News & PublicationsBroadening Perspectives in Healthcare Excellence
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News & PublicationsBroadening Perspectives in Healthcare Excellence
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A few months ago, I had the privilege of speaking at the MIT Sloan School of Management's Health Systems Initiative. In my presentation, I introduced a model for integrating new technologies within healthcare, drawing parallels to Maslow's hierarchy of needs. Just as Maslow's model addresses individual needs from the ground up, the adoption of healthcare technology similarly requires a foundational approach. This blog post outlines a strategic framework designed to tackle the barriers to technology adoption in healthcare, inspired by the structure of Maslow’s hierarchy. Building from the Base: For those unfamiliar, Maslow’s hierarchy begins with basic physiological needs and ascends towards self-actualization. In the context of healthcare technology, adoption must also start from the most fundamental aspects:
Market Readiness: The Foundation of Adoption Market readiness is essential, encompassing the structural, cultural, and regulatory aspects needed for any new technology to succeed:
Operational Readiness: Assessing the Situation on the Ground Once the market is ready, the focus shifts to the specific healthcare organizations that will use the technology:
Business Model: Ensuring Economic Viability A clear and viable business model is crucial for the technology's longevity and success:
Product-Market Fit: Aligning Product with Need The final layer ensures that the technology aligns with the market’s urgent needs:
Conclusion: A Tiered Approach to Overcoming Barriers Just as Maslow's hierarchy guides the fulfillment of human needs, our structured approach can guide healthcare organizations through the complex process of technology adoption. By building from the ground up—starting with market readiness and moving through operational readiness, business modeling, and product-market fit—organizations can effectively integrate new technologies into the healthcare landscape. As technology advances and other market aspects change, barriers also shift. We specialize in assessing these barriers to adoption and developing strategies to overcome them. If you're interested in learning how we can help your business navigate these challenges, click below to schedule a 30-minute introductory call.
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In an era of rapid healthcare innovation, global health tech startups are driving significant advancements in patient care. The US healthcare market was an estimated $4.5 trillion in 2022 according to Centers for Medicare and Medicaid making it attractive for start-ups outside the US as they seek to increase their total addressable market. However, the US is structurally different from other countries due to its complex payor environment. This makes launching in the United States more challenging. Companies considering a US launch of their product face unique challenges due to variations in payor and regulatory systems across countries, and within the US, the landscape can vary from state to state. To achieve success in this dynamic market, healthcare startups must address the following key considerations:
1. Understanding Payment Dynamics Who Will Pay for Your Product? When entering the US market, understanding the intricacies of payment is paramount. If insurance companies are the primary payors, startups must understand the coding and reimbursement landscape. Key questions to address include: Reimbursement Codes: Determine whether specific reimbursement codes exist or are expected for your product. This knowledge is essential for facilitating payment processes. Bundled Payments: Explore whether your product falls under bundled payments for related services. In some cases, your solution may enable providers to bill at higher rates or utilize previously unavailable codes. Cost Absorption: In cases where no reimbursement code exists, assess whether providers are willing to absorb the cost, anticipating future revenue generation or cost savings. Having a clearly defined reimbursement pathway simplifies adoption by provider systems. A lack of reimbursement options may necessitate creative solutions to secure market entry. 2. Identifying Decision-Makers Who Holds the Buying Authority? In the US healthcare landscape, the decision-making authority can vary widely. Understanding the universe of stakeholders involved and their priorities is essential for crafting persuasive messaging. Consider: Provider-Centric Decisions: Some health tech products rely on providers to make decisions on behalf of their patients or healthcare systems. Insurer and Provider System Influence: In other scenarios, insurers or healthcare systems play a central role in product adoption decisions. Comprehensive knowledge of decision-makers and their value propositions empowers startups to effectively communicate the benefits of their products. 3. Ensuring Product Market Fit Who Will Use Your Product? What Do They Value? Achieving product-market fit is critical. Tailoring your solution to meet the specific needs of the US market is essential for success. Understanding the US patient population, their preferences, and unique healthcare demands is vital in this regard. 4. Leveraging Data What Data Do You Need To Demonstrate Value? Irrespective of the payment structure or decision-makers involved, data is a currency of trust in the US healthcare market. While international data can demonstrate potential value, US stakeholders place a premium on data collected from US patients. To navigate this data-centric environment: Seek US-Based Partnerships: Collaborate with US-based customers willing to participate in pilot programs. This partnership allows you to collect US-specific data to showcase your product's value. Structured Pilots: Ensure that pilot programs are meticulously structured to generate the data required to demonstrate your product's efficacy. In conclusion, entering the US healthcare market is can be an opportunity to scale your business but requires a deep understanding of its complexities. Successfully launching your healthcare product or service involves addressing payment dynamics, identifying decision-makers, achieving product-market fit, and leveraging data effectively. Navigating these challenges with insight and strategy can lead to a successful market entry and a brighter future for healthcare innovation. For to explore how we can assist you with your US go-to-market strategy, please click the button below to schedule a 30-minute introduction call. |
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