How Industry 4.0 is Radically Changing Healthcare

Why the Healthcare Industry?

The US healthcare industry is a vast and complex system that aims to improve population health through prevention, diagnosis, treatment and rehabilitation. It significantly contributes to the economy, employing millions while representing a large GDP (Gross Domestic Product) portion, with an ecosystem that includes organizations delivering and financing medical services, such as hospitals, clinics, pharmaceutical companies and insurance providers. Regulatory bodies ensure quality and safety, while government policies shape the healthcare landscape, impacting access, insurance and research funding. According to industry data, over the next five to seven years, the health and wellness market is expected to grow to over $1 trillion.  

Industry 4.0, also known as the Fourth Industrial Revolution, marks a new era of innovation and transformation driven by digital technologies. This revolution is distinguished by the integration of the Internet of Things (IoT), Artificial Intelligence (AI) & big data analytics as well as robotics & automation. These technologies are not only reshaping traditional manufacturing processes, but are also significantly impacting key sectors like healthcare with a focus on improving patient care, operational efficiency and the overall industry’s model. Particularly, we’re seeing a greater opportunity for impact when it comes to growing areas, such as telemedicine & remote care, blockchain data security, personalized medicine and supply chain optimization. 

Let’s Start with the Big A’s—AI and Analytics. 

Artificial Intelligence (AI) and big data analytics are at the forefront of Industry 4.0's impact on healthcare. These technologies enable the processing and analysis of vast amounts of healthcare data, leading to more accurate diagnoses, personalized treatments and improved patient outcomes. AI-driven analytics can identify patterns and trends in patient data, supporting clinical decision-making and predictive analytics. 

Machine learning algorithms can analyze medical images, such as X-rays and MRIs, as well as detect abnormalities with high precision. AI-powered diagnostic tools assist healthcare professionals in making informed decisions, reducing the likelihood of human error. Furthermore, predictive analytics models can forecast disease outbreaks, patient admissions and treatment outcomes, enabling healthcare providers to allocate resources efficiently and improve care delivery. 

Specialized in servicing healthcare customers, Alorica has been able to support its clients in delivering significant outcomes through our data analytics. For several major insurance providers in the US, we helped reduce costs by a combined total of $140 million from our claims analysis and decrease enrollment turnaround time by 60%, while improving predictability through proactive management. With another healthcare client, we achieved 30% growth in patient access traffic by re-engineering processes through AI and analytics tools. 

Then Comes the Supercharged Interconnected IoMT. 

The Internet of Medical Things (IoMT) is a critical component of Industry 4.0 in healthcare. IoMT involves interconnected devices that collect and transmit health data, facilitating real-time monitoring and decision-making. According to a study by Tuli (2022), IoMT applications range from wearable health monitors to smart hospital systems, enabling continuous patient monitoring and timely medical interventions.  

Wearable devices, such as smartwatches and fitness trackers, monitor vital signs like heart rate, blood pressure, and oxygen levels. These devices provide valuable data that can be analyzed to detect early signs of health issues, allowing for proactive care. According to the Health Information National Trends Survey, one in three Americans use a wearable device to track their health and fitness. Additionally, smart hospital systems utilize IoT sensors to monitor patient conditions, manage hospital resources and ensure optimal patient care. The global wearable medical devices market size was valued at $81.15 billion in 2023 and is projected to grow from $91.21 billion in 2024 to $324.73 billion by 2032.   

Of Course, There’s Also Robotics and Automation. 

Robotics and automation play a significant role in enhancing the efficiency and precision of healthcare services. Surgical robots, such as the da Vinci Surgical System, enable minimally invasive procedures with greater accuracy and control. These robots assist surgeons in performing complex operations, reducing recovery times and minimizing surgical risks.  

The use of artificial intelligence (AI) and automation technologies, such as RPA (Robotic Process Automation), is reducing the reliance on repetitive and manual tasks that prevent healthcare workers from focusing on higher-value activities. According to McKinsey, 33% of healthcare providers’ tasks are likely to be automated, which can reduce costs and improve healthcare affordability. 

The areas that can benefit the most from automation are highlighted as customer service and scheduling, regulatory compliance, health insurance processing and healthcare analytics. The healthcare industry can bridge the gap between information and availability to end users by adapting to these use cases. 

Through automation, Alorica has been able to achieve the following benefits to enhance the patient experience: more personalized communication, reduced wait times, improved transparency, availability through multiple channels, 24/7 access and options to provide real-time feedback.  

What about the Growing Demand for Telemedicine & Remote Care? 

Telemedicine leverages digital communication technologies to provide remote medical consultations, diagnosis, and treatment, enabling patients to connect with healthcare providers from the comfort of their homes while improving access to care and reducing the need for in-person visits. Despite advancements in digital communication over the years, telehealth adoption remained limited until the pandemic necessitated widespread virtual healthcare delivery. The COVID-19 global health crisis and subsequent lockdowns made at-home telehealth essential, dramatically increasing its adoption, research, government backing, and industry investment. Consequently, the global telehealth market, valued at $83.5 billion in 2022, is anticipated to grow at a compound annual rate of 24 percent from 2023 to 2030, according to Grand View Research. 

With Industry 4.0, remote care continues to become far more advanced and accessible faster. Given the excessive costs associated with in-person care, telehealth presents tremendous opportunities. McKinsey estimates that up to $250 billion of current US healthcare spending could potentially transition to virtual platforms. What was mainly used as a tool for basic consultations has now become an effective way to manage care for hyper-specialties, chronic conditions, post-hospitalizations, elderly patients, mental health as well as medical professional training—all accessible through individuals’ preferred devices.  

Don’t Sleep on Blockchain for Data Security! 

Data security and privacy are of utmost importance, particularly in the healthcare industry, given the sensitive nature of patient information. Blockchain technology, a key element of Industry 4.0, offers advanced solutions for secure data management. Blockchain's decentralized and immutable ledger ensures that medical records are tamper-proof and accessible only to authorized individuals. As data security continues to become a heightened risk for patients and healthcare organizations, it’s necessary to consider these promising solutions. 

However, blockchain is not yet a fully mature technology today, nor can it be quickly adopted; there is a multitude of technical, organizational, and behavioral economics road bumps that must be addressed before a health care blockchain can be implemented by organizations nationwide. Although it will take some time before we see widespread benefits from this technology, it is expected to grow to a market size of $815.65 million in 2026 within the pharma and medical sector.  

It All Comes Down to Personalized Medicine. 

A new practice of healthcare called “4P” has emerged, which stands for Personalized, Preventive, Predictive and Participatory. The paradigm of traditional medicine, which focuses primarily on curative treatment, is now shifting to a practice that focuses more on prevention than cure. This approach proposes a new therapeutic framework, supported by technology-enabled services, to treat not only the symptoms, but also the underlying causes of disease, with greater emphasis on prevention while promoting overall balance. It is for this reason that the World Health Organization (WHO) defines health as “a state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity.”  

By leveraging genomics, AI and big data, personalized medicine tailors treatments to individual patients based on their genetic makeup, lifestyle and health history. This approach ensures more customized therapies and minimizes adverse effects. For example, the third leading cause of death in the US is medical errors, per a Johns Hopkins study. This issue can be alleviated by harnessing the power of advanced technology, enabling patients and health care providers to access a single source of truth for medical records. 

And There’s the Added Benefit of Supply Chain Optimization. 

Leveraging Industry 4.0 technologies in healthcare extends to supply chain management. IoT devices, AI and blockchain improve the transparency and productivity of the supply chain. For example, IoT sensors track the location and condition of medical supplies, ensuring timely delivery and optimal storage conditions. 

Supply chain data is often siloed, outdated, and inconsistent across organizations. Integrating data from suppliers, manufacturers, shippers, and customers provides the entire supply chain visibility. At the same time, data-driven analytics enable scenario modeling and risk detection; data analytics provides key insights that enable supply chain optimization in healthcare manufacturing. By analyzing historical data and trends, patterns emerge that help identify inefficiencies, cost savings and opportunities for process improvement.  

Keeping it Real about the Challenges and Future Direction. 

Industry 4.0 offers substantial benefits for healthcare, yet several barriers must be addressed to unlock its full potential. One critical obstacle is the integration of disparate systems and technologies across healthcare organizations. Investments in interoperable systems are imperative to communicate and share data efficiently.  

Data privacy and security present another challenge in the adoption of Industry 4.0 technologies in healthcare. Breaches have exposed 385 million patient records from 2010 to 2022, according to federal records. Protecting patient data requires robust cybersecurity measures and compliance with stringent regulatory standards. Ensuring the confidentiality and integrity of healthcare data remains paramount to maintaining patient trust and meeting regulatory requirements, especially since there has been an increase in cyberattacks against the cloud in healthcare. According to the 2023 Ponemon Healthcare Cybersecurity Report, 63% of respondents reported an average of 21 cloud compromises from 2021 to 2023.  

Moreover, realizing the benefits of Industry 4.0 in healthcare demands a strong infrastructure and training. Healthcare professionals need to effectively learn how to utilize advanced technologies such as data analytics, artificial intelligence (AI) and digital tools. Equipping healthcare providers with these skills enhances their clinical capabilities and improves patient outcomes. 

The future of healthcare—an industry that deeply impacts all of us—depends on the continuous evolution and integration of Industry 4.0 technologies. Advancements in AI algorithms, IoT devices and data analytics tools promise to improve patient care and operational efficiency. Collaborative efforts among technology developers, healthcare providers and policymakers will play a pivotal role in driving innovation and overcoming the obstacles associated with Industry 4.0 in healthcare.