ABSTRACT
Thousands of organizations, including many startup companies, are starting to use data and sophisticated analytics to finally improve healthcare. This is leading to a revitalization of the healthcare sector and creating new opportunities for both established and new companies. This is a welcome change, since healthcare costs have been rising faster than wages for decades and the system is rife with inefficiencies and out-of-date processes. For a long time, because of regulations and lack of transparency, there was really no way to combat these trends. But renewed federal pressures and incentives combined with emerging technologies have finally opened the door to a wave of “next-generation” healthcare companies. Doctors and hospitals are starting to compete on price and quality, while payers (such as Medicare or private insurance companies) are monitoring the impact of treatments on patients—and are paying accordingly. Entirely new business models, such as retail clinics, telehealth providers, and online health pricing sites, are starting up in droves. In this chapter, we outline the current state of the healthcare system and describe broadly how various healthcare sectors are embracing a new digital and data-driven reality.
