Can Healthcare Startups Succeed without Medical Expertise?
By Arunima Rajan
Why is having a healthcare professional in the core team crucial for a health startup’s success?
The healthcare industry is a vital part of our lives, and it takes skilled and knowledgeable professionals to run successful healthcare organisations and startups. While the need for a healthcare degree to operate such entities has been a topic of discussion for a long time, recent reports have highlighted the success of MBA graduates in reducing crowds in government hospitals. However, the healthcare sector is notoriously cautious when adopting products or services that do not have a physician on the core team, such as app-based solutions or tech startups which offer CGM devices for diabetes management. On the other hand, there are also examples of non-healthcare teams with management expertise who have achieved success in the healthcare sector. So, what sets them apart?
The Need for Alignment and Expertise
Dr Edmond Fernandes is the founder of CHD Group. He notes that the primary goal of healthcare professionals is to focus on the preventive or curative health of people. “Start-ups need to align with our primary mission. Given the record of start-ups eventually closing down has triggered a question of faith whether it's worth pursuing the route,” he adds.
He also believes that healthcare startups need some primary expertise or at least qualified people on their team who will work with healthcare professionals. “Additionally, they need to go to the ground to work and have a consistent dialogue. In 9 years of CHD Group's work on the ground, we have barely come across committed startups on the ground, and a few that came, also disappeared naturally,” he explains. Even the government cannot retain health professionals, and the attrition rate is high.” The goal of people keeps changing and is dynamic. I feel health professionals put startups very low on their list of priorities,” he adds.
“Healthcare leaders bring a lot of value when they are in a part-time advisory role. The experience that they have helps drive the patient centred decision-making of what disease verticals to prioritise. The use of AI and software for clinical decision making is a fairly new technology, so we get varied advice on how to plan the regulatory path. This is because it is evolving at a global stage. While their knowledge is invaluable to build products, we have to adapt those learnings to what's relevant today. Our job is to bridge that gap and make robust technology that solves the problem of drug resistance at scale,” says Praapti Jayaswal, Co-Founder and CEO of AarogyaAI.
Growing up in a family of medical professionals, Praapti Jayaswal initially planned on becoming a professor. However, during her PhD, she realised the impact it had on her mental health and began considering a career in industry. Her entrance into entrepreneurship occurred unexpectedly, as she received a LinkedIn message asking if she was interested in starting a business. This led her to join Entrepreneur First, where she recognised that launching a startup was the right path for her. Praapti's startup, AarogyaAI, specialises in precision diagnostics for infectious diseases, using genomic DNA analysis to identify the appropriate medication to cure an infection.
Jayaswal found that engaging in conversations with senior healthcare leaders confirmed the significance of the problem they aimed to solve and the validity of the solution they were developing. The involvement of these experienced leaders as advisors not only bolstered their credibility, but also attracted investors. Additionally, it allowed them to gain insight into the global public health landscape, which helped them prioritise which pathogens to focus on. Their product development has been largely guided by reports from organisations such as the WHO and the input of senior leaders, which will ultimately aid in the commercialisation of the product they have built.
Prioritising Expertise and Comprehensive Care for Healthcare Innovation
Noah Nordheimer, Founder & CEO of APN, also seconds his view. He says that many new players who have entered the telehealth space don’t have employees, they have contractors, and it’s tough to build a clinical platform with freelance contractors and deliver a good product. “Innovation in the industry is halted when great tech companies are masked as behavioural health companies because they don’t have the behavioural health leaders and expertise to provide the highest quality healthcare service to its patients,” he explains.
APN is a whole-person health company that provides innovative integrated care for mental health, blending in-person and tech-enabled treatments to help individuals find their own True North. The CEO believes that telehealthcare is here to stay, but the future is a hybrid model. Successful healthcare organizations prioritize employee compensation and manageable patient loads for high-quality patient services and competitive advantage.
He continues: “While the healthcare space is teaming with established names and startup challengers, low wages for therapists, a lack of training and skills development for existing therapists, and a non-comprehensive approach all impact the quality of services offered. Healthcare companies should prioritise competitive wages, training programs and a manageable caseload to retain top talent. Too often, therapists and medical providers are burdened with more patients than they can effectively treat, leading to a decrease in the quality of services and burnout among healthcare workers. In fact, a recent report found that nearly half (49%) of U.S. healthcare workers say they are either at their breaking point or looking for new work due to the stress and trauma they endure on the job.”
Careology's Leadership Team Prioritizes Healthcare Professionals to Transform Traditional Cancer Care
Careology is a digital cancer care platform connecting patients, companions and healthcare teams. Its award-winning app allows patients to manage their treatment by logging symptoms, managing medication and recording their well-being. Careology is working with leading healthcare organisations and aims to transform traditional cancer care.
Paul Landau, the CEO of Careology, founded the company in 2019 after witnessing his wife's challenging battle with cancer. His 15 years of experience in consumer health tech inspired him to utilise digital technology to address the significant challenges in cancer care. Careology now boasts a highly skilled team and Clinical Advisory Board to navigate the complexities of the cancer care ecosystem. The company has also recruited experts from the consumer technology and healthcare management sectors, including the former Head of National Digital Product for NHS England, who led the delivery of the successful NHS Covid Pass. Careology aims to become the world's leading digital cancer care platform, transforming traditional cancer care globally.
Careology prioritises the benefit of patients and nurses when designing its digital solutions. The company collaborates with health partners to tailor the information in its healthcare professional dashboard to quickly and easily provide patient information, allowing oncology teams to identify early signs of patient deterioration. This is achieved through regular meetings and feedback loops with new and existing customers.
According to the CEO, selecting the company's leadership team was based on ensuring they possessed the necessary qualifications and expertise in healthcare and technology. The goal was establishing a strong foundation to support the company's focus for the next 5-10 years. The senior team was chosen for their diverse expertise, including commercial and insurer experience, nursing experience, knowledge of Covid-19 rollouts, and experience in growing high-tech companies. The leadership team is more than 50% female, providing a wide range of perspectives and serving as key role models for the rest of the team. The CEO emphasises the importance of bringing structural and cultural diversity to the company. Careology develops clinically relevant and evidence-based solutions with input from NHS trust partners, patients, and clinical experts. The company's commitment to evidence-based practices has earned it recognition as the top cancer-related app.
Why Healthcare Professionals are Crucial for Startups
According to Gaurav Parchani, Co-Founder & CTO of Dozee, having healthcare professionals in the core leadership team of a healthcare startup is crucial. Not only can their absence impact the startup’s success, but it can also affect its validity in the highly regulated healthcare industry. Parchani believes that experienced healthcare professionals can help guide startups, providing valuable insights and ensuring they meet industry standards.
However, Parchani also stresses the importance of having professionals from multiple domains in the team. At Dozee, they have a team of highly experienced healthcare professionals who work together with experts from different disciplines to ensure their products and services are of the highest quality. Collaboration between departments also helps the company stay up-to-date with the latest trends and user requirements.
To attract and retain healthcare professionals, startups need to provide a compelling reason for them to switch from traditional methods. This involves not only having a great product but also being able to communicate its advantages effectively. Ongoing training and support for users are also important to ensure they can get the most out of the technology.
Parchani also notes that while technology in healthcare has made significant strides, it's still in its early stages of adoption. The Covid pandemic has expedited the need for healthcare organisations to digitise and automate their operations to improve patient safety and efficiency. Remote patient monitoring is one area where technology can have a significant impact by automating data collection and monitoring patients remotely, reducing the burden on frontline staff and improving care quality.
Ensuring Success in Healthcare Start-ups: Integrating Industry Expertise and Establishing Support Networks
Dr Harro Stokman is the CEO and founder of Kepler Vision Technologies. He says, “At Kepler, we are all engineers with a PhD, focusing on technology and Artificial Intelligence. The language is entirely different from the healthcare industry. These are two different worlds. Without healthcare leaders on the core team, start-ups may struggle to understand the unique challenges and complexities of the healthcare industry. This can lead to a lack of knowledge of the healthcare industry regulations, which could impact the startup’s success. Additionally, if you had healthcare leaders in the core team, you would already have established relationships with key stakeholders such as hospitals, elderly care and insurance companies.”
Theranos was a healthcare start-up that claimed to have developed a revolutionary blood-testing technology. However, the company faced widespread scrutiny when it was revealed that the technology did not work as advertised. One of the reasons for this failure was the absence of healthcare expertise in the core team. Key members of the senior leadership team at Theranos had no background in healthcare, which could significantly impact the company’s success or failure.
He also notes that startups should establish an advisory board. Start-ups can bring on experienced healthcare professionals as advisors to provide guidance and expertise in the healthcare industry. At Kepler Vision Technology, we have an advisory board with expertise in healthcare and a dedicated healthcare coach who advises Kepler Vision Technologies. Pitching business plans to healthcare venture capital firms provides good feedback and insight. The Netherlands government has a unique program for start-ups and scale-ups. The ministry of economic affairs helps start-ups to scale up in healthcare and other industries.
Another resource is the hiring of part-time consultants. Start-ups could hire healthcare consultants on a project basis to provide specialised expertise and guidance. At Kepler Vision Technologies, we hired two part-time specialised healthcare consultants for their expertise and background in health and elderly care.