Healthcare attracts much interest from startups. It’s not surprising, really. Most incumbent electronic health record (EHR) vendors are too busy to innovate, says Matthew Holt, co-chair of Health 2.0; they must focus on meaningful use and ICD-10 instead. Providers grapple with similar problems, plus the emerging challenges of accountable care and changing business models.
Healthcare startups, then, find themselves in a market mirroring the tech landscape of the late 1990s, when companies developed core enterprise products to fill gaps left by Microsoft. Look at America’s healthcare industry today – poised to exceed $3 trillion in 2014, with much of that money spent on chronic yet preventable conditions – and it becomes clear just how many gaps there are.