Four Healthcare Trends Spur Innovative Technology Solutions
A main area of focus for Frontier Capital’s investment strategy is healthcare technology. Several factors make this an attractive market and Managing Partner Andrew Lindner and Principal Scott Hoch had an opportunity recently at an AON conference to discuss some of the healthcare trends and how technology companies can help minimize costs while improving health outcomes. As Frontier continues its focus on software and technology-enabled solutions, there are four major trends that create areas of interest where technology companies may succeed:
- The first trend has to do with the capture, exchange and use of healthcare data.
- Second, a shift to consumerism is changing how patients shop for services and manage their benefits and wellness.
- Third, a fee for value, rather than fee for service, model is emerging.
- And, finally, the fourth trend is human resources/healthcare convergence as HR departments take on more responsibility in not only providing benefit options, but also in managing and administering those benefits.
With more than $60 billion of private equity investments made in healthcare in 2014, Frontier isn’t the only one taking note of the trends. However, the inefficiencies and lack of standards in this sector create a great environment for innovation. Frontier sees tremendous growth potential in solutions for healthcare consumer engagement, telemedicine, analytics and big data, as well as population health management. Because Frontier also has an interest in human capital management systems, software solutions that intersect healthcare and HR are particularly intriguing. The healthcare costs carried by enterprises are increasingly unsustainable and HR departments are becoming more strategic to their organizations as they become health benefits experts. Seismic shifts in this area will require sweeping changes. If you have a technology-enabled solution that addresses these trends in healthcare reform and are ready to take your company to the next level, we’d love to hear more about it.