Advances in Technology Drive European Telemedicine Market

Effective telemedicine technology will eventually increase the number of patients that physicians treat remotely, and lower the costs and travel times associated with treatment. These are the latest findings of Frost and Sullivan (Palo Alto, CA, USA), an international consulting firm.

But despite the fact that the European telemedicine industry has achieved significant progress, certain technological advances have inadvertently led to new hurdles; these include the greater need for common standards and physician acceptance of novel telemedicine technologies. Market participants are attempting to lower the cost of technologies to widen the deployment of telemedicine and at the same time, European health organizations are increasingly using telemedicine health technologies to monitor patients remotely. However, the lack of payer reimbursement is a major barrier to broader adoption. As the industry's technology is becoming increasingly sophisticated and powerful, prices for computers, software, and transmission equipment are falling. Despite this, the technology is still believed to be extremely expensive, with questionable returns on investment.

"The high cost of operation has led to the perception among early adopters that telehealth costs must fall to nearly one-third to one-fifth of their present prices before they become widespread and easily accessible,” said Frost & Sullivan research analyst Janani Narasimhan.

"While it is apparent that the telemedicine industry is in the midst of great change, it is not clear how the industry will look in the years to come,” added Ms. Narasimhan, "technological developments have the potential to not only alleviate the current growing pains but also provide some solutions for the major challenges facing the business of telemedicine delivery.”

Eventually, governments will be compelled to adopt certain eHealth strategies accompanied by concrete actions, if they wish to keep pace with future demands for healthcare and reduce escalating healthcare costs. As the number of households connected to the Internet grows, the number of web sites and Internet portals dedicated to patients with specific diseases will expand as well. This trend will also increase online communication between doctors and patients, auguring well for market expansion. Frost and Sullivan has found that the European telemedicine market generated revenues of U.S. $118 million in 2007 and revenues are estimated to reach $236 million by 2014.


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