Why VCs Don’t Invest in Healthcare IT

The always vocal Jonathan Bush has a great article in Techonomy that talks about why many venture capitalists (VCs) have stayed away from healthcare IT investments. He provides a lot of food for thought for entrepreneurs looking at health IT.

Here’s the 3 reasons he gives for investor insecurity with healthcare IT investments:
1. Healthcare consumers don’t shop
2. The biggest buyer stifles innovations
3. Service, quality and competitive pricing aren’t rewarded.

Here are his 3 solutions:
1. Do good and do well
2. Get noticed
3. Serve the market that has a lot of buyers!

I really like his 3 challenges. I’m not sure his solutions are enough, but I’m glad he’s really cranking up the conversation on what it takes to be an entrepreneur in healthcare IT.

About the author

John Lynn

John Lynn

John Lynn is the Founder of HealthcareScene.com, a network of leading Healthcare IT resources. The flagship blog, Healthcare IT Today, contains over 13,000 articles with over half of the articles written by John. These EMR and Healthcare IT related articles have been viewed over 20 million times.

John manages Healthcare IT Central, the leading career Health IT job board. He also organizes the first of its kind conference and community focused on healthcare marketing, Healthcare and IT Marketing Conference, and a healthcare IT conference, EXPO.health, focused on practical healthcare IT innovation. John is an advisor to multiple healthcare IT companies. John is highly involved in social media, and in addition to his blogs can be found on Twitter: @techguy.