Samsung backs 'connected care' to mend broken health systems

Samsung Electronics is betting that digital and connected care will be able to mend broken healthcare systems as it seeks to expand its reach in a category beyond its core businesses.

The South Korean company, in the lead-up to its Unpacked event last week, announced its acquisition of Xealth, a Seattle-based provider of digital health tools, for an undisclosed amount.

The move, Samsung says, will help its connected care ambitions and help to bridge a “holistic approach to preventive care to as many people as possible”.

Scaling connected care is expected to be the next step in the future of health that would help fix broken healthcare systems, industry executives said at a forum on the sidelines of Unpacked.

“Health care is broken and part of the main reason it's broken is … [that] the incentives are misaligned. We know this from our everyday habits; if we are incentivising our kids to do the right things, they will do more of the right things,” Dr Rasu Shrestha, chief innovation and commercialisation officer of Charlotte-based health care provider Advocate Health, said at the forum.

“But if the incentives are misaligned, then the entire system starts to fall apart. So the opportunity here is … a connected ecosystem of devices and data really going after the dignity of those patients and consumers in a much more connected way.”

Research suggests that while conservative care works, it is inconvenient, hard to access and expensive, said Jim Pursley, president of Hinge Health, a Chicago-based software developer. But technology can address this.

“The [good] thing with digital health in general is we've operated historically independent of institutional health care, independent of an advocate,” he said.

Mr Pursley mentioned how tech has transformed the banking industry, with lenders able to provide on-demand services through devices, most notably through smartphone apps.

“The next decade of innovation is … to show that we can integrate with traditional in-person care to create a unified experience for patients, like banking,” he added.

Global investments in the digital health sector hit more than $25 billion last year, a 5.5 per cent annual rise and reversing two consecutive years of a funding drop, according to data from Galen Growth, a Singapore-based industry tracker.

Samsung is focusing on health and the division has been active in research and development, in addition to signing partnerships and acquisitions to expand its reach. It is linking up with start-ups to develop health services on its Galaxy smartphones and smartwatches.

Samsung's AI push will help its strategy, and further expanding into health care will continue to remain a priority, said Dr Hon Pak, head of Samsung's digital health unit.

“I do feel that in 10 years, We're finally going to get to a point where health care is not about surviving – it's about thriving [using technology],” added Mr Pursley.

400 million Galaxy devices in 2025

Meanwhile, Samsung's plan to distribute 400 million Galaxy devices in 2025 is expected to be boosted by a push into ambient AI, a separate forum heard at Unpacked.

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That would double the current reach of Galaxy devices, TM Roh, head of Samsung's mobile division, said at the event.

Ambient AI, which combines data analysis, machine learning, data analytics and natural language processing with humanlike behaviour, aims to provide personalised experiences.

In health care, that can translate to improved patient care, operational efficiency and information extraction, according to the Morsani College of Medicine.

“Some see AI as the start of a ‘post smartphone’ era, but we see it differently: the smartphone is becoming even more central to an ambient AI experience,” said Jisun Park, a corporate executive vice president at Samsung.

In addition, AI becoming more personalised needs a commitment to protect user information, and ambient AI's privacy, performance and personalisation “go hand in hand, [as] they are not competing priorities, but co-equal standards”, added Vinesh Sukumar, vice president of product management at US chipmaker Qualcomm Technology.