In today’s financial climate, health systems are seeking ways to keep pace with accelerating competition for more consumer-friendly, convenient, and affordable care options. In response, digital-first, low-capital approaches to joint ventures (JVs) are emerging as an attractive alternative to lengthy, high-risk internal capability building. JVs allow health systems to innovate and expand without the high costs and complexities of traditional models – a vital shift for systems looking to stay competitive in the digital health revolution.
Breaking Down Barriers to Innovation
Joint ventures (JVs) have long been a cornerstone of strategic growth in healthcare. They often foster partnerships that launch new businesses, expand services, and improve care delivery. However, they typically involve substantial capital, long development timelines, and complex legal frameworks.
In contrast, digital-first JVs focus on virtual tools and services, such as telehealth platforms or direct-to-employer healthcare offerings, with minimal capital investment. These ventures avoid the need for physical infrastructure and significant staffing expansions while addressing core patient needs.
Aligning Digital Health with JV Strategies
Healthcare’s venture investment in digital health has been growing rapidly, with billions of dollars flowing into startups and tech solutions each year. Many health systems are also investing directly in partners and tools they believe will be helpful to them. However, the typical adoption rate of digital health technologies within healthcare systems remains painfully low. This is because digital health initiatives are often misaligned with strategic priorities, poorly incentivized, or hyper-focused on niche patient populations. As a result, they usually fail to scale and deliver the returns required to justify their investments.
Framing digital health initiatives as joint ventures rather than isolated pilot programs or process improvements could dramatically increase their success rate. By adopting a JV mindset, health systems can better evaluate digital opportunities, focusing on strategic priorities and long-term growth and value rather than short-term gains. This approach also helps reduce the capital requirements of launching new business lines, as digital solutions typically require less physical infrastructure investment than traditional healthcare JVs.
The opportunity here is enormous. Health systems are uniquely positioned to succeed in the digital health space, as they have trusted brands, access to patient data, established care pathways, and the ability to link digital services with high-revenue procedures and surgeries. This gives them a competitive edge over tech giants like Amazon and Walmart, which have struggled to make healthcare ventures financially viable due to their lack of clinical integration and alignment with revenue-generating services.
Rethinking Patient Experience as a Growth Driver
At the heart of any successful JV is a strong consumer value proposition. In healthcare, this means meeting modern patient expectations for convenience and timely care. While healthcare insiders often assume that patients prioritize provider credentials or clinical expertise, research shows that convenience and timely access to care are far more critical factors.
For instance, a recent survey revealed that 29% of patients report that timely access to appointments is their primary selection criteria for a primary care provider, with proximity as the second most crucial factor. These findings point to an apparent disconnect between the patient experience most health systems offer and the experience patients want. Digital-first joint ventures prioritizing convenience and accessibility are well-positioned to close this gap, providing health systems with a powerful tool for growth and differentiation.
Additionally, consumer research shows that patients are increasingly willing to pay for premium services that offer greater convenience and address major pain points in their current experience, such as same-day specialist consultations, surprise bill and error protections, and transparent cash-pay pricing. Health systems that integrate these offerings into digital-first ventures will attract more patients and build loyalty, leading to increased downstream revenue from higher-value services like surgeries and specialized care.
Finally, digital-first JVs offer an opportunity to modernize business models that are under threat from recent disruptions in the market. For example, many health systems’ bariatric service lines are facing significant pressure from GLP-1 medications that impact obesity. A digital-first JV could help mitigate these losses by enabling health systems to redesign more holistic weight loss offerings that bring together otherwise disjointed services like a comprehensive intake, primary care-led GLP-1 management, nutritionist and behavior consultations, and -- when appropriate -- bariatric surgery. Not only would this broaden the audience for weight loss services, but it would also help keep health systems relevant in an increasingly digital marketplace of virtual weight loss startups and clinics.
The Path Forward: Leveraging Digital-First JVs for Growth
Digital-first joint ventures provide a flexible, low-risk way for health systems to innovate. These partnerships allow systems to quickly test and launch new businesses without the high costs associated with traditional ventures. Just as physical therapy and ambulatory surgery centers are core service lines managed by specialist venture partners, digital health similarly requires specialized expertise that health systems struggle to recruit, manage, and retain.
Rather than attempting to innovate in-house, health systems should turn to joint ventures with partners who understand the nuances of healthcare, specialize in patient experience, and have expertise in digital-first models. The right partner can create more effective advanced primary care models, maternity services, or weight loss clinics while leveraging and enhancing the health system's brand.
Amenities Health is that partner. Our first-of-its-kind member platform offers a comprehensive suite of white-labeled digital solutions to help health systems enhance patient care, improve operational efficiency, and build long-term brand value. Let us guide your organization through the digital-first JV approach, helping you meet the evolving needs of healthcare consumers, launch new revenue-generating services, and thrive in the future.
Reach out today to start building the healthcare services of tomorrow.