For the same reasons that a healthcare startup is willing to take on arguably more risk and longer lead times to sales compared to any other industry -- there's so much human impact that can be made (and money at stake) that even a small dent in the healthcare space represents thousands of lives (and billions of dollars). A company like Google or Apple can make more than just a small dent.
From a macro perspective, the US has an aging population with the Baby Boomer generation entering older adulthood. Older population = greater health needs. Financially, it makes a lot of sense for a large company with vast resources like Google or Apple to make a splash in healthcare. And now's the time to do it.
They also have a distinct advantage over startups when it comes to introducing change from outside the healthcare industry. They can withstand the long sales cycle that it takes to get approvals without needing to balance fundraising in the process. Not to mention their unique ability to reduce the length of those sales cycles. They're more likely to win pilots and scale, and faster, because of their brand recognition -- a key competitive advantage when you're talking about a risk averse space like the healthcare industry. Not to mention, you typically need to get a lot of stakeholders together (providers, payers, patients) and align incentives in order to get anywhere. Large companies have a huge advantage here and can influence change relatively quickly. Healthcare institutions are constantly discussing the need for technological disruption (and have the budget / financial incentives to foot it), but by nature they are highly risk averse to any major changes. Large tech companies are uniquely positioned.
SOURCE: I once worked on a healthcare startup, have been through a healthcare startup incubator program, have friends who are doctors and healthcare administrators, am familiar with healthcare investor thinking, and am connected to a spectrum of healthcare startups (both successful and early stage).
From a macro perspective, the US has an aging population with the Baby Boomer generation entering older adulthood. Older population = greater health needs. Financially, it makes a lot of sense for a large company with vast resources like Google or Apple to make a splash in healthcare. And now's the time to do it.
They also have a distinct advantage over startups when it comes to introducing change from outside the healthcare industry. They can withstand the long sales cycle that it takes to get approvals without needing to balance fundraising in the process. Not to mention their unique ability to reduce the length of those sales cycles. They're more likely to win pilots and scale, and faster, because of their brand recognition -- a key competitive advantage when you're talking about a risk averse space like the healthcare industry. Not to mention, you typically need to get a lot of stakeholders together (providers, payers, patients) and align incentives in order to get anywhere. Large companies have a huge advantage here and can influence change relatively quickly. Healthcare institutions are constantly discussing the need for technological disruption (and have the budget / financial incentives to foot it), but by nature they are highly risk averse to any major changes. Large tech companies are uniquely positioned.
SOURCE: I once worked on a healthcare startup, have been through a healthcare startup incubator program, have friends who are doctors and healthcare administrators, am familiar with healthcare investor thinking, and am connected to a spectrum of healthcare startups (both successful and early stage).