Disruptors Find Delivering Healthcare Alone Isn’t So Easy

The HLTH conference reinforced the idea that collaboration may be a key element in the healthcare ecosystem of the future.

Healthcare’s disruptors are finding out that delivering healthcare isn’t as easy as selling retail goods or managing bank accounts or travel plans.

This theme became apartment at the recent HLTH conference in Las Vegas, where disruptors gather and conversations center around redefining healthcare. But amid the hype around AI, the potential of the growing ‘Food as Medicine’ movement, and the U2 show at the Sphere, much of the talk in the Las Vegas Convention Center was on the idea that disruption is not about competition but about collaboration.

A prime example during the event was General Catalyst’s announcement about its Health Assurance Transformation Corporation (HATCo) and to mold a “clicks and mortar” platform. HATCo’s co-leader Marc Harrison said the platform will combine technology with in-person care, mostly through partnerships with other health systems, to improve access and outcomes and reduce costs, especially waste.

It's not a new concept. Kaiser Permanente pitched a similar strategy earlier this year when it launched Risant Health, with Geisinger Health as its first partner. And digital health company Transcarent is shepherding a similar concept with a national concierge care platform unveiled last month and supported by 10 major health systems across the country.

The three projects are rooted in value-based care, but critics of the General Catalyst announcement at HLTH were quick to question how that value will be determined.

As the global law firm Sheppard Mullin noted in a recent JD Supra post: “For HATCo and Risant Health, data analytics and value-based care will go hand-in-hand, as their use of data analytics may help health systems unlock major care delivery and patient population insights that drive better care and better outcomes, ultimately lowering total costs of care, which is precisely the goal of value-based care.

“Bottom line: Sophisticated technology, including AI-driven data analytics, combined with deeper collaboration across health systems, may be the new capstone of health system transformation,” the firm wrote.

And while the concept isn't new, the focus on provider partnerships struck a chord with HLTH attendees. The idea that health systems can collaborate to improve care management and coordination takes aim at the long-standing issue of siloed care and competition. It also addresses the idea that companies like Amazon, Google, Microsoft, Walgreens, and Walmart aren’t necessarily competitors in the healthcare space but partners in redefining how care is delivered.

For the pharmacy chains, the idea of transforming into a healthcare center in the community can't come soon enough, especially as the major chains announce cutbacks and layoffs.

At HLTH, Walgreens announced the launch of a virtual primary care service, with Tracey Brown, the company’s EVP, president of retail and chief customer officer, saying the way forward requires “creating the partnerships that are required, the technology and the data, so that we can create personalized, effective care to improve the overall health and well-being for people in this country.” This came shortly before the company announced plans to slash $1 billion in costs and close 60 VillageMD clinics in the coming year.

To create those partnerships, healthcare executives are seeking expertise they don’t have. For example, HCA Healthcare earlier this year announced an alliance with Google Cloud and Augmedix to develop AI programs. Augmedix, the San Francisco company once known for developing smartglass applications, is now producing digital health tools that use natural language processing (NLP), large language models (LLM), and structured data sets to give clinicians on-demand support summarizing conversations and medical notes.

At the Augmedix booth on the HLTH floor, Augmedix CEO Manny Krakaris said the focus is now on finding the right partners to create a comprehensive platform that helps providers save time, reduce workflow stress, and improve clinical outcomes. It’s a lot like putting together a puzzle, with each vendor and each health system holding different pieces.

That’s what health systems are looking for now, and so a lot of the chatter at HLTH was among companies looking to complement other companies, creating platforms that address a number of needs rather than one pain point. A vendor with a unique app might see some initial success, but the company won't survive unless that app can integrate with other solutions across the enterprise.

Healthcare executives are also wary of taking on new projects, primarily because they don’t have the money to spend—but also because solutions to healthcare pain points are found in change management and workflow strategies. New technologies won't necessarily solve problems that are baked into standard operating procedure.

“It's not something you can just throw money at any more,” said Kimberly King Webb, senior vice president and chief human resources officer for CHRISTUS Health, during a session on new ways to address stress and burnout, still one of the biggest issues in healthcare.

This is perhaps HLTH’s biggest takeaway: Health systems can no longer just spend money on new technology to solve the industry’s most pressing problems. True disruption begins with an understanding that change is tough, and change management is vital. Instead of seeing competitors and looking to get ahead of everyone else, healthcare decision-makers should be recognizing opportunities to collaborate and forging partnerships that identify and affect value.