We’ve all heard nightmare stories about the health care industry. The combination of insurance companies, health care providers, government regulation, and literal “life and death” situations can make for a contentious environment. And with the outdated policies and procedures that permeate the industry, it’s a perfect opportunity for innovation.
When I met Martin Kelly of HealthXL a few months ago, I was intrigued by what he was building. He saw the need for innovation in health care, and he started looking around for the startups that were focusing on these kinds of issues. And while he encountered several groups with a health care focus, no one really took the lead to connect them all together to collaborate or strategize about how startups can really change health care. I mean REALLY change it.
Martin, a former IBMer, is super-passionate about innovation in technology for the health care industry, so he leveraged the IBM network and the relationships he built during his time at IBM to address a few simple questions:
- What needs to happen in health care, through technology, to make the experience and the system better for us all?
- What is the moonshot that needs to happen for true innovation to happen?
The group he brought together consisted of experts from enterprise companies like the Cleveland Clinic, ResMed, and Johnson & Johnson as well as startup influencers in the health care community like Aussie Jason Berek-Lewis of HealthyStartups and Silicon Valley Bank.
And when those different viewpoints came together, he realized the questions weren’t quite as “simple” as he expected.
Martin invited me to join the conversation for three days at the HealthXL Global Gathering in Dublin to hear what global leaders in the industry are saying about health care. And boy … was I surprised.
To their credit, these leaders (and their respective companies) are very willing and capable to innovate. They feel the pain of heavy administrative responsibilities, often involving duplication and triplication of work. They know how hard it is to track patients from different systems as they change jobs, insurance companies, and providers. They struggle with not being able to communicate effectively with insurance providers. And they fully understand how over-commoditized health care has become as well as its decentralization of focus from patients.
The bottom line: They feel the pain of not having the right technology to run more efficient, cost-effective, and patient-centered health care businesses. They’ve seen the finance industry integrate technology over the past few years, but they're somewhat unsure of what that could look like for them. This can only mean that there are huge opportunities for startups and innovative technologies.
I couldn’t help but consider of how nicely these conversations fit in with the Sprint Mobile Health Accelerator powered by our friends at TechStars that @andy_mui and I visited in March. The conversations inside that accelerator are the missing pieces to the conversations that companies like the Cleveland Clinic and Johnson & Johnson were having. Those enterprises have the opportunity to invest in early stage entrepreneurs and born-on-the-Web startups to incubate technologies and solutions that would prove in time to make their businesses more profitable and efficient.
But the biggest opportunity is what that means for patients.
The most telling story to play out over the next 10 years will be whether the largest health care providers and other businesses will approach these market opportunities in pursuit of cultivating a health care system that prioritizes patients. After hearing the conversation at the HealthXL accelerator global summit, that’s the ultimate challenge.
The startup ecosystem is full of entrepreneurs and teams that can deliver on the goal of improving health care while secondarily (and in some cases indirectly) improving the way heath care businesses run. These efficiencies will result in MORE clients, customers, partners, and profitability in the end, but they may require some hefty changes at the outset. Will the industry allow itself to admit what it doesn’t know?
I am excited to see where this goes. In a few years, I think we’re going to consider Martin Kelly as a key builder of this movement, and more and more businesses will be turning to him for answers to the most important of all questions: “How do we do this?”
We’re excited to be able to support Martin and all of the health care startups in the marketplace today. What will the future of health care look like when these innovators and entrepreneurs are done with it?
The possibilities are endless.