tackling healthcare's financial strain

Rising healthcare costs are one of the most urgent global challenges. Older patients often drive higher hospital costs, with 6–13% incurring expenses far above average across Europe. Each additional hospital day increases these costs by 20%.^[1]

The financial strain on healthcare systems is growing rapidly. Chronic diseases, such as cardiovascular disease, diabetes and cancer, are responsible for over 75% of healthcare costs. While advancements in medical science allow for earlier disease detection and better treatments, they also require long-term care, adding additional financial burden to already strained healthcare systems.

longevity: a triumph and a challenge

Medical advancements have increased life expectancy, with people living longer than ever before. Life expectancy data from the past 50 years shows that individuals surviving to age 65 continue to live longer than their parents—a trend that is not slowing down ^[2]. While this is undoubtedly a triumph of modern healthcare, it brings significant challenges in managing the long-term care needs of an aging population.

As people live longer, they require sustained medical attention, including chronic disease management, rehabilitation, and assisted care. This shift from acute to chronic care management—particularly for cardiovascular disease and cancer—requires a rethink in how healthcare resources are allocated and utilized.

rising healthcare costs and administrative burdens

Healthcare spending is expected to grow at a 7% annual rate by 2025, according to PwC’s Health Research Institute, outpacing inflation and wage growth. A significant contributor to this rise is the administrative burden in healthcare, often overlooked in cost discussions. Administrative expenses include costs associated with billing and insurance-related activities, overhead for running healthcare facilities, and regulatory compliance costs.

Additionally, vital signs measurement—a critical yet time-consuming aspect of hospital care—places a heavy administrative burden on healthcare professionals. Nurses must measure multiple parameters on separate devices and manually input the data into records, often taking over 15 minutes per patient. This process causes delays and contributes to errors, adding to both staff workload and costs in the system. ^{[1], [2]}

Rising labor costs—due to total healthcare employment increases, salary demands, and general inflation—further push healthcare costs upward. When healthcare providers must pay more for labor, these expenses are typically passed on to employers and patients, contributing to higher overall healthcare costs for both businesses and consumers.

technology as a cost-reduction strategy

To reduce rising healthcare costs, systems must shift towards more preventative and proactive care. Preventing avoidable hospital admissions and optimizing patient care pathways is key to improving both efficiency and outcomes. Value-based care models—emphasizing early detection, proactive interventions, and at-home monitoring—help reduce unnecessary hospital stays and provide high-quality care.

At smartQare, we offer a cutting-edge solution to combat these rising costs. Our wearable monitoring technology provides real-time patient insights, allowing for early detection of health deterioration, which helps prevent unnecessary hospitalizations. By continuously tracking vital signs, healthcare teams can intervene sooner, reduce emergency visits, and shorten hospital stays, leading to better outcomes and cost containment.

investing in smarter healthcare

Investing in continuous, data-driven healthcare solutions is vital to ensuring smarter resource allocation and a sustainable future for patient care. With financial pressures on healthcare systems growing, embracing innovative technologies like smartQare’s is no longer a choice—it is a necessity for a more efficient and financially sustainable healthcare system.