ZorroCard Round Up (10/22/24)

Hey all,

today’s roundup is comprised of several surveys and research study on the state of healthcare and health benefits.

Enjoy!

Jacob Brody (Co-Founder & CEO, ZorroCard)

State of Health Tech 2024 Highlights (Bessemer Venture Partners): BVP identifies three key business models driving health tech growth: Healthcare SaaS, AI Services-as-Software (SaaS), and Tech-Enabled Clinical Services. AI SaaS stands out, with top quartile companies achieving 305%+ ARR growth and CAC payback in less than 8 months, outpacing healthcare SaaS and clinical services. Healthcare SaaS focuses on workflow software with recurring revenue, while AI SaaS emphasizes outcome-based services, with firms like Qventus and SmarterDx scaling to $10M ARR in just 1.5 years. Tech-Enabled Clinical Services, such as Hinge Health, face higher clinical costs but maintain transactional, subscription-based models. For more, check the full report: Full Article.

2024 State of Digital Health Purchasing Survey (Peterson Health Tech Institute): PHTI offers insights into purchasing trends and strategies among health systems, payers, and employers. It highlights growing investments in digital health tools, prioritizing technologies like telehealth, remote monitoring, and AI. The report underscores challenges such as integration, cost, and ROI concerns, influencing digital health adoption. It also explores the impact of regulatory shifts and the increasing importance of partnerships with technology vendors. For full details, access the report here: Full Report.

U.S. Healthcare Predictions for 2025 (Paul Keckley): With the 2024 election approaching, Paul Keckley outlines three major predictions for U.S. healthcare. First, state-level legislation will dominate, with significant activity around abortion, Medicaid, drug pricing, and telehealth policies. Meanwhile, federal actions will focus on incremental changes like Medicare Advantage regulations and drug prices. Second, large employers, burdened by rising health costs, will adopt aggressive cost-control strategies such as reference pricing and narrow networks, demanding more from healthcare providers. Finally, private equity investors will seize opportunities amid healthcare market conditions, given growing deficits and spending pressures. These shifts will drive healthcare’s transformation, forcing stakeholders to innovate in the face of cost and regulatory pressures. For more details, check the full report: Full Article.