The Health Innovators Show

Healthcare is a complex industry, and a lot of innovators and founders underestimate the process of bringing an innovation through the regulatory process to commercialization. How can you avoid “death by pilot”? What are the biggest potential failure points to be prepared for in the commercialization process? Why is it so important to include real patients in the development process, and what are the potential pitfalls you might deal with?   On this episode, we're joined by John Sharp, the senior manager of PCHA, the Personal Connected Health Alliance of HIMSS. We talk about why some healthcare innovations fail to commercialize while others succeed. John shares what’s unique about commercializing an innovation in healthcare versus other industries. And, he reveals three vital tactics that every health innovator needs to include in their commercialization plan.   3 Things You'll Learn The difference between the healthcare industry and the innovation of startups How to avoid "death by pilot" Why you need healthcare organization partnership    Healthcare innovators have a lot of passion for the problem they are trying to solve, but that passion won’t compensate for a lack of understanding the industry and how it actually functions. Healthcare and startups are industries with fundamental differences, and unless innovators are prepared for that, they are doomed to fail. You have to make sure your funding is able last through the process of regulation and the education of healthcare professionals. Involve real patients in your development. You must understand the complexity of the healthcare system and know what your niche will be in that system.

People often use the terms “launch”, “go-to-market”, and “commercialization” interchangeably, but it’s important to separate them. What are the core differences between a launch strategy and a commercialization strategy? What are some of the considerations made in commercialization that aren’t included in a launch strategy? On this episode, we talk about the key factors that make a difference in commercialization and launch. 3 Things You'll Learn The key differences between launching and commercializing a healthcare innovation lie within the company's goals and when to engage your strategy team. The goal of a launch is to maximize awareness, while the goal of commercialization is to maximize profit. There’s a lot of strategic decisions that are part of the commercialization process that are not typically considered in a launch strategy. For example, timing strategies.   The distinction between launching and commercializing an innovation in healthcare is very important. Commercialization is the most critical stage of the innovation process. The strategic and tactical decisions involved in the commercialization process are deeply connected in ways that often go unnoticed and the effects of these decisions heavily shape and influence market success. For example, timing strategies are often not included in a launch plan. Many health innovators just launch their new product when it's complete without any strategic consideration about the advantages and disadvantage of being first to market, a fast follower, or late follower.   A commercialization strategy defines a clear path to maximizing ROI of the innovation and the strategy development process starts a lot earlier than launch. Many healthcare innovations will launch, few will commercialize.

The commercialization process in healthcare is very complex, and it’s impacted by a multitude of factors and circumstances. Why is commercialization so much harder in the healthcare industry? What are the biggest mistakes innovators are making, and how do these mistakes make growth impossible? What do we need to be mindful of when trying to get into a delivery network or hospital system?   On this episode, I’m joined by Dr. Joseph Kvedar, VP of Connected Health with Partners HealthCare. Dr. Kvedar is a pioneer, early adopter, and influencer in the field of connected health. We talk about overcoming the commercialization difficulties in healthcare that so many innovators face.   3 Things We Learned What makes it so challenging to commercialize an innovation in healthcare Why having the most advanced/superior innovation is meaningless How to successfully get into a delivery network or health hospital system   When healthcare innovations are still small, just starting to garner entry level interest, is when they are most vulnerable to facing issues that impede commercialization. Whether it’s losing a key team member, or encountering changes in the market, that randomness is inherent in bringing innovations to market. There are ways to mitigate this, however.   It’s critical to settle the “people issues” early on and understand your product-market fit. Raise only the right amount of money, and spend it thoughtfully. Line everything up to present the best business case possible.

There’s technological inertia and cultural inertia in healthcare innovation, and a lot of hard work is required for us to overcome it. What are some of the biggest challenges innovators are experiencing because of this? What would be a powerful pivot or pathway that would enable the successful commercialization of clinical blockchain? How do we break down the silo walls in healthcare?     On this episode, Ed Bukstel, CEO at Clinical Blockchain, shares on how he successfully commercialized one of his first innovations, and how he’s working on commercializing his latest healthcare business venture.       3 Things We Learned  How Ed took a bottom-up approach for marketing his innovation  Doctors and clinicians are part of the equation, they should always be involved in the decision making loop. Instead of approaching the labs with his EHR software product, Ed Bukstel approached the people who really had use for his service and that was cardiologists, infectious disease physicians and other clinicians.     Why be cautious with strategic partner funding  You’re looking for money but you also have to pay attention to the kind of money you take. Most innovators aim for strategic partner money, but we have to be cautious. It can completely swallow up your culture and the pace of growth of your business.     Why healthcare data is so important right now  33 million people suffer from rare diseases, and every bit of medical data they can get is vital to their health. When you have people who are really involved in their healthcare, it becomes critical to supply them with that data and work collaboratively with them. If patients don’t get that, they will move to a provider who can.     Even though there’s an explosion of innovation taking place in healthcare, innovators are still  struggling, whether it’s with their reimbursement models, competing for the attention of CIOs or raising capital. A huge part of what drives that struggle is the inertia which has set in from the legacy of the old model. The culture of that inertia will always trump any piece of technology or innovation, so it is critical for us to break down those walls, address the fear of the unknown and usher in a new age.    Guest Bio-  Ed is founder and CEO at Clinical Blockchain. Go to http://www.clinicalblockchain.com for more information.