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Obama Reforms Could Spark 'New Healthcare Economy' If Investors Increase Funding, Says Leading Healthcare Venture Firm
Date:1/28/2009

uality improvements, both of which President Obama cited in his inaugural address as core to his reform plans.

"Healthcare inflation in the United States is well over twice the core inflation rate, and that is unsupportable," Waxman said. "Plus, changes have to be made to address the explosion in America's aging population over the next two decades. We're predicting a 10-year transformational cycle that will re-define the healthcare economy, and should reward young companies that apply innovation to cut costs and improve care."

In its Annual Outlook, Psilos detailed several key shifts that will typify healthcare innovation and investment between 2009 and 2014. Briefly, these include:

  • Increased adoption of information technology - software, hardware and services - that enhances productivity and reduces costs. This will include evidence-based technologies that minimize errors and redundancies, remote monitoring systems for chronically ill patients, and software systems to create "valued-based" health plans.
  • Adoption of medical device and diagnostic technologies that balance the need for breakthrough innovation and sound economics, replacing costly devices and approaches that unnecessarily inflate costs of healthcare delivery.
  • Changes in healthcare service delivery models, including consumer-directed services that empower patients, new insurance models that re-balance cost and care, and re-engineered approaches care and disease management.

"We hope the venture industry sees President Obama's plans as a wake-up call to get serious about the economics of healthcare, not just the science of biotech," said Waxman. "The risk and reward dynamics of this new environment are tailor-made for venture capital, and our nation needs us as a partner in this important venture."

For more information on this issue, Psilos recomm
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SOURCE Psilos Group
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