The Real Healthcare Revolution: Its Not What You'd Think
2024 is the year when technology will finally crack the healthcare code. And no, it is not through the latest gadgetry or medical breakthroughs. The game-changer? Flipping the SaaS script: from Software-as-a-Service to Service-as-a-Software (SaaS). Let's dive into why it's shaking healthcare up.
Where things started: The Digital Health Boom repeating history
Remember the dot-com boom? Well, healthcare's digital revolution between 2019 and 2022 felt eerily similar. Why? It often takes the same people to err the same way to get to the same outcome and in 2020, venture capital (VCs) discovered healthcare.
This time venture capital took the lead, pumping money into digital health firms like there was no tomorrow. They borrowed a page from the tech industry's playbook: the Software-as-a-Service (SaaS) model, betting on low-tech effort and high margins. But here's the catch: the healthcare sector wasn't playing along. They screamed, “Healthcare is old-fashioned and resistant to tech”, but healthcare was only resistant to tech because it wasn’t the problem they had. Their problem is much bigger. Yet no one bothered to ask.
The HealthTech boom Misstep: A Tale of Misaligned Expectations
So the math failed, cueing VCs to cry the expected 'Startups mass extinction' (classic VC war metaphors). Why the misstep? It boils down to misunderstanding the sector's core needs. During my hundreds of visits to hospitals from 2020 to 2022, the message from the ground was clear: Digital solutions piled on administrative burdens without solving the real issue - service delivery.
The 2020 healthtech boom did one thing well: it added a digital administrative burden to an already burdened, overworked sector.
Why is AI different: Adding Digital co-workers to the workforce
Healthcare's need wasn't tech. It was hands to deliver services. More people to do tasks and AI is the first technology that … Actually does tasks. Generative AI is software’s first chance to successfully penetrate the healthcare industry in a meaningful way. Then AI is customer-first technology. It isn't just about algorithms and data; it's about Service. Finally: Service!
The next generation of software is designed to run tasks for employees, and that’s what healthcare workers in research or care were all waiting for.
Transforming Healthcare: AI leads
What does AI's intervention look like in real terms? Think beyond patient treatment. AI is set to take over the operational process around care delivery, both within and outside clinical trials. The biggest nightmare for healthcare workers is Ops.
AI-enabled technologies will eradicate the 40% of time healthcare employees waste tracking down information, writing reports, and doing work about work. AI is set to catalyze operational productivity and the future of work.
According to a recent study by McKinsey, AI is expected to unleash $150-$260B of revenue value to the healthcare industry, and the majority is expected to derive from catalyzing the operational productivity of the sector across customer care, supply chain, and internal operations. (This is insane!!)
The Skeptics Corner: Addressing the Doubts
Of course, it's not all roses. AI in healthcare is still a field in its infancy, with its fair share of challenges and pitfalls. From data silos, ethical concerns to integration headaches, the road ahead isn't without its bumps. But the potential? Monumental.
The Bottom Line: A New Dawn for Healthcare
2024 isn't just another year; it's the beginning of a new era in healthcare. With AI leading the charge, we're witnessing a fundamental shift from tech-centric solutions to service-centric revolutions. It's a seismic shift in healthcare's approach, courtesy of AI.
What a time to be alive!