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1/ We’re in a golden age of digital health, and the next battleground will be for consumer preference. Consumers will pick the ultimate winners
Why I think this + what leading companies @HingeHealth and @Livongo are doing to stay ahead of the pack.
https://jconnolly.substack.com/p/the-next-frontier-of-digital-health
Why I think this + what leading companies @HingeHealth and @Livongo are doing to stay ahead of the pack.
https://jconnolly.substack.com/p/the-next-frontier-of-digital-health
2/ First phases of digital health: (1) proving it works (evidence generation), and (2) getting someone to buy (payer adoption). 
We're now entering the third phase of digital health: consumer adoption.
Consumers will pick the winners from the losers.
We're now entering the third phase of digital health: consumer adoption.
Consumers will pick the winners from the losers.
3/ Forward-thinking plans & employers are contracting with multiple digital companies focused on the same condition (ie diabetes)
Want the best results? Try Virta. Don’t like Keto? Try Onduo.
It’s no different than contracting with multiple endocrinologists in any geography.
Want the best results? Try Virta. Don’t like Keto? Try Onduo.
It’s no different than contracting with multiple endocrinologists in any geography.
4/ Because most virtual-first providers price on engagement, this means consumers will choose the winners in each condition.
Here's what top digital health companies are doing to capture consumer choice:
Here's what top digital health companies are doing to capture consumer choice:
5/ Hinge is offering free "prevention" product and expert medical opinion.
The bet: more touchpoints with MSK patients will translate to increased consumer adoption of higher margin Hinge products (sensor/health coach product).
The bet: more touchpoints with MSK patients will translate to increased consumer adoption of higher margin Hinge products (sensor/health coach product).
6/ Livongo's mimicking what health systems have done for decades.
Just like health system PCPs refer to in-system specialists, Teladoc's digital PCP will refer members to Livongo programs.
Physician recommendations drive consumer behavior. They’re creating a flywheel.
Just like health system PCPs refer to in-system specialists, Teladoc's digital PCP will refer members to Livongo programs.
Physician recommendations drive consumer behavior. They’re creating a flywheel.
7/ Simultaneously, as @julesyoo and @cwhogg point out, the cost to start a new DTC virtual provider has plummeted due to API-first tech filling out gaps.
High valuations + low starting costs + VC dry powder = lots of DTC virtual-first companies. https://a16z.com/2021/01/08/new-tech-stack-virtual-first-care/
High valuations + low starting costs + VC dry powder = lots of DTC virtual-first companies. https://a16z.com/2021/01/08/new-tech-stack-virtual-first-care/
8/ The strategy: focus on a large chronic condition or demographic with poor healthcare experience & low NPS and vertically integrate services.
Examples: @OshiHealth for digestive health or @folxhealth for queer & trans health. https://www.mobihealthnews.com/news/contributed-virtual-first-care-here-stay-can-it-fix-healthcare
Examples: @OshiHealth for digestive health or @folxhealth for queer & trans health. https://www.mobihealthnews.com/news/contributed-virtual-first-care-here-stay-can-it-fix-healthcare
9/ The biz model will look something like @onemedical:
1. Monthly fee for platform paid by consumer, for things not reimbursable (asynchronous texting, disease education).
2. Billable services sent to insurance for reimbursement (FFS telehealth visits, medication delivery)
1. Monthly fee for platform paid by consumer, for things not reimbursable (asynchronous texting, disease education).
2. Billable services sent to insurance for reimbursement (FFS telehealth visits, medication delivery)
10/ Payers will eventually view virtual-first providers as just providers, maintain a network, and force everyone to compete.
So, what's the best GTM for new digital health cos? IMO, it's still payers first...if you can.
If not, you now have a great, viable alternative: DTC
So, what's the best GTM for new digital health cos? IMO, it's still payers first...if you can.
If not, you now have a great, viable alternative: DTC
