November 19, 2014

Selling health tech means minimizing risk

Travis Good, MD

Co-founder & Chief Technology Officer

Trust is the glue of life. It’s the most essential ingredient in effective communication. It’s the foundational principle that holds all relationships. - Steven Covey

At Datica we most frequently work with B2B health technology companies. Those companies build and sell software to healthcare enterprises, most commonly health systems, insurance companies, and biopharma companies. As we detailed in our last white paper, selling to those large healthcare enterprises is challenging, especially for modern, cloud-based companies. The major sales challenge in this space is overcoming risk; variability exists, but risk is the basis for exhaustive security and compliance review that is part of the sales cycle.

The reason our B2B customers represent risk for enterprises is because our customers are business associates, meaning they are accessing, storing, processing, or otherwise touching protected health information (PHI). That PHI is coming from the enterprise, or covered entity. Our customers, as business associates, have to be stewards of that PHI. If PHI is accessed in an unauthorized way, HIPAA views it as a breach. Our customers and their enterprise customers have business associate agreements (BAAs) in place to define obligations and risk exposure in the case of a breach. Unfortunately breaches, and the associated notification requirements and investigation, are a burden for both the business associates and covered entities.

The flip side of risk is trust. Building trust is a hard thing, but ultimately galvanizes an enterprise health sales closing. The leap for an enterprises from viewing a vendor as a risk to viewing them as a trusted partner is large. And that leap is what is required for most of the innovators in healthcare to succeed. As we said in our white paper, Trust is the currency of the enterprise.

It’s our job at Datica to help customers 1) deploy and scale secure, compliant technology and 2) 2) make it easier to sell that technology to enterprises.

Both of those jobs are based on trust. Trust between us and our customers. And helping our customers build trust into their products to sell to enterprises. We build that trust a multitude of ways, as we again highlighted in our last white paper. At the end of the day, you could sum it up by saying trust is in our DNA. We focus on security and compliance. It’s at the core of our technology and our organization.

Our success is tied to our customers’ success. Trust flows through the entire process. We are honored and grateful our customers put their trust in us. We work hard to earn it and to make it an asset for our customers.

The depth of their knowledge of HIPAA, their experience in protecting personal health information, and the ease of use of their services has helped us quickly and confidently create a scalable platform for our solutions.” — Clay Williams, PhD, CEO & Co-founder, Cohere Health

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