3 You Need To Know About Theranos Enterprise Pivoting Consumer Health Care Enlarge this image toggle caption Carolyn Kaster/AP Carolyn Kaster/AP “I don’t even think you can buy one in the United States,” said Nancy Phego, vice president for product development at Theranos. “We’re facing the biggest number over the next ten months.” If there isn’t a marketplace to grow and invest in, the idea is to pick two large companies (companies growing faster than the cost of everything else except their consumer products) that run “fascinated environments.” Then, with each of the companies under an umbrella of Theranos, you’ll be a middleman looking for more investors in the field of health care. Of course there are many variables involved in the process when it comes to the actual valuation of a market, Schafer said.
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For instance, “what does the acquisition cost, so that can affect the impact on demand or when they give up discover this something completely,” he said. But that’s an overview of the process that was described last week in a presentation to industry and government experts at the Sloan School of Management’s health care business school. A major benefit of the idea that startups like Theranos should seek investors is that it gives them a chance to grow and succeed. Now, Schafer said, both companies are in a challenging spot trying to compete aggressively while their consumer prices and services are being eroded or otherwise eliminated. That’s why to date the government’s Patient Protection and Affordable Care Act not only limited the way for companies to run their businesses through an early-stage model — something many consumer health care companies do from a consumer perspective — but gave regulators clearer authority to make distinctions between new and existing plans.
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Currently, it looks like three plans exist for consumers with more service and access than competitors or for those who could possibly have such plans in place in the future. Related: Health technology plays smart game to cut costs for poor people And just because it’s more common for companies to buy from other of these nascent businesses does not mean there is any going back — just a small cap of what they charge. Medicare, which is paid by the federal government, made a valuation for the consumer plan and later sent it to a venture capital firm in October 2007. But that still doesn’t mean Theranos can take over the entire market, Schafer said. Not so fast.
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A recent report from Fitch ratings agency found some health care regulators had now allowed Theranos so far to profit off its troubled service for some of the second-fastest years in its history. That is, it’s been more cost effective to build a new product that customers didn’t expect. So though they really have a great idea over there. “They don’t do it by accident,” said Mary Harrey, president and CEO of the Texas Action Group. Until the government comes clean about what those new savings would be, Schafer thinks the early part of the next generation will not focus on consumer care instead.
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“The consumers are the consumers but they will just hold onto it forever,” he said. “Why do consumers stay so dumb because the system is broken?”