How infrastructure will help cure healthcare

How infrastructure will help cure healthcare

Enmi Kendall is a co-founder and general partner of Healthy Ventures , a seed-stage fund focused on infrastructure software in healthcare. Donald Trump’s election has left many wary of how he’ll respond to a campaign promise to dismantle Obamacare. It seems that select aspects of the Affordable Care Act (ACA), aka Obamacare, will remain intact . Likely to remain are provisions that make it illegal for insurers to deny a patient’s pre-existing medical conditions and enable children to stay on their parents’ insurance plans through age 26. While not part of the ACA, structural innovations designed to control cost, such as the shift to value-based care (VBC), a new way of paying doctors and hospitals, will likely continue (more on this later). The Center for Medicare & Medicaid Services (CMS) may cancel their timeline for this shift, slowing momentum. However, private insurance plans and doctors have already changed the way they contract together, making very unlikely a retreat to the old payment model. Even without a crystal ball of the exact specs of a post-Trump healthcare world, the fundamentals of the healthcare market and the massive forces acting upon it continue to render it an excellent investment opportunity. Specifically, the most near-term and pervasive value-creation area is in infrastructure software, the “glue” that serves as middleware for healthcare. The persistent truths are that the healthcare market represents $3 trillion, almost 20 percent, of the U.S. economy. This market also is plagued by a level of gross inefficiency and under-performance largely unseen in any other industries in our post-internet world. Why has healthcare lagged behind so much? Largely, it’s because despite complaints about skyrocketing costs, there was no need to change. The lack of technology progress wasn’t because of a lack of available solutions, but […]