What Challenges Do New Healthcare Delivery Startups Face?

Last week I was confronted several times by new ideas for healthcare advice and service delivery. First, I read about a service in NYC that gives patients access to healthcare professionals 24/7 and helps them navigate the New York medical system (hence the name Sherpaa). There were also a couple articles on The Health Care Blog - one described a number of online health communities, while another questioned the viability of the doctor-patient forum HealthTap. Finally, I heard a speech from Dr. Andy Sussman, President of MinuteClinic, who described the strategy and expansion plans for CVS’ onsite clinics.

I’m encouraged by these developments. The shortage of primary care physicians over the next decade is well documented and it’s great to see solutions helping fill that void. While they may not replace the existing medical establishment, they can serve as a safety valve for our growing healthcare demand.

I’m intrigued by how people will respond to these tools and if they’ll be widely adopted. Right now, I think these companies face two obstacles before these services reach their tipping point: trust and scale.

First, these new tools need to make patients feel like they’re getting quality advice and treatment, then deliver on that promise. Unlike other online forums or retailers, healthcare services require a much higher level of trust from a consumer before they’re willing to try something new. Even if a company gets that trust, one wrong move and they lose all credibility (e.g., imagine the backlash if HealthTap gave advice that kills a member). However, once that trust is established, that patient will likely be very loyal.

Second, I think these tools need much greater scale to be effective. While the internet enables folks to create niche communities, I think patients would benefit more from the resources and reach of larger, brand name enterprises. For example, I think of all the smaller social networks vs. Facebook – while the startups provide great new features, none of them can match the user experience and development opportunities that Facebook provides. The market is so fragmented right now that most solutions, no matter how great they are, will never get significant traction and may ultimately leave the people they serve behind.

Don’t get me wrong – I’m really hopeful that these solutions can address our growing medical needs. What will separate the successes and failures are their ability to confront these two challenges.