Virtual And Augmented Reality In Healthcare Hit The Road
04 March 2020
Bottom line:
We are now closer than ever to see medical applications of VR & AR becoming mainstream. The recent move by the FDA may represent a significant catalyst for medical VR/AR manufacturers.
Our Bionics certificate is currently not exposed to any extended reality pure player. We believe that the deployment of such devices will play an essential role in the top-line growth of some bionic companies we are already exposed to, most notably in the surgical space, and are closely monitoring the sector.
Transformative Potential In Medicine
Reshaping healthcare
The adoption of Virtual Reality (VR) and Augmented Reality (AR) in medicine is still in the early-innings. Preference for non-invasive procedures and the need to reduce healthcare cost are driving expansion in the medical field.
- The global market of AR and VR is expected to grow by 36% CAGR between 2017 and 2025.
- From 800k users today to 3.4mn by 2025.
The revolution is underway
VR and AR (a.k.a. extended reality or immersive technologies) are already playing a significant role in healthcare, enhancing physicians’ ability to carry out safe and precise procedures.
- AccuVein’s AR app enables nurses and doctors to locate veins during blood draws and vascular procedures.
- Physicians of leading medical centers are using ImmersiveTouch’s solutions for surgical training. Piquing FDA’s interest
Piquing FDA’s interest
U.S. regulatory bodies are realizing the potential of AR and VR in medicine and are taking steps to foster the development and approval of such technologies. Better regulation could help break down barriers to adoption.
- The FDA has recently scheduled a meeting to assess the current challenges of AR and VR in medicine and elaborate better standards to evaluate their approval.
A step closer to reimbursement
The FDA and other regulatory agencies around the world plan to accelerate the development of immersive technologies in medical applications. Favorable regulations are the first step to have payers on board and spur broader adoption.
- In the U.S., some clinicians get reimbursed when using VR as a therapy for phobias or stroke rehabilitation.
- Techniker Krankenkasse, the biggest health insurance in Germany, is reimbursing the use of VR to treat anxiety.
Building clinical evidence
VR and AR promise to improve the precision, speed, and safety of medical procedures. To breed confidence in these technologies, companies are building clinical evidence.
- Recent studies found that VR reduces surgical errors by 54% and boosts the surgeon’s overall performance by 230%.
- Patients using AccuVein’s AR system see a 39% reduction in pain.
Becoming affordable
While the price of AR and VR hardware has plummeted, software prices are still prohibitive. Producing extended-reality apps for medical use quicker and more efficiently will ultimately lower costs.
- VR headsets are now priced around $300 to $400 and can be as cheap as $5 with the Google Cardboard.
- The new version of Microsoft’s AR headset, Hololens 2, is priced at $3’500, or 40% less than the previous model
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https://www.amazon.co.uk/Virtoba-Cardboard-V2-Lengthened-Compatible/dp/B01EL3OPYI
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https://www.theredmondcloud.com/infinite-field-view-promised-hololens-3/
Giving Surgeons X-Ray Vision
Cost-cutting tech
VR and AR technologies may help the healthcare industry save money by lowering the cost of medical training and improving the quality of procedures.
- Hospitals see annual savings of about $350k when using AccuVein’s AR system as it helps reduce the number of sticks required to draw blood.
- A training mannequin could cost up to $250k, compared to the VR headset’s price of around $400, plus the cost for related software.
Towards augmented surgery
With VR and AR, surgeons can visualize the entire human anatomy without any invasive intervention. Besides, the technologies enrich surgeons’ experience by providing enhanced medical images and hands-free insights about a patient’s health.
- Philips has recently launched its AR technology for minimally invasive surgery.
- In 2018, Novarad announced FDA clearance for its OpenSight AR, a system used for preoperative surgical planning.
Surgical robots are blending with AR and VR
As competition intensifies in the robotic surgery space, adopting innovative technologies that bring additional value to the platforms will be a key differentiating factor.
- Last year, Intuitive Surgical received the approval of its AR system, allowing surgeons to see 3D images of patient anatomy during robot-assisted surgeries.
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https://www.medicalaugmentedreality.org/camc.html
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https://sigma.software/about/media/virtual-and-augmented-reality-healthcare
Sources:
Virtual and Augmented Reality, GoldmanSachs, Digital Reality in Life Science and Health Care, Deloitte, Hospitals Try Giving Patients a Dose of VR, Vein Finder (image), Research: How Virtual Reality Can Help Train Surgeons, VR headsets relaxing patients during surgery at St George’s, Effect of virtual reality therapy on functional development in children with cerebral palsy
Companies mentioned in this article:
AccuVein (not listed), Googe (GOOGL US), ImmersiveTouch (not listed), Intuitive Surgical (ISRG US), Microsoft (MSFT US), Novarad (not listed), Philips (PHIA NA)
Catalysts
- The FDA aims to stimulate the development of AR and VR in medicine. The FDA will host a public workshop on March 5 to propel the advancement of such technologies.
- A new FDA program offers a faster way to tap the market. The Safer Technologies Program speeds up the patient’s access to medical devices that prove to be safer than current alternatives. VR and AR devices that meet the requirement will benefit from an expedited approval pathway.
- 5G deployment. Any network interruption and latency of AR and VR in medical applications could have a significant negative impact on the user experience/performance. 5G deployment grants more stable connections and faster data download and upload.
Risks
- Lack of clinical evidence. Clinical evidence is essential to drive adoption and reimbursement. However, studies proving the effectiveness of AR & VR in healthcare are still not significant.
- Privacy and security issues. The privacy and safety of AR and VR technologies remain to be adequately addressed, notably in the healthcare sector.
- Lack of quality apps. One of the most significant challenges of the sector is the production of high-quality software since patients’ outcomes, and users’ experience depend on how good the content of the VR/AR app is.
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