For digital health startups delivering care, clinical innovation is neither necessary nor sufficient
Great read here, thanks Kunle.
What are the points of failure do you think can happen specifically when you mentioned about partnering with payors for large populations as one option to reduce patient acquisition costs? Also what sort of revenue models are likely here? PMPM, revenue share, VBC/capitation?
Being nit-picky here, but would tweak this: "you need to have payor contracts basically negotiated and ready to go prior to even starting the company." Realistically, payor contracts take a very long time to negotiate even when the parties are already working together, and they will not waste their legal team's time negotiating with a non-entity. Founders need to understand the difference between agreeing in principle with payor business leaders vs. getting the contract done with legal. Legal can sometimes take many many more months than expected. I don't think you need to have it negotiated... you just need to understand HOW to negotiate the contract and already have an internal executive champion within the payor who will advocate for you.
Wrote on frameworks for thinking through differentiated patient acquisition / retention at below links but patient acquisition will increasingly become the focal point where "good" care delivery startups differentiate & win and "bad" ones die, especially as common channels (ex. paid ads) are causing CAC to skyrocket.
I think patient-facing orgs that can tap into organically formed communities/relationships IRL or online (ex. Spark Advisors, WellTheory) or have built-in paths towards patient-to-patient referrals (ex. Charlie Health) have a leg up; I wonder what might be other wedges toward differentiation in patient acquisition.
This is a fantastic write up, very thoughtful