Virtual MSK startups on a mission to save patients from surgery
The background
Musculoskeletal (MSK) conditions are one of the most pressing and costly health problems, with about 1.71 billion people worldwide affected, according to the WHO. Among musculoskeletal disorders, low back pain causes the highest burden, with 568 million people facing these conditions. Low back pain is the leading cause of disability in 160 countries.
About one in two Americans suffers from MSK conditions, and about 25% of the U.S. workforce is affected. For employers, chronic musculoskeletal pain management costs $20 billion annually—around 17% of employers’ healthcare budgets.
The new players
With this in mind, it's no wonder that founders and venture capitalists are extremely active in the field. Last week, the Portuguese MSK care startup SWORD Health announced a $163 million Series D funding round and revealed a valuation of more than $2 billion. Even in times of huge funding rounds, this is really remarkable for a six-year-old European startup.
SWORD Health provides an at-home therapy pairing therapists with a wearable band. The startup is not alone in this approach; its biggest competitor is Hinge Health. But there are also other virtual MSK care startups like Kaia Health and general digital health players that focus on MSK, including Dario Health.
Our perspective
Virtual MSK startups promise a significant reduction in treatment costs. Both SWORD Health and Hinge Health claim to prevent two-thirds of surgeries.
SWORD Health and Co. exemplify two of the most important trends in the healthcare sector: that treatment and consequently value creation are moving
- out of the clinics and into the patients' living rooms, and
- away from maximum treatment toward prevention.