Healthcare spending is projected to rise by 5.3 percent in 2018. The healthcare spending, according to the CMS, was $3.5 B in 2017. Moreover, CMS projections indicate that the average yearly increase in spending will be around 5.5% and that the total spending would contribute close to 20% of the GDP by 2026.
This spending has to be curtailed and there is a need to implement cutting-edge technology to drive down cost, improve efficiency, and serve patients better. This is one of the main reasons tech giants are looking at entering this space. This argument is not without substance. Recently, there have been a number of activities which suggest that tech giants like Alphabet, Amazon, and Apple are focusing on the healthcare space.