— Rasu Shrestha MD MBA (@RasuShrestha) July 31, 2014
This tweet struck me as I consider some of the technologies at the core of healthcare. As a patient, many of the healthcare technologies in use are extremely disappointing. As an entrepreneur I’m excited by the possibilities that newer technologies can and will provide healthcare.
I understand the history of healthcare technology and so I understand much of why healthcare organizations are using some of the technologies they do. In many cases, there’s just too much embedded knowledge in the older technology. In other cases, many believe that the older technologies are “more reliable” and trusted than newer technologies. They argue that healthcare needs to have extremely reliable technologies. The reality of many of these old technologies is that they don’t stop someone from purchasing the software (yet?). So, why should these organizations change?
I’m excited to see how the next 5-10 years play out. I see an opportunity for a company to leverage newer technologies to disrupt some of the dominant companies we see today. I reminded of this post on my favorite VC blog. The reality is that software is a commodity and so it can be replaced by newer and better technology and displace the incumbent software.
I think we’ve seen this already. Think about MEDITECH’s dominance and how Epic is having its hey day now. It does feel like software displacement in healthcare is a little slower than other industries, but it still happens. I’m interested to see who replaces Epic on the top of the heap.
I do offer one word of caution. As Fred says in the blog post above, one way to create software lock in is to create a network of users that’s hard to replicate. Although, he also suggested that data could be another way to make your software defensible. I’d describe it as data lock-in and not just data. We see this happening all over the EHR industry. Many EHR vendors absolutely lock in the EHR data in a way that makes it really challenging to switch EHR software. If exchange of EHR data becomes wide spread, that’s a real business risk to these EHR software companies.
While it’s sometimes disappointing to look at the old technology that powers healthcare, it also presents a fantastic opportunity to improve our system. It is certainly not easy to sell a new piece of software to healthcare. In fact, you’ll likely see the next disruptive software come from someone with deep connections inside healthcare partnered with a progressive IT expert.