By Stephanie Baum | March 21, 2018

Healthcare is an industry notorious for its long sales cycle. It can be quite challenging for startups to get a foot in the door of a healthcare facility. Many entrepreneurs would be willing to go through a great deal to be able to claim a hospital with a prestigious reputation as their customer. But how does a healthcare entrepreneur draw the line between the length and frequency of pilot studies and what is in the company’s best interest?

That will be the topic of a panel discussion at the upcoming MedCity INVEST conference in Chicago May 1-2. In the runup to that event, a couple of healthcare entrepreneurs taking part shared insights on their approach to this issue.

Swatee Surve, the founder and CEO of health tech gaming business Litesprite, offered her take on this topic in an article last year. Her company uses video games to help patients manage behavioral health, cancer, and diabetes. The game, available as a mobile app, was the subject of a six-week, retrospective,  longitudinal study published this week that showed significant improvements in depression, anxiety, and confidence in coping skills.
Surve was blunt about the downside risk for healthcare startups of an ill-conceived clinical study: ‘Done wrong, they could spell the demise of your business.’

Surve emphasized the need to plan pilots with a clear understanding of the metrics they need to help their company’s solution gain widespread adoption, especially since the data gathered through these pilots should further their sales efforts. The more evidence these companies can provide customers in a form that works for them, the easier the path will be to sales and adoption.

“Don’t shoot in the dark hoping you’ll hit your mark. Talk to potential customers and investors to ask what they need to see before they engage with you. Metrics don’t necessarily need to be clinical outcomes, they could include operational metrics like clinic wait times, increases of referrals, among others.”

Brad Ryan, the chief commerce officer for Apervita, agreed with Surve’s observation that digital health companies need to get as much out of the study as their pilot partners do. Apervita builds, delivers, and helps users exchange analytics and data applications. Health systems are among Apervita’s health provider network customers, as are payers, regulators, and other vendors.

Its key stakeholders are business and technology owners who need to deliver technology-driven initiatives in performance measurement, management, improvement, and reporting.

Ryan emphasized the need to develop pilots that quantify the business value up front and to set success criteria that can and will be measured.

He agreed with Surve that entrepreneurs should avoid projects sponsored or funded outside of their company’s core business.
Another piece of advice that’s helped him steer clear of pilot study pitfalls: “NEVER do it for free.”
Another potential pitfall Surve is familiar with is when companies’ would-be pilot partners have trouble articulating what will happen after the pilot if it meets the expectations of the healthcare organization. If there’s any doubt, she said consider just saying no.
“If an organization is not able to quantify or give you a sense there is a clear set of next steps, consider passing on the pilot, even if it’s a marquee institution. Don’t end up in pilot purgatory and never get to a commercial scale deployment.”
Original Article