Forget the High Court: Why Start-ups Will Fix Health Care
BY Abigail Tracy
This entrepreneur says that disruptive health start-ups are the only thing that can fix the broken health care system.
The Supreme Court is expected to issue a ruling this week on the Affordable Care Act. Big deal? Not to everyone.
“It is not that the ruling will have no impact on the health care industry—it most definitely will—but there is so much else happening beyond the ruling that is changing the health care landscape,” said Dave Chase, CEO of health tech company Avado and serial entrepreneur who has spent decades in the health tech space.
Chase recently stressed that “disruptive innovation” rather than the Supreme Court decision that should be worrying executives in the health care industry. For instance, the introduction of mobile health technologies—such as Happtique's mRx, a mobile application that helps monitor patient behavior—have been labeled by some as a potential threat to pharmaceutical companies.
“[Pharmaceutical] companies need to integrate new innovations and technologies into their current systems. It is crucial that companies embrace these changes to the industry if they want to be successful,” said Chase.
Chase added that there is enough momentum in the private sector--and in what he refers to as the “DIY Health Reform” movement--to change health care regardless of the verdict thrown down by the Supreme Court.
Want proof? Investment in health technology companies doubled from 2009 to 2011. This year, 68 digital health companies have raised over $2 million dollars. And 92 venture capital firms have invested in digital health start-ups so far this year, Chase wrote in his post for TechCrunch.
“There are many different factors driving this increased investment in digital health,” said Chase. “The majority of those are not related to the health care reform verdict.”
He reports in TechCrunch that the main areas of investment include big data, home health, physician tools and sensors.