare data monetization. By prioritizing patient privacy, ethical considerations, and regulatory compliance, while also leveraging advanced technologies and collaborative partnerships, healthcare organizations can position themselves at the forefront of innovation and drive positive outcomes for patients, providers, and stakeholders alike.
If you've got healthcare data and are looking to expand your data monetization strategy, contact our partnerships team.
Sources:
