As more startups enter digital healthcare, more are likely to quickly fail, but that gives larger companies the ability to "mine" them for new innovations, according to a report from Accenture.
Accenture examined 900 health IT startups and found that half were in danger of failing within 20 months of their creation. The researchers call them "zombie" start-ups, and say instead of discarding them, larger industry players should acquire them.
"[I]t often makes sense for healthcare stakeholders to acquire them, salvage their best people and technologies and awaken them from a zombie-like existence," Kaveh Safavi, managing director for Accenture's global healthcare business, said in an announcement. "Many digital start-ups that are dying or in danger of failure have developed solutions that can help traditional and non-traditional healthcare companies achieve their goals." Announcement