Is it easy to start a healthcare startup?

According to the Startup study conducted by

Why is healthcare entrepreneurship difficult?

The covid pandemic has demonstrated the necessity of new entrepreneurs in the healthcare sector to help India and other developing economies deal with the limited healthcare infrastructure. The Indian government is proactive in sup

porting new startups and entrepreneurs in the healthcare space. With the booming healthcare sector, many entrepreneurs are plunging into the healthcare and healthcare-associated sectors with much vigour and passion. As a result, there is immense competition among healthcare companies. Many people are starting to appreciate the role of an entrepreneur in the healthcare sector and utilise their knowledge of entrepreneurial spirit and habits. Going into the near future, the interlinkage and cross-talk between entrepreneurs and the healthcare sector will continue to grow.

What is healthcare entrepreneurship?

One of the excellent ways entrepreneurship and healthcare sectors are relate

d is in the business practices that are driving the healthcare industry. MBA graduates in healthcare and other healthcare professionals/doctors are using business knowledge to get ahead of the competition, thereby disrupting the traditional way that healthcare is perceived. Incentives are pushing investors and entrepreneurs into the healthcare sector, which they find a welcoming market open to new ideas and technologies.

At the same time, healthcare is becoming less directed and more open as the industry embraces a patients-as-consumers mindset. Healthcare providers are forced to respond by marketing their services — something that was non-existent in the p

ast.

New payment models have come up that reward value. The traditional clinical models include the fee-for-service model that was employed over a few decades, the revenue is generated depending on the number of patients examined by the healthcare professionals. The traditional models are rapidly disappearing. New models of population management reward the healthcare professionals/doctors for keeping patients/popu

lation healthy, as opposed to the older way of generating revenue only from people who are sick.

Due to the advent of these new models, the old adage of “Prevention

is better than the cure” is turning more relevant, since disease prevention and preventing unnecessary treatment is the new focus area. The role of healthcare entrepreneurs is in introducing devices/techniques that preserve health, like wearables, sensors and fitness apps etc. This shift is creating a universe of highly profitable products and services that are not solely under the control of medical professionals/doctors, insurance companies or hospitals/clinics.