Metaverse in healthcare is exciting — but not compelling enough to adopt

The Situation: The triple aim of care (cost of care, health outcomes, and experience of care) continues to deteriorate. The adoption of emerging technologies such as Metaverse, Web3, and blockchain are being explored to change the trajectory of the triple aim, but there does not appear to be evidence of a meaningful impact…yet.

Metaverse: another new kid on the block

Emerging technologies tend to be distracting. They buzz around with promise initially, but it takes time to realize outcomes, diminishing the sheen of the early promise. Understanding that technology is critical to accelerating the realization of that promise, so let’s get grounded on the metaverse.

The metaverse is a virtual space where users can interact with a computer-generated environment and other users via digital versions of themselves (avatars). We believe the metaverse cannot be owned; it can only be contributed to and participated in, much like the internet. We see it as the experience interface for Web3, as Exhibit 1 describes.

Web3 is the evolution of the internet that can deliver the original promise to optimize experiences for customers, employees, and partners by flattening hierarchies through blockchain and its intrinsic construct to allow users to own their data.

Exhibit 1: Web3 competencies, technologies, and outcomes

Note: Vendor examples are representative and illustrative only
Source: HFS Research, 2022

The metaverse may be just another fancy video game when it comes to healthcare

Stakeholders across the healthcare ecosystem appear intrigued and excited by the possibilities of the metaverse. Some have publicly stated their interest in developing use cases and investing in the metaverse. There are flavors of it using augmented reality (AR), virtual reality (VR), and artificial intelligence (AI). We review some potential use cases here to better understand the possibilities.

Exhibit 2: Use cases to use Metaverse in healthcare

The possibilities are encouraging but will require investments, participation by a critical mass of consumers, and evidence of improved outcomes for metaverse to be sufficiently sticky in health and healthcare.

Metaverse investments are small but real and global

There are interesting forms of participation by stakeholders across the globe and around the healthcare ecosystem. Some of these appear to be a stake in the ground without much around it, while others have strong use cases and have operationalized their ideas.

For instance, CVS Health filed for a trademark to sell goods and services in the metaverse that would establish an online store and create downloadable virtual goods ranging from prescription drugs to beauty and personal care products. Similarly, Pfizer is registering metaverse domains as a defensive mechanism from competition and other adversarial actors.

Others are beginning to operationalize their ideas, like India’s Yashoda hospitals acquiring space on Decentraland (a 3D-enabled, browser-based virtual world platform) as it creates an immersive virtual clinic. The Thumbay Group is opening UAE’s first metaverse hospital to address medical tourism needs.

Digital health companies like IoTeX are developing projects like the HealthBlocks project, which would reward users for changing their daily habits to live a healthy lifestyle. Another is AccuVein, a vein imaging system that eliminates the fear of bruising after an injection procedure, allowing cosmetic surgeons to see the vast network of veins and blood vessels beneath the skin before treatment.

The Bottom Line: Healthcare and life sciences leaders must be selective in their use of the metaverse and maintain discipline about ensuring it materially improves the triple aim of care before they invest and operationalize the metaverse.

We must maintain a healthy dose of skepticism about metaverse in healthcare, based fundamentally on its limitations to impact the triple aim. One can visit a therapist remotely (via phone or video) without having to use an avatar to get counseling or a prescription. Interoperability is a significant challenge that will get worse with multiple metaverses that don’t talk to each other, making the experience for health consumers a nightmare (some might argue we are already there!).

On paper, Metaverse use cases are compelling and have the potential to be realized, positively impacting the triple aim of care. But enterprises must reimagine business models, refashion delivery constructs, and be bold about enhancing health outcomes.

Yet caution must remain. You must not unnecessarily use technology just because it is there, or it will worsen healthcare costs and outcomes.