Thread: Healthcare’s #digitaltransformation has been accelerated by COVID-19. At @MenloVentures, we’ve identified 4 big trends (2 for consumers, 2 for enterprises) in #digitalhealth that are creating opportunities for #entrepreneurs and #investors. (1/13)

Trend 1: Consumer-ish-ation. There’s lots of talk about the #consumerization of #healthcare, but healthcare will never be a fully open consumer market. (2/13)

Great cos must get paid in the world that exists today (largely fee-for-service, w/ coding/coverage issues) AND the world most of us want (value-based, w/ real world evidence + ROI). (3/13)

Consumer-ish-ation that I’m excited about includes #wearable sensors. Remote monitoring via innovative or existing #hardware will become part of the fabric of consumers’ and patients’ lives. (4/13)

Trend 2: Unbundling care. Healthcare is not monolithic: it’s built on cross-subsidization, which means that some patients get great value for $ and some do not. New solutions that improve user experience can win rapid adoption... (5/13)

...but creating them requires disaggregating horizontal layers like hospitals, physician offices & specialist practices, and re-aggregating them into full-stack, tech-enabled solutions. (6/13)

These solutions improve efficiency and costs for patients with chronic conditions, but peeling off younger, profitable customers will strain legacy systems already suffering from impact of COVID-19 and worsen care equity issues. (7/13)

Trend 3: Vertical #SaaS. At @MenloVentures we often look for a “trifecta” in our vertical SaaS investments, including healthcare. (8/13)

The “trifecta” includes: 1) wedge where a new entrant can automate a manual workflow, 2) proprietary data generation or integration to become a system of record, and 3) leverage to expand into multiple applications. (9/13)

Cos that meet “trifecta” criteria provide quantifiable value, create barriers to entry for competitors, and can continue to increase value and revenue per customer. (10/13)

Trend 4: Unbundling EHRs. New anti-information-blocking rules and new API standards are finally giving patients digital access to their own health data. (11/13)

Like @Plaid enabled an ecosystem of financial applications, I see great scale opportunities for healthcare data networks. As barriers to data sharing fall, I expect differentiation to come from reliability, completeness, ease of use & data integration. (12/13)

The opportunity for data to transform healthcare is massive and enduring. @MenloVentures has invested in @benchling, @Particle_Health, @h1insights, @rivethealth, @PillPack and more. We believe these trends will continue to improve healthcare. (13/13)

Finally: if anyone wants more detail, it’s all in this article I co-wrote with @croombeatty: https://bit.ly/33I0y5W