Vertical Integration: Acquiring New Capabilities by Investing in Digital Health

Bryan Martin, Partner, and Michael Kleinmann, Senior Manager, Deloitte Consulting, LLP.  Consolidation continues to take place across the healthcare value chain, but an emerging trend centers on the convergence of providers, health IT companies and digital health startups.  Confronted with greater responsibility for health outcomes, continued cost pressures, and a need for greater patient engagement, providers are eyeing vertical integration strategies that help manage the care continuum, create new revenue streams, foster lasting consumer relationships, and enhance IT innovation.  In an effort to manage risk while still participating in this convergence, providers are increasingly exploring unique ways to invest in and interact with digital health startups that blur the lines between providers, tech companies, incubators/accelerators and venture capital and private equity funds.  This session addresses questions such as what does this industry convergence mean for providers, what strategies are emerging, and does this trend provide an opportunity for your organization?