Three Critical Factors that Set Successful Digital Health Companies Apart
The digital health sector is expanding rapidly, but growth alone isn't a strategy. Every year, new startups enter the market with innovative tech and bold claims that fail to materialize.
Why? Because healthcare isn’t a frictionless industry—it’s complex, regulated, and slow to adopt new solutions.
The best digital health companies know this from the start. They recognize that building trust, securing the right partnerships, and executing a strategic go-to-market plan are just as important as the technology itself.
This means they don’t just develop a product and hope it takes off—they navigate the realities of healthcare decision-making, compliance, and commercialization with confidence and precision.
This is what the most successful players do differently.
1. Branding in Digital Health: More Than Just Marketing
In an industry built on evidence-based decision-making, branding is about more than sleek logos and polished websites. In digital health, a brand must be credible, trustworthy, and legitimate—without these traits, even the most innovative solutions will find it hard to attract attention.
So, what separates successful brands from those that disappear overnight?
They define their market position early
The best companies don’t leave it to the market to determine where they fit. They clearly articulate who they serve, what problem they solve, and why their approach is superior.
A company that offers AI-driven diagnostics, for example, doesn’t just say, “We use AI to analyze scans”—they demonstrate how their technology reduces diagnostic errors by 15% and improves efficiency.
They build thought leadership
Healthcare buyers trust expertise and data, no matter how persuasive the marketing.
Leaders don’t just sell a product; they shape the conversation. They publish reports that set the agenda, weigh in on regulatory debates, and make sure the most influential people—policymakers, payers, and providers—know their names.
Though it may go without saying, leaders also possess deep expertise and share it to benefit others.
They speak to different decision-makers
What convinces a hospital administrator isn’t the same as what resonates with a clinician, insurer, or investor.
Investors, for instance, prioritize scalability, market potential, and return on investment, while payers are more concerned with reimbursement feasibility and clinical efficacy.
The companies that stand out adapt their messaging to each stakeholder without losing brand consistency.
2. Strategic Partnerships: The Fastest Route to Credibility
Startups that connect with suitable partners obtain instant credibility, whether it’s through a major health system, insurer, or established healthcare player. These partnerships do more than increase visibility. They open doors, build trust, and fast-track adoption in a notoriously risk-averse industry.
The right partnerships make an impact in a few key ways.
They establish market trust
Healthcare decision-makers are cautious by default.
A startup backed by a respected hospital system, payer, or research institution signals that it has been vetted and validated. That kind of endorsement carries weight with both investors and customers.
They create built-in distribution
In healthcare, who you know matters. Partnerships with provider networks, insurers, and employers expand market access far faster than cold sales efforts.
A product that integrates seamlessly into existing workflows and reimbursement models will also be picked up more quickly.
They expand market reach
The most strategic startups aren’t just targeting hospitals. They’re forging relationships with retail clinics, Fortune 500 employers, and tech giants looking to expand their healthcare footprint.
Therapeutics startup Omada Health partnered with global health insurer Cigna, for example, to incorporate its behavioral health and disease management programs into employer health plans.
This collaboration positioned Omada within the corporate benefits space and expanded its reach beyond direct-to-consumer sales. As a result of the partnership, the startup also collaborated with other corporate clients.
3. Execution: Positioning for the Healthcare Buyer
The most astute health companies know how to position themselves for the people who make purchase decisions. Unlike consumer tech—where a viral app can take off in a matter of hours—healthcare adoption is slow, structured, and built on trust and consensus.
To drive adoption, health companies must understand how hospitals, insurers, and enterprises evaluate new solutions and tailor their approach to suit them.
This is how.
They understand the buying process.
Healthcare adoption depends on multiple layers of decision-making, from clinical leads to procurement teams and CFOs.
Startups must map out who influences purchasing decisions and tailor their messaging accordingly—whether it’s cost reduction, easing administrative complexity, or ensuring seamless integration into existing workflows.
They treat compliance as a competitive advantage.
In digital health, regulatory approval is not an afterthought but a selling point.
Companies that can demonstrate FDA clearance, HIPAA compliance, and reimbursement pathways naturally position themselves as safer, lower-risk investments.
They have a defined reimbursement strategy.
Many new ventures also fail to reach their potential because they don’t fit into existing billing or payment models. Some startups—such as the defunct Pear Therapeutics—fail to convince payors to reimburse for their solutions despite robust clinical evidence of its efficacy.
The most strategic players plan for CPT codes, value-based care contracts, and employer-funded models early to make adopting their products a no-brainer.
Final Thoughts
It’s not the most innovative companies that succeed in digital health. Rather, it is those that stand out in desirable ways.
True market leaders tend to have three things in common:
They invest in brand credibility—because trust is a prerequisite for adoption.
They form partnerships that open doors and leverage industry connections to fast-track acceptance.
They position themselves strategically to ensure that buyers see immediate value.
Companies that tick these boxes don’t waste time convincing buyers why they matter—their differentiation makes it obvious.
Need help positioning your startup for success in the rapidly growing digital health industry? Contact us today to discuss how ABIG’s expertise can help you strengthen your market presence and stand above the rest.
References
https://www.halletecco.com/blog/why-healthcare-startups-fail
https://whatfix.com/blog/digital-adoption-in-healthcare/
https://cignaventures.com/case_study/omada/
https://www.linkedin.com/pulse/establishing-yourself-thought-leader-healthcare-john-vakidis-mjy7c/
