Backed by venture capital and private equity firms, more than $50 Billion have been invested in ”Digital Health” companies in the last 7 years.
Backed by venture capital and private equity firms, more than $50 Billion have been invested in ”Digital Health” companies in the last 7 years. In addition, heavyweights such as Google and Amazon have reached into their deep pockets to hire hundreds of leading physicians and researchers, working away in secret labs.
These companies range aim to disrupt various parts of the healthcare value chain in hopes of generating significant benefit for the patient, while grabbing a piece of the market projected to grow to $6T by 2028.
Incumbent health care players are struggling to determine when to rely on unproven, yet promising digital health solutions versus tried-and-tested levers. Should a hospital system increase volume by increasing its physical footprint or creating an ecosystem of digital funnels? To what extent can a Payer reduce medical costs by optimizing reimbursement rates versus deploying care navigation and redirection tools?
Consider the incumbent strengths below, compared to the new entrants:
While venture capital backed new entrants are experimenting, incumbents have tremendous sources of advantage that can be further strengthened by applying digital capabilities.
By carefully studying the impact of digital solutions on traditional levers, incumbents can create a portfolio of actions that improves on traditional strengths and creates new ones. Some examples are below.
Annual and ongoing capital allocation decisions aim to strike a balance between short-term and long-term results. How can an executive team make informed bets?
FQA helps clients determine:
Purpose – what is the role of digital health in serving our customers?
Aiming point – where are digital health investments most value-creating?
Trade-offs – how do they fit along-side traditional value-creating levers?
Capability gaps – how and when do we fill people, process and technology gaps?
We believe that the incumbents can not only defend against the new entrants, but can create new sources of competitive strength. FQA can help make it a reality.
See our related whitepaper on Interoperability issues: