Minister calls for bold action on digital health to transform delivery of care

Digital & Innovation: South Australian Minister for Health and Wellbeing, Chris Picton MP, took the stage yesterday at the ANDHealth Where Digital meets Devices Summit, held for the first time in Adelaide. Addressing a captivate audience of 70 digital health industry leaders, Minister Picton highlighted the pivotal role of the digital health sector and emphasised the need for state-level efforts to enhance local procurement and keep innovative solutions onshore.

Minister Picton’s speech resonated with the attendees as he underscored the immense potential of digital health technologies in enhancing healthcare outcomes and experiences for all South Australians. With the growing demands on the healthcare system, he stressed the importance of exploring the possibilities offered by digital technologies and ensuring their alignment with broader system priorities.

“To build on the achievements of digital health in South Australia to date, we need a digital health strategy that is not just aspirational but is also realistic and achievable,” Minister Picton stated. “The strategy needs to be developed on stable technology foundations. With increased dependence on technology in our hospitals, we need to make sure that the technology foundations provide resilience and business continuity. And while artificial intelligence (AI) has a role to play in healthcare delivery, we need to ensure digital health innovation is designed in conjunction with the healthcare workforce based on what they require to provide the best possible care for patients.”

Minister Picton acknowledged the expectations of frontline healthcare workers, who anticipate digital health platforms to support them in achieving optimal outcomes for their patients. He called for investment in local digital health innovations to fulfil these expectations and recognised that more work is needed from the State Government to provide the best opportunities for local digital health companies to secure procurement contracts.

Bronwyn Le Grice, CEO and Managing Director of ANDHealth, echoed Minister Picton’s sentiments and highlighted the remarkable growth of South Australian digital health companies. Over the past three years, the number of such companies has tripled, illustrating the tremendous potential for further development in the local sector. Ms Le Grice emphasised that South Australia’s unique capabilities in medical technology and research create an ideal environment for digital health companies to flourish. She expressed her anticipation for increased investment in digital health in South Australia, citing success stories like LBT Innovations and Alcidion Group, both founded in Adelaide and contributing to improved healthcare delivery in Australian hospitals.

Providing compelling data to support the call for increased funding and support, ANDHealth’s database of 33 operational digital health companies in South Australia revealed a median total funding of AUD $300,000 that was raised by these companies between 2017 and 2023. Further analysis of the funding breakdown indicated that 68% of the companies raised less than AUD $500,000 in total company investment, highlighting the need for additional funding to aid the commercialisation efforts of South Australian digital health companies. Additionally, 27% of companies received between AUD $1-10 million in funding, while 5% secured over AUD $10 million.

The funding sources were also unveiled, showing that 14% of companies obtained financing through venture capital, both locally and internationally, while 29% relied primarily on grants. Furthermore, 7% of companies accessed financing through accelerator and incubator programs.

There is an imperative need for transformative change in the Australian healthcare system. The significance of funding digital health infrastructure and incentivising patients and clinicians to adopt innovative technologies, such as digital therapeutics and clinical-grade remote patient monitoring, is important. These technologies have the potential to revolutionise patient outcomes, accessibility, affordability, and effectiveness of care across metropolitan and regional areas. However, without appropriate reimbursement frameworks, Australians is missing out on the benefits of these critical technologies.

As the summit came to a close, industry leaders and policymakers left with a renewed sense of urgency and determination to unleash the tremendous potential that lies within the digital health sector and the crucial steps needed to unleash its transformative power.

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