Funding Trends for Healthier Returns - 5 Takeaways from the 2023 J.P. Morgan Healthcare Conference
I recently had the pleasure of attending the 2023 J.P. Morgan Healthcare Conference in San Francisco. From a packed agenda to a full schedule of networking sessions with leaders across the industry, it was a great time to get inspired for the year ahead and to clearly see what the industry is leaning in on as we enter 2023. Here are my five key takeaways from the event.
1. Value-based care remains the hottest topic in healthcare.
It also continues to move forward at a modest pace compared to the enthusiasm it has drawn from every corner of the industry. Currently, the industry still largely runs on fee-for-service reimbursement. Value-based models are complicated and require collaboration from multiple stakeholders. There’s no way around the truth that value-based care requires transformation, a real shift in how we do things. But it’s the only viable path forward, which is why despite the complex nature of value-based models, the energy is only intensifying.
2. Women’s health is still in the spotlight, right where it belongs.
Despite the overall slowdown in venture investing, women’s health continues to attract interest, likely because of the size of the opportunity and the scope of unmet needs for women. There is so much opportunity, and so much innovation happening in this space. More funding will follow and massive change lies ahead to positively impact health outcomes and experiences for women.
3. Not all innovation is created equal.
It’s more obvious than ever that not all innovation in healthcare is purposeful and meaningful. While there were many thoughtful and creative solutions on display at J.P. Morgan, I also saw examples of companies just rebuilding tech stacks in healthcare, creating more silos of care or simply not addressing a significant challenge in a truly transformative way. With the fundraising environment in a more sober phase, it’s more important than ever that entrepreneurs deliver truly novel solutions that produce quantifiable ROI to healthcare stakeholders with business models that are economically sustainable.
4. The time to scale is quickening.
It appears the time for small-scale pilots and picking along the edges of big problems might be nearing the end in healthcare. There is more and more discussion, and even execution on, innovation that can scale. Many of the big players in healthcare are pushing more rapid change because they see that to do it right and move the needle, they must innovate in a way that scales to match the impact of their organizations and the size of healthcare problems. More companies are going to take bigger chances in the name of meaningful change. There’s no more dipping toes in the water. It’s time to dive in!
5. Financial pressures have changed the way innovators engage with providers.
If you are supporting providers with a new solution or technology, you have to make sure you are either saving them money, making them money, or both. I heard this from countless leaders at the event and have seen it firsthand in supporting our company’s clients. In our current environment, providers are more financially savvy and more financially-focused because they have to be. Innovators have to follow suit and make sure the solutions they offer are financially aligned with provider needs.
Did you attend the J.P. Morgan conference? If so, what were your takeaways and what did you learn about the future of healthcare? Drop us a line if you want to compare notes and discuss how to adjust to the changing face of healthcare.