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INDUSTRIES
July 10, 2008
Report: European Telemedicine to Reach $236 Million by 2014
By Raju Shanbhag, TMCnet Contributor
Research firm Frost & Sullivan today released a new analysis about the SAS (News - Alert) Competitive Benchmarking of Telemedicine Vendors in Europe.
The survey finds that the European telemedicine market generated revenues of $118 million in 2007 and could reach $236 million by 2014.
Frost officials say that although the telemedicine industry has reached great heights in Europe, certain technological advances have inadvertently led to new hurdles. Problems such as lack of physician acceptance of novel telemedicine technologies and the pressing need for standards have begun to haunt the industry, according to the firm’s report. An effective telemedicine technology will help in increasing the number of patients that physicians treat remotely lowering the costs and travel times associated with treatment, the report says.
Although the technology in industry is becoming increasingly sophisticated and powerful, prices for computers, software and transmission equipment are falling, Frost says. To widen the deployment of telemedicine, many market participants are lowering the cost of technologies.
Also, health organizations are increasingly using telehealth technology to monitor patients remotely, according to the report. However, the lack of payer reimbursement is a major barrier to broader adoption. But questionable returns on investment, the technology is perceived to be extremely expensive, the report says.
Frost says that if the government wishes to keep pace with future demands for healthcare and reduce escalating healthcare costs, they will be compelled to adopt certain eHealth strategies accompanied by concrete actions. The number of Web sites/portals dedicated to patients with specific diseases will expand as well as the number of households connected to the Internet grows, according to the firm’s report. This trend will also increase online communication between doctors and patients, Frost officials say.
“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,” said Frost & Sullivan (News - Alert) Research Analyst Janani 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.”
Raju Shanbhag is a contributing editor for TMCnet. To read more of Raju’s articles, please visit his columnist page.
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