In a Dec. 1 opinion piece for Fast Company, Jordan Teicher, former director of communications at digital health company Cedar, argued there are three main reasons medtech is not a recession-proof business.
The three reasons:
- Too many digital health startups lack focus: According to Mr. Teicher, many digital health startups grow too quickly into different areas without focusing on their niche. He pointed to Ro, a men's digital erectile dysfunction and hair loss treatment company that saw initial success before opening clinics and eventually laying off 18 percent of its staff, as an example of poor digital health growth strategies.
- Digital health executives do not talk to the people using their tech: Mr. Teicher argued that digital health executives spend too much time talking to other executives instead of the healthcare workers who use the technology. Additionally, he said he sees the gender disparity between digital health executives and front-line healthcare workers as an area that could be improved.
- Established firms lack incentive to innovate: Mr. Teicher pointed to the consolidation of EHR vendors as an area that lacks the incentive to innovate their technology due to their market power.