Healthcare’s Start-Up Businesses and New Entrants

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Who Will be Healthcare’s

[By PwC Health Research Institute]

New entrants are already having an impact

Abundant opportunity in the expanding health sector is attracting new players from far afield, from Fortune 50 retailers and telecom companies to fledgling startups backed by venture capital.

These new entrants, like health, wellness and fitness, are moving fast with fresh ideas about how to satisfy consumers’ appetites for better health and more convenient, affordable, high-quality care.




New Business Models

Consumers are ready to abandon traditional modes of care for new ones, suggesting billions in healthcare revenue are up for grabs now. Non-traditional players are creating these new modes of care – from home diagnostic kits that snap into smartphones to online services that can triage and prescribe treatments based on computer algorithms.

They are competing to be the Netflix, or Apple of the US health sector, all disruptors that transformed industries.

The Wellness and Fitness Sector


wellness market




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3 Responses

  1. Medical Industrial Complex

    The term Medical Industrial Complex was first coined in 1980 by Arnold S. Relman, M.D. who was at the time editor-in-chief of The New England Journal of Medicine. He adopted the concept from President Dwight Eisenhower’s farewell address which warned of the dangers of the Military Industrial Complex.

    With government meddling in medicine and the extreme amounts of money at stake, so was born the Medical-Industrial Complex. It is now a behemoth in size and reach, both politically and financially.

    It becomes more powerful each year as it further insulates itself politically and legally.

    Eric A. Dover MD


  2. 9 Hot Startup Cities That Aren’t San Francisco or New York

    Ask someone to name cities with thriving tech, media, fashion or food scenes, and you’ll hear the usual suspects: San Francisco; New York; Portland, Ore.

    But, there’s a slew of other metro areas with established infrastructure and skilled work forces that can match those more established locations at a fraction of the cost of living and with less day-to-day stress. These are the places where startup dreams come easier and cheaper, but can still pay off big.



  3. What are some key trends impacting the business of healthcare in 2017?

    Put another way, what doesn’t affect the business of healthcare? It’s not so much that there’s turbulence in the market; there is always turbulence in the market. The only thing that differs along the way are the specifics of what is causing the most turbulence that can or does affect you. Think of it as rafting down a river in permanent white water in which you must read the size, location and effect of submerged boulders, how the turbulence caused by those boulders is itself affected by turbulence caused by other boulders, and then figure out how you can not only avoid being swamped but perhaps even use that turbulence to your advantage.

    But just as a rafter wishing to avoid becoming trout chum cannot ignore an increasing loud roar on the river ahead, in 2017 it is impossible to ignore the increasingly loud roar of the political environment. But I think I’ve stretched this metaphor to its end, so I’ll put in my metaphorical earplugs and listen to the voices inside my head (no, not those voices; I mean the ones talking about the healthcare industry), focusing on two topics.

    Continuing consolidation in all sectors of the healthcare industry continues to shove the market around. Sure, consolidation has the potential to bring about some improved efficiencies, but it also has the potential, which we’ve seen realized many times, to bring about improved revenues through improved pricing power – improved for the consolidated party that is. But one party’s revenue is another party’s costs, and those costs get driven through the system so that we all pay it.

    In particular, the pharmaceutical industry seems to be volunteering to take the next turn in the barrel by pricing products to the point where the best lobbying efforts, and the most heart-tugging and gauzy advertisements full of smiling models cannot fully offset a growing overall sense of that industry having grasped too far. If the pharmaceutical industry doesn’t really move into offsetting prices through more innovative contracting and results-oriented models, or reigning back the relentless and regular price increases, there is a real possibility that public sentiment will support a change in public policy, which translates into laws, that will begin to sit on that industry like it sat on the payer industry already. One sign is there now: identifiable victim stories that cast a harsh light on the industry. What will be added next is orchestrated outrage.

    The festival of new payment models, predicated on “value” (as defined by one party, not necessarily all the parties*), is creating marvelous opportunities for consultants, pundits, and policy makers; it is also creating a pounding headache that is growing into a full-blown migraine for those providers fortunate enough to find themselves juggling a dozen or so, most of which are neither automated nor fully compatible, and that usually contain a gajillion moving parts. Doesn’t mean we don’t need to reform provider payment, because we do. But the key trend here is the increasing appearance of new forms that seem to mutate as fast as they spawn.

    Go ahead and look up the definitions of “value” and see how it’s viewed by laypersons, economists, and business analysts (check out Economic Value in particular); add philosophers and ethicists if you like.

    This exercise is not recommended to those prone to migraines.

    Peter R. Kongstvedt MD
    [via Ann Miller RN MHA and]


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