Changing the Game: Redefining Direct-to-Consumer Purchasing Models in Mental Health Markets.

By Yulie Klerman

Why Do Most Digital Health Companies Face Go-to-Market Challenges?

The traditional way of financial transactions in the healthcare market can be a significant barrier to success for digital health companies. In this market, the service provider and the consumer often have an indirect relationship with a third party responsible for paying the bill, such as an insurance company or government program. It creates a disconnect between the service provider and the consumer, where the third party's priorities may overshadow the consumer's needs and desires.?

As a result, patients seeking medical services may find that their insurance company limits their options based on cost or other factors rather than what is best for their health, leading to frustration and dissatisfaction. Operating through third parties also increases bureaucracy and administrative burdens for clinical service providers, demanding them to navigate complex reimbursement processes or spend significant time and resources on administrative tasks.?

Digital health companies face challenges convincing clinicians and patients of their solutions' medical necessity and efficacy. However, demonstrating the need for third-party payers usually becomes the most significant challenge since third-party payers often have different considerations and priorities than patients and clinicians. As a result, it leads to delays and increased costs, which can limit the ability of digital health companies to commercialize their products and services successfully.

Not All Healthcare Services Are Created Equal…

Historically, medical services focused primarily on life-threatening issues, with third parties payers covering only the necessary treatments. However, as society has evolved, so too have our priorities and expectations for healthcare. Today, various services, such as aesthetic medicine and mental health services, are available to consumers and recognized as essential and not merely luxuries. However, despite the societal shift in prioritizing these services, in many cases, they continue to fall outside the scope of traditional healthcare coverage, placing the burden of payment solely on the consumer. As a result, out-of-pocket transactions have become the norm in these markets, and vendors have had to adjust their business models accordingly.

Have you ever wondered how companies like Allergan, Sientra, and Natrelle promote silicone breast implants or how Galderma markets their fillers and neurotoxins? They work with clinics and medical professionals to educate and inform patients about their products. These companies train clinicians on the use and benefits of their products, who then help patients decide which product is best for them based on their clinical and financial considerations. Once the decision is made, the clinician orders and administers the product to the patient during a surgical procedure or injection.

It's not just limited to breast implants and injectables, either. Companies such as BTL Aesthetics and Sciton, which manufacture devices for skin rejuvenation, hair removal, and body contouring, collaborate with clinics and medical professionals to offer patients product training, support, and promotional materials. Although clinics act as regulated distribution channels, the patient makes the ultimate product choice. Therefore, these companies strive for transparency and aim to establish patient trust by collaborating with clinics and medical professionals.

Empowering Patients with Trusted Information: The Benefits of Affiliation with Clinics in Direct to Consumer Healthcare Markets.

The mental health market shares similarities with the aesthetic market. Just like in the aesthetic market, patients often have to pay out of pocket for mental health services due to limited insurance coverage. Previously, mental health treatment options were limited to prescribed medications and consultation services. However, with the advent of AI and other innovative technologies, mental health specialists now have access to a range of companion products and platforms that can be used in conjunction with standard treatments to provide more comprehensive care. As a result, there has been a shift towards using a similar go-to-market approach in the mental health market. These companion products are often marketed to mental health clinics and other healthcare providers, who can then offer them to their patients as part of a comprehensive treatment plan.

In the aesthetic and mental health markets, clinics are powerful affiliation channels to improve patient outcomes. By partnering with medical professionals, vendors are able to leverage existing patient networks and benefit from the well-known "white coat effect," which refers to the phenomenon of patients instinctively trusting and respecting individuals wearing white coats. The white coat effect is rooted in the symbolic and cultural significance of the white coat as a sign of authority and expertise in the medical field. Patients perceive individuals wearing white coats as more knowledgeable, competent, and trustworthy than those who do not wear them. As a result, patients are more likely to follow the advice and recommendations of individuals wearing white coats and are more receptive to information about products and services that come from them.

Vendors can improve patient trust in their products and services by leveraging the white coat effect through clinics as affiliation channels. Medical professionals in clinics can provide patients with accurate information about available treatments and services, address their concerns, and offer tailored recommendations based on their needs. This approach can help patients make informed decisions about their health and well-being, leading to higher levels of patient satisfaction and, ultimately, better health outcomes. Moreover, clinics are familiar and accessible settings where patients can seek the care they need. Vendors offer patients a sense of security and comfort, educating them about their products and services in a clinic setting, further enhancing patient satisfaction and engagement.

Summary:

While we envision a future where payers and employers play a more substantial role in covering mental health services, our current approach focuses on leveraging affiliated clinics to penetrate the market. This approach allows us to quickly establish the effectiveness of our product and reduces our reliance on navigating complex reimbursement processes. Our objective is to demonstrate our value by gaining the support of clinicians who believe in the efficacy of our technology and garnering early adoption from patients and their families who are experiencing the pain and difficulties our solution aims to alleviate. By collecting data that shows positive clinical outcomes, we hope to build a compelling case for third-party payers to support our platform in the future. Our ultimate goal is to make our solution more accessible and affordable to patients in need and contribute to advancing mental healthcare.

About author:

Yulie Klerman is a highly experienced business professional with over 15 years of experience in the global commercialization of innovative healthcare solutions. Her impressive resume showcases her expertise in both digital health and aesthetic markets, demonstrating her deep understanding of these industries. Throughout her career, Yulie has worked with some of the world's leading healthcare providers and technology companies, helping them to develop and launch cutting-edge products and solutions that improve patient outcomes and enhance the patient experience. Yulie is also known for her ability to think outside the box and always look for new and creative ways to engage with patients and healthcare providers. For the past two and a half years, Yulie Klerman has been serving as an advisor to the iFocus Health team, providing valuable insights and expertise related to commercialization, go-to-market strategy, and business development.