Consumers are taking an increasingly active role in managing their health through the use of telehealth platforms, wearable devices, wellness apps and at-home diagnostics.
Rachel Springate, co-founding general partner of Capital of the Musesbelieves the next wave of healthcare startups will be built around consumer demand.
“Consumer health care is in tough times,” she said. “I think consumers are fed up with the health care system today, and I think many of them are trying to take charge of their own health care journey.”
Successful companies will build consumer-facing brands while integrating with the health care system as a whole, rather than trying to replace traditional providers, Springate said.
She noted that virtual care models that address unmet demand and supplement overwhelmed health systems are particularly promising.
Midi Health is a startup in Muse’s portfolio that takes this approach. The company, which reached unicorn status last month, offers virtual care for women, specializing in perimenopause and menopause patients. Patients can access care directly through its telehealth platform, but the company operates and accepts insurance. Its services are available to women in all 50 states – much more accessible than traditional specialty clinics.
“I think Midi is just a really good example of how you can create a consumer-facing brand that also respects and works with existing healthcare infrastructure and systems. It’s not about building against them or removing them – it’s actually about building with them and providing solutions,” Springate said.
Two other women’s health companies in Muse’s portfolio following this model are Mavida Healthwhich provides virtual care for maternal mental health, and Mahmeewhich connects mothers with clinicians and insurance-covered services.
According to Springate, purely direct-to-consumer models rarely succeed in healthcare. Direct-to-consumer startups can reach patients quickly, but the reality of healthcare – from insurance coverage to clinical requirements – means that consumer access alone is not enough.
She believes the most effective model is to start with a consumer-driven solution addressing a clear unmet need, use it to collect data and prove outcomes, and then pursue reimbursement, payer partnerships, and health system integration.
It’s this approach that enables companies like Midi Scale, Springate noted.
Starting with consumers, showing results, and blending in: that’s the playbook she believes will define the next generation of healthcare startups.
Photo: MirageC, Getty Images
