The New Tech Stack for Virtual-First Care | Summary and Q&A

TL;DR

The digital health market is experiencing rapid growth and a shift towards full-stack digital health companies that compete directly with traditional providers, but the outdated healthcare IT systems are falling short. These companies are now seeking new tech stacks to deliver high-quality care at a lower cost using modern technology and AI.

Key Insights

• 🧑‍⚕️ The digital health market is experiencing significant growth and presents an opportunity to revolutionize healthcare delivery.
• 🧑‍⚕️ Full-stack digital health companies are building virtual clinics and competing directly with traditional providers.
• 💉 Existing healthcare IT systems are inadequate and do not meet the needs of digital health companies.
• 😌 The promise of digital health lies in using modern technology and AI to lower costs, improve quality, and increase scalability.
• 🧑‍💼 The emergence of new tech stacks for virtual care includes clinical operations, back office administration, and front office administration.
• 🧔 Digital health companies are driving business model evolution and require novel capabilities to support risk-bearing models and recurring revenue streams.
• 👾 The winners in this space will likely expand their services, connect multiple stakeholders, and have an executable path for selling to incumbents.

Transcript

we're coming off of what was a record-breaking year for digital health in terms of the number of companies that got started and funded and the levels of growth that they achieved on the patient utilization and revenue side and it feels like we're truly entering into a new golden era for healthcare technology after years of healthcare startups prima... Read More

Questions & Answers

Q: Why are full-stack digital health companies emerging and competing with traditional providers?

Full-stack digital health companies are appearing due to advancements in technology and the desire to deliver high-quality care at a lower cost. They can directly reach patients and have the potential to disrupt traditional healthcare models.

Q: What challenges do digital health companies face with existing healthcare IT systems?

Existing healthcare IT systems have poor user experiences, were built for fee-for-service models, lack interoperability, and neglect patient end-users. These systems hinder productivity instead of enhancing it, necessitating digital health companies to build their own tech stacks.

Q: How can digital health companies achieve the promise of delivering high-quality care at a fraction of the cost?

By utilizing modern technology and AI, digital health companies can automate tasks previously done by human labor or overpriced IT products. This allows for cost reduction, increased efficiency, scalability, and the potential to revolutionize healthcare delivery.

Q: What are the components of the new tech stack for virtual care?

The new tech stack for virtual care comprises three categories. Clinical operations include care coordination, virtual provider networks, and ancillary services. Back office administration encompasses revenue cycle, credentialing, and supply chain. Front office administration involves customer engagement, scheduling, and patient acquisition.

Summary

The video discusses the recent growth and potential of digital health companies in delivering high-quality care at a lower cost through modern technology and AI. It explores the need for a new tech stack for virtual care and the emergence of various categories of companies dedicated to serving the digital health market. The winners in this space are likely to focus on high volume areas, connect multiple stakeholders, and have an executable path for selling to incumbents.

Questions & Answers

Q: What factors have contributed to the growth of digital health companies?

Digital health companies have experienced growth due to the increased demand for healthcare technology, as well as the shift towards selling solutions directly to patients rather than relying solely on industry incumbents. The promise of delivering high-quality care at a fraction of the cost has attracted investors and driven the development of new technologies and AI.

Q: Why have traditional healthcare IT systems failed to meet the needs of digital health companies?

Traditional healthcare IT systems were built during a time when fee-for-service was dominant and patients were not the primary end-users. As a result, these systems lack user experience and interoperability. Digital health companies require a back-end infrastructure that can support their virtual clinics and compete directly for patients against traditional providers, but the available IT systems fall short.

Q: How do digital health companies build their tech stack?

The majority of digital health companies have chosen to build their entire tech stack from the ground up. This allows them to customize the systems to meet their specific needs and leverage modern technology and AI to replace human labor and decrease costs. However, some companies have also licensed off-the-shelf systems and customized them as needed.

Q: What are the components of the new tech stack for virtual care?

The new tech stack for virtual care includes categories such as clinical operations, back office administration, and front office administration. Clinical operations cover care coordination, virtual provider networks, and ancillary services like labs, pharmacy, and home health. Back office administration involves revenue cycle, credentialing, and supply chain management. Front office administration focuses on customer engagement, scheduling, patient acquisition, and registration.

Q: How are digital health companies driving business model evolution in healthcare?

Digital health companies are driving the need for novel capabilities across clinical operations, back office administration, and front office administration. They are supporting risk-bearing models, recurring revenue streams, cash pay, and membership-based approaches, which are replacing the traditional fee-for-service revenue models. Companies like Cerebre offer actuarial capabilities as a service to help companies bear risk and excel in risk analytics and underwriting.

Q: Are digital health companies solely software-based?

No, digital health companies can offer full-stack operational services with both online and offline aspects. For example, platforms like Sitka manage their own virtual multi-specialty medical group, enabling e-consults for users. Work Path sends physical phlebotomists to conduct decentralized sample collection for lab test fulfillment. These companies combine software with operational services to provide comprehensive virtual care solutions.

Q: How do digital health companies connect multiple stakeholders?

Digital health companies are focused on connecting multiple stakeholders in healthcare, where integration has historically been challenging. By connecting providers and payers, companies like Eligible automate transactions related to financial clearance and eligibility verification. These transactions have traditionally involved faxes and phone calls, and lack APIs for seamless integration. Digital health companies bridge this gap and enable more efficient workflows.

Q: What characteristics do winning companies in the digital health space possess?

Winning companies in the digital health space focus on high volume areas, engender stickiness with their customers, connect multiple stakeholders, and expand their surface area to capture more value. They integrate tightly into the core workflows of their customer base, and generate network effects through intersecting various areas of healthcare. They also have an executable path for selling to incumbents, as legacy players are adopting virtual first care models.

Q: How will the quality bar for healthcare products change with digital health companies?

The quality bar for healthcare products is expected to increase with the rise of digital health companies. Traditional provider and payer users often overlook the quality of products, including user experience, performance, modern APIs, and compliance. However, digital health companies, driven by technologically savvy buyers, prioritize world-class technology and won't settle for less. This movement has the potential to improve the user experience and performance of healthcare products across the industry.

Q: How will the technology advancements in digital health impact traditional care delivery organizations?

The technology advancements in digital health will eventually seep into traditional care delivery organizations as they modernize their own ways of doing business. Digital health companies are setting the stage for virtual first care models, and legacy players are already adopting similar approaches. This presents an opportunity to significantly expand the addressable market for health tech companies. For instance, companies like Wheel, which provides a virtual clinic platform, are being considered by incumbent providers and payers who struggle to staff their own virtual care programs.

Takeaways

The digital health market is experiencing rapid growth and is driving the need for a new tech stack for virtual care. Digital health companies are focused on delivering high-quality care at a lower cost through modern technology and AI. The winners in this space will likely focus on high volume areas, connect multiple stakeholders, and have an executable path for selling to incumbents. The rise of digital health companies will also raise the quality bar for healthcare products, benefiting patients and the industry as a whole. Traditional care delivery organizations are expected to adopt virtual first care models, further expanding the market for health tech companies.

Summary & Key Takeaways

• Digital health companies are revolutionizing healthcare by offering virtual clinics and competing directly with traditional providers.

• Existing healthcare IT systems are inadequate in meeting the needs of these full-stack digital health companies.

• The promise of digital health lies in using modern technology and AI to improve quality, lower costs, and increase scalability.