Chris Darland
Visionary entrepreneurs like Henry Ford, Steve Jobs and Elon Musk have revolutionized industries, motivated not just by profit, but by a desire to improve people’s lives. Now, it’s healthcare’s turn.
For the last 50 years, the U.S. healthcare system has been the one industry in the United States immune to disruption. This inertia is finally cracking, opening the door for a transformation that promises immense patient benefits and significant financial opportunities for those bold enough to lead the charge.
The earliest breakthroughs in medicine focused on tackling the largest acute killers of the time. Eradicating smallpox and polio with vaccines and the discovery of penicillin to prevent death from infections are good examples. This “sickcare” phase of the U.S. health system has done a lot of good for the world. But the problems confronting the industry today aren’t the problems of the early 1900’s. We have shifted from acute illnesses (smallpox) to chronic diseases (obesity, diabetes, heart failure).
The sickcare playbook for chronic disease is focused on extending the lives of sick patients with expensive procedures or lifetime pharmaceuticals, which has led to overwhelmed health systems, rising costs and deteriorating health. The Centers for Disease Control and Prevention (CDC) reports that the prevalence of chronic diseases in the U.S. has increased steadily over the past two decades. Managing and treating chronic diseases (along with mental health conditions) now accounts for roughly 90% of the country’s annual $4.1 trillion in healthcare spending.
Even more alarming a study published in the National Library of Medicine, which predicts that:
- The number of Americans 50 and older with at least one chronic disease will nearly double, from 71.5 million in 2020 to 142.7 million by 2050
- Those with multimorbidity are projected to increase 91.16%, from 7.8 million in 2020 to nearly 15 million in 2050.
The playbook doesn’t work anymore and it’s time to make the ironically disruptive shift back to true healthcare. The ultimate goal is to keep patients out of the hospital and home with their families so that they never need the sickcare solutions so prevalent today.
Why haven’t we shifted to true healthcare? The answer is simple: Sickcare is profitable. While patients face rising costs and delayed care, industry giants thrive. A recent KFF survey found unexpected medical bills are a top financial worry, and one in four people have skipped or delayed care due to cost. Patients lose while healthcare elites profit, with revenues outpacing the rising costs nationwide.
Health systems also face mounting financial pressures. Consider that nearly 200 rural hospitals have closed in the past two decades, greatly limiting access to care. Additionally, a recent article in Modern Healthcare stated that reimbursement uncertainty is impacting health systems’ willingness to implement potentially lifesaving remote technologies. This trend further exacerbates the problem, disproportionately affecting vulnerable populations.
Healthcare is in dire need of disruption, yet its complexity and high barriers to entry have deterred innovators. Startups, traditionally drivers of change, have mostly made incremental tweaks within the sickcare system — like new devices or tools to navigate insurance pre-authorization. But now, a new wave of entrepreneurs is emerging, determined to reshape the system entirely and return the focus to true healthcare.
Early disease detection and prevention are crucial to healthcare. While Fortune 500 executives have long had access to comprehensive assessments, the average American gets a basic annual check-up, often limited to vital signs and a brief Q&A. Offering executive-level care in primary care settings has been impractical due to cost and logistics — until now.
The convergence of remote monitoring, advanced sensors, and AI makes healthcare more accessible. Soon, comprehensive health assessments, once reserved for the elite, will be available to everyone at home. This shift will ease pressure on hospitals and improve millions of lives by catching diseases early. For instance, early-stage heart failure can be treated simply and lead to a long life, while late-stage detection, often in the ER, is costly and typically results in death within five years.
One of AI’s lesser-known benefits is its ability to help startups scale more profitably. Beyond transforming patient care, AI streamlines operations — like invoicing, logistics and trial tracking — that once required significant manpower and resources. These tasks are far less expensive today, reducing the capital needed to enter the market. This lower barrier will invite more startups and extend the runway for companies aiming to make an impact.
As health tech leaders, we must challenge ourselves to think in this new healthcare paradigm. Subtle shifts in how we talk about our work will make a world of difference. Moving from “how do I maximize CMS reimbursement” to “how inexpensively can I get this in patients’ hands” is a powerful change. So, too, is transitioning from “What can I do to help extend the life of the extremely sick?” to “How can I keep patients from ever needing a hospital in the first place?”
This shift from sickcare to healthcare will not be painless. Entrenched interests profit from the status quo, and disrupting a $4 trillion industry won’t be easy. However, the cost of inaction is far greater: escalating healthcare expenses, limited access to care, and a population burdened by preventable illness.
The current system’s beneficiaries are disincentivized to change, and patients lack the power to do so. Real change will come from those disrupting the status quo. Advances in AI and a focus on prevention offer a way forward, promising not just financial rewards, but a healthier population, less strain on healthcare, and a future where “healthcare” truly means care.
The time for creative destruction in healthcare is now. We must embrace innovation, challenge outdated models, and demand a healthcare system that prioritizes wellness, not just treatment. It’s a bold vision, but one that’s within reach if we collectively choose to pursue it.
Photo: marchmeena29, Getty Images
Chris Darland is CEO of Peerbridge Health, an AI-enabled ECG company reimagining the future of cardiac care. By leveraging explainable science with cutting-edge tools, Peerbridge aims to bring hospital-grade cardiac monitoring to the home. Chris joined Peerbridge as CFO in 2022 and moved to CEO in February 2023 to help the organization deliver on the vision of reaching patients anytime, anywhere. Prior to Peerbridge, Chris spent 13 years in roles across GE including Healthcare, Transportation, Oil &Gas, Entertainment, Consumer and Capital Markets. Most recently, Chris was the Finance leader for the Healthcare & Life Sciences Group of Ecolab.
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