Entrepreneurial failure in the American healthcare industry is a common occurrence, with statistics showing that at least 90% of startups fail. This trend is even more pronounced in the healthcare sector, where the unique challenges and complexities of the industry can trip up even the most well-intentioned founders. To reduce the risk of failure in healthcare entrepreneurship, there are five key strategies that aspiring innovators should consider.
- Approach Healthcare Like A Novice, Not An Expert
Many entrepreneurs mistakenly believe that their success in other industries will easily translate to the healthcare sector. However, healthcare is a highly personal and variable field, with its own set of rules and norms. One common mistake is assuming that a product that works well in a lab setting will automatically succeed in a clinical environment. It is essential to test tools in real-world clinical settings, identify any flaws, and redesign accordingly. - Start With A Problem, Not A Product
Instead of starting with a technology and then searching for a medical use case, entrepreneurs should identify a critical clinical need first. Dr. Tom Fogarty’s invention of the embolectomy balloon catheter is a prime example of starting with a problem and developing a solution that addresses a pressing clinical challenge. - See The World Through A Doctor’s Eyes
Entrepreneurs must understand that doctors prioritize tools that enhance their workflow, rather than adding to their workload. Wearable health monitors, for example, should not just collect data but also analyze it and provide actionable insights for physicians. Viewing healthcare innovations through the lens of clinicians can lead to more successful adoption and implementation. - Follow The Money To The End
While value-based care is often touted as the future of healthcare payment models, the reality is that fee-for-service reimbursement still dominates the industry. Entrepreneurs should be aware that hospitals are more likely to invest in technologies that attract patients and increase revenue, rather than those that promise cost savings. Understanding the financial incentives of healthcare providers is crucial for the success of any innovation. - Who Will Pay? Ask That First
Entrepreneurs should consider the financial implications of their innovations early on. Without clear financial responsibility and reimbursement pathways, even the most beneficial technologies may struggle to gain traction in the market. Understanding who will pay for a product or service is essential for its long-term sustainability and adoption.In conclusion, healthcare innovation is a challenging but rewarding endeavor. By approaching the industry with humility, focusing on critical clinical needs, understanding the perspectives of healthcare providers, following the money trail, and considering reimbursement pathways, entrepreneurs can increase their chances of success in the dynamic and complex world of American healthcare.
