Part 2: Market Readiness- The Foundation of Healthcare Technology Adoption
What to look for in the market to make sure your new product or service can gain traction.
This is the second in a 6-part series. You can see Part 1 here.
Introduction
Even the best ideas will stall if the market isn’t ready. Market readiness is the first and most fundamental barrier to healthcare technology adoption. Without the right conditions in place, even the most innovative technologies will struggle to gain traction. In this post, we’ll explore the key factors that determine market readiness, with a focus on behavioral health technology and acute care at home. Understanding these factors can help you assess whether the healthcare environment is primed for your new technology.
If you're unsure whether your organization or solution is ready for the market, Brownstein Consulting LLC offers market readiness assessments to help you identify gaps and provide strategic recommendations on overcoming barriers.
Key Factors in Market Readiness
1. Technology Infrastructure
Without the right infrastructure, even the most brilliant technology will remain stuck in neutral. Robust, interoperable systems are critical for new technologies to succeed. Take behavioral health as an example: 15+ years ago, using mobile data to predict which members in a population might be in crisis showed promise. Researchers like Sandy Pentland at the MIT Media Lab and collaborators at MGH were conducting groundbreaking research in this area.
However, back then, the world looked very different. Smartphones didn’t exist yet, at least not in the way we know them today. Blackberries were the closest thing we had to a smartphone at scale, offering only email connectivity and some primitive apps. Most people still used brick phones or flip phones with limited functionality, like basic texting or, if you were lucky, a camera. Apple’s iPhone had only just launched in 2006, so its impact on healthcare data collection was extremely limited or non-existent.
Providers were also in the early days of adopting technology to drive care. Only 1.5% of health systems had adopted electronic health records (EHR), and there were over 100 vendors in the market, creating a fragmented and disconnected infrastructure. Computers were slowly being introduced into community clinics, but the shift to digital systems wasn’t yet widespread, making it impossible for behavioral health technologies to scale effectively.
Between 2008 and 2020, key milestones were met that shifted the landscape significantly. The passage of important legislation accelerated EHR adoption and created an environment conducive to healthcare innovation. At the same time, the adoption of smartphones exploded, driving a surge in social media use and shaping consumer behavior. For example, in 2019, Facebook reached 223 million users, while TikTok surged to 381 million users.
The widespread use of EHRs and smartphones has unlocked a treasure trove of individual-level data, fundamentally shifting our concept of privacy. The availability of this data presents both an opportunity for personalized care and a challenge as we balance convenience with privacy concerns.
Is your organization struggling with fragmented infrastructure or outdated technology systems? Brownstein Consulting LLC provides strategic assessments to help identify gaps in your infrastructure and offer actionable steps to prepare your technology for broader adoption.
2. Cultural Readiness
Culture can be the invisible gatekeeper to innovation—if people aren’t ready, your technology won’t stand a chance. Organizations must assess whether clinicians, patients, and other stakeholders are open to adopting new technologies.
Back in 2008, privacy concerns were a major barrier. Social networks like Facebook had only been around for a few years. Although there were other social networks at the time, none had gained the widespread traction that Facebook eventually achieved. People were still hesitant to share personal data online, and there was a stigma against behavioral and mental health treatment. The focus of healthcare was more heavily skewed toward physical health, while mental health services were often overlooked or marginalized.
At the same time, healthcare providers themselves weren’t ready for the technology shift. When I worked as a therapist 20 years ago, many clinicians resisted using computers, with comments like, "I became a clinician to avoid technology." The idea of digitizing patient records or using apps in clinical practice felt foreign, and most practitioners preferred traditional methods.
However, fast forward to 2020, and the COVID-19 pandemic dramatically reshaped the market. Patients, providers, and regulators suddenly had no choice but to shift their thinking about care. Telehealth and asynchronous care models became essential, and even those who had previously resisted technology had to adopt new approaches. Telehealth companies like Talkspace and BetterHelp, focused on behavioral health, saw exponential growth.
Despite increased adoption, several challenges remain. Provider shortages are worse than ever, especially in child and adolescent behavioral health, where the crisis is particularly acute. Many providers are experiencing burnout, with many leaving the profession altogether.
In 2024, pushback about adopting new technology-driven care models from providers remains strong, but it comes from a different place than it did 15 or 20 years ago. Today, pushback is driven by concerns about burnout. Providers have been burned by the implementation of tools that promised efficiencies but actually increased workloads due to complicated workflows or having too many clicks. Providers are increasingly savvy about the unintended consequences of implementing new products. For example, they want to know whether a new tool will increase workloads not just for themselves but for support staff, such as medical assistants or front desk staff, who are already overburdened.
Are your stakeholders resistant to new technologies? Our firm can assess cultural readiness and provide educational outreach programs to help engage key stakeholders and ensure smoother adoption of technology solutions.
3. Regulatory Environment
Regulation can be a double-edged sword—it can open the door for new technology or slam it shut. The regulatory landscape can either accelerate or impede the adoption of new innovations, and navigating these frameworks is critical to success.
The lack of a regulatory pathway can be a significant barrier to innovation if there isn't a framework in place that allows adoption. For example, the regulatory pathway for prescription digital therapeutics (PDTs) is relatively new and has made significant progress, especially with the first FDA approval of apps as medicine in 2017. Since then, the FDA launched its Digital Health Center of Excellence in 2020 to "empower digital health stakeholders to advance healthcare by fostering responsible and high-quality digital health innovation." This is especially important as we continue on the journey to integrate AI into healthcare practice.
Another significant shift in the regulatory landscape is the COVID-era waivers that allowed providers to practice across state lines. These waivers helped fuel the rapid adoption of telehealth by making it easier for providers to deliver care to patients in other states. However, as the waivers expire, regulations regarding licensure are reverting back to pre-pandemic rules, creating new challenges for telehealth companies and providers who had benefited from the flexibility. The landscape will continue to evolve as legislators decide which of these waivers will end or be extended.
Regulation also drives innovation and adoption through interoperability. The 21st Century Cures Act has been pivotal in setting standards for interoperability and patient access to data, as well as enforcing timelines. As regulations continue to evolve, they will play a critical role in either enabling or hindering the adoption of new healthcare technologies.
Need help navigating complex regulatory changes? We assist with regulatory strategy and can help you understand what’s needed to gain approval for your healthcare technology and align with key legislation.
Conclusion
Before your innovation can change the world, the infrastructure must be in place for the world to be ready to embrace it. Market readiness is the bedrock of successful healthcare technology adoption. Without the right technological infrastructure, cultural acceptance, regulatory support, and alignment with provider workflows, even the most innovative solutions will struggle to gain traction.
Interested in learning more about how your company can overcome these barriers? Schedule a call today to discuss a market readiness assessment and personalized recommendations on how to prepare your technology for success
.