Innovators, Enablers, Custodians, Arbitrageurs: Four Key Pillars of HealthTech 2025
Exec Summary
The four pillars highlight the interconnected nature of the HealthTech ecosystem in 2025. Innovators create new possibilities, Enablers facilitate their implementation, Custodians ensure responsible use, and Arbitrageurs focus on making healthcare more efficient and accessible.
1. Innovators
Definition: These are the individuals and companies developing groundbreaking technologies and solutions in the healthcare space. They are pushing the boundaries of what's possible, creating new tools and approaches to improve patient care and outcomes.
Examples: Companies developing AI-powered diagnostics, gene editing therapies, or wearable devices for remote patient monitoring.
Importance: Innovators are essential for driving progress in HealthTech. Their work leads to new treatments, improved diagnostics, and more efficient healthcare delivery.
2. Enablers
Definition: These are the organisations and platforms that provide the infrastructure and support necessary for HealthTech innovations to thrive. This includes cloud computing providers, data analytics companies, and regulatory bodies.
Examples: Companies offering secure data storage for patient records, platforms facilitating telehealth consultations, or government agencies streamlining the approval process for new medical devices.
Importance: Enablers create the environment for HealthTech innovation to flourish. They provide the tools and resources necessary for innovators to develop and deploy their solutions effectively.
3. Custodians
Definition: These are the organisations and individuals responsible for ensuring the ethical and responsible use of HealthTech. This includes healthcare providers, policymakers, and patient advocacy groups.
Examples: Hospitals implementing data privacy protocols, government agencies setting guidelines for the use of AI in healthcare, or patient groups advocating for access to new treatments.
Importance: Custodians ensure that HealthTech is used in a way that benefits patients and society as a whole. They protect patient data, promote equitable access to care, and address potential ethical concerns.
4. Arbitrageurs
Definition: These are the individuals and companies that identify and capitalise on opportunities within the HealthTech market. This includes investors, entrepreneurs, and consultants.
Examples: Venture capitalists funding promising HealthTech startups, entrepreneurs developing new business models for healthcare delivery, or consultants advising healthcare organizations on technology adoption.
Importance: Arbitrageurs play a crucial role in driving investment and innovation in HealthTech. They identify promising solutions, connect innovators with resources, and help bring new technologies to market.
These four pillars are interconnected and interdependent. The success of HealthTech in 2025 and beyond will depend on the collaboration and synergy between innovators, enablers, custodians, and arbitrageurs. By working together, they can create a future where technology transforms healthcare for the better.
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Innovators
Innovators in healthcare are constantly designing new ways to address existing problems with technology-enabled healthcare experiences. Here are a few examples:
Telemedicine: Telemedicine platforms allow patients to connect with healthcare providers remotely, using video conferencing or other technology. This can be a convenient and affordable option for patients who live in remote areas, have difficulty traveling, or have mobility issues.
Wearable devices: Wearable devices, such as smartwatches and fitness trackers, can collect data on a variety of health metrics, such as heart rate, blood pressure, and sleep quality. This data can be shared with healthcare providers to help them monitor patients' health and identify potential problems early on.
Electronic health records (EHRs): EHRs allow healthcare providers to access a patient's medical history from anywhere, which can improve the quality and efficiency of care.
Artificial intelligence (AI): AI is being used to develop new tools and technologies that can improve healthcare in a variety of ways. For example, AI is being used to develop algorithms that can help diagnose diseases, identify the best treatments for individual patients, and predict the risk of developing certain diseases.
Here are some specific examples of how innovators in healthcare are using technology to address existing problems:
AI-powered chatbots are being used to provide patients with 24/7 access to information and support. For example, the chatbot Babylon Health can answer patients' questions about their symptoms, provide advice on self-care, and help patients book appointments with doctors.
Virtual reality (VR) is being used to train healthcare providers and treat patients. For example, VR is being used to train surgeons on new procedures and to help patients with anxiety and phobias.
3D printing is being used to create custom prosthetics and implants. For example, the company Stratasys is 3D printing custom prosthetics for patients with missing limbs.
These are just a few examples of how innovators in healthcare are using technology to address existing problems and improve the quality of care. As technology continues to evolve, we can expect to see even more innovative healthcare solutions emerge in the future.
Enablers
Enablers in healthcare have built technology stacks that integrate multiple emerging and traditional data sources. This allows healthcare providers, researchers, and insurers to access and analyse a wider range of data, which can lead to better insights and improved outcomes.
Here are some examples of emerging data sources in healthcare:
Wearable devices: Wearable devices, such as smartwatches and fitness trackers, can collect data on a variety of metrics, such as heart rate, blood pressure, and sleep quality.
Genetic data: Genetic data can provide insights into a person's risk of developing certain diseases.
Social determinants of health: Social determinants of health, such as income, education, and housing, can have a significant impact on a person's health.
Enablers in healthcare have developed technology stacks that can integrate these emerging data sources with traditional data sources, such as electronic health records (EHRs) and claims data. This allows healthcare providers, researchers, and insurers to get a more complete picture of a person's health and make better decisions.
Here are some examples of how enablers are using technology stacks to integrate multiple emerging and traditional data sources:
Predictive analytics: Enablers are using predictive analytics to identify people who are at risk of developing certain diseases. This information can be used to develop preventive care plans and improve outcomes.
Personalised medicine: Enablers are using technology stacks to develop personalized medicine solutions. For example, they are using genetic data to identify the best treatments for individual patients.
Population health management: Enablers are using technology stacks to improve population health management. For example, they are using data to identify populations that are at risk of certain diseases and develop interventions to improve their health.
The integration of multiple emerging and traditional data sources is a powerful tool that can be used to improve healthcare in a variety of ways. Enablers in healthcare are playing a leading role in developing the technology stacks that are needed to make this integration possible.
Custodians
Custodians in healthcare hold healthcare data and the workflow. This means that they are responsible for the collection, storage, processing, and sharing of healthcare data. They also play a role in ensuring that healthcare data is used in a responsible and ethical manner.
Here are some specific examples of the responsibilities of healthcare data custodians:
Collecting and storing healthcare data from a variety of sources, such as electronic health records (EHRs), patient portals, and wearable devices.
Processing and analysing healthcare data to generate reports, insights, and recommendations.
Sharing healthcare data with authorised users, such as healthcare providers, researchers, and insurers.
Ensuring that healthcare data is used in a compliant and ethical manner, such as by following data privacy and security regulations.
Healthcare data custodians play a vital role in the healthcare system. By ensuring that healthcare data is collected, stored, processed, and shared in a responsible and ethical manner, they help to improve the quality of care that patients receive.
Here are some of the challenges that healthcare data custodians face:
Data privacy and security: Healthcare data is highly sensitive, so it is important to protect it from unauthorised access and disclosure. Healthcare data custodians must implement appropriate security measures to protect healthcare data from cyberattacks and other data breaches.
Data sharing: Healthcare data custodians must balance the need to share healthcare data with authorized users with the need to protect patient privacy. Healthcare data custodians must have policies and procedures in place to govern the sharing of healthcare data.
Data compliance: Healthcare data custodians must comply with a variety of data privacy and security regulations. These regulations can be complex and change frequently, so it is important for healthcare data custodians to stay up-to-date on the latest requirements.
Despite the challenges, healthcare data custodians play an essential role in the healthcare system. By ensuring that healthcare data is collected, stored, processed, and shared in a responsible and ethical manner, they help to improve the quality of care that patients receive.
Arbitrageurs
Arbitrageurs in healthcare rely on information and labour-arbitrage models to build digital experiences. Information arbitrage is the process of exploiting price differences in different markets. In the context of healthcare, information arbitrageurs may use their knowledge of different healthcare systems and providers to identify opportunities to save money or improve quality.
Labour arbitrage is the process of taking advantage of wage differences in different markets. In the context of healthcare, labour arbitrageurs may outsource work to lower-cost countries or hire freelancers from different regions.
Arbitrageurs in healthcare use information and labour-arbitrage models to build digital experiences in a variety of ways. For example, they may develop platforms that allow patients to compare prices and services from different providers. They may also develop platforms that connect patients with healthcare providers in other countries.
Here are some specific examples of how arbitrageurs in healthcare are using information and labor-arbitrage models to build digital experiences:
Telemedicine platforms: Telemedicine platforms allow patients to connect with healthcare providers remotely. This can be a convenient and affordable option for patients who live in remote areas or who have difficulty traveling. Arbitrageurs in healthcare are developing telemedicine platforms that connect patients with healthcare providers in lower-cost countries.
Price comparison platforms: Price comparison platforms allow patients to compare prices and services from different healthcare providers. This can help patients to save money on their healthcare costs. Arbitrageurs in healthcare are developing price comparison platforms that are specifically designed for healthcare services.
Medical tourism platforms: Medical tourism platforms connect patients with healthcare providers in other countries. This can be a good option for patients who are looking for high-quality care at a lower cost. Arbitrageurs in healthcare are developing medical tourism platforms that make it easy for patients to book appointments and travel to other countries for healthcare.
Arbitrageurs in healthcare are playing an important role in making healthcare more accessible and affordable. By using information and labor-arbitrage models, they are building digital experiences that can help patients to save money and get the care they need.
It is important to note that there are some potential risks associated with using arbitrageurs in healthcare. For example, patients may not be aware of the quality of care that they will receive from providers in other countries. It is important for patients to do their research and choose a provider that is accredited and has a good reputation.
Interconnected nature of the HealthTech ecosystem
The success of these four pillars relies on collaboration. Innovators need enablers to bring their ideas to life. Enablers need custodians to ensure secure data practices. And all four can benefit from arbitrageurs who can optimise the system for efficiency and cost-effectiveness.
By working together, these forces can transform healthcare delivery, making it more innovative, accessible, and efficient for patients and providers alike.
Innovators: Driving Change with New Solutions
Addressing critical needs: As healthcare faces challenges like rising costs, chronic disease management, and an aging population, innovators will be at the forefront of developing solutions like:
AI-powered diagnostics and treatment: Faster and more accurate diagnoses can lead to better patient outcomes.
Personalized medicine: Tailoring treatments to an individual's genetic makeup can improve effectiveness.
Remote patient monitoring: Wearables and telehealth can empower patients to manage their health from home.
Enablers: Building the Foundation for Innovation
Scalability and Accessibility: Enablers will ensure these innovations reach a wider audience by providing:
Cloud-based platforms: Secure and scalable platforms for storing and managing healthcare data.
Interoperable systems: Seamless data exchange between different healthcare providers and technologies.
User-friendly interfaces: Making technology accessible to healthcare professionals with varying technical expertise.
Custodians: Safeguarding Data and Privacy
Growing Importance of Data Security: With the increasing reliance on electronic health records and connected medical devices, robust data security measures are crucial. Custodians will be responsible for:
Enforcing data privacy regulations: Ensuring compliance with HIPAA and other regulations protecting patient data.
Developing cybersecurity solutions: Implementing measures to prevent cyberattacks and data breaches.
Building trust in healthcare technology: Data security is essential for maintaining patient confidence in using technology for healthcare.
Arbitrageurs: Optimising Costs and Access
Focus on Efficiency and Affordability: As healthcare costs continue to rise, Arbitrageurs will play a key role in finding ways to make healthcare more affordable and accessible through:
Streamlining administrative processes: Utilizing technology to automate tasks and reduce administrative burdens.
Connecting patients with the right care: Matching patients with the most cost-effective and appropriate providers based on their needs.
Value-based care models: Developing systems that reward providers for better patient outcomes rather than the volume of services provided.
Nelson Advisors work with Founders, Owners and Investors to assess whether they should 'Build, Buy, Partner or Sell' in order to maximise shareholder value.
Healthcare Technology Thought Leadership from Nelson Advisors – Market Insights, Analysis & Predictions. Visit https://www.healthcare.digital
HealthTech Corporate Development - Buy Side, Sell Side, Growth & Strategy services for Founders, Owners and Investors. Email lloyd@nelsonadvisors.co.uk
HealthTech M&A Newsletter from Nelson Advisors - HealthTech, Health IT, Digital Health Insights and Analysis. Subscribe Today! https://lnkd.in/e5hTp_xb
HealthTech Corporate Development and M&A - Buy Side, Sell Side, Growth & Strategy services for companies in Europe, Middle East and Africa. Visit www.nelsonadvisors.co.uk
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