Blog

Sachin H. Jain: I have never been more optimistic about the potential of entrepreneurship, investment, and innovation to improve healthcare.

Photo from Sachin H. Jain/Linkedin

Sep 30, 2023, 19:47

Sachin H. Jain: I have never been more optimistic about the potential of entrepreneurship, investment, and innovation to improve healthcare.

Sachin H. Jain, President and CEO of Scan Group and Health Plan, recently shared on LinkedIn:

”Access to cheap capital and policy changes set off a healthcare gold rush.

The gold rush has been defined by undisciplined thinking about problems and solutions.
– Revenue capture and labor arbitrage became confused with true care redesign.
– Correlation was confused with causation.
– The total addressable market guided healthcare company valuations rather than the potential of the specific intervention and team at hand.
– Non-entrepreneurs were backed as entrepreneurs.
– Countless organizations with no prior investment experience became investors.
– High competition for deals led to less scrutiny of facts; disbelief was suspended.
– Anecdotes superceded data.
– We were convinced that we were making a bigger difference than we were.

As the cost of capital has become expensive—discipline is returning and punch drunkness is making way for sobriety.
– Valuations are increasingly being tied to more normal multiple and revenue and ebitda and lives impacted.
– Short-term financial arbitrage is being seen for what it is rather than true care redesign and innovation.
– Impact is being measured by true impact rather than “implied impact.
– More scrutiny is being applied to who we trust with capital and precious resources.
– A focus on potential is giving way to core operations and performance.
– Data is once again currency.

Paradoxically, I have never been more optimistic about the potential of entrepreneurship, investment, and innovation to improve healthcare.”

Source: Sachin H. Jain/LinkedIn