Dear Friends and Digital Health Affiliates,

Although we spend the last few days mainly with the question whether we should invest all our assets in the upcoming Uber IPO this week, please find below another episode of our digital health briefing.

Patients have not much trust in big tech player when it comes to healthcare data (only 11% would share their data). Doctors, insurer, pharma, even the government are deemed more reliable partners. Facebook’s data scandals might not be affecting the financial bottom line of the company, but it amplifies the mistrust amongst consumers. If tech players want to create a new footprint in health care, they need to understand that trust is one of the highest currencies. [≈2min]

Historic turning point in the US health care market? Federal health officials unveiled a new primary care experiment to keep patient healthy and out of the hospital. This new initiative is the most sweeping attempt so far and is planned to start in 2020. The main idea: «Providers would be paid a bonus for keeping patients healthy, but could lose a certain share of their practice’s revenue if the patient gets sicker.» [≈6min]

We already highlighted the lack of validation in digital health apps in last week’s briefing. Having a closer look: Clinical validation can be a key differentiator against competitors and is needed if you claim health care benefits. Bringing this proof is difficult and expensive, especially if your runway is measured in months, not years. However, it is the only way to distinguish whether and app brings medical value, or is a snake oil. [≈6min]

Closing as always with the quote of the week: «There’s enormous resistance to change while a similar acknowledgement that change will be needed.» Warren Buffett about health care providers, 2019.

Godspeed & have a productive week.

Dominik & Min-Sung