Healthcare – The Ultimate Vertical Market (Part 3)
In Part III of our Healthcare Series, Tidemark's Christian Kurth and Brendan Keeler expand on why regulation and complex stakeholder dynamics create healthcare SaaS winners.
Ask anyone their opinion on the forces that tend to slow down innovation in the healthcare sector, and usually, government regulation tops the list.
It’s a fair critique. Understanding and then complying with the maze of federal and state regulations is a time-consuming and complex undertaking. Consider this: as of June, the U.S. Department of Health and Human Services had published 952 documents in the Federal Register year-to-date, including 53 final rules, 20 proposed rules, and 879 notices. That works out to an average of 190 per month or six each day!
The $5 trillion healthcare industry is shaped by a regulatory maze of healthcare standards and agencies – HIPAA, PHI, CMS, FDA, CDC, CMS, etc. – each with its own rulebook. And the stakes are high. Non-compliance can result in financial penalties, legal action, erosion of customer trust, and even patient harm.
At Tidemark, we try to open-source our thinking as much as possible to help founders win; however, as investors, we can’t give everything away in public. If you’re an operator or founder, you can request access to the rest of this piece below.
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