Where are the Health 2.0 millionaires?

Trusted.MD Network CEO Dmitriy Kruglyak shines a harsh light on Health 2.0 in a letter to Modern Healthcare (Buzz surrounding Health 2.0 ‘way overblown’):

Just because a thousand people attended a conference to socialize, kick tires and promote their wares does not mean Health 2.0 is here to stay or that the industry is undergoing a revolution (what happened to the eponymous company?). We have seen similar manias with dot-coms and regional health information organzations and everyone knows how long they lasted and how they ended. Irrational exuberance attracts a lot of onlookers.

…If you type in a few high-profile Health 2.0 company URLs and do back-of-the-envelope estimation of how much money they have to make per user to pay their expenses and turn a profit it is not hard to see why Health 2.0 is unlikely to provide higher-than-marginal return on investment. The story of Revolution Health, which went from the promise of turning the industry upside down to being a footnote in just three years shows how hard it is to monetize even when you have hundreds of millions in capital and manage to acquire millions of users.

Dmitriy’s about right on this, except “irrational exuberance” never translated into big payouts for anyone I know of. Ever heard of a “Web 2.0 millionaire” (or billionaire)? Didn’t think so.

October 30, 2008

5 thoughts on “Where are the Health 2.0 millionaires?”

  1. Hi David,

    I think the key issue here (and which was alluded to in the first Health 2.0 conference last year) is that we need to first have Health 1.0. Healthcare startups don’t have the extensive offline and online infrastructure that Web 2.0 companies enjoy. Until the basic framework comes together, monetizing any activity in “Health 2.0” will be a long and fruitless endeavor.

    We need a framework for web transactions that addresses the nuances of the healthcare system, a HIPAA gateway if you will. We need EMR/PHR vendors to work on creating APIs so that patients, doctors, and healthcare web companies can share medical data. We need consumers to be actively engaged and not just using the web to extract healthcare information but also to transact on it and ultimately add to it.

    If we take a step back and focus on fundamentals of what made Web 1.0 a success, I think we’ll see our big cash outs and IPOs.

  2. David, you and Dmitriy can think what you like about the impact of Health 2.0, although as far as I can tell all Dmitriy dislikes is me & the name. But saying there are no Web 2.0 millionaires is just plain silly. Ever heard of the Google boys, the Youtube guys, the people who sold Flickr to Yahoo, Salesforce.com, etc ,etc, etc.

  3. What about when multi-billion dollar companies like Google and Microsoft jump into the game with PHRs? Does that count?

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