Healthcare firms are projected to grow significantly in 2020, with billions of dollars available in funding. The emergence of healthcare companies is expected to double in this decade, due to strong urbanization, improving healthcare awareness, and technological breakthroughs. According to statistics, the health industry is one of the three leading sectors with the most startups. The experts believe that discovering answers to the issues faced by healthcare startups would be the most fruitful endeavor in 2021. One of the issues to face first is that Forbes stated that 98 percent of digital health startups are experiencing extreme challenges, and many are already considered dead.
What are the struggles in healthcare startups?
1. Data Privacy Issues – Digital technology is rapidly being used by healthcare organisations
such as clinics, hospitals, and medical institutes to keep patient data. And, like any other technology, this storage system is prone to technological difficulties. Even though it is simpler to maintain and fill digital information storage, the risk of a breach for personal advantage cannot be overlooked. Systems in healthcare are often hacked, or attempted to be hacked for the sensitive information contained within
2. Getting Short of Precise Funds and Investments – Usually health startups struggle due to a failure to design and implement methods created in the tech sector, that are completely different from standards used in the healthcare business. Healthcare is highly regulated, and rightly so, to apply that in a tech setting posses extra challenges.
3. Building Credibility – Before registering their accounts or cooperating with local medical institutions, healthcare consumers are more careful. Furthermore, due to its strong regulated nature, healthcare service providers do not hurry to adopt new technology. They are focused on obtaining funds and considering their business strategy; nevertheless, gaining consumer confidence will always remain their first priority.
Just like many other startups, even the healthcare industry experiences struggles that hinders them to grow and build a strong foundation in the market. However, identifying where some healthcare startups fall short can be a lesson for others to give priority and not do the same mistake or disregard it.
When working with multi-agencies, or multiple third parties, communication is key. Communication requires a level of openness. Openness leads to potential data security threats. It is a circle of issues that is difficult to avoid in many industries.