Finally, health care, which has been largely immune to the forces of disruptive innovation, is beginning to change. Seeing the potential to improve health with simple primary-care strategies, some of the biggest incumbent players are inviting new entrants focused on empowering consumers into their highly regulated ecosystems, bringing down costs.
The Innovation Health Care Really Needs: Help People Manage Their Own Health
Less than 1% of investments in the industry are focused on it.
October 30, 2017, Updated November 06, 2017
Summary.
In most industries, disruption comes from startups. Yet almost all health care innovation funded since 2000 has been sustaining to the industry’s business model rather than disruptive. Our analysis of Pitchbook Data shows that more than $200 billion has been poured into health care venture capital, mostly in biotech, pharma, and devices where advances typically make health care more sophisticated — and expensive. Less than 1% of those investments have focused on helping consumers to play a more active role in managing their own health, an area ripe for disruptive approaches. This is now beginning to change. Seeing the potential to improve health with simple primary-care strategies, some of the biggest incumbent players are inviting new entrants focused on empowering consumers into their highly-regulated ecosystems, bringing down costs.