Health tech start-ups are springing up all over in the U.S. In a fast growing technology-oriented world, IT companies are vastly focusing on the healthcare industry in order to make future healthcare faster and more efficient.

These companies play a vital role in combating the reduced productivity that is faced in the industry while improving the quality of healthcare for the individuals.

Winners vs. Losers

While some healthcare start-ups have indeed failed in the past, a good number of them have thrived, slowly making the popularity of start-ups to rise.

These start-ups have redefined the role of IT in healthcare since doctors can now incorporate IT in their day-to-day jobs to make an accurate and up-to-date diagnosis of their patients’ conditions.

Main Reasons for the Appeal of Health Tech

Among the reasons why the start-ups have been able to grow tremendously over the years include the increasing population of senior citizens that demands for better healthcare and the adoption of technology in the medical field coupled by reforms in traditional healthcare models.

Big Brother – ARRA

One of the reasons why health tech start-ups are flourishing is because of the 2009 American Recovery and Reinvestment Act (ARRA). This act promoted a project worth $25.9 billion to hospitals and doctors as a means to adopt and fund Electronic Health Records (EHR).

This project resulted in hospitals and physicians funding up many successful start-ups in the medical market. The health reforms have been promoting health business models to bring about the various changes and adoption of various technological tools such as video chat and wearables into the health industry.

Low Costs

Since this is the age of entrepreneurship, healthcare has not been left behind. The declining cost of technology has made it possible for many in the healthcare profession to build up new companies.

Entrepreneurs have the necessary tools and skills, coupled with the know-how to build start-ups companies in the industry. In 2014 alone, $6.5 billion was invested in healthcare start-ups, which is a 125 percent increase from that in 2013.

This can all be attributed to technology and the need for an overhaul in the entire healthcare system. The technological system has also made it possible for several start-ups to succeed. In the recent years, technology and healthcare have become more intertwined in the dawn of healthcare innovation.

The Need for Employment

The rise of technology in healthcare has also created employment opportunities for people who would have otherwise been lying dormant after the recession in 2009.

The medical start-ups have caused an employment growth of about 7.2 percent, leading to the discovery that a decline in labour productivity was causing excessive spending in healthcare.

In the coming years, healthcare start-ups through software tools will eliminate the need for several jobs within hospitals, their human resource departments, and insurance companies and brokerages.

The only people who will be safe from this storm of change will be the actual healthcare providers.

Some of the people and jobs likely to be affected include:

1. Revenue cycle managers and claims adjudicators can easily be replaced by digital insurance products and price transparency and reference pricing tools.

These tools can automatically generate the prices to be paid for particular healthcare services.

2. Brokers that act as intermediaries between insurance services and clients will be replaced by ACA-enacted changes and digital insurance markets.

These will make it possible to immediately price and sell healthcare plans to patients therefore decimating the brokers who currently play the said roles.

3. Staff building and running data centres will be rendered obsolete by the shift to cloud systems.

4. Staff in health plans, medical boards and medical affair divisions and in local and state health departments will be replaced by central clearing houses that will be able to share info to various stateliness and organizations.

This will bring an end to the paper-based processes within hospitals that enable keeping up-to-date licences and tracking medical education of the doctors.

5. Excess staffing, forms, and faxes will be replaced by self-service mobile applications. This move will be highly satisfactory for everyone including nurses and doctors.

The Need for Simplicity and Efficiency in The Healthcare Industry


The shift towards health tech start-ups is brought about by the simplicity and efficiency that it brings to healthcare. The healthcare start-ups are getting rid of the reduced productivity created by a long chain process.

It instead introduces efficiency through the use of technology, which helps to make the process of treatment easier and faster.

The shift from traditional ways of treatment to the approaches brought by start-ups have been beneficial and life-saving for many and therefore improved healthcare.

Data Access

Easier data access on the specializations of physicians and doctors makes it easier to access efficient and high quality services that help avert health complications among patients.

The continued use of healthcare start-ups will encourage the healthcare system to address inefficiency and instead compete based on creating value and quality. This innovative change is a sure way to keep the healthcare system updated and equally competitive.

Final Take

All in all, if the rate of health tech start-ups were to keep on going like this, then it would not be long before we start seeing all the fancy tissue repairing gadgets that we usually see in Hollywood blockbuster films.

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