Consumers are increasingly taking a more active role in managing their health through the use of telehealth platforms, wearables, wellness apps and at-home diagnostics.
Rachel Springate, co-founding general partner at Muse Capital, believes the next wave of healthcare startups will be built around consumer demand.
“Consumer healthcare is having a moment,” she declared. “I think consumers are pretty much fed up with the healthcare system today, and I think a lot of them are trying to take their own healthcare journeys into their own hands.”
Successful companies will build consumer-facing brands while integrating with the greater healthcare system, rather than trying to replace traditional providers, Springate said.
She highlighted virtual-first care models that address unmet demand and supplement overwhelmed health systems as particularly promising.
Midi Health is one startup in Muse’s portfolio taking this approach. The company, which reached unicorn status last month, delivers virtual care for women, specializing in patients going through perimenopause and menopause. Patients can access care directly through its telehealth platform, but the company works and accepts insurance. Its services are available to women in all 50 states — far more accessible than traditional specialty clinics.
“I think Midi is just a very good example of how you can build a consumer-facing brand that also respects and works with the existing healthcare infrastructure and systems. It’s not about building against it or taking away — it’s actually building with it and providing solutions,” Springate stated.
Two other women’s health companies in Muse’s portfolio following this model are Mavida Health, which provides virtual care for maternal mental health, and Mahmee, which connects mothers with clinicians and insurance-covered services.
In Springate’s view, pure direct-to-consumer models rarely succeed in healthcare. Direct-to-consumer startups can reach patients quickly, but the reality of healthcare — from insurance coverage to clinical requirements — means that consumer access alone isn’t enough.
She thinks the most effective model is to begin with a consumer-driven solution addressing a clear unmet need, use that to collect data and prove outcomes, then pursue reimbursement, payer partnerships and health system integration.
This approach is what allows companies like Midi scale, Springate noted.
Start with consumers, show the results and blend into the system — that’s the playbook she believes will define the next generation of healthcare startups.
Photo: MirageC, Getty Images
