In an MIT Technology Review analysis, writer Christina Farr investigates the trend of "digital therapeutics," or software solutions that purport to improve a patient's health alongside, or in place of, prescription drugs.
Here are four things to know about the trend.
1. The term "digital therapeutics" took off in 2013, according to Ms. Farr. Omada Health CEO Sean Duffy, in particular, used the term to describe how the company leverages online coaching software to help at-risk diabetes patients improve their health.
2. Peter Hames, CEO of the insomnia solutions startup Big Health, told Ms. Farr digital therapeutics fall into two categories: those that augment medication and those that replace medication. Mr. Hames said Big Health's online insomnia therapy program is a medication replacement, since the company has "been able to show through multiple peer-reviewed studies that the outcomes are better than drugs."
3. Unlike commercial activity monitors, smart scales and sleep trackers, these digital therapeutics companies often seek clinical validation and regulatory approval, according to Ms. Farr. Welldoc, for example, advertises a prescription version of its diabetes management app, which was cleared by the U.S. Food and Drug Administration — even though digital therapeutics, which focus on lifestyles changes, typically don't require FDA approval.
4. A turning point in digital therapeutic acceptance may be insurance coverage, according to Ms. Farr. In 2016, Medicare agreed to reimburse the cost of Omada Health's digital diabetes prevention program. This trend may encourage consumer interest, as well, said Ms. Farr. Although digital therapeutics are often cheaper than prescription drugs, they may lead to more out-of-pocket costs without payer collaboration.
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