The Changing Face of Healthcare Investment
It wasn’t long ago that in the world of health care, venture capitalism, robots, imaging machines and other large-scale capital investments were driving the conversation, causing investors to pump billions and billions of dollars into the development of ever more expensive devices.
Today, that sentiment has changed as investors move toward creating cost-saving solutions for hospitals and Doctors’ offices that are constantly driven more and more toward a lower bottom line. As this shift from large-scale machines to cloud-based and platform-based software efficiency solutions becomes the norm, health care marketing firms looking for “what’s next” will look to change their product offerings and messaging to compete in this cost-cutting marketplace.
There are several reasons for this shift. First, as previously mentioned, hospital administrators are more concerned with driving down costs than ever before. That means a decrease in large-scale capital investments that will take years to recuperate costs and turn a profit, and instead, a move towards investments that will lower costs for hospitals over time. Much of these investments have come in the form of software-based records, education platforms and apps designed to keep patients from returning to the hospital or Doctor’s office, and improvements and cost-cutting solutions for billing.
Secondly, there are the federal incentives. As the Obama administration has placed emphasis, and federal dollars, behind digitizing the electronic medical record, healthcare companies have shifted their business models to capitalize on the tax breaks and grants associated with these initiatives. With more and more companies developing cost-cutting software and electronic medical records solutions, less investment is going into large-scale medical devices.
Finally, there’s the scalability and flexibility associated with software-as-a-service and cloud-based computing solutions. Investors see healthcare software as less of a gamble, as companies can pivot and change depending on the needs of the marketplace. Today, someone developing a remote-surgery robot looks much less attractive to investors than someone developing a cost-saving health management app, especially since there’s a much larger target market for such a solution—from your local Doctor’s office to multistate hospital systems.
As dollars move from capital investments to efficiency solutions, healthcare marketers and product developers will be wise to keep an eye toward, and frame their marketing messaging around, the cost savings to the healthcare provider. With hospital administrators looking ever more closely toward the bottom line, savvy firms will be sure to cater their offerings and messaging with that all-important tenet in mind.
Article originally published by: HDI