Healthcare Opportunities for Investors

By Manal Alkhalifah

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Alan Pitt, Draper University, Spring 2019

Alan Pitt a physician in the Neuroradiology Department at Barrow Neurological Institute, gave Draper University students his insight on the barrier of the healthcare system in the U.S. Alan enjoys talking about HealthCare on the Healthcare Pittstop podcast and is also involved in six startups. His hope is to make a difference in the universe in the ways we care for each other.

Alan began by explaining that Capitalism and Healthcare do not mix, where, 18% of the GDP in the US is going to healthcare, and 30% of that goes to administration costs.

“The most expensive cost in the hospital are people, not machines,” said Alan. Stakeholders, such as the enterprises, doctors, vendors, patients and buyers all have different views on the healthcare industry. Patients are in denial, and care about convenience and reassurance, whereas, doctors care most about referrals, getting home early and better care for their patients.

Doctors are constantly burned out due to long hours and heavy paperwork. There is a hierarchy that exists in the healthcare ecosystem, which is trying to be solved by technology as a service.

It is important for hospitals, payers and PBM to adapt to the influx of technology in the healthcare industry in order for to improve the situation for all stakeholders. The enterprises have an incredibly long sales cycle of 24–36 months, which could potentially be reduced by 30% with the introduction of technological advances.

Secondly, vendors — doctors and patients have a totally different perspective on the services provided.

Finally, Alan mentions Avizia, a startup started in 2013 by Cisco, where they purchased EmergedMD because they have customers and software in place. American Well bought out Avizia due to their services being “Have to Have, not Nice to Have”