Commercialization paths for digital health solutions

Commercialization of healthtech solutions is the final, most challenging, yet essential stage in the life cycle of digital health innovations. Taking a deeper look, one will find that there is no single marketplace or buyer for these solutions, but rather an assortment of potential customers. These customers have remarkably different business drivers, buying preferences and evidence requirements.

To commercialize successfully, digital health companies must navigate the challenge of providing clinical or economic value to customers. Companies must remain flexible and adaptable, exploring multiple go-to-market strategies simultaneously. Key to this process is identifying who will pay, whether it is health plans, providers, employers, or patients. Additionally, it is also vital to determine which markets to target first. Success hinges on evolving business models, choosing the right partners and ensuring that customers realize value post-sale.

Payers

These buyers provide access to large patient populations, offering potential reach and scale. However, many are still skeptical of prescription digital therapies, particularly in the U.S., and require an important level of evidence. It is noticed that payers are more likely to respond to value propositions focused on economic value, clinical necessity, and member satisfaction. Since payers range from small networks to large organizations, it is crucial to understand their specific needs and personalize the value strategy accordingly.

Employers

In the U.S., employers are a key commercialization target after health insurers due to their interest in promoting employee health and well-being. They are receptive to solutions focused on cost reduction, employee well-being, talent retention and acquisition. With a lower evidence threshold, favoring economic over clinical evidence, employers are an attractive initial target for digital health companies.

Providers

Healthcare providers, like payers, are diverse that include integrated delivery networks, academic centers, and community hospitals. While their business drivers vary, all share a focus on improving patient outcomes and increasing efficiency. With the current healthcare system strains at the present, providers may be open to solutions that enhance productivity. For this reason, digital health companies should engage providers with two types of strategies. One is top-down, presenting the business case to administrators and bottom-up, creating demand among doctors who see the potential to improve their workflows.

Patients and Caregivers

Patients and caregivers prioritize convenient, accessible ways to improve health outcomes, making them an attractive early target for digital health solutions. Their lower demand for clinical evidence is offset by their reluctance to pay out-of-pocket. Many companies target consumers early in the product life cycle to generate the evidence needed to later appeal to payers and providers.

It is crucial to consider multiple go-to-market strategies simultaneously, whether you are a pharmaceutical company exploring digital health solutions or a stand-alone digital health startup striving to navigate the challenging path between securing funding and achieving profitability. To gain success in this rapidly evolving sector, one must use a multi-faceted approach. One may need to engage directly with consumers to build awareness and drive early adoption, collaborate with healthcare providers to integrate the solution into clinical workflows and work with payers to ensure reimbursement pathways.