Why invest in diagnostic technology upgrades

Back when I worked in health technology assessment, we occasionally reviewed diagnostic technologies. The impact of accurate diagnosis can be substantial not just for the patient but for the system, due to the iterative nature of diagnosis and treatment and the impacts of inappropriate treatment. The concept of "diagnostic safety" refers to the existence of an optimal amount of diagnostic testing (the point where the incremental cost of additional diagnostic testing exceeds the incremental benefit), but where that point is, is rarely obvious in practice. This is why it's worth investing in diagnostic technologies that support early accurate diagnosis. This recent OECD report finds that up to 15% of diagnoses are inaccurate, delayed or wrong. The direct financial burden is estimated to be 17.5% of total healthcare expenditure, or 1.8% of GDP in a typical OECD country. With NZ's low investment in diagnostic technologies, this issue could be costing us even more than other OECD countries, driving low productivity in the health system and keeping New Zealanders from the treatment they need. https://lnkd.in/geYZbEqx.

The shift from conventional X-ray imaging to digital X-ray machines brought significant financial implications for healthcare facilities. The initial investment in digital radiography (DR) systems was notably higher than conventional systems, but the advantages outweighed the costs over time. 👉 Initial Capital Investment Digital X-ray machines typically cost more upfront compared to conventional film-based systems. Infrastructure Upgrades: Facilities often needed to upgrade their infrastructure, including IT systems and software for image storage and management, to accommodate the new digital systems. This further increased the initial cost. 👉 Reduction in Recurring Costs Elimination of Film and Chemicals: One of the most immediate financial advantages of digital X-ray systems is the elimination of film and chemical processing. Conventional X-rays required ongoing purchases of film, chemicals, and maintenance of dark rooms, which added up significantly over time. 👉 Operational Efficiency and Throughput Digital X-ray systems significantly reduce the time required for capturing and processing images. While conventional X-ray films needed to be developed in a darkroom (taking several minutes or more), digital images are available almost instantly. This faster turnaround allows radiology departments to see more patients, increasing revenue generation. With digital X-rays, the quality of images can be assessed instantly, reducing the need for repeat scans. In contrast, conventional X-rays often resulted in poor-quality images that weren’t identified until after the film was developed, requiring the patient to return for a second scan. 👉 Improved Diagnostic Capabilities and Patient Outcomes Digital X-rays provide better image resolution, allowing for more accurate diagnoses. This improved diagnostic capability can lead to better patient outcomes and can help attract more patients, as facilities can market their use of cutting-edge technology. Digital systems require less radiation to produce high-quality images, which is a significant benefit for patient safety. This can also be an important factor for healthcare facilities in terms of compliance with radiation safety regulations. 👉 Financial Payback and Long-Term ROI Though the upfront costs are high, healthcare facilities generally experience a strong return on investment (ROI) over time. Increased patient throughput, elimination of film-related costs, and reduced storage expenses contribute to cost recovery. Digital X-rays can be easily shared with other specialists remotely, enabling quick consultations and diagnoses without the need for physical film transport. This capability is especially useful in teleradiology services, where images can be interpreted by radiologists in remote locations, improving access to care and reducing costs. #biomedical #engineering 💙

Diagnostics is no longer about running tests. It is about building infrastructure. We are watching a fundamental shift in genomics that mirrors what is happening across diagnostics more broadly. The industry is moving from genotyping arrays to whole genome sequencing (WGS). Not as a feature upgrade but as a platform reset. Arrays were built for a test centric world. Preselected markers. Fixed content. One time answers. They work great when diagnostics is episodic. But diagnostics is becoming longitudinal, data driven, and embedded into care delivery. Whole genome sequencing changes the equation. From a data perspective, arrays are snapshots. WGS is a durable data asset. Capture the full genome once and interrogate it continuously as new algorithms, reference panels, evidence, and use cases emerge. The value of the data compounds over time (Warren Buffett loves this!) From a quality standpoint, WGS enables more consistent genome wide signal, stronger performance across diverse populations, and better foundations for polygenic risk, ancestry, prevention, and downstream multiomic integration. This is exactly what population health and precision diagnostics require. From an economics standpoint, at scale, modern WGS approaches ultimately deliver better unit economics than arrays by turning a one time genome into a reusable asset. The cost structure finally aligns with infrastructure thinking. A recent example of this transition in action is the MyHeritage upgrade to WGS powered by Gene by Gene and Ultima Genomics. I’m sure we will see more of this! MyHeritage became one of the first major consumer DNA testing companies to adopt WGS across more than one million tests per year, moving from genotyping arrays that read about 700k base pairs to WGS covering nearly 3 billion. These industry leaders are deeply in tune with where diagnostics is heading and have already made the shift from test based models to genomic infrastructure. The smartest players are not running more tests. They are building genomic infrastructure. Diagnostics is becoming the operating system of healthcare. Genomics is becoming one of its most valuable data layers. ♻️ Repost this if you're following diagnostics, and follow me at Eliad Josephson for more. #Diagnostics #Genomics #WholeGenomeSequencing #WGS #PrecisionHealth #PopulationHealth #DigitalHealth

Diagnostics in emerging markets - The need is now! I have discussed previously about the importance of health systems and not silos. Another example of an integral part of a functional health system is diagnostics. It raises questions: Why have so many markets yet to invest sufficiently in diagnostics? How does this undermine the future management of communicable diseases and the current growing pandemic of NCDs? To confirm, by diagnostics, I mean pathology and imaging. Many markets now require an increased focus on diagnostics for many reasons. For example: - The need for timely and accurate diagnosis: How can effective and essential treatment planning be achieved without pathology and imaging? - Better early detection: Early diagnosis through screening tests can detect diseases earlier when they are more treatable. - Monitoring and Management: It's not just detection. Rolling diagnostics are vital for monitoring disease progress and the effectiveness of treatments. - Improving Treatment: Imaging and pathology results help guide surgical procedures and other treatments. So, what can be done? There is a need to adopt relevant strategies with innovative thinking, especially for diagnostic access in underserved areas. Examples include: Telemedicine and Telepathology: Utilizing telemedicine. Telepathology allows for the remote examination of pathology slides, enabling timely and accurate diagnoses. Mobile Health Units: Deploying mobile health units equipped with diagnostic tools can bring essential services directly to underserved communities. Implementing POCT devices can offer immediate diagnostic results at the patient's location. It's not going to be easy to effect the necessary change. Challenges include: Working with limited financial resources: Many developing countries must work within constrained budgets and prioritize immediate healthcare needs. New thinking for diagnostic services provision is required. High Costs: Diagnostic equipment and technologies can be expensive to purchase, maintain, and operate. Traditional purchasing and contracting models are no longer effective. Infrastructure Deficiencies: It's not just about equipment. Many countries need more infrastructure, such as reliable electricity and better transportation networks. Lack of Trained Personnel: More healthcare professionals, including radiologists, pathologists, and laboratory technicians, must be trained in diagnostics. New models and integrated thinking is required. Can digital solutions help address this challenge? Governments require support and advice on the importance of diagnostics. Addressing these challenges requires a multifaceted approach with new, innovative thinking. There is a need for better collaboration with non-governmental organizations (NGOs), government agencies, and the private sector working together to align resources and innovative thinking. Overall, it confirms that system and not silo thinking is required.

Upgrading your MRI isn’t just a technical decision — it’s a sustainability strategy, a financial strategy, and a patient‑care strategy. The latest piece from Today's Medical Developments Magazine highlights a powerful truth: 👉 Modernizing MRI systems doesn’t require replacing them. 👉 Sustainability and clinical excellence can — and should — reinforce each other. GE HealthCare’s MRI upgrade program shows how keeping the magnet — the most energy‑intensive, resource‑heavy component — while modernizing software, gradients, RF coils, and computing platforms can elevate image quality, reduce scan times, and dramatically cut waste. Why this matters: 🔹 30+ years of magnet lifespan preserved instead of scrapped 🔹 Reduced emissions & material waste through smarter lifecycle management 🔹 Higher diagnostic performance thanks to AI‑enabled hardware & software upgrades 🔹 Lower downtime, faster implementation, and better experience for both staff and patients This is exactly the kind of innovation our industry needs — practical, scalable, sustainability‑driven progress that strengthens competitiveness while delivering better outcomes. The article captures beautifully how collaborative engineering + lifecycle thinking can transform the economics and environmental footprint of imaging. As someone working across international markets, I see every day how essential it is to help providers extend asset life, protect budgets, and advance patient care — without compromising sustainability. This upgrade model is a blueprint for doing all three. If you're passionate about radiology, operations, or sustainable healthcare transformation, this one is worth a read. 🔗 Full article in the comments! #Radiology #Sustainability #HealthcareInnovation #LifecycleManagement #MRI #GEHealthCare

Singapore’s cancer data is a good reminder of what actually moves the needle. Cancer cases continue to rise, but deaths have fallen significantly over the past decade. That does not happen by accident. It happens because of better screening, earlier detection, and earlier intervention. And this is why Chen Capital invests in healthcare, cancer and longevity startups. Cancer is most dangerous when it is found too late. Early detection changes everything. Survival rates improve. Treatments become less invasive. Outcomes become more predictable. Lives are saved. That belief is what led us to back companies like Lucence, which is developing liquid biopsy and multi cancer early detection technologies. A simple blood test that can surface cancer signals before symptoms appear is not just impressive science. It is practical, scalable, and impactful to saving lives all around the world. For me, this is what meaningful capital allocation looks like. Backing technology that moves healthcare upstream. From reactive treatment to proactive detection. From extending lifespan to extending healthspan. Returns matter. But so does knowing that the capital you deploy is aligned with the outcomes you want to see in the world. This is one area I am deeply committed to - and I hope to continue the work in investing for the betterment of lives around the world. Link to article: https://lnkd.in/g8VETkWz

The world has the technology for better diagnostics. But that’s not enough – we need to have that technology easily accessible to us. My annual check‑ups used to be nurses drawing multiple vials, a distant lab processing them, and a doctor calling a few days later with my cholesterol numbers. Today a single finger‑prick gives me that result in minutes. Point‑of‑care (POC) diagnostics have seriously reduced the waiting game, benefiting both patients and the system. But while technology is revolutionizing the speed of diagnostics, one of our biggest blocks is that we still rely on overseas labs and tests – which take time. Plus, if those supply chains run dry, this becomes an unacceptable risk given our high chronic‑disease burden. The domestic POC market is already worth about USD 490 million and growing. While AI and tech hype surrounds the sector, I argue that our first priority should be investing in local capability like infrastructure, R&D and manufacturing hubs. Local production would support diabetes and cardiovascular monitoring, as well as more genomic testing, and give us the capabilities for rapid, resilient responses as well as more intensive data collection. The ‘smart’ direction for our diagnostics sector is maybe not related to technology, it is localization. What do you think?