The $4+ Trillion healthcare market is largely seen as “ripe for disruption.” However, healthcare’s complexities make it significantly different than other industries that have been revolutionized by innovation, such as travel, retail, finance, etc:
It’s highly regulated due to privacy and patient safety concerns.
It’s challenging to digitize.
It’s existing value networks are complex and intertwined.
And, it is embedded in the emotional, cultural and political fabric of our society, further slowing innovation and change.
The Health Innovation Imperative
The US spends 2X more money on healthcare than any other country in the world: $3.4 Trillion, or $3,400 Billion each year. This represent 17% of the overall economy in the US, while the average developed country spends around 8.8%. Unfortunately all this spending does not result in healthier people or longer lives. In fact, the US is ranked 47th globally in health outcomes.
This is unsustainable. Our society must find a way to reduce costs AND improve outcomes.
We need innovation in health.
Drivers of change
Despite the challenges to innovation, change is an unstoppable force meeting the almost-immovable object of the health industry. We are already seeing three long-term trends starting to play out in the market:
Care moving out of the hospital
Rise of the health consumer
Consumer Tech and Traditional Retailers are entering the market, creating a whole new set of competitors
Over the next decade, timing and approach is critically important to successful health innovation.. It is a huge opportunity that requires specific knowledge, experience.