Matt Cybulsky, practice leader for healthcare AI, value-based care, and product innovation at LBMC, has extensive experience studying and analyzing the digital health market. As funding landscapes shift, he advises companies on scaling and profitability in the healthcare sector. In a recent interview with MobiHealthNews, Cybulsky discussed strategies for digital health investment and the role of AI in enhancing business profitability and patient outcomes.
Over the past few years, Cybulsky has observed a significant change in the digital health investment landscape. While there was a surge of investment capital flowing into digital health a couple of years ago, the pace has slowed down due to various macroeconomic factors such as COVID-19, inflation, and labor market fluctuations. However, there are signs of the market picking up again, as discussions at industry events indicate a renewed interest in investment opportunities.
Despite the challenges, the pressure to provide care to individuals remains high due to the shortage of clinicians and nurses. Cybulsky points out that the fundamental issue lies in the imbalance between the altruistic nature of healthcare and the financial sustainability of healthcare businesses. As a result, he emphasizes the importance of having a sound business plan and conducting thorough market research when advising companies on approaching investors for funding.
Cybulsky’s expertise lies in AI within healthcare, value-based care, and product innovation. His advice for companies seeking investment in these areas varies based on their business model and revenue generation strategy. He highlights the need to address key challenges such as the black box problem in AI, the significance of data analytics, and distinguishing between viable market opportunities and less promising ventures.
Regarding the use of AI as a selling point for companies, Cybulsky acknowledges that there may be investor fatigue surrounding this trend. However, he emphasizes the immense potential of AI in transforming healthcare delivery and improving business outcomes. Investors are keen to understand how companies leverage AI to enhance scalability, consumer adoption, and operational efficiency. Cybulsky emphasizes that AI can unlock valuable insights from vast amounts of data that humans cannot analyze, making it a crucial component of successful healthcare businesses in the digital age.