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Advice On Winning Attention For Digital Health Solutions

Posted on December 7, 2016 I Written By

Anne Zieger is veteran healthcare consultant and analyst with 20 years of industry experience. Zieger formerly served as editor-in-chief of FierceHealthcare.com and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also contributed content to hundreds of healthcare and health IT organizations, including several Fortune 500 companies. Contact her at @ziegerhealth on Twitter or visit her site at Zieger Healthcare.

Some of you reading this are probably involved with a digital health startup to one degree or another. If so, you’ve probably seen firsthand how difficult it can be to get attention for your solution, no matter how sophisticated it is or how qualified its creators are. In fact, given the fevered pace of digital health’s evolution, you may be facing worse than typical Silicon Valley odds.

That being said, there are strategies for standing out even in this exploding market, according to participants at a recent event dedicated to getting beyond health tech hype. The event, which was written up by health tech startup incubator Rock Health, featured experts from Dignity Health, Humana, Kaiser Permanente and Evidation Health.

Generally speaking, the panelists from these organizations spelled out how health tech startups can make more convincing pitches, largely by providing more robust forms of evidence:

  • They said that standard metrics demonstrating the effectiveness of your solutions — such as randomized trials and evidence-based reviews — probably weren’t enough, as they sometimes don’t translate to real-world results. Instead, what they’d like to see is the product “used under some stress or duress and how it’s received by caregivers, members, patients and their families,” said Dr. Scott Young, who serves as executive director and senior medical director of Kaiser Permanente’s Care Management Institute.
  • They want you to produce “softer feedback” such as stories and testimonials directly from customers and users. “So many solutions claim to do the same thing,” said Karen Lee, innovation and strategic partnerships leader at Humana. “This softer feedback allows us to really get a feel for that experience and whether or not it’s effective.”
  • They expect you to be able to nail down how your product meets their strategic objectives, and can help them achieve the specific outcomes they have in mind. If you can’t do that, though just reach out to someone who can.
  • They want to bear in mind that even if they’re quite interested in what you’re doing, there’s typically a lot of politics to navigate before they can the pilot with your technology, much less implement fully. “Beyond the evidence, a successful pilot, and research, there are some complexities that you have to be patient and working through,” says Lee.
  • Perhaps most importantly, they need to know that you’ve kept the patient in mind. “The patient needs to know how to use [your technology], and should be using it,” said Dr. Manoja Lecamwasam, executive director of intellectual property and strategic innovations at Dignity Health. “You have to first build that foundation – look at it there, and a lot of people want to talk to you.”

At this point, readers, I realize some of you are probably feeling frustrated, as it may seem that many potential digital health adopters have set the bar for adoption very high, even once you’ve proven that your solution works by most conventional methods. Still, it doesn’t hurt to get an idea of how the “other side” thinks.

Accenture: “Zombie” Digital Health Startups Won’t Die In Vain

Posted on August 24, 2015 I Written By

Anne Zieger is veteran healthcare consultant and analyst with 20 years of industry experience. Zieger formerly served as editor-in-chief of FierceHealthcare.com and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also contributed content to hundreds of healthcare and health IT organizations, including several Fortune 500 companies. Contact her at @ziegerhealth on Twitter or visit her site at Zieger Healthcare.

I don’t know about you, but I’ve been screaming for a while about how VCs are blowing their money on questionable digital health ventures. To my mind, their investment patterns suggest that the smart money really isn’t that smart. I admit that sorting out what works in digital health/mHealth/connected health is very challenging, but it’s far from impossible if you immerse yourself in the industry. And given how much difference carefully-thought out digital health tools can make, it’s exasperating to watch failing digital health startups burn through money.

That being said, maybe all of those dollars won’t be wasted. According to no less an eminence grise than Accenture, failing digital health ventures will feed the stronger ones and make their success more likely. A new report from Accenture predicts that these “zombie” startups — half of which will die within two years, it says — will provide talent and technology to their surviving rivals. (OK, I agree, the zombie image is a bit unsettling, isn’t it?)

To bring us their horror movie metaphor, Accenture analyzed the status of 900 healthcare IT startups, concluding that 51% were likely to collapse within 20 months.  The study looked at ventures cutting across social, mobile, analytics, cloud and sensors technologies, which include wearables, telehealth and remote monitoring.

While most researchers try to predict who the winners will be in a given market, Accenture had a few words to say about the zombie also-rans. And what they found was that the zombies have taken in enough cash to have done some useful things, collecting nearly $4 billion in funding between 2008 and 2013.

The investments are part of an ongoing funding trend. In fact, digital health dollars are likely to pour in over the next two years as well, with healthcare IT startups poised to take in $2.5 billion more over the next two years, Accenture estimates. Funding should focus on four segments, including engagement (25%), treatment (25%), diagnosis (21%) and infrastructure (29%), the study found.

So what use are the dying companies that will soon litter the digital health landscape? According to Accenture, more-successful firms can reap big benefits by acquiring the failing startups. For example, healthcare players can do “acqui-hiring” deals with struggling digital health startups to pick up a deep bench of qualified tech staffers. They can pick up unique technologies (the 900 firms analyzed, collectively, had 1,700 patents). And acquiring firms can harvest the startups’ technology to improve their products and services lineups.

Not only that — and this is Anne, not Accenture talking — acquiring healthcare firms get a wonderful infusion of entrepreneurial energy, regardless of whether the acquired firm was booking big bucks or not. And I speak from long experience. I’ve known the leaders of countless tech startups, and there’s very little difference between those who make a gazillion dollars and those whose ventures die. Generally speaking, anyone who makes a tech startup work for even a year or two is incredibly insightful, creative, and extremely dedicated, and they bring a kind of excitement to any company that hires them.

So, backed by the corporate wisdom of Accenture, I’ve come to praise zombies, not to bury them. While they may give their corporate lives, their visions won’t be wasted. With any luck, the next generation of digital health companies will appreciate the zombies’ hard work and initiative, even if they’re no longer with us.