The last few years have seen many changes in the areas of healthcare and growth potential. Not only did the passing of the Affordable Care Act open opportunities for many American residents to receive much needed medical care without the threat of rejection or financial devastation, but other regulatory changes have improved the bottom line of the healthcare economy. While there are still is a lot of complexities to be worked out of the healthcare system to continually improve accessibility, efficiency, and affordability, the current conversations are moving the discussion in the right direction.
One of the more notable achievements in the last few years was the passing of the 21st Century Cures Act. This law was passed by Congress in December 2016 and promotes accelerated product development through additional funding designed for research in new innovations. Preventing and curing serious illnesses, improved timetables for medical device and drug development, as well as addressing mental health service delivery issues and the opioid abuse crisis are all benefits to the American public but also to the American entrepreneur. This legislation means that billions of dollars will be pumped into research and healthcare. Although it will take considerable effort, it possible to succeed as a healthcare entrepreneur.
New Business Potential
The funding promised by the Cures Act was designed to provide a complete overhaul on the federal policies established related to mental health care, as well as increase medical research funding, and conduct more efficient development and approval of experimental treatments. Those three areas alone are full of potential for entrepreneurs. While new entrepreneurs are able to jump in on the potential, current success stories, like pharmaceutical and biotechnology entrepreneur Harry Stylli, can capitalize on the opportunity for expansion and diversify the company’s portfolio. The specifics of the legislation included a $6.3 billion infusion into precision medicine, electronic health records, interoperability, and mental health. While the primary consideration for distribution of funds is to the dominating pharmaceutical research companies, the beneficiaries of the funding will be looking to services and products from other sectors and companies that can help them comply with the regulations of the Act. They will also need to establish ways of improving the delivery of the product to the market and improving patient care along all stages of use. This results in a top-down expansion of the healthcare industry and future needs.
Potential Business Hang-ups
Even though the legislation allotted funds to the industry, being able to access the funds will still be a challenge. No new bureaucracy was created by the Cures Act, as it mandates the existing overseeing agencies of the Food and Drug Administration to carry out the order. This can create delay, as there is no clear standard for how quickly these entities are to adapt and comply with the new distribution requirements. Even with the current administration’s negative stand on federally funded healthcare, the Cures Act received overwhelming bi-partisan support at the time of passing and will significantly benefit many of the large medical and pharmaceutical companies. There is money to be made, patient needs to resolve, and the overall hunger to develop and innovate healthcare solutions that create a better America. Whether you have a ready-to-market project or you are just starting to explore your potential, it is a good time to be dipping your toes in the waters of healthcare entrepreneurship.
Prime Areas to Pursue
Making a move to digital healthcare is a trending decision from those both within and without the healthcare industry. IT fields are growing, and tech changes and adaptations are making a move toward digital devices, monitoring, software development, and mobile applications a solid investment. There are several ways to improve your potential in this field.
- You can join local healthcare IT meetup in your areas. This gives you a bigger understanding of all things current on the market and areas of growth. It is estimated that meetup up of this nature are growing in popularity, hosting about 250,000 healthcare industry members from around the globe.
- You can work with an investment club specializing in healthcare tech to get background knowledge on the industry and financials required to secure a deal. If you can’t find a club near you, it may be an opportunity for you to jump in with both feet and get one started. You can get to know the angel investors of your industry and begin cultivating connections. Your approach should be to understand their interests and needs and find out how what you offer can work for them.
- Keep a close watch on the industry trends. Healthcare startup activities are just as varied as other industries, and the competition is never far behind. Follow companies or products that are on the rise, and make sure what you offer is sustainable even in a changing market.
The federal government is one of the biggest financiers of the healthcare industry, considering both legislative funding and Medicare and Medicaid provisions that enable a significant number of individuals to obtain medical care. The recent legislation shows there is no slow-down in sight for healthcare growth, meaning there is money to be made by the entrepreneur willing to take the risk.