RISE with US 2023: an Israeli Perspective on the US Healthcare Market

Industry experts, policymakers, and other stakeholders provided our RISE with US program participants with a deeper understanding of market trends, challenges, and opportunities.

These insights positioned them to not merely penetrate but also succeed in the ever-evolving American healthcare landscape.

Here are a few insights from our last trip to the US, for any Israeli entrepreneur who looks to learn about and become acquainted with the dynamic U.S. market:

• The U.S. healthcare system has been dramatically shaken by the COVID-19 pandemic, and its forces are drifting into a continual state of crisis. Governmental health expenditure in the US now stands at about 45% of the total national healthcare expenditure, thanks to the growing percentage of patients using CMS plans. Despite this, overall national healthcare expenditure keeps increasing, currently nearing 18% of GDP; significantly higher when compared to Israel (7.5%) and with weaker health outcomes.
• The shifts of fundings between the different players and systems, and the decreasing margins of both payers and providers, are tightening the budgets available for new initiatives and technologies, as all entities try to keep their head above the water.
• Accountable Care Organizations (ACOs) is a growing sector. These entities focus on value rather than volume, potentially offering a solid framework for tech solutions aimed at increasing efficiency and quality of care and management solutions for care continuum.
• There is a trend toward consolidation, particularly in Ambulatory Surgery Centers (ASCs), signaling growth and investment opportunities. Such systems are providing short hospitalizations and ambulatory services to patients, at a scenario which is very similar to the wat Assuta is operating, around a pick event, in the patient pathway.
• Yet, opportunities for Innovators are still popping: there is a willingness to pay in multiple areas such as: healthcare equity and solutions for access to care for different populations, operational efficiency and automations, risk-based patient management for health systems which are monitoring a patient for a fixed periods (post hospitalization, e.g.), and patient retention strategies for healthcare organizations.

Understanding these trends and challenges is critical for companies entering the U.S. healthcare market, and the RISE With US program is proud to provide essential guidance in this regard, equipping participants to make informed, strategic decisions as they venture into this complex but rewarding industry.