Healthcare startups are known to expand exponentially with billions of funding in 2020. Combined with the growing urbanization, increased health consciousness, and the advent of technology, the boom of healthcare startups is indeed foreseen in this decade.
From the prehistoric indigenous medication to the most up-to-date developments by youthful business visionaries have emphatically disrupted the segment, prompting more convenience and on-the-go healthcare administrations. For instance, the augmentation of healthcare applications, telemedicine services, and online patient enrollment prompted a change in perspective in the medicinal services division.
However, numerous challenges have created a roadblock for healthcare businesses. These challenges have hindered aspiring entrepreneurs from stepping into this competitive market. In this way, it is fundamental to distinguish these difficulties and concoct reasonable arrangements.
Data Privacy Issues
Healthcare organizations like clinics, hospitals, and medical institutions are increasingly utilizing digital technology to store patient data. And as with every other technology, this storage system also faces the technical glitches at times. Although it is easier to manage or feed the electronic data storage, one cannot ignore the possibility of a breach for personal gain. The data exploitation will more likely lead to dire consequences such as loss of business, financial damages, or blackmailing, etc.
Therefore, in any case, it is the healthcare firm’s responsibility to safeguard the information of their patients to maintain ethicality. For instance, the patients will have more faith in a healthcare startup capable of keeping their data secure. There are individual tech security firms that are all-set to help healthcare startups tackle electronic data storage issues.
Tech Up-Gradation Cost
A modern healthcare ecosystem requires the penetration of high-tech services and products like AI, ML, AR, VR, etc. Unlike other areas, the cost of healthcare technology is not diminishing, and its cumulative usage contributes to spiraling service costs. Many medical professionals equate to progress in their field to the growing use of sophisticated technology that is expensive and beyond the average startups reach.
There is an urgent need to resolve this challenge by utilizing the right tools and technology following the citizen’s priorities. Huge investment in such world-class innovation and excessive expenditure for ordinary upkeep is not generally workable for new businesses. They can rather cooperate and collaborate with top players to receive the rewards of the cutting edge healthcare system. Nonetheless, the originators must evaluate the dangers and benefits of this coordinated effort before settling on any such choice.
Lack of Talent Pool
Apart from tools and technologies, the delivery of quality services depends on most central of the characters – the healthcare workforce. Despite the fact that this business is anticipated to deliver more than 40 million employments before the end of 2020, the deployment of a trained professional with a high retention rate is crucial. The dexterous workforce that is receptive to crises and the fluctuating segment profile is the need of the hour.
The healthcare departments across the globe have already undertaken various initiatives to train the interested and eligible individuals through a multi-pronged procedure. Besides, they must also focus on talent retention as it is another crucial aspect impacting this area of business. Healthcare corporations must adopt an upskilling approach to retain their existing workforce.
Also Read: Why Healthcare Startups Fail – Top 5 Reasons to Consider
New Business Model
With the emergence of the latest healthcare technology comes the need for new business and delivery models that can exhaust the possibilities of the output value alongside the accessibility of innovative devices. Thus, to counteract the financial losses, or offer modernized healthcare services, the new models are poised to be devised. The appropriate models to target the customer profile can harness the brilliance of the technology by clinicians and patients.
The development of such models needs a supportable and reliable interconnection of multiple healthcare stakeholders, right from the medical workforce to the patient, and healthcare startup strategists to founders or entrepreneurs. Moreover, they can be backed by the government and other industry-regulatory apex bodies on a global scale.
In short, all the required entities like the healthcare startup founders, business platforms, ecosystem, and industry stakeholders must be aware of the strategies, roadblocks, and incentives, and thereby judiciously devise innovative application stratagems at the business and the technology level.
Poor Safety Compliances
Ensuring medical service or device compliance with various regulations is exceptionally crucial for healthcare startups. The founders or healthcare entrepreneurs must be fully abreast of legal demands and learn the importance of technical audits and up-gradation. However, most of these startups overlook compliance issues while focusing solely on business growth.
In a fluid regulatory landscape, the need for qualified professionals to lead the healthcare business through the regulatory minefield is projected to grow more intense. According to the Bureau of Labor and Statistics, the overall need for compliance officers in the healthcare segment is expected to grow by over 8% from 2016 through 2026.
These healthcare compliance professionals help medical services and organizations ensure quality patient care, address government regulations for privacy and usage standards for patient data, prevent fraud, and protect patient health and rights.
Building Credibility
Like every other industry, healthcare consumers are more cautious before registering their accounts or partnering with local medical facilities. Besides, healthcare service providers do not rush to adopt new technologies either because of its highly regulated nature. They focus on obtaining funding and thinking about their business model; however, their primary concern will always be on obtaining consumer trust.
Obtaining certifications or the respective licenses is a great way to start with. It might take over a year and sometimes hefty investment in legal assistance, yet it helps your healthcare startup grow with adequate credibility. Another way is to capitalize on the trust that is created earlier.
For instance, if you are sure that a customer is happy with your service, you can ask them to leave a website review. Some healthcare practices obtain good results with social media marketing, as reviews on such platforms can be incredibly powerful.
To Sum It Up
The healthcare businesses are expanding at an exponential rate, with both the opportunities and the risks involved. However, when combined with the boom of technology, the challenges can be molded into a golden basket of benefits for healthcare entrepreneurs.
Even the major corporations and investors across the globe are more willing than ever to spend in healthcare as of today, as it is significantly capable of uprising the nation’s economy when practiced well. Besides, the talented visionaries in this segment utilize these features of healthcare startups to seize the challenges and create opportunities.
