The Return of In-Person Healthcare?
The “new” frontier for startups and investors has some familiarities.
In partnership with MD.Capital
Addressing service gaps isn’t just about fixing what’s broken; it’s about uncovering new opportunities for innovation and the future of healthcare delivery.
Prognosis:Innovation has been highlighting the technology breakthroughs in virtual healthcare delivery—born out of necessity during the pandemic, but recognized as being valid care methodologies for all types of patient demographics.
Recently some venture capital firms and startups have begun to shift their focus back to in-person healthcare services, betting on the value that face-to-face interactions bring to patient care. According to a recent article from Healthcare Brew [1], these investors see opportunity in revamping traditional care delivery through concierge services, on-demand house calls and local clinics offering personalized care. This movement underscores a growing realization that despite the rapid advancements in telemedicine, in-person healthcare retains intrinsic value—particularly in establishing trust and fostering long-term relationships between doctors and patients.
The Value of Trust in Healthcare Delivery
Trust is the foundation of any effective healthcare relationship. When patients trust their healthcare providers, they are more likely to follow medical advice, report symptoms accurately and engage in their own health management. A strong relationship with a healthcare provider has been repeatedly linked to better health outcomes. For example, research published by the Journal of General Internal Medicine found that patients who have long-term relationships with their primary care providers are less likely to experience hospitalizations and more likely to adhere to treatment plans. Trust also fosters open communication, where patients feel more comfortable discussing sensitive health issues, leading to more comprehensive and accurate care.
Data consistently show that trust within the patient-provider relationship significantly impacts health outcomes. A comprehensive 2017 NIH meta-study [2] found that patients who trust their doctors have better overall health, report higher satisfaction and experience fewer complications or hospitalizations. Furthermore, long-term doctor-patient relationships encourage preventive care—reducing the risk of chronic conditions worsening undetected. Trust also plays a key role in reducing patient anxiety, increasing compliance with prescribed medications, and improving lifestyle changes, such as diet and exercise, that significantly influence long-term health outcomes. These benefits highlight how important personal relationships are to achieving better health results and emphasize the value of in-person care.
Augmenting Telemedicine with In-Person Benefits
The strengths of in-person care should be leveraged to enhance telemedicine. While virtual visits have proven valuable for accessibility and convenience, integrating them with in-person services can offer the best of both worlds. These combinations not only reinforce the trust and community connection but can expand care options for populations that may otherwise lack access.
Several companies are implementing hybrid care models that directly combine remote health care with in-person services. For instance, Amwell has been particularly active in transitioning to hybrid care by enabling patients to see the same physicians both virtually and in-person, effectively blending the two approaches across different stages of treatment. Amwell reports that 54% of their patients during the pandemic had scheduled telehealth visits with their primary care physicians.
Some startups and venture capital firms are investing heavily in a home delivery version. For example, VillageMD has adopted a model where telemedicine is integrated with home-based primary care services. Their approach includes deploying clinicians to visit patients at home for services such as administering medications and conducting physical examinations, while follow-up appointments and chronic care monitoring are handled remotely.
DispatchHealth has raised significant funding to develop “last-mile” care services, bringing urgent care directly to patients’ homes. Their business model focuses on hybrid healthcare—doctors and nurses visit homes for urgent care services, while ongoing monitoring and follow-up are handled through telehealth platforms.
Failures and Gaps as Opportunities for Further Innovation
Healthcare Brew‘s article emphasizes how these investors believe in-person healthcare is not just an option but a necessary complement to digital health solutions reflecting a glaring gap in one of the fastest-growing sectors of investment. We should pay attention when VC firms—which are typically only interested in financial outcomes—are increasingly recognizing the importance of balancing technology with the irreplaceable value of face-to-face interaction.
While telemedicine has expanded access, it is not always effective for managing chronic care, complex diagnoses or building long-term trust between patients and healthcare providers. By acknowledging this shortcoming, investors are driving innovation where it’s needed most: in models that blend technology and personal care.
Gaps in care delivery are not endpoints but indicators that we must continue to evolve. The very challenges of integrating telemedicine with in-person care also reveal areas where innovation can thrive. Every misstep in technology adoption, frustration at poor service or gap in patient care should serve as a catalyst for discovering new solutions.
Healthcare entrepreneurs pay attention to care trends. Chances are, if a problem arises that needs a solution, somewhere out there is a healthcare startup seeking investors or an investor looking for you to be a founder to solve that problem. Recognizing these gaps is vital—not as a signal of failure, but as a guidepost for where the next breakthroughs in healthcare delivery will come from.
MD.Capital provides financial services, consulting and analysis about and for early stage healthcare companies. Whether you are an investor or a founder: expert engagement is as important in supporting an investment as it is in selecting one.
Cited:
[1] “Startups and VC Firms Betting on In-Person Healthcare,” Healthcare Brew, Sept 4, 2024.
[2] “Trust in the Health Care Professional and Health Outcome: A Meta-analysis” | National Library of Medicine.
[3] Uncovering the True Value of Telehealth to Improve Care Outcomes | American Medical Association.
[4] Telehealth and the Future of Hybrid Care | Oliver Wyman.