Beyond the headlines: How can reproductive healthcare business leaders push forward?
From US Supreme Court rulings, France’s decision to codify abortion rights, Alabama’s Supreme Court ruling on IVF, menopause policy, to investment from the UK to the UAE — there’s been no shortage of headlines about reproductive health in the news.
As governments, lawyers, and advocacy groups push forward or against women’s reproductive freedoms, the business of reproductive health — from early-stage startups to med tech to big pharma — continues to innovate to face the new realities these primetime events have brought.
As women’s health garners increasing attention, it also faces significant obstacles. Healthcare business leaders must navigate beyond sensational headlines to strategically chart the future of the reproductive health industry, ensuring it is resilient and adaptable to overcome these challenges.
The headline: Women’s healthcare providers across the country are shutting down — from abortion clinics to maternity wards.
What does it mean for healthcare business leaders?
We must urgently continue to explore different models of care delivery in accessible, compliant ways. Reproductive health companies are investing in innovative care models that leverage technology and virtual care to meet the increasing demand and limited supply for services. Companies — from virtual providers like Maven to hybrid/in-person clinics like Mate Fertility — are extending the capacity of traditional providers while improving patient access. These tech-forward approaches also enhance efficiency by reducing wait times and increasing patient volume. The success of these models, however, relies on pairing technology with excellent care to achieve optimal outcomes.
In addition to companies like Maven and Mate, benefit providers like Progyny and Carrot play a crucial role in bridging technology with care, fostering patient loyalty, and providing education to empower patients to make informed choices in their reproductive journey — from fertility to menopause.
A key characteristic that companies innovating in this area must have is an unwavering commitment to protecting women’s data. Particularly in the US, the political environment over the last few years has made many women fear the repercussions of sharing reproductive health data. Innovation of care must be intrinsically tied to leveling up privacy protections.
The headline: The threats to access to IVF will make an already costly process even more expensive for many families.
What does it mean for healthcare business leaders?
Innovation to make IVF less expensive is critical. The cost of IVF can be significantly reduced by achieving better treatment outcomes. Through successful pregnancies in fewer cycles, the costs of IVF — such as medication and testing — decrease, making IVF more affordable for patients. Increasing clinic efficiencies through innovations such as AI for embryo selection helps clinics maximize their capacity and decrease the cost per cycle. To facilitate this transformation, clinics need to be incentivized to prioritize successful pregnancies and healthy live births in a shorter timeframe. Drawing inspiration from successful bundled payment methods in other healthcare sectors, such as orthopedics and cardiology, the fertility industry can revolutionize its delivery and payment models, leading to better outcomes and more efficient use of resources.
Clinicians must have ownership in the business, with a vested interest in its reputation and success, to drive innovation and improve outcomes while maintaining affordability. This includes exploring provider-owned structures, recognizing that a mix of majority and minority ownership models may be necessary given the diversity of healthcare settings.
One company leading the way is Gaia Family. Their innovative IVF insurance model allows members to pay a premium upfront to manage invoices, provide counseling, and cover upfront costs. The company covers up to six rounds of IVF, and if successful, members begin repaying the cost of treatment over a period of up to eight years. Most importantly, members who do not conceive are not financially obligated. This unique approach aims to alleviate the physical, emotional, and financial strain often associated with IVF journeys.
The headline: The direct-to-consumer (DTC) product pathway is dead.
What does it mean for healthcare business leaders?
DTC companies like Away, Allbirds, and Peloton have struggled to stay afloat during the shift in the healthcare startup world to a business-to-business (B2B) model. However, DTC is still a relevant pathway in women’s health for two big reasons:
- The traditional healthcare system simply isn’t working for many women (especially when it comes to issues like abortion, infertility, or menopause).
- It may be the only way to get their innovation to market as they go down the path of FDA medical device approval.
An excellent example of this is Daye, a company that is developing and commercializing innovative tampons with clinical benefits including reducing the risk of toxic shock syndrome (TSS) and easing menstrual pain. Daye took a fully DTC approach by going down the time-consuming path to gain FDA approval. Daye’s tampon is now an FDA-approved medical device, and the company seems to be pursuing a similar path for additional products.
The B2B path certainly reduces or eliminates women’s out-of-pocket costs. However, companies should not be afraid of a DTC pathway as motivated women take their health into their own hands.
The headline: Governments around the world are investing dollars and policies in women’s health, such as the US’s White House Initiative on Women’s Health Research, the Women’s Health Strategy for England, and the United Arab Emirates’ National Policy for Improving Women’s Health
What does it mean for healthcare business leaders?
Governments around the world are realizing the necessity and value of investing in women’s health, energizing the ever-growing business of reproductive health. That said, much of the investment is focused on early clinical research, which, while very needed, doesn’t always make its way to the large companies (e.g., pharma, med tech) who have the capital to commercialize research innovations.
The industry must find new and efficient ways to connect research organizations, startups, and pharma/med tech to health systems. Additionally, large pharma and med tech companies have an opportunity to expand and deepen partnerships with academic and research institutions to support the commercialization of women’s health therapies and products and shorten the time it takes to develop these important innovations.
Read more about ZS’s point of view on women’s health here.
Thank you to Grace Reinders for supporting this article.
This article reflects my personal views. They do not necessarily represent any official position of ZS.
