In May, BIP Capital’s Sarath Degala, a healthcare focused VC, shared his perspective on how “Today’s Healthcare Innovations, Invested Capital Will Drive 5 Key Trends in 2020” in Healthcare Innovation Magazine:
In the changing healthcare landscape, several key trends are emerging that offer a glimpse into healthcare’s future
There is no shortage of innovators today producing advancements that are shaping the future of healthcare. From groundbreaking precision medicine treatment to the drive for pricing transparency to the growing acceptance of mobile healthcare by consumers, the headlines paint a picture of hope for improving the healthcare experience and reducing the overall cost of care.
As a former hospital administrator and for-profit health system strategist, and now as a venture capitalist leading healthcare investment activities, it’s exciting to watch these developments from both perspectives. Entrepreneurs are pushing boundaries, challenging current care delivery models, and developing technology that supports them. In this environment of change, several key trends are emerging that offer a glimpse into healthcare’s future:
- The drive for price transparency
You can’t make it through a fraction of today’s news cycle without hearing someone utter the word transparency, whether the context is a Congressional hearing or how a company runs its business. In healthcare, transparency of pricing is the issue du jour, and the debate continues over how to offer consumers pricing information, in a vernacular that is easy to understand, about the healthcare they purchase. Publishing each hospital’s charge master does little good for the layperson or the lifelong healthcare expert, but pricing information aligned with such terms as a doctor visit, a childbirth, a knee replacement, an emergency room visit, etc., would enable patients to better translate the services and procedures and their associated costs.
The Affordable Care Act (ACA) requires hospitals to publish their list prices for the services they provide. But, as a frank article by The Commonwealth Fund earlier this year points out, “what’s resulted — confusing, unwieldy lists of thousands of goods and services posted on thousands of individual hospital websites — is of dubious relevance to patients in its current form.”
The challenge is to find a common, consistent definition of healthcare’s cost components. Whoever figures it out first—that is, those who can combine price transparency with corresponding quality and out-of-pocket-cost information for context—will be market leaders. We’re not there yet.
>> Continue reading in Healthcare Innovation: https://www.hcinnovationgroup.com/population-health-management/article/21081203/todays-healthcare-innovations-invested-capital-will-drive-5-key-trends-in-2020