Traditional healthcare technology acquisition requires massive upfront capital investment that puts innovation out of reach for many practices, while subscription models are transforming access by eliminating these barriers.
• Conventional tech adoption can cost hundreds of thousands in upfront expenses for software licenses, hardware, implementation, and training
• Capital expenditure model creates significant financial risk and delays innovation, especially for smaller practices
• Subscription models like Addison Care provide turnkey solutions bundling software, hardware, support, setup, and training
• Costs become predictable operating expenses that scale with patient enrollment and potential revenue
• Implementation timeline shrinks from months/years to days/weeks
• Vendors handle updates, maintenance, and compliance, freeing healthcare staff to focus on patient care
• Similar to how subscription models revolutionized other industries like software, entertainment, and automotive
Episode Transcript
You ever feel like keeping up with the latest in
health care tech?
Well, it requires a bank loanthe size of a small house.
Speaker 2 (00:06):
Yeah, it definitely can feel that way.
Speaker 1 (00:08):
You want to know what's new, what actually works,
but sometimes the sheer cost itjust feels overwhelming before
you even get in the door.
Speaker 2 (00:16):
It's a really common frustration.
Actually, the traditional wayof getting new health care
technology often meant this hugeupfront investment made it feel
out of reach for a lot ofplaces, Totally.
Speaker 1 (00:27):
But today we're going to dive into something
different subscription-basedhealthcare technologies.
We're looking at info fromepisode six rapid deployment
without capital investment.
Speaker 2 (00:39):
Right Exploring how this model changes things by
getting rid of those massiveinitial costs.
Speaker 1 (00:44):
Exactly so.
Our mission here is to figureout how this subscription thing
works, why it's such a big dealfor healthcare organizations,
especially the budget-consciousones, and what it means for
getting new tools adopted faster, which ultimately should
benefit patients right.
Speaker 2 (01:00):
Absolutely.
So maybe let's start with thatold hurdle capital expenditure.
What did that really mean for adoctor's office or a clinic
wanting new tech?
Speaker 1 (01:10):
OK, yeah, let's break it down the old way.
Like our source material pointsout, it meant a serious
financial commitment right outof the gate.
Serious is putting it mildly,sometimes Right?
So imagine a clinic wants, Idon't know, a new telehealth
system.
They're looking at big bucksfor software licenses.
The licenses alone could behefty Sometimes.
Speaker 2 (01:27):
Right.
So imagine a clinic wants Idon't know a new telehealth
system.
Speaker 1 (01:29):
They're looking at big bucks for software licenses.
The licenses alone could behefty.
Then the hardware, maybespecial cameras, tablets,
whatever they need, Plus gettingit to actually work with their
current systems.
The whole implementation mess.
Speaker 2 (01:38):
Which is often way more complex than people think.
Speaker 1 (01:40):
And then you have to train everybody how to use it
Time, money.
Speaker 2 (01:43):
And the source really hammered this home.
These costs could easily hithundreds of thousands of dollars
.
Speaker 1 (01:49):
Yeah, before you see any benefit, any return on that
money.
Speaker 2 (01:53):
That's a massive financial risk, especially, like
you said, for the smallerpractices.
It really slams the brakes oninnovation.
Speaker 1 (01:59):
Exactly, it just puts smaller folks way behind the
curve.
But OK, this is where it getsinteresting.
Companies like Addison Care aredoing this subscription thing.
How does that flip the?
Speaker 2 (02:11):
script financially Well.
What's really striking is howcomprehensive it is.
Our source calls it a turnkeysolution.
Speaker 1 (02:18):
Turnkey.
Ok, so what's in the box, so tospeak?
Speaker 2 (02:21):
So for your regular subscription fee the practice
gets well pretty much everything, not just the software access,
but all the hardware needed, theongoing tech support actually
getting set up, the logisticsand even the staff training.
It's all bundled.
Speaker 1 (02:35):
Wow, okay, so no massive six-figure check up
front.
Speaker 2 (02:39):
Precisely, and think about it.
Also frees up money and peopleyou might have needed for your
own IT department.
Speaker 1 (02:44):
Yeah, you can focus those resources more on, you
know, actual patient care.
So it becomes a predictableoperating cost instead of this
huge capital hit.
The source mentioned.
It often scales with patientenrollment.
How does that work?
Speaker 2 (02:57):
Yeah, that's a key point for financial health.
It basically links the costdirectly to usage or potential
revenue.
So, as a practice, signs upmore patients for this tech.
Yeah, their subscription costsmight go up a bit, but so does
their income potential fromusing it like insurance payments
.
Speaker 1 (03:12):
Ah gotcha.
So the costs and the benefitsgrow together.
That feels much moresustainable.
Speaker 2 (03:17):
Exactly.
It's way more adaptable, muchsounder financially as the
practice grows.
Speaker 1 (03:22):
Makes total sense, smooths out those big bumps.
And it seems like the plusesaren't just financial.
The scores talks about speedtoo Faster innovation.
Speaker 2 (03:30):
Oh, dramatically faster.
Think about the old way Buyingeverything, installing it,
integrating it.
That could take months,sometimes years.
Speaker 1 (03:40):
Yeah, delaying the benefits.
Speaker 2 (03:42):
Right, but with the subscription the vendor handles
a lot of that heavy lifting setof ongoing tweaks.
The time from deciding yes toactually using it shrinks
incredibly.
We're talking potentially daysor weeks instead of months or
years.
Speaker 1 (03:55):
Days or weeks.
Thank you.
That's huge.
Patients get access to newstuff way quicker.
Speaker 2 (04:00):
Much, much quicker.
And there's another piece.
The vendor also takes care ofupdates, maintenance, keeping
things compliant with all therules.
Speaker 1 (04:07):
Oh, that's got to be a massive weight off the
provider's shoulders.
They're already juggling somuch.
Speaker 2 (04:12):
It really is.
It lets them focus their energyand their staff on what they do
best taking care of people.
They don't have to become techexperts overnight or divert
resources constantly.
The vendor handles the techside.
Speaker 1 (04:25):
OK, so let's recap this deep dive Based on episode
six.
The big picture seems to bethat the subscription models and
health tech they really lowerthe money barrier.
Speaker 2 (04:35):
Yep, the financial risk goes way down.
Speaker 1 (04:36):
And they just make the whole process of getting new
tools much, much simpler.
Innovation becomes morereachable.
Speaker 2 (04:42):
That's the core idea.
It's a shift from that hugeupfront gamble to a more
flexible pay-as-you-go operatingcost.
Speaker 1 (04:50):
So here's something to chew on.
Then We've seen subscriptionmodels completely change other
industries right Software,movies, music, even cars.
Speaker 2 (04:58):
Absolutely.
They've made things way moreaccessible.
Speaker 1 (05:01):
Could this same trend fundamentally change how
healthcare adopts new tech and,ultimately, how care gets
delivered to all of us?
What possibilities does thatopen up for the?
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