Steve Kraus from BVP; Sam Brasch from KP; Justin North from GSR; Zooms Ron Emerson @ Conference May 19th
Here is the second panel that focuses on venture investing rather than digital healthcare companies like Zoom that disrupt the healthcare ecosystem. On the podium were: Moderators: Dr. Archana Dubey (Global Medical Director, HP), Bambi Francisco Roizen (Founder and CEO, Vator) Speakers: Sam Brasch (Partner, Kaiser Permanente Ventures); Justin Norden (partner, GSR Ventures); Steve Kraus (Partner, Bessemer Venture Partners); Ron Emerson (Global Health Lead, Zoom).
Here are some takeaways, but it’s best to check out the entire panel.
– Anecdotally, the estimate of the number of doctor visits on video after the pandemic will be around 15-30%.
– COVID was a pushing function that made clinical leaders more open to change. The medical industrial complex works well with service fees for the incumbent operators. It has failed consumers and society because of rising costs. However, healthcare is slow to change, largely due to long sales cycles and cumbersome regulations. So the behavior was difficult to change. COVID forced the ecosystem to set up a telehealth service yesterday.
– While COVID was a wake-up call for telehealth and opportunity, it also meant more people were competing with each other and money was pouring into the system. This has brought many challenges, most notably a reduced time frame for decisions, which often leads to bad decisions.
– The ratings are high and not every company will win based on the rating. Not every company will be able to grow into its valuation. Hence, it is risky for many companies to raise capital now of such a high valuation that they must generate a return. There will be a consolidation.
– One area where there are too many businesses is teletherapy. And companies in this space need to transform this business model beyond connecting a doctor or therapist with a patient.
– How does Ginger stay competitive against similar war chest building companies like Lyra and Modern Health? Companies that stand out from the crowd have strong results and have large distribution partnerships. Therefore, anyone who can enter the payer market and win over the payers will be the winner. Employers were once a big target, but now it’s time to step into the pay market.
– Areas outside the vertical that focus on specific disease states? Digital therapeutics. The biggest challenges are figuring out refunds. Getting vendors to adopt these new solutions because they are not aware of them. There are also some possibilities in horizontal games, for example companies that combine non-clinical local services with groups of providers in order to record social determinants of health data or to provide services (transport, food) that play a role for our health. There are also many new B2C or direct-to-consumer games and new companies that power and support these companies, such as Truepill, which provides the back-end infrastructure to improve patient experiences. New EMRs are even being created for B2C companies.
– When trying to bring a healthcare product to market, do you think about patient and provider satisfaction (do they both like it)? Clinical efficacy (can the product serve its purpose); ROI.