On Monday, March 31 three healthcare innovation thought leaders sat down to discuss the challenges and opportunities of harnessing technology to promote greater accessibility. It also marked the kickoff of cohort 7 of the Capital Readiness Program creating a confluence of healthcare stakeholders.
Those 10 promising startups and the few dozen attendees representing payors, providers, clinicians, and industry are all working to make healthcare better – and would benefit from receiving an honest and transparent look into what is needed for success.
Everyone in the room understands that the need for innovation is more urgent than ever. About half of U.S. adults say it is difficult to afford health care costs – which has led to one in four people skipping or postponing needed care.
Here’s how the Think Tank discussion unfolded between Gemma Lowery, Technology Manager of Digital Solutions at ChristianaCare, Matt Swanson, the Founder and CEO of Reciprocity Health, Tom Thornton, VP of Jefferson Ventures at Jefferson Health, and moderated by our President & CEO Tiffany Wilson.
The Current State of Healthcare and Innovation
Healthcare is having something of an existential crisis. What worked before isn’t always working now, and there are mounting pressures to make healthcare more sustainable, more effective, and ultimately better for the patient. This may mean finding ways to keep the patient healthy and in their home for longer, rather than staying in the hospital or a long-term care facility.
It's a common – and fair – complaint that the healthcare industry is often reluctant to innovate the patient care process the same way other industries have. Patients note that grocery stores can deliver customized deals to their phone the second they enter the door to help ensure a seamless experience, yet their doctor’s office is asking them to fill out paperwork by hand – with information they’ve already given the office previously – every time they visit.
There are a few things that are working right now, and these approaches can be the agents of change needed in the industry.
“What’s working is partnerships,” noted Gemma. Matt agrees, explaining that sustainable partnerships, rather than isolated one-time collaborations, are the key to transformative solutions. Tom added that one positive outcome of the existential threats healthcare is facing is that the industry is becoming less siloed. “People are being more open to other systems” than they used to be, he explained, and this is leading to fruitful outcomes.
Overcoming Today’s Market Challenges
Startups with innovative solutions need to be ready to prove their case – “The days of ‘yell out a good idea and having an investor write a check’ are over,” Matt cautioned. Capital availability has peaks and valleys, and the industry is arguably in a valley right now.
Instead of hoping for a quick cash grab, it’s important that companies work on building trusted relationships – thinking not only about what their product accomplishes, but what it truly offers everyone else in the room. “Figure out: What does success look like to the other person,” Gemma recommended. And keeping that in mind will help establish trust.
“We get a lot of questions asking, can we get access to all your PACS (Picture Archiving and Communication System) data? Right in the beginning. That’s not the beginning of a trusting relationship,” explained Tom. Of course startups will find patient data useful – but what’s in it for the provider? “[We’re wary of] companies who haven’t completed their product who are interested in co-development. We want you to prove [it] to us, so we can be partners.”
For Gemma, discipline is important – as is deeply caring about what you want to change. “It has to matter to you,” she explained. Within the complex healthcare matrix and rapidly changing norms, the odds that you’ll come across a challenge that is hard to surmount is high. If you truly care about delivering a solution that helps solve a problem, though, the chances that you push through are much higher.
And it’s important to think about investors and strategic partners as more than just a pocketbook. Jefferson Ventures, for example, invests in opportunities where they actively co-develop new technologies, treatments, or solutions – rather than just providing capital.
“Don’t be transactional,” advised Tom. “Think about leveraging an ecosystem.”
Is AI the Silver Bullet of the Future?
It’s no secret that Artificial Intelligence (AI) has been dominating conversations in the healthcare space, with many hailing it as an all-purpose solution to every potential problem. Currently 48% of businesses use some degree of AI to utilize big data, and that number will continue to grow over the next several years.
While AI holds potential, the Think Tank discussion was a frank exploration of AI’s limitations, with all three healthcare experts noting that startups tend to overpromise and underdeliver when it comes to what AI is capable of actually moving the needle on.
“AI companies are saying they can do anything,” Tom said – and it’s not always a good thing. “There needs to be focus on leveraging data to achieve extraordinary patient care. Focus matters. This is a technology trying to solve every problem. Not my problem.”
Rather than putting all eggs in the AI basket, Tom thought advancing and scaling telehealth could be a gamechanger in making healthcare more accessible. The COVID-19 epidemic showed that it can be done, but post-shutdown, many organizations have reverted to in-person care for all appointments.
According to the American Hospital Association, the U.S. will face a shortage of up to 86,000 physicians by 2036 – telehealth could be critical for addressing this, allowing patients to access physicians beyond their physical constraints. And further, a study cited in the National Library of Medicine demonstrated “significant improvements in patient health and cost savings due to telemedicine interventions, with notable increases in patient satisfaction and accessibility.”
Gemma noted that she looks for companies that are “Working on a big enough pain point – when something is broken,” that’s when there is the biggest potential for a successful relationship.
Ultimately, advanced technology for technology’s sake is pointless. AI and other high-tech options need to show they can improve patient care – otherwise, their potential impact is limited.
Healthcare Innovation’s Path Forward
In the healthcare innovation space, not all paths are linear. “An honest start over is better than an on-time failure,” explained Gemma.
Investors are no longer throwing money at good ideas that might solve problems – they’re looking for proven solutions. That’s why building trusted partnerships between industry, healthcare systems, and the patient population is going to be the key for overcoming system friction, bringing healthcare advancements to those who need them most.
The traditional siloed healthcare industry has been undergoing many changes – and faces several threats. But sometimes, that’s not a bad thing – and can be the spark needed to ignite change. As Gemma observed, “when the world is on fire it creates change. Change is the biggest lever.”
