Digital Health Israel Research Paper

DIGITAL HEALTH - ISRAEL
Simone Amar, Sam Messenger,
Koby Sokoloff, and Cole West
Dean Malter – Business, Innovation and
Entrepreneurship in Israel

Digital Health - Israel 2
Table of Contents
What is Digital Health?................................................................................................................... 3
Israeli Health Care System..............................................................................................................4
Wearables......................................................................................................................................5
A. ReWalk:...........................................................................................................................6
B. Angel Sensor....................................................................................................................7
C. OrCam.................................................................................................................................7
eHealth, Cloud Computing, and Health Data....................................................................................8
Personalized Medicine..................................................................................................................10
Gamification.................................................................................................................................11
Education.....................................................................................................................................12
Mobile Health..............................................................................................................................12
Social Tech...................................................................................................................................14
Digital and Mobile Health Conferences .........................................................................................15
SWOT Analysis.............................................................................................................................. 17
Strengths......................................................................................................................................17
Weaknesses.................................................................................................................................18
Opportunities...............................................................................................................................22
Threats.........................................................................................................................................24
Economic Impact.......................................................................................................................... 24
Future Global Impact.................................................................................................................... 25
Works Cited .................................................................................................................................. 26

What is Digital Health?
Digital health is the convergence of healthcare, digital technology, and genomics. It is a
burgeoning global industry that will greatly impact the world in the coming decades by
increasing care access, lowering costs, and greatly improving quality by making healthcare more
personalized and precise (FDA).
One of the main uses of digital health is personal health monitoring, which will flip the
way healthcare is done. An individual will wear a wireless wearable device that monitors his or
her health situation. Then a computer will use big data from the individual’s personal medical
history and genomic construct to give patients an outlook on their health situation and help
predict potential health issues. The current health model in developed countries requires
patients to go to a hospital when they have a problem. Using this new monitoring technology,
patients will go to a healthcare professional when the device detects a potential health issue.
This model will put fewer burdens on the healthcare industry, lower costs for customers, and
save lives. Personal health monitoring is a good example of what digital health is because it
shows the interconnectivity of different technologies that is improving healthcare delivery.
Other types of digital health include mobile health, eHealth, health IT, gamification, and
telehealth, social tech (Sonnier). This paper will explore each of these areas of digital health in
depth.
These innovations are often confused with biotech. Although there is a crossover
between the two fields, biotechnology focuses more on biological based solutions to health

issues whereas digital health adds value to customers through computing, interconnectivity,
data, and devices.
Digital health will become more important as global demographics change. The Center
for Global Development wrote in a report on demographics that longer life spans in the future
mean that nations will have difficulty dealing with the budgetary burden of elderly healthcare
infrastructure (Nugent, Seligman). In addition, because more nations will develop, illnesses will
shift from infectious diseases to chronic ones. Chronic diseases require monitoring and
multifaceted regimens, which is different from infectious diseases that require vaccines and
basic infrastructure like clean water. Digital health will improve the life of those with chronic
illnesses. Healthcare must meet the needs of the growing and aging world population. With
healthcare at its current status, there will not be enough resources for the future demand.
Digital health will bridge the gap between future demand and future resources (dhez).
Israeli HealthCare System
In order to evaluate and understand the Israeli digital health industry, it is important to
examine the health care system in the country. Israel has a universal healthcare system, which
offers four different health plans that offer different services (Nefesh B’Nefesh). Their current
system is based on the National Health Insurance Law passed in 1995 that said that all residents
should receive health coverage and the government promises that all residents have access to
health services without discrimination (Ministry of Aliyah and Immigration Absorption).
Since this law, health in Israel has greatly improved to be one of the best in the world.
Israel has the eighth highest life expectancy in the World according to the World Bank

(University of Pennsylvania). According to Bloomberg, Israel has the fourth most efficient health
system in the world (Linder-Ganz, Tzach). This ranking was based on life expectancy and per
capita spending healthcare. Israel spends 7.5% of its GDP on healthcare whereas America
spends 17.9% (University of Pennsylvania). The OECD sent a delegation to commend Israeli
healthcare providers for their efficacy in diagnosing and treating people quickly and preventing
repeated medical visits (Linder-Ganz, Tzach). Further, Israel is able to provide good healthcare
at a relatively low and efficient cost.
Nonetheless, Israel needs to improve its healthcare infrastructure. Average occupancy
rate is 98% and during the influenza season it is 115%, forcing patients need to sleep in the
hallways. The ratio of medical professionals to the population is decreasing, which will lead to
longer waits (University of Pennsylvania). Therefore, Israel will have an even greater strain on
their healthcare infrastructure. Israel could spend more on healthcare spending but taxes are
already high and the budget is tight. In addition, raising taxes and healthcare spending would
be politically unfavorable and difficult. Israel needs more digital health to reduce healthcare
spending and to overcome the infrastructure gap. To that end, growing digital health is vital for
Israel’s economic prosperity and its healthcare sustainability.
Wearables
Wearable technology is rapidly changing the world we live in. These gadgets are tracking
data and informing users about their health, fitness and lifestyle. By using sensors, the Internet,
and Bluetooth, these devices can connect wirelessly to your Smartphone or laptop.
Additionally, more advanced and hi-tech devices were invented to do the unthinkable. Products

such as ReWalk, an exoskeletal wearable enabling paraplegics to walk again and OrCam, a small
attachable camera that aids the visually impaired to “see” again are also amazing Israeli
inventions. The increased use of wearables will soon change the way medical care is provided
shifting its focus to preventative care; and Israel will be at the forefront of this revolution.
A. ReWalk:
ReWalk, is a technology that was invented by Dr. Amit Goffer who created a bionic
walking assistance systemto help paraplegics stand up, walk, and climb stairs again. The
technology uses a leg and hip exoskeleton brace, which gives handicapped individuals the
ability to use their upper body to support themselves and motion to the device to walk
(ArsTechnica, 2012). The device is able to sense the slightest alteration in one’s center of gravity
to hold them upright and even walk by regulating the functional speed of the exoskeleton.
(ArsTechnica, 2012)
Dr. Goffer’s idea was based on his own personal experience, being a quadriplegic
himself and struggling to find any product that could help the paralyzed become reintegrated
into society (NoCamels, 2014). This device has helped these people improve their daily lives and
mental well being just by being able to stand up and speak with people eye-to-eye again.
Goffer’s product has inspired and given hope to millions of disabled individuals around the
world who previously believed they would never be able to walk again. It has given people so
much hope that, Claire Lomas, even decide to complete the London Marathon using the device.
It took her 16 days (LifeScience, 2012). ARGO Medical Technologies, Dr. Goffer’s $300-million-
dollar company, has been growing tremendously in the international market as well. The FDA

for communal and everyday use in the U.S. approved ReWalk and President Obama applauded
Dr. Goffer’s device at a conference in 2013 (ReWalk, 2013).
B. Angel Sensor
Angel sensor is another Israeli wearable, which monitors the user’s vitals and gives them
real-time data to improve their daily life. The wristband calculates body temperature, pulse,
blood pressure and oxygen levels and is linked to an app by Bluetooth thus allowing it to be
accessed through a Smartphone, computer, or even a fitness machine (Indigogo). This device is
a part of the future of healthcare that relies on instant and personalized preventative care. These
technologies will make people more aware of their personal health and encourage them to live
healthier lives. One thing that differentiates Angel Sensor from other similar products in the
market is that Angel Sensor opens “communication protocols, API/SDK and sensor data streams”,
which gives users more app options, rather than a single, exclusive app (Angel Sensor).
Additionally, Angel Sensor has plenty of unique features such as a workout tracker, a heart rate
monitor, a vibrating alarm clock, fertility and sleep monitors and much more (Angel Sensor).
C. OrCam
OrCam is another incredible product to come out of Israel. It was designed to help the
visually impaired “see” again. Orcamis a small wearable camera that understands what is in
front of it and delivers that information verbally to the wearer (Orcam). The blind and visually
impaired are now aware of what is around them through commands provided by the
OrCam. The visually impaired can do everyday tasks just like everyone else. Orcamcan even

remembers faces, objects and places (Vision Aware, 2013). Even in the 21st century, there is
still a great need for this type of technology to assist the visually disabled.
eHealth, CloudComputing, and HealthData
eHealth is the use of information and communication technologies for health. It is a
rapidly growing field with uses expanding to patient treatment, healthcare workforce
education, and public health monitoring. Israel’s revenue in this market was $19.3 million in
2016 and is expected to show an annual growth rate of over 15% through 2020 (Statista, 2016).
This growth can be linked to a few factors.
One is the establishment of the VC firm eHealth Ventures. eHealth Ventures is a
consortium of elite healthcare organizations and investors who are searching for technologies
that will alter the healthcare industry. The consortium includes Maccabi Healthcare Services,
the Cleveland Clinic Innovations, and eHV USA as partners. With the creation of a major VC that
focuses on eHealth and related fields, Israeli startups will receive the funding they need to get
off the ground.
Another factor can be linked to the decision by the Israeli government to digitize all of
their citizens’ health records over two decades. This has put the Israeli medical care systemfar
ahead of its time and has led to two important results. First, it has allowed health services
providers such as Maccabi and Clalit to be some of the first to leverage the power of technology
to improve the quality, efficiency, accessibility, and financial aspects of healthcare. For
example, the central medical record (CMR) gives patients interactive recommendations, allows
them to fill prescriptions on their own, sends medication reminders, and more. These
capabilities have increased user compliance by 63% and medication adherence by over 80%.

Secondly, the CMR has been essential to Israeli eHealth startups as the access to 24 years of
health data has helped them develop and test their solutions (Israel’s Big Impact, 2016).
The last major factor can be tied to the increased formation of eHealth incubators. Over
the past few months multiple large corporations have set up incubators throughout Israel.
Medtronic and IBM set up a digital medicine incubator in Haifa, Johnson & Johnson partnered
with ORbiMed and Takeda to form FutuRx, Teva and Philips also created one, and Sanara
Ventures is expected to launch one soon. A large driving force behind these incubators has
been the Israeli government. They are contributing 85% of the $500,000 to $800,000 budget
given to the incubators, and they take no equity, receiving only 3-5% royalties until the startup
repays them. These incubators will help ensure these Israel startups become competitive in the
U.S. market (eHealth Ventures with Cleveland Clinic, 2016).
Cloud computing and health data are directly related to the field of eHealth. The CMR
stores health data on the cloud, which allows for storage of large and rapidly increasing
amounts of data. Additionally, cloud computing helps health data be easily sharable among
health professionals, insurance providers, and patients. As stated earlier, Israel was one of the
first to leverage this technology in the field of medicine when it created the CMR over two
decades ago.
All of these areas connect to one another. For example, just last year Teva
Pharmaceuticals partnered with IBM’s Watson Health Cloud to provide patients and healthcare
provider’s benefits from health data and the cloud technology. This partnership was
groundbreaking as it has the opportunity to change the way people use medicine. In this
project a research teams will form disease models and advanced therapeutic solutions through

the use of big data and machine learning (Teva Pharmaceuticals, 2015). This has the potential
to change healthcare into more preventative care in addition to saving millions of dollars and
improving the quality of life for many. If the Watson Health Cloud is able to diagnose diseases
and sickness before the human doctor can find them, this technology will be a huge
breakthrough. It will allow patients to treat and beat their conditions long before they feel the
symptoms. Some of Teva’s first goals will be to draw conclusions on how to best reduce drug
misuse and increase prescribed medication adherence (Teva Pharmaceuticals, 2015).
PersonalizedMedicine
Personalized medicine is medical care tailored specifically to the patient. Personalized
medicine is performed today but not with as much accuracy as there could be when using big
data and algorithms. When a doctor performs a yearly checkup, he or she will ask you your age,
family history, dietary and exercise habits, and other factors. The doctor will then predict future
medical issues for the patient. If the patient already has an illness, a medical professional will
prescribe based on those factors.
When digital health is implemented into personalized medicine, it will more accurately
provide prognoses and treatment from the health monitoring devices and big data. These
devices and technologies will be able to connect one’s symptoms to their genetic code
(Sawyer). Personalized health devices will also be able to provide pharmaceutical companies
data to assess their products in order to improve them (Ward).
Personalized medicine is a flourishing sub-industry in Israel. Dr. Shai Melcer, Executive
Director of BioJerusalem, a biological sciences development group, asserted that partnerships

in personalized medicine would be a trend in 2016 for Israel. “It’s going to be a year where big
pharma and healthcare systems will be combining different types of solutions to give better
healthcare” (Leichman). Drug companies will team up with Israeli personalized data diagnostics
startups to improve their drugs.
The Bi-national Industrial Research and Development (BIRD) Foundation, a United States
and Israel tech coalition, recognizes Israel’s strength in digital health and personalized health
specifically. Last year BIRD sent a delegation of 12 Israeli digital health startups to America
(Weinreb). Four of the twelve are directly under the category of personalized digital health and
some others are crossovers between personalized medicine and others. The four were,
Healarium, an app that offers personalized care plans based on personal data, Healthwatch, a
garment that monitors vitals, Medivsor, constant research about your illness tailored to your
specific condition, and Sweetch, a diabetes daily regimen guide based on personal data.
Personalized digital health in Israel is so strong that it is sharing its success with America.
Gamification
Gamification in the digital health industry is the use of games and competition to
motivate and assist people in improving their own health. One example of the application of
gamification in the Israeli digital health industry is Sweetch. The company’s mission is to
“develop technology to prevent people who are at risk for diabetes from developing the
disease” (Israel21c, 2016). The company believes “that incorporating techniques from gaming
apps can help with users’ health”(Israel21c, 2016). The platform analyzes data to determine a
person’s risk for diabetes. It then helps the individual set goals to reduce risk by staying active

through increased time walking and other cardio-intensive everyday activities and or by eating
healthier. The small steps that are seamlessly integrated into a one’s everyday life by the
platform along with the gamification aspect of goal setting make it much easier for one to make
necessary lifestyle changes. The company’s founder, Dana Chanan, says “Sweetch’s behavioral
analytics engine can be applied to other significant chronic diseases, such as hypertension and
obesity” (Israel21c, 2016). This shows the power of the digital health industry as a technology
built for one purpose can easily be applied to care for other health related problems.
Education
The last key subsection of the digital health industry is education. A young company
within this sector is MovinGame, which is a “mobile app based on virtual characters which
encourages children to perform recurring activities in real life” (MovinGame). The app uses a
combination of augmented reality and virtual reality technology to help children build healthy
habits. The company was started in December of 2015, and is still developing the technology.
Considering that 1 in 3 American children and adolescents are obese, an application that makes
healthy habits and health education more fun fills a huge need and has great potential to
improve the overall well-being of many people (MovinGame).
Mobile Health
Mobile Health today is growing extremely rapidly with hundreds of thousands of health
apps on Android and iOS and a projected market value of $26 billion. Out of the world’s
estimated 7 billion people, 6.8 billion have access to a mobile device (TIME, 2013). With Israel
specifically being one of the world’s top Smartphone users, it is no surprise that people want to

do more, and access more information on their devices (TIME, 2013). To date, 61% of
Smartphone users have downloaded a mHealth app on their device to improve their lives in
some way, and Israel has taken the lead in these mobile health technologies (OurCrowd, 2015)
Israeli entrepreneurs constantly create new digital health apps many of which are
showcased at the yearly mHealth in Tel Aviv. Their focus is to integrate mobile technology with
healthcare services, envisioning pharmacies, for example, being replaced by a mobile app or
platform (mHealth, 2016). Additionally, Israeli-made mobile apps like Healarium “lets cardiac
rehab patients record blood pressure, weight, blood-sugar levels, minutes of physical activity
and dietary habits over a three-month period, and suggests educational activities geared to
changing lifestyle behaviors.” (Israel21c, 2014) People will learn more about what is happening
within their bodies, and will be less likely to take random medications or visit doctors so often.
Other apps like MakeMyPlate act as a personalized nutrition expert, to tell one what exactly is
the healthiest lifestyle; or TotallyPregnant, an app that informs pregnant mothers on the stages
of the baby’s development and her own health, without going to an obstetrician (Israel21c,
2014). These technologies are so accessible and easy to use that they are really changing the
way healthcare works.
Levi Shapiro founded the mHealth conference mentioned earlier. He currently teaches
Digital Media Entrepreneurship at the IDC in Herzliya, and he is an expert in the field of mobile
health development, which he sees as a factor that will drastically change the future of
healthcare (Jerusalem Post, 2015) Shapiro is dedicated to supporting Israeli digital health start-
ups. Shapiro gives money to 12 different health focused VC’s, which invest in many Israeli
digital health startups. (Jewish Business News, 2015)

Although the healthcare industry seems to be opposed to drastic changes, mHealth is
going to become increasingly popular in providing users with important data and tracking things
like asthma or diabetes, which will lower the expensive costs of most healthcare today.
Social Tech
Social tech is applying technology for the purpose of improved communication between
people, and can be seen as a subset of digital health. One great example of a company in this
space is TalkItt. TalkItt is a voice recognition technology that helps people with speech
disabilities speak using their own voice. This is a brand new technology that seeks to improve
the lives of the 1.5% of people worldwide who suffer from some sort of speech disability. By
using machine learning techniques, this app, VoiceItt, will learn the unique speech disability of
the user and will translate their words through a phone or tablet so people can understand
them. Further, VoiceItt will create a speech-recording database that will greatly improve the
depth of research conducted on different speech disabilities. The product is not yet available as
it is currently undergoing beta testing, however, the first version should be ready by the
beginning of 2017 (Devora Mason, Personal Communication, July 10, 2016).
TalkItt also has close ties with the United States. It placed second in the 43 North
business competition and now has an office located in Buffalo, NY. At this office they conduct a
lot of the beta testing receiving feedback from medical professionals and they develop their
marketing strategy (Devora Mason, Personal Communication, July 10, 2016).
That being said the U.S., outside of Silicon Valley and a few other cities, is way behind Israel in
terms of having established ecosystems for the development of new technology startups. This
is one of the reasons one of the conditions of receiving support from 43 North was to open an

office in Buffalo as they are seeking to develop their own cluster of technology startups (Devora
Mason, Personal Communication, July 10, 2016).
The social tech landscape is unique in Israel. First off the Jewish idea of Tikkun Olam,
making the world a better place, plays strongly into the development of these social ventures.
Israelis are eager to create, invest, and help in any way to make ventures that change the
world. VoiceItt is a great example as it has received wide support from investors and
accelerators across Israel, allowing VoiceItt to invest large amounts of time and money into the
R&D behind its product (Devora Mason, Personal Communication, July 10, 2016). Without such
devout support, these types of ventures would never succeed as often they are for niche
markets that take a long time to profit from. Additionally, due to the tense political situation in
Israel and the growing BDS movement Israelis find social tech to be the perfect space for them
to shatter the typical negative notion surrounding Israel. If Israel can build products that will
help people and their families across the world, then they might be able to flip the script.
People will not want to boycott Israel because they will realize someone they know desperately
needs these Israel innovations to lead better lives.
Digital and Mobile HealthConferences
Every year, for the past two years Israel has hosted a mHealth Conference in February
and a Digital Health Conference in December. This shows how successful these two areas are in
Israel for them to attract the best and brightest in these fields each year.
The mHealth Conference is organized by mHealth Israel, a non-profit organization for
entrepreneurs addressing healthcare innovation. Outside of this conference mHealth Israel
holds frequent Meetups, Road shows, LinkedIn Groups, and maintains a mobile health

database. At this past year’s conference topics such as “Aging 2.0 v Asia Roundtable”, Medical
VR, 3D, Human Augmentation, & Brain Computer Interface” and “Insurance at a Crossroads”
were discussed (mHealth Israel, 2016). The conference is held at Tel Aviv University and is
attended by some of the top professionals in the field. At the conference there is also a startup
contest with the winner receiving a free trip to Houston, TX where they demonstrate their
product at the health tech conference there (mHealth Israel, 2016). The days leading up to the
conference is labeled mHealth Week and there are events everyday across the country
including in Jerusalem, Haifa, Beer Sheba, and Tel Aviv. This week builds up excitement for the
culminating conference at the end of the week, and helps spread the reach of the conference
to other areas beside Tel Aviv.
EY Israel, Start-Up Nation Central, Veritas and IATI host the annual Digital Health
Conference. Last year’s theme was “The Internet of Me” where it documented the shift of
power and control from providers to patients (DigitalHealth.il, 2015). Over 500 local and global
participants were in attendance to explore Israel’s amazing innovation in the field where they
have over 300 active startups. The yearly conference seeks to inform people in the healthcare
industry of the rapid and unprecedented changes that are coming to the sector from the ability
to use big data, cloud computing, and wearables to provide improved outcomes for patients
and care providers (DigitalHealth.il, 2015). At this conference there is also a startup contest
where the winner receives exposure to investors, business partners, and potential clients. Apart
from the conferences a two-day hackathon is held, where teams try to create solutions for
digital health and devices for people with neurological disorders (DigitalHealth.il, 2015).

These two conferences and the programs associated with them are yet another example
of why Israel has the perfect ecosystem for startups in digital health. They have numerous
opportunities to learn, network, and present to the best and brightest in the field. As these
conferences continue to grow, Israel’s digital health industry should continue to develop with it.
SWOT Analysis
Strengths
The Israeli digital health industry is one of the fastest-growing and most exciting
industries in the world today. It has the potential to drastically change the healthcare landscape
in the near future. It is an industry that leverages the use of technology and the rapidly
developing Internet of Things to provide new and improved healthcare solutions. Things such as
self-diagnosis, AI provided sickness prevention, and more are all becoming possible with digital
health technology.
Israel in particular is such an amazing hotbed for innovation in this industry for a
number of reasons. Firstly, all Israelis’ health records have been digital for over two decades.
This gives companies access to lots of data and medical information to use when developing
digital health startups (eHealth Ventures with Cleveland Clinic, 2016). Moreover, Israel has the
perfect startup ecosystem. It is one of the premier tech hubs of the world, where top talent and
ideas are developed and shared. Starting a venture is the popular thing to do and therefore the
best and brightest all try their hand at entrepreneurship. The Chief Data Scientist and the
numerous accelerator programs also support this ecosystem. These people give startups

resources like money, to workspace, to the right network of people. Everything that digital
health startups need to thrive is right here in Israel.
Weaknesses
One of the major weaknesses in the digital health industry in both the United States and
in Israel is the legal restrictions placed on companies in the healthcare field. This affects Israel in
particular because often their target market is the U.S. and therefore Israel has to concern
themselves with two sets of very strict regulations when building their products. The Food and
Drug Administration (FDA) enforce the most extreme regulations on apps that could “pose a
risk to patient safety if they do not function as intended” (Waxman, 2016). These applications
are control a medical device or deal with diagnosis and treatment recommendations. The apps
that allow the consumer to manage their own health are still overseen by the FDA, but the
agency only maintains “enforcement discretion,” which is a liability for digital health investors
and startups in Israel and the United States (Waxman, 2016). The FDA’s discretion means that
investors need to do increased due diligence to make sure that startups that they invest in are
compliant with current laws. It has become more commonplace that American investors
require acquisition agreements to state “that there are no current or threatened enforcement
actions by the FDA or any other agency, that no licenses issued by the FDA have been
suspended, and that any clinical trial is being conducted in accordance with the law” (Waxman,
2016). The fact that American investors require these terms affects Israeli startups because
Israeli digital health startups often seek the same American investors that American digital
health startups do.

Another regulation obstacle for digital health companies from Israel and America is
patient privacy. Health Insurance Portability and Accountability Act (HIPAA) has a ‘“Privacy rule’
that governs permissible uses and disclosures of protected health information (PHI), and a
‘Security Rule’ that governs electronic storage and transfer of PHI by certain covered entities,
including health plans, healthcare providers and any business associated with these entities”
(Waxman, 2016). Adhering to these additional regulations creates many technical and financial
burdens for digital health startups that deal with important patient health information. These
burdens are in place to help, but also create many barriers to entry in the digital health
industries of Israel and the United States. This makes the process for developing new health-
related technology even more difficult and less desirable for entrepreneurs and investors.
Another weakness shared by both the American and Israeli digital health industries is
the disconnect between those who need the technology the most and those who receive the
solutions. One of the biggest advantages to the digital health industry is the fact that it enables
people to monitor their own health digitally, and hopefully to aid in early detection of ailments
as well as the prevention of them. This early protection and prevention can save a person
hundreds if not thousands of dollars. The people who need these savings and the new
healthcare solutions the most are those of lower socioeconomic status “because they’re more
likely to have chronic illnesses, like diabetes, that are expensive to treat” (Ostrov, 2016).
However, people of lower socioeconomic status are limited by the money and technology that
they have access to, so companies in the digital health space must get creative to reach them.
For now, experiments targeting low-income people are “a tiny part of the digital health
industry” because “entrepreneurs are still trying to figure out how they’re going to make

money by serving this population, and government health programs like Medicaid and
Medicare are taking a while to figure out how they’re going to compensate providers for
approaches that don’t involve a doctors’ visit” (Ostrov, 2016). One of the experiments targeting
low-income people was the initiative by Zero to Three, an American nonprofit, called
Text4Baby. Text4Baby is a “free messaging service for pregnant women and new moms offering
information in English and Spanish about prenatal care, labor and delivery, breastfeeding,
developmental milestones, and immunizations” (Ostrov, 2016). The company used text
messaging as opposed to apps because apps consume a lot of cell phone data, which is
expensive for low-income customers (Ostrov, 2016). Another way that companies have tried to
alter their offerings to better serve low-income communities is to offer “loaner digital devices
to patients after a hospital stay to help them avoid complications that could land them back in
the hospital,” but this offer was not well received because patients were worried about theft of
the devices (Ostrov, 2016).
The limitations of low-income customers are certainly difficult to overcome, but there is
also a very large upside to this market: volume. There is no shortage of low-income people in
need of digital health technology, and if inexpensive and accessible digital health solutions can
be found then digital health companies in Israel and America can do very well” (Ostrov, 2016).
Although the Israeli and American digital health industries share a target market, all of
their weaknesses are not the same. One of the most significant differences is in diversity of the
labor force. Both America and Israel have significantly disproportionate numbers of women
startup founders and CEOs. In Israel, according to Israel’s Central Bureau of Statistics, “women
make up about 35% of the nation’s high-tech workforce with less than 10% as founders of tech

startups and only a handful are venture backed” (Women 2.0, 2013). The 35% of the high-tech
workforce also includes low-level and nontechnical positions. Evelyn Rubin, a former senior
associate at Israeli venture capital firm Jerusalem Venture Partners, and currently a VP at
OurCrowd, said that “she could probably count on one hand the total number of women who
have passed through the JVP offices (Women 2.0, 2013). In the United States, from 2009 to
2014, 15.5% of startups that received funding had at least one female founder (Teare, 2015).
Dozens of venture firms in Silicon Valley do not even have a single female partner (Farr, 2015).
Clearly, the greater startup community in both Israel and America is lacking female
leadership, but the stories are not the same when it comes to health technology industries. In
the American digital health industry, “6% of funded digital health companies are women” and
only 21% of board members at Fortune 500 healthcare companies” are women (Wang). This
lack of diversity is detrimental to companies in the industry because “80% of healthcare
decisions for the family are made by women” (Wang). In addition, according to Rock Health,
firms with women on their board of directors have higher returns (Wang).
In the Israeli health tech industry however they have a much better representation of
women. “Females comprise [of] about 65% of Israel’s biotechnology workforce, and about 13
percent of top management positions in companies listed on the Tel Aviv Biomed index”
(Leichman, 2012). According to the head of Israel’s National Council for the Promotion of
Women in Science and Technology, “women are more attracted to everything that has to do
with people: social sciences or life sciences” (Leichman, 2012). Another reason that more
women can be found in Israeli health technology and not high-tech is that “high-tech startups
are often founded by male army buddies after finishing college,” but healthcare technology

development “requires advanced degrees, and many women find it easier to start a family
while in school before launching a career” (Leichman, 2012). Although 13% is not proportional
to the Israeli female population, it is certainly a start. The next step is for Israeli and American
health technology companies to improve their diversity, and according to statistics, increase
their returns as a result. To accomplish this there needs to be an increased push in programs to
get young girls involved in science and technology as well as increased numbers of mentorship
and support programs for young women interested in science and technology paths (Farr,
2015).
Opportunities
The digital health industry in Israel has a great opportunity to grow as they are still a
relatively young industry (MedTechengine, 2016). Many hospitals, doctors, and healthcare
providers are already starting to incorporate these new technologies into their work. For
instance, the Ministry of Health uses an app that lets patients know the admission and waiting
time at the hospital, which helps patients avoid sitting in the waiting room for hours.
(MedTechengine, 2016) Also, hospitals are using smartphones to access patients’ files, instead
of searching through paper records. Although it is being adopted in some places, healthcare
providers overall are still having trouble establishing a strong digital healthcare system in Israel
because some doctors are wary technology replacing many of their previous jobs; however, it
soon will become more commonplace. (Digital Health IL, 2015)
Another huge opportunity comes about from the fact that there are a large number of
incubators and accelerators specifically focused on digital health. Major companies such as

Teva Pharmaceuticals and Philips Healthcare have opened up such incubator programs (Feirce
Biotech, 2015) These incubators and large VC’s who are willing to invest millions of dollars into
digital health technologies and are opening major opportunities for this industry to succeed.
Additionally, the expensive costs of hospital and healthcare services have made people search
for cheaper alternatives. The digital health gadgets and products this industry offers can be a
solution to many people’s problems concerning expenses because most people have a
Smartphone to access these healthcare apps. These applications are able to track their health
and alert them the best, cheapest, and quickest way to treat health problems before they
become serious (PWC, 2014). One thing to note is that many of these hi-tech wearable devices
can be extremely costly, but as more of these products are produced and as the price of
microchips keeping falling these devices will become more accessible to all. In one study at
PWC, surveys indicate that 68% of people would be very willing to use a wearable everyday if
their employer or insurance provided it. This could be a great opportunity to expand digital
healthcare to a larger market (PWC, 2014)
There are also many opportunities where the consumer can contribute to the industry’s
growth. Studies show that consumers have not fully embraced health related wearable
technologies. Wearables and app platforms must be flexible enough to engage all types of
potential users. Everyone can benefit from more accessible health information, especially the
elderly who need to be alerted of their medical condition as soon as possible. However, to
better reach this market the technology needs to be extremely easy to understand and simple
to use because this generation is not as tech savvy.

Threats
Two major threats to the digital health industry are cyber-attacks and privacy laws. Digital
health requires a lot of personal information from the user to be accessible via the internet and
as the Internet of Things continue to develop it will only become easier for hackers to find ways
to access this sensitive information (Medical Futurist, 2016) This may lead to many people not
buying these devices because they feel uncomfortable with trusting others with their
information. Additionally, every technology created to be used for healthcare is subject to
increased risk of being hacked and being used to harm the user. This threat looms large and is a
big threat to the industry because these companies must comply with strict regulation and
must develop a strong cyber-security team to protect from these attacks (PCWorld, 2015)
In terms of regulation both Israel and America have tight regulations when it comes to
healthcare. These regulations have the possibility of slowing the development process of Israeli
startups in this industry and making it hard for them to gain widespread use. For example, the
FDA finally approved the ReWalk a little over a year ago after it had already created multiple
versions. And it has still yet to approve the stair-climbing mode. These regulations make it
increasingly difficult for these business to become financially successful, which puts an even
greater importance on continuously raising capital.
Economic Impact
The economic impact of digital health in Israel will be significant, but has yet to be
significant because it is a young industry. There are 300 startups in that field in the country,
20% of the life sciences industry (Mitzner). Half of these companies were created in the past

five years and 66% of them have less than 10 employees, so they have not scaled up yet.
(Israel’s Life Sciences Industry). Between 2013 and 2014, there was a 41% increase in the
amount of digital heath startups in Israel (Israel’s Life Sciences Industry). This growth is because
of global digital health investment, which increased 128% between 2013 and 2014 from 1.8bn
to 4.3bn (Israel’s Life Sciences Industry). It has a lot of support from investment, is too young to
have any major exits. In the coming years the digital health market will have a large impact on
the economy because the surplus of young startups will mature, hire more people, and exit.
Future Global Impact
Digital health will be one of the more life changing technologies of the future. Driverless
cars are often in the media because they represent the future. It means less accidents and less
time spent on driving. Digital health will be even more impactful because it will change the way
healthcare works, and it will lengthen and improve lives. First of all, digital health will decrease
consumer’s costs. It will help people live healthier lifestyles decreasing their doctor visits. It will
alert people to go to a specialist to prevent an issue rather than spending time at a general
practitioner first. It will help people better notify their nutritional status and how to improve it
thus increasing their lifespan. Digital health will help people communicate with their doctors
from afar, saving doctors lots of time and granting people more convenience. The largest
impact digital health will have on the world is the interconnectivity of the data collected. This
will allow scientists and doctors to better understand diseases and genetics. Big data will
provide researchers a wealth of information that can help them lengthen and improve lives.

Works Cited
Angel Sensor – Open Mobile Health Wearable | The future of health and well being. (n.d.).
Retrieved July 20, 2016, from http://angelsensor.com/
An Overview of Israel's Universal Health Care System. (n.d.). Retrieved July 15, 2016, from
http://ldi.upenn.edu/news/overview-israels-universal-health-care-system
Baum, S. (2016, April 12). EHealth Ventures with Cleveland Clinic score digital health incubator
grant in Israel - MedCity News. Retrieved July 15, 2016, from
http://medcitynews.com/2016/04/ehealth-ventures-cleveland-clinic-score-
incubatorwin
Digital Health IL. (2015). Digital health 2015. Retrieved July 18, 2016, from Digital Health Israel,
http://digitalhealthil.evolero.com/2015
Duffy, R. (2013, June 17). The OrCam: A portable, Wearable visual systemfor blind and
visually impaired persons - VisionAware Blog. Retrieved July 18, 2016, from Vision
Aware, http://www.visionaware.org/blog/visionaware-blog/the-orcam-a-portable-
wearable-visual-system-for-blind-and-visually-impaired-persons/12
EHealth - Israel | Statista Market Forecast. (n.d.). Retrieved July 15, 2016, from
https://www.statista.com/outlook/312/111/ehealth/israel#
Farr, C. (2015, 03 23). What Digital Health Lacks: Female CEOs. KQUED Science.
Health Services in Israel. (n.d.). Retrieved from http://www.moia.gov.il/Publications/health_en.pdf
Health Research Institute. (2014). Health Wearables. Retrieved July 25, 2016, from

Holloway, J. (2012, September 18). ReWalk ushers in the age of the exoskeleton. ArsTechnica.
Retrieved from http://arstechnica.com/science/2012/09/rewalk-ushers-in-the-age-of-
the-exoskeleton/
Health Cloud. (2015, September 10). Retrieved July 15, 2016, from
http://www.tevapharm.com/news/teva_pharmaceuticals_and_ibm_partner_to_build_g
lobal_e_health_solutions_on_the_ibm_watson_health_cloud_09_15.aspx
U.S. Food and Drug Administration. (n.d.). Retrieved July 15, 2016, from
http://www.fda.gov/medicaldevices/digitalhealth/
Israel21c. (2016, 04 15). Israeli Startup Gets $3.5 Million in Funding for Lifestyle-Changing App
to Fight Diabetes. The Tower Magazine. Retrieved from www.thetower.com:
http://www.thetower.org/3235oc-israeli-startup-gets-3-5-million-in-funding-for-
lifestyle-changing-app-to-fight-diabetes/
Israel High-Tech & Investment Report. (2014, 04). The Women of Startup Nation. Israel High-
Tech & Investment Report.
Israel’s Life Sciences Industry. (n.d.). Retrieved from http://www.iati.co.il/files/files/Life
Sciences Industry 2015.pdf
Jorov, E. (n.d.). Angel the first open sensor for health and fitness. Retrieved July 25, 2016, from
Indiegogo, https://www.indiegogo.com/projects/angel-the-first-open-sensor-for-health-
and-fitness#/
Leichman, A. (2012, 10 11). In Israel, biotech is a woman's world. Israel21c.

Leichman, A. K. (2015, December 29). Top trends to watch in Israel in 2016. Retrieved July 15,
2016, from http://www.israel21c.org/what-does-2016-hold-in-store-for-israeli-
innovation/
Leichman, A. K. (2014, July 7). Top 12 Israeli apps to keep you healthy.
Israel21c. Retrieved from http://www.israel21c.org/top-12-israeli-apps-to-keep-you-
healthy/
Mitzner, D. (2015, October 25). Israeli Health Tech Is Heating Up With A Wave Of Interest
From Abroad. Retrieved July 15, 2016, from https://techcrunch.com/2015/10/25/israeli
health- tech-is- heating-up- with-a- wave-of-interest-from- abroad/
mHealth. (2016, February 18). Mobile health Israel Conference. Retrieved July 18, 2016, from
http://www.mhealthisrael.com
MovinGame. (n.d.). MovinGame. Retrieved from MovinGame: www.movingame.com
Nugent, R., & Seligman, B. (n.d.). Demographics and Development in the 21st Century
Initiative. Retrieved from
http://www.cgdev.org/doc/Demographic_and_Development/DD_background_12_10_0
8.PDF
OrCam. About OrCam. Retrieved July 20, 2016, from Orcam, http://www.orcam.com/about/
Overview of Israeli Healthcare System. (n.d.). Retrieved from

http://www.nbn.org.il/aliyahpedia/government-services/health-care-national-
insurance/healthcare-overview/
OurCrowd. (2015, December 14). MHealth 8 Israeli Tech Trends. Retrieved July 18, 2016, from
OurCrown Blog, http://blog.ourcrowd.com/mobile-health-8-israeli-tech-trends-8-crazy-
nights-2015-88/
Ostrov, B. F. (2016, 06 23). The Challenge of Taking Health Apps Beyond the Well-Heeled.
NPR.
Oxitone Wrist Based Pulse Oximeter for All Day Oxygen Saturation Monitoring (w/video).
(2013, November 18). Retrieved July 21, 2016, from
http://www.medgadget.com/2013/11/oxitone.html
O’Connor, F. (2015, February 6). Hackers target health care as industry goes digital. Retrieved
July 25, 2016, from PC World, http://www.pcworld.com/article/2881412/hackers-
target-health-care-as-industry-goes-digital.htm
ReWalk Robotics (2013, May 20). President Obama views demonstration of ReWalk Exoskeleton
technology during visit to Israel - ReWalk – more than walking. Retrieved July 20, 2016,
from Press Releases, http://rewalk.com/rewalk-robotics-announces-expansion-to-india-
with-saimed-innovations-2-2-2-2-3-2-2-2-2-2-2/
Sawyer, A. (n.d.). How Is Personalized Medicine Impacted by Digital Health? Retrieved July 15,
2016, from https://www.sharecare.com/video/healthmakers/aenor-sawyer/how-is
personalized-medicine-impacted-by-digital-health
Sonnier, Paul. (2013). What is Digital Health? Retrieved July 15, 2016, from

https://www.youtube.com/watch?v=oqnmpg2JmzM
Startup Contest. (n.d.). Retrieved July 15, 2016, from http://www.mhealthisrael.com/startups
contest-2015/
Shapiro, L. (2016). MHealth & digital health: Guide to the future of healthcare. Retrieved July
21, 2016, from Jewish Business News,
http://jewishbusinessnews.com/2014/04/28/mhealth-digital-health-guide-to-the-
future-of-healthcare/
Shapiro, L. (2008, August 11). Unleavened Media. Retrieved July 21, 2016, from Jerusalem Post,
http://www.jpost.com/Blogger/Levi-Shapiro
Teare, G. (2015, 05 26). Female Founders On An Upward Trend, According To CrunchBase.
TechCrunch.
Teva Pharmaceuticals and IBM Partner to Build Global e-Health Solutions on the IBM Watson
TMF. (2016, May 11).
Wang, T. (n.d.). The State of Women in Healthcare: 2015. Rock Health, Inc.
Wang, Y. (2013, March 25). More People Have Cell Phones Than Toilets, U.N. Study Shows.
Wanjek, C. Iron woman: Paralyzed mom finishes marathon with Bionic legs. Retrieved July 20,
2016, from Live Science, http://www.livescience.com/20269-paralyzed-mom-marathon-
bionic.html
Wasserman, E. (2015, January 28). Philips and Teva unveil new med tech incubator in Israel.
Retrieved July 18, 2016, from Fierce Biotech, http://www.fiercebiotech.com/medical-
devices/philips-and-teva-unveil-new-med-tech-incubator-israel

TIME.com. (March 25, 2016). Retrieved July 21, 2016, from
http://newsfeed.time.com/2013/03/25/morepeople-have-cell-phones-than-toilets-u-n-
study-shows/
Ward, A. (2015, December 15). Push for personalized medicine is the latest health blockbuster –
FT.com. Retrieved July 15, 2016, from https://next.ft.com/content/d0f32852-99e0-
11e5-
Waxman, S. (2016, 04 16). Legal Health isn’t Easy for Digital Health Companies. Tech
Crunch.
What is Digital Health. (n.d.).Retrieved July 15, 2016, from http://www.dhez.org/about/digital
health/9228-87e603d47bdc
Women 2.0. (2013, 12 23). 10 Female Founders to Watch Out Of Israel. Forbes.
Yarowsky, M. (2014, August 15). Taking ReWalk to the next level: Now Quadriplegics can “walk”
too with UPnRIDE. Retrieved July 18, 2016, from NoCamels,
http://nocamels.com/2014/08/taking-rewalk-to-the-next-level-upnride-is-a-real-
wheelchair-clincher/
10 Bioethical issues in the future of digital health. Retrieved July 21, 2016, from Medical
Futurist, http://medicalfuturist.com/2016/05/11/bioethical-issues/

Digital Health Israel Research Paper

Recommandé

Recommandé

Contenu connexe

Similaire à Digital Health Israel Research Paper

Similaire à Digital Health Israel Research Paper (20)

Digital Health Israel Research Paper