Healthcare is the next wave of data liberation

Why can we see all our bank, credit card and brokerage data on our phones instantaneously in one app, yet walk into a doctor’s office blind to our healthcare records, diagnoses and prescriptions? Our health status should be as accessible as our checking account balance.

The liberation of financial data enabled by startups like Plaid is beginning to happen with healthcare data, which will have an even more profound impact on society; it will save and extend lives. This accessibility is quickly approaching.

As early investors in Quovo and PatientPing, two pioneering companies in financial and healthcare data, respectively, it’s evident to us the winners of the healthcare data transformation will look different than they did with financial data, even as we head toward a similar end state.

For over a decade, government agencies and consumers have pushed for this liberation.

In 2009, the Health Information Technology for Economic and Clinical Health Act (HITECH) gave the first big industry push, catalyzing a wave of digitization through electronic health records (EHR). Today, over 98% of medical records are digitized. This market is dominated by multi‐billion‐dollar vendors like Epic, Cerner and Allscripts, which control 70% of patient records. However, these giant vendors have yet to make these records easily accessible.

A second wave of regulation has begun to address the problem of trapped data to make EHRs more interoperable and valuable. Agencies within the Department of Health and Human Services have mandated data sharing among payers and providers using a common standard, the Fast Healthcare Interoperability Resources (FHIR) protocol.

Image Credits: F-Prime Capital

This push for greater data liquidity coincides with demand from consumers for better information about cost and quality. Employers have been steadily shifting a greater share of healthcare expenses to consumers through high-deductible health plans – from 30% in 2012 to 51% in 2018. As consumers pay for more of the costs, they care more about the value of different health options, yet are unable to make those decisions without real-time access to cost and clinical data.

Image Credits: F-Prime Capital

Tech startups have an opportunity to ease the transmission of healthcare data and address the push of regulation and consumer demands. The lessons from fintech make it tempting to assume that a Plaid for healthcare data would be enough to address all of the challenges within healthcare, but it is not the right model. Plaid’s aggregator model benefited from a relatively high concentration of banks, a limited number of data types and low barriers to data access.

By contrast, healthcare data is scattered across tens of thousands of healthcare providers, stored in multiple data formats and systems per provider, and is rarely accessed by patients directly. Many people log into their bank apps frequently, but few log into their healthcare provider portals, if they even know one exists.

HIPPA regulations and strict patient consent requirements also meaningfully increase friction to data access and sharing. Financial data serves mostly one-to-one use cases, while healthcare data is a many-to-many problem. A single patient’s data is spread across many doctors and facilities and is needed by just as many for care coordination.

Because of this landscape, winning healthcare technology companies will need to build around four propositions:

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Amazon's Leap Into Healthcare

Summary List PlacementHealthcare organizations are contending with a population that’s growing sicker, heightened spending, and shifting consumer demands for fast and convenient services.
Big tech companies have stepped in to alleviate or solve some of these issues, bridging technological gaps that give health organization partners the opportunity to realize cost savings and bolster their top lines.
One of these companies is Amazon, which has been casting a wide net across the healthcare ecosystem over the last two years — having started initiatives to disrupt or transform pharmacy, the medical supply chain, health insurance, and care delivery.
In the Amazon’s Leap Into Healthcare report, Business Insider Intelligence details how the tech giant is making waves in the healthcare sector.
This exclusive report can be yours for FREE today.Join the conversation about this story »

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