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Hey Tech, Come to Healthcare
@ a16z
05/30/25
Takeaways
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a16z Cast
05/30/25
@ a16z
In 2022, we predicted that the biggest company in the world would be a consumer health tech company, and so far, there's been a huge influx of excitement around that thesis.
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a16z Cast
05/30/25
@ a16z
Consumer health companies don't have to be direct-to-consumer; they can also be distributed through B2B channels and can be free for consumers if covered by insurance.
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a16z Cast
05/30/25
@ a16z
The healthcare system is huge and complex, but many successful companies have emerged in highly regulated markets, showing that regulation can be a marker of success.
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a16z Cast
05/30/25
@ a16z
Healthcare is a logistics, data, and operations problem, and technologists are well-equipped to solve these issues, especially in consumer engagement.
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a16z Cast
05/30/25
@ a16z
88% of Americans are metabolically unhealthy, and half of prescribed medications are never taken, indicating a significant need for behavioral change in healthcare.
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a16z Cast
05/30/25
@ a16z
The healthcare system's complexity means that fixing it won't happen overnight; it requires a combination of approaches, including full-stack solutions and innovative consumer experiences, and technologists excel in consumer engagement strategies like retention and gamification, which can be applied to healthcare to improve patient experiences.
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a16z Cast
05/30/25
@ a16z
The rise of high-deductible health plans is creating more free market dynamics in healthcare, prompting consumers to think about quality and cost.
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a16z Cast
05/30/25
@ a16z
There's a growing consumer demand for understanding personal health, driven by a desire for agency and actionable data, especially after the COVID-19 pandemic.
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a16z Cast
05/30/25
@ a16z
The future of healthcare may involve wearable devices that monitor health continuously, allowing for proactive care and potentially reducing the need for in-person visits.
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a16z Cast
05/30/25
@ a16z
Most healthcare products today are consumer-purchased, but there's potential for insurance to start covering wearable devices and other preventative technologies.
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a16z Cast
05/30/25
@ a16z
Healthcare providers often don't see patients as their end customers because patients typically aren't paying directly for their care, which negatively impacts the consumer experience.
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a16z Cast
05/30/25
@ a16z
Improving consumer experiences in healthcare can encourage behavior change, making it easier for people to access care and adhere to treatment plans.
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a16z Cast
05/30/25
@ a16z
When patients have choices in healthcare, they become more concerned about retention, which can lead to better products and services.
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a16z Cast
05/30/25
@ a16z
The best consumer talent in the world works in technology, creating experiences that engage users effectively, unlike the healthcare industry.
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a16z Cast
05/30/25
@ a16z
Marrying expertise in healthcare with consumer technology can lead to innovative solutions and significant improvements in the industry.
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a16z Cast
05/30/25
@ a16z
Healthcare represents 20% of the American economy, which is five times larger than the global advertising industry, indicating vast potential for growth.
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a16z Cast
05/30/25
@ a16z
A company could become the biggest in the world by integrating insurance and care provision, similar to United Health Group's model.
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a16z Cast
05/30/25
@ a16z
Another path to becoming a major player in healthcare is to create a consumer marketplace, akin to Amazon, for healthcare services and insurance.
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a16z Cast
05/30/25
@ a16z
Building a financial infrastructure for healthcare payments could also lead to the creation of a dominant company in the industry.
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a16z Cast
05/30/25
@ a16z
The challenge for startups in healthcare is to integrate into the traditional healthcare system, which requires onboarding providers and insurance companies.
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a16z Cast
05/30/25
@ a16z
AI has the potential to democratize healthcare by providing access to high-quality services, similar to how Spotify democratizes music.
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a16z Cast
05/30/25
@ a16z
AI needs healthcare as a domain where its application can justify the high costs associated with developing AI technologies.
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a16z Cast
05/30/25
@ a16z
Social determinants of health, which are outside traditional healthcare systems, significantly impact mortality and morbidity, and AI can help address these issues.
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a16z Cast
05/30/25
@ a16z
Behavioral change in healthcare has not been successfully achieved yet, but current regulatory changes and technology advancements present a unique opportunity.
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a16z Cast
05/30/25
@ a16z
The rise of wearable devices and access to health records can lead to significant improvements in personal health management.
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a16z Cast
05/30/25
@ a16z
Technologists can significantly impact healthcare by working on solutions that address medical errors or improve affordability, which can save lives.