Our proprietary Disruption Framework has identified the Healthcare industry as vulnerable to disruption. We estimate that A$23b of A$130b (revenue) is susceptible to disruption with a proportion of this at risk with big data in eHealth, point of care testing and mHealth emerging as the key disruptive trends. We believe Telstra will lead the disruption in healthcare.

Healthcare must embrace disruption: Like industries before them (ie retail, travel, media) healthcare operators are vulnerable to the disruptive forces of technology. We believe healthcare operators must embrace disruption to become more efficient, lower costs, increase accessibility and provide patient centric care.

Big data is transforming eHealth: We believe the emergence of big data in eHealth will disrupt the Healthcare IT (A$2b) segment driven by digitalisation of patient information, rising demand for medical insights, reduced medical errors, lower costs and greater efficiencies. While the Australian Government is the largest proponent of eHealth, we believe Telco giant Telstra is emerging as the largest disruptor in the eHealth market.

Point of Care testing – mobile enabled diagnostics: We believe mobile enabled point of care (POC) testing driven by rising penetration of smartphones, ageing population, lower population density and improved patient outcomes is about to disrupt the medical equipment (A$10b) segment. We believe the market for traditional equipment will shrink as new entrants like Universal Biosensors and Signostics take a larger share of the pie.

TeleHealth 2.0 = mHealth: We believe mHealth (teleHealth) driven by lower costs (40% lower than traditional care), patient focused care, accessibility, geographic flexibility and ubiquity of mobile platforms is threatening to disrupt the general healthcare services (A$11b) segment by allowing patients to access healthcare services from the palm of their hands. Telstra is emerging as the biggest disruptor in the mHealth space.