Fitbit is fortifying its activity tracker in a bid to make it more palatable to healthcare providers.
Company officials recently announced that its popular line of trackers is now HIPAA-certified, ensuring that data captured and stored meets the standards of protected health information in healthcare settings. This enables the company to work on wellness programs with HIPAA-covered organizations, such as providers, health plans and self-insured employers, as well as participating in population health projects.
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This "will really allow us to work more closely (with companies with HIPAA obligations) in a more integrated fashion to be able to help build more effective wellness programs using Fitbit technology," Amy McDonough, vice president and general manager for Fitbit Wellness, told Fortune. She added that certification "doesn't change … the day-to-day experience with the device or the interactive features of the website or mobile app."
HIPAA certification also plays into the company's move toward more corporate partnerships, which currently account for some 10 percent of Fitbit's total revenues and represent one of the fastest growing segments of the business. Fitbit has partnerships with Geico, Quicken Loans, Bank of America and BP, among others, and has just added Target to that list.
Target officials say they'll give their 335,000 employees a free Zip clip-on tracker, which costs $59.95, or they can purchase one of the more advanced wristbands, with the company subsidizing the cost. Employees will then be invited to a month-long corporate wellness competition, with the winning team getting a $1 million donation to go to the charity of their choice. Other corporate wellness programs are planned for the future.
[See also: EHRs embrace health and fitness data]
"The cost of a Fitbit device and the associated services is very small compared to the savings from a healthier employee population," Fitbit CEO James Park told Bloomberg, adding that he expects the corporate wellness market to top $11 billion by 2019.
According to Fortune, San Francisco-based Fitbit sits atop the wearable market in the latest IDC report, with a 24.3 percent share of the market; right behind is Apple Watch, with slightly less than 20 percent of the market.
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