Healthcare Technology Investment Trends In 2016
In the latest episode of #BiteSize, Hubert Zajicek, co-founder of healthcare seed fund Health Wildcatters, talks about the trends in healthcare technology investments in 2016 for seed funds and venture capitalists.
Hubert Zajicek, MD, MBA, is CEO & Co-founder of Health Wildcatters, a healthcare seed fund and accelerator in Dallas, TX. Health Wildcatters provides mentorship, capital and guidance to up to 12 healthcare related startups during an intensive 12 week program which culminates in a pitch day annually. Health Wildcatters’ three funds are invested in over 30 healthcare startup companies.
Dr. Zajicek has extensive experience with startups and is an active speaker, panelist and thought leader on healthcare innovation, startups, entrepreneurship & financing. He serves as advisor, mentor and board member on various organizations and startup companies. He was managing director – medical technology at NTEC (North Texas Enterprise Center), where he ran what eventually became the Southwest’s largest medtech investment conference, showcasing startups that attracted in excess of $300M.[Transcript of the video below]
Transcript of the Video
2016 will be an interesting year and 2015 really taught us a lot about what might and might not work, but the easiest way to sum it up is to look at everything with a patient-centric view. So the healthcare consumer, not the patient, is ever more in the driver’s seat and when you look at things and trends and with the view of what the healthcare consumer might want or need, then you’d be better off trying to find the trends that are sustainable.
So when you look at the healthcare consumer, he has choices. Whether it is high deductible healthcare plans that the person might have, then that means that these people are looking for cost comparison tools, ways to cut cost and ways to keep the healthcare cost down. so there’s more burden on the healthcare consumer but that goes hand in hand with more choices.
So, on the other hand when you also look at it from the hospital point of view, the type of trends that will continue to be seen are the ones that deal with bundle payments. So here in the United States, we have Combi Care organizations that have seen more and more adoption however, its not clear whether it will continue to grow cause there’s also some struggle. So, one thing that does seem to take furtier is bundle payments that means somebody goes in and says we’ll take care of this procedure for a certain fee and we will figure out how we will pay for it and there are certain policy measures in here.
So, from the consumers’ point of view, the type of tools that are gaining traction are comparison tools for insurance companies, comparison tools for certain procedures in surgeries, comparison tools that allow you to get a better picture of your own health and the way you should be, managing your own health from the consumer health side of course and physio health will continue to be extremely strong.
On the hospital side it’s obviously many different things. One is, how to engage your consumer and how to differentiate yourself from your competition, whether it’s through convenience or through more innovation. Clearly, you got have to keep an eye on delivering the best healthcare to an educated consumer and delivering in a way that reduces cost if it’s a bundle payment.
Needless to say, the players that are out there on the pharma side or the medical device side continue to do what they did, if they can deliver a product that is a better healthcare outcome but now we’re not going to look at just the first 30 days or a year but a really long term. If they can deliver a better product or a better outcome then they will also get better at the options.
So patients are going to deliver more concerns and I think the biggest trend in 2016 is the healthcare consumer and we’re really getting into the world where healthcare consumers will be making the decisions. And we shouldn’t be too surprised cause that’s going on everywhere else whether its a bank or a grocery store or anything else where people have choices. So, that’s the best advice I can give. Keep your eye on things that make a difference to the healthcare consumer.