Healthcare Organizations: What Does Regarding Themselves as Tech...

Healthcare Organizations: What Does Regarding Themselves as Tech Firms Mean

Healthcare Tech Outlook | Wednesday, November 25, 2020

Branding a startup as a technology outfit instead of a healthcare business may indicate to consumers that the enterprise aims to take the professed experience of consuming the service or product seriously while employing a consumer-oriented approach that has so far eluded healthcare incumbents.

FREMONT, CA: From digital health startups to chief care groups, firms are increasingly branding themselves as technology companies first and healthcare companies second. Shunning ties to the mission-driven healthcare sector might seem counterintuitive at best and heretical at worst.

Yet, for many new participants, such an approach is becoming the norm. Below are two weaknesses unpacked of the healthcare label that may be driving a more expansive identity crisis for the firms, and suggest that this trend signifies a wake-up call for healthcare.

Healthcare Seldom Refocuses Its Attention On The Consumer.

Even though healthcare is decisively established as a service industry, it has not always positioned a premium on customer satisfaction. The experience of circumnavigating the sector can be a whole hostile experience for patients. They are challenged by long wait times for clinic appointments, perplexing layouts and poor wayfinding in hospitals, and incomprehensible coverage denials by insurers. In some respects, it seems as though each facet of the industry is determined to warrant insufficient involvement for patients.

Branding a startup as a technology outfit instead of a healthcare business may indicate to consumers that the enterprise aims to take the professed experience of consuming the service or product seriously while employing a consumer-oriented approach that has so far eluded healthcare incumbents.

Technology Companies Bring In New Investors

The healthcare delivery system is also burdened by unpredictable intricacies, including a third-party payer system, several regulatory constraints, and a trend toward mergers and consolidations that lead to an ever more uncompetitive marketplace. Given these features and others, venture capitalists have been primarily opposed to tackling the sector.

According to research data, venture capital poured more than $20 billion a year into healthcare over the past two years. Biotech and pharma accounted for over three-quarters of these investments, while health services and systems signified less than a fifth. Branding an organization as standing outside of real healthcare may reassure investors that an optimistic return on investment is attainable and realistic. Investor confidence, in turn, produces larger funding rounds and a higher valuation.

Check out: Top Tech Solutions for Healthcare

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