As Congress works to repeal the ACA, investors are backing healthcare startups that provide direct patient care and avoid the insurance system altogether, according to the San Francisco Chronicle.
Many of these startups are working directly with patients, offering services such as diagnostic screening and telemedicine consultations at a flat fee. This has gained traction and attention in the market as the percentage of high deductible plans rise and insurance coverage shifts, according to the report.
As healthcare costs continue to rise and patients take on responsibility for a larger portion of their bills, investors believe these startup companies could potentially reach a niche in the healthcare industry to offer faster, cheaper and more convenient care in comparison to traditional providers, according to the report.
"If access to insurance is changing and some people are going to drop out and not be able to get insured because they can't afford it or for other reasons, we provide a solution to that," Paul Johnson, the CEO of San Francisco-based Lemonaid Health, a telehealth company, told the San Francisco Chronicle.