Startups are taking the world by storm; it seems like now, you can’t possible go through the day without hearing the word, especially given that many—such as Joyable and Ruby Cup—are making a positive impact in the world. Still, you’d be surprised to find that there’s one industry in particular where startups get mixed results: healthcare. Like finance, law and education, healthcare is a field with one of (if not) the most extensive regulations.
It makes sense, given that lives are literally on the line. Equally as intriguing is that we are talking about a multi-billion-dollar industry (investors gave $16.1 billion to healthcare in 2015 alone), loaded with opportunity for tech startups to become successful while saving lives, improving hospital work flow, and speeding up research. That being said, we’ll examine the ways startups are succeeding in the healthcare industry, as well as why a startling number of them fail.
Startups that Are Doing It Right
Flatiron Health is one of a handful of successful startups that aced the healthcare industry. As reported by Inc., the young startup created a tech platform that shares data collected from cancer patients (information remains anonymous) with research and pharmaceutical facilities. As of now, 260 clinics use Flatiron Health’s cloud-based invention.
By sharing health information more easily, hopefully cutting-edge cancer treatments and medical options can be more readily available.
Majority of Healthcare Startups Are Not Cutting It
While Flatiron Health and other startups succeed in the world of healthcare, a majority are barely making it—if that. Forbes reports that as many as 98 percent of startups funded by angel investors fail in the healthcare industry because of a poorly thought-out business marketing strategy and uninspiring business model.
The Story of Healthcare.gov
Nonetheless, the tech startups that do succeed can make a huge difference in individuals’ lives. As is the case with Marketplace Lite, a young tech startup, rebuilding healthcare.gov from the ground up. As told by The Atlantic, healthcare.gov originally was a failing website. On launch day, only six people were able to sign up for healthcare insurance. The reason for such the low signup numbers had more to do with the site’s poor login features than the number of people trying to sign up.
Wellframe delivers a mobile experience featuring a secure two-way communication channel to connect patients with care providers. The company also offers a mobile data collection system that is, cloud-hosted and scalable to any number of users. Wellframe’s artificial intelligence engine for health state modeling, prediction and dynamic clinical protocol optimization uses data from a patient’s interaction with the care plans to optimize the system, and the company has developed a lightweight cloud-hosted care management EHR that has been successfully integrated into clinical workflows.
Wellframe’s mobile platform for care management and patient engagement extends therapeutic relationships to promote patient adherence and improve financial outcomes for health plans and systems.
Wellframe enables organizations to extend the reach of their existing care management services, while providing a higher quality of care to members and improving patient outcomes. Wellframe’s intelligent system engages high-risk patients and creates a personalized patient experience, which is delivered in a simple daily health check-list via mobile technology.
Wellframe has demonstrated success working with the health system’s most socially and medically complex —and costly— patients. These are the individuals for whom payers and providers most desperately need additional insights. The insights gleaned from the Wellframe platform enable clinicians and care managers to better manage their patients’ health and keep them engaged in their care. Wellframe amplifies rather than replaces therapeutic relationships and is re-engineering an antiquated market by using mobile technology to put a care manager in every patient’s pocket.
The Wellframe founding team is comprised of individuals with a diverse set of skills and whose backgrounds include clinical medicine, public health, systems engineering, data science and consumer engagement. By leveraging their different areas of expertise, the founding team was able to identify a gap in the way care is delivered in the US.
The CEO, Jacob Sattelmair, who is an epidemiologist by training, was focused on using technology to engage people around managing their own health. The chief medical officer, Dr. Trishan Panch, who is a primary care physician and a lecturer at MIT, had been focused on using technology to reengineer care delivery and lower cost settings. Vinnie Ramesh and Archit Bhise are both MIT-trained computer scientists who were researching new ways to utilize low cost technology to improve access to healthcare.
Utilizing and merging their diverse backgrounds, the team developed the idea behind Wellframe: An effective solution to re-engineer care delivery.