How do these things connect?
With the explosion of venture capital and new startups in healthcare, there is a growing need to for investors to separate themselves from the field. Physicians who are attuned to the technology and innovation landscape are especially valuable in this new era of healthcare disruption.
Venture capital companies have talented individuals and leaders with significant business intelligence, but do not have the thousands of hours of clinical exposure in patient care that comes with being a physician. Doctors have the clinical experience to understand what’s relevant, what’s safe, and how new technologies can improve patient outcomes. As such, doctors who are able to understand the business aspect of medicine as well as the clinical relevance of new innovative techniques are at a premium. This is why physician consulting has become more of a necessity than a luxury.
Due diligence on an investment requires evaluation of the product, market, management, and business plan. The product could be a medical device, app, telemedicine service, or software as a service (SaaS). It is important to have someone who is an expert in the field to evaluate the product and market fit. Even if the product is unique, well thought out and designed, there should be a market for the product. A physician consultant can help determine whether the offerings of the product would be relevant to patients, physicians, or other healthcare staff.
Physician consultants with experience generally have strong leadership skills and are able to assess whether the founder or management team behind a new innovation are up to the task in making it succeed. They are also able to leverage their network to extract otherwise discreet interpersonal information that is imperative in making the right investment decisions.