Issue link: https://beckershealthcare.uberflip.com/i/576097
HEALTH IT 114 Half of Digital Health Startups Expected to Fail Within 2 Years By Akanksha Jayanthi O ne out of every two digital health startups are forecasted to fail within two years of their launch, finds a new report from Accenture. However, these companies aren't destined for a complete shutdown — larger companies could make use of these resources for talent and innovation. Here are five things to know about the potential failure and potential re-appropriation of digital health startups. In Accenture's analysis of 900 health IT startups, 51 per- cent were determined to be in danger of failing within 20 months. However, the startups that are in danger of failing col- lectively have $4 billion in investment funding. Accenture deems these startups "zombie startups," as they are faltering but bigger companies — vulture capitalists — could mine their talent and innovation, bringing pieces of them back to life. Accenture offered three key benefits for larger com- panies acquiring elements of the zombie startups: a gathering of top talent, increased innovation and enhancing current solutions. "In a period of disruption, leading organizations un- derstand that they cannot keep doing the same things and expect to succeed," said Kaveh Safavi, MD, managing director of Accenture's global healthcare business. "ey must become disruptors instead of being disrupted. Acquiring a failing health IT startup with excellent people and promising intellectual capital could be just the prescription for achieving that goal." n 2 1 3 4 5 74% of employers expected to offer telehealth services by 2016 48% of employees offered telehealth options in 2014 12% adoption rate of employers who offer telehealth to employees "This is becoming mainstream [in] every way." -Roy Schoenberg, MD, CEO of AmericanWell According to a recent study from the National Business Group: