Self-Insured Companies: Low-Hanging Fruit for Consumer-Driven Telehealth?
Monday, November 26, 2007
| Malcolm Burwell
Are the companies who self-insure for healthcare a better place to start proving new consumer-driven healthcare models than mainstream health payers?
I am one among the entrepreneurs who have been motivated to start telehealth businesses since the implementation of consumer-driven health legislation in 2003. I have noticed a trend among such entrepreneurs: we are choosing to direct our efforts at the Fortune 500 self-insured companies (see, for instance, VieLife, Tangerine Wellness, Nutrio). This is in contrast to "doing the obvious thing" and trying to work directly with mainstream payers and providers.
Certainly the inertia of mainstream health is daunting. Big payers require big telehealth solutions with fully-proven financial benefits before taking an interest in something new. Revolution Health aside, it is very hard to find investors willing to take the long-term gamble to do such proving. Mainstream VCs say that telehealth success has been just-around-the-corner since the 1960s.
By working for self-insured companies and their benefits suppliers, we are able to deal directly with commercial entities who understand cost/payback/benefits and most-importantly, what "consumer-directed" means (from their own businesses). They are also used to sharing risks on new business processes. Furthermore, by choosing specific companies to pilot with (eg. healthcare companies, food companies, fitness companies) we can profitably target the early adopter segments without having to solve the problems of the full patient population demographic.
Shouldn't we be systematizing this important "back door" into developing profitable new telehealth business models?