Healthtech market trends and trajectory. With Dr Molly Gilmartin- Health Tech Investor at AlbionVC
May 20, 2024
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Dr. Molly Gilmartin, a Health Tech investor at AlbionVC, shares her expertise on the evolving health tech landscape. She discusses recent investment trends and how the market is shifting towards AI and holistic care solutions. Gilmartin provides insights on approaching market entry for early-stage companies and the importance of understanding unit economics in health tech ventures. She also contrasts the NHS's digital-first strategy for chronic care with the US system, emphasizing patient engagement and technology's role in enhancing care.
Investment in health tech surged post-COVID-19, with a notable shift toward teleconsultation and multi-specialty care delivery solutions.
Early-stage health tech companies must focus on problem-solution fit and understand regulatory landscapes to secure market entry and reimbursement.
Deep dives
Trends in Health Tech Investment
Investment in health tech has evolved significantly over the past five years, particularly catalyzed by the COVID-19 pandemic. Many sectors, such as retail and advertising, have experienced extensive digitization, whereas healthcare was slower to adapt, often relying on traditional methods. The pandemic forced a rapid adoption of technologies like virtual appointments, reshaping attitudes toward tech in healthcare and leading to a surge in investment from both specialist and general investors. In particular, during the peak of the pandemic, there was substantial funding directed towards teleconsultation and digital care, and while investments have tapered, they are now stabilizing at levels comparable to pre-pandemic times, signaling ongoing opportunities in the sector.
Shifting Priorities in Care Delivery
A notable trend in health tech is the verticalization of care delivery, where companies focus on specific disease segments rather than broad specialties. This is becoming more evident as healthcare recognizes the need for a more holistic approach that encompasses various interrelated conditions, moving beyond the historical siloing of specialties. Companies now aim to provide comprehensive solutions that cover the entire value chain of care delivery, from initial wellness checks to ongoing chronic condition management. This shift toward multi-specialty programs aims to enhance patient centricity and allows for earlier intervention, fundamentally changing the traditional paradigms of care.
Navigating Market Entry Challenges
For early-stage companies seeking to enter the healthcare market, understanding problem-solution fit is crucial. Identifying the specific problem they aim to address is essential, along with recognizing who holds the purchasing power and budget for such solutions. Companies often struggle with securing reimbursement for innovative technologies, especially in the face of established workflows that favor traditional methods. A clear grasp of regulatory environments, market positioning, and building a robust ecosystem around their product is necessary to achieve sustainable growth and market traction.
Future Directions in Health Technology
Looking ahead, the integration of technology into healthcare is set to further transform patient care delivery through tech-enabled service models. Companies that embrace a multidisciplinary team approach, focusing on chronic conditions, are expected to emerge as key players in an evolving healthcare landscape. The willingness of patients to pay out of pocket for advanced technologies is increasing, indicating a shift that could unlock new revenue streams for innovative health tech solutions. By fostering an environment that prioritizes preventive care and effective resource allocation, health tech is positioned to significantly enhance patient outcomes while also ensuring fiscal responsibility within health systems.
