Source: AIMS

Is High Quality Verticalized Healthcare the Future?

Medha Agarwal
Jan 29 · 5 min read
Source: Deloitte

Americans today are no longer just patients, but consumers of healthcare.

They no longer think this status quo is acceptable. People are more selective and have higher expectations. In a 2017 McKinsey consumer health survey, respondents clearly illustrate that they would like to be better healthcare consumers. They want to make informed decisions about the care they receive and how best to address their needs (e.g., affordability) but most also said they do not believe they can do that today.

These companies approach the problem in different ways and have a wide variety of business models. But they all have 4 important characteristics in common: they are (1) focusing on a single, traditionally underserved segment of healthcare (2) that is predominantly cash pay. They are (3) creating a high quality experience focused on the consumer that (4) still drives long term cost savings.

As a caveat, I believe that the target vertical has to be broad and important enough that consumers, payers, and/or providers are willing to engage with a specialized solution among their myriad of other healthcare touch points but specific enough to be able to be best in class in that category on a startup’s budget.

Redpoint Ventures

Since 1999, Redpoint Ventures has partnered with visionary founders to create new markets and redefine existing ones.

Medha Agarwal

Written by

Currently @RedpointVC. Former founder, ops, and consultant. Proud @HarvardHBS @Harvard @Radlwtcrew @Bainalerts alum. Recovering New Yorker, currently loving SF

Redpoint Ventures

Since 1999, Redpoint Ventures has partnered with visionary founders to create new markets and redefine existing ones.