Insights

Changing World: Health Care Admin

June 16, 2019

Close to 1 out of every $10 spent on Health Care is used on administrative tasks. This is a clear outlier around the world (see figure). It also creates attractive opportunities for entrepreneurs that are able to use new tools (such as smartphones, cloud and marketplaces) to significantly reduce this spend while offering a superior offer for consumers.

 

Entrepreneurs have targeted several opportunities:

  • Booking: Traditionally it takes patients in the US 24 days on average to get a doctor’s appointment. ZocDoc, automatically accesses the online calendar of each participating doctor allowing doctors to sell some of their upcoming perishable inventory and allowing consumers to get an appointment in 1 to 3 days.
  • Referrals: Doximity allows doctors to easily locate the best specialist for rare diseases, improving patient outcomes and reducing search costs.
  • On-Demand / Remote Medical Care: Teladoc provides 24/7 coverage by doctors through phone or video. Solv offers same day doctor visits for general conditions. Both improve patient access while reducing the paperwork required for care delivery.

It is still early days in the consumerization of Health Care. Entrepreneurs are developing new customer-centric value propositions. We expect this space to get more active in the next few years with a wider availability of wearables, electronification of consumer data and regulatory evolution.

 

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