Navigating the Challenges of Digital Health. Digital Health Interviews: Ritesh Patel

In the latest episode of Digital Health Interviews, our host Alex Koshykov sat down with Ritesh Patel, an industry leader known for his extensive work in digital health. Patel, who currently leads the global digital health practice at FINN, brought a wealth of insights, built on over a decade of experience, to the conversation.

Driving Digital Health Innovation with a Problem-Solving Focus

“I joined FINN three years ago...to lead the global digital health practice,” he recalled, marking his milestone with the company. Before that, Patel’s career spanned roles at Ogilvy and Inventive Health, where he became deeply immersed in healthcare transformation and digital health solutions. His career pivot, however, came with a mission: to drive innovation within healthcare through digital technology.
At Ogilvy, Patel spent three years leading digital transformation efforts for major healthcare clients. “I led a big project with a pharma company...and six years before that at Inventive Health, which is where I got my start in healthcare,” he explained. Despite early setbacks, such as trying to eliminate the use of fax machines in clinical recruiting, Ritesh found his footing in the fast-evolving world of digital health. “My motto is ‘If it moves, digitize it,’” he joked, a philosophy that has guided his approach ever since.
Patel’s scope of work is broad, ranging from health systems and payers to startups and venture capitalists. He helps large corporations and healthcare systems embrace innovation by connecting them with startups pushing the boundaries of what’s possible. “We work with health systems, we work with payers, we work with medical device companies...but really it’s around that intersection of how do we get a big corporate or a big health system to innovate,” he explained.
Alex quickly acknowledged Ritesh’s extensive involvement in digital health since its early days. Patel has traveled the globe, attending hundreds of conferences and listening to countless pitches from entrepreneurs eager to transform the healthcare landscape. His answer was nuanced when asked if he was satisfied with the speed of technological adoption.
“Every startup I meet, every founder I meet, they always have this same situation,” Patel reflected. “They come in and say: ‘I've got this perfect solution for this problem.’ Most of the time, the incumbent...didn’t even know they had that problem.” He pointed out one of the biggest challenges in healthcare innovation: a disconnect between entrepreneurs’ solutions and the broader needs of the industry.
One striking example Patel shared was the hype around artificial intelligence (AI) in healthcare. “10 years ago, mobile was a silver bullet...now everybody’s talking about AI.” While AI has transformed many sectors, Ritesh noted that healthcare often lags in fully embracing new technologies. “What we try and do is we go after the technology and we say ‘Here’s the tech,’ as opposed to ‘Here’s the problem I’m going to help you fix.’”
He highlighted a common misstep in the digital health space, using the example of a company offering an AI-driven discharge solution for hospitals. Instead of leading with the technology, Patel believes the conversation should focus on solving practical issues, such as alleviating nurse burnout. “That's what I mean,” he said. “Tech has the capability, but the way we apply it in healthcare...the message is sometimes a bit misguided.” Ultimately, Ritesh advocates for a shift in mindset. Digital health, he argues, shouldn’t be about showcasing the latest tech but about solving real-world problems.

The Impact of COVID on Healthcare Innovation

When Alex Koshykov asked whether something is dramatically improving the healthcare system, Ritesh Patel was optimistic. “I believe so, and I think it’s in three areas,” he shared, pointing to a shift in the past few years, catalyzed by the COVID-19 pandemic. The pandemic, Patel noted, forced the adoption of technology that had long been available but underutilized.

“Telehealth has been around since the ‘70s, but it got adopted during COVID because we had to,” he explained. Necessity drove the rapid uptake of telehealth services, transforming the way care is delivered. For many people, particularly those in underserved areas, telehealth became a lifeline. “Telehealth is changing the delivery of care and is providing healthcare to people who never had access to it before,” Patel added.

He also highlighted the potential for AI to improve efficiency in healthcare. While many companies chase AI-driven solutions for consumers, Ritesh believes the focus should be on how AI can support healthcare professionals. “Can AI make the doctor more efficient? Can you create something where...the doctor’s spending four minutes looking through nine screens?” Patel asked. For him, the real power of AI lies in enabling doctors and nurses to be more effective in their work.

Addressing Communication Gaps in U.S. Healthcare

Koshykov, having recently navigated the complexities of the U.S. healthcare system himself, shared his frustration with the lack of transparency and communication. Patel could relate. “When I moved here from the UK, I had this vision that I could change the world in America,” he said, recounting his initial hopes for transforming industries.

But Ritesh quickly realized that in the U.S., “the only thing that matters is the dollar.” This focus on profit, particularly in the healthcare industry, has created barriers to improving patient experiences. He pointed to insurance companies as prime examples of entities benefiting from the current system, noting how difficult it is to enact change. “United Health — $85 billion a quarter. They’re not giving that up easily!”

Patel emphasized that real change has to come from the grassroots level, with support from policymakers, healthcare providers, and consumers. He illustrated his point with a common frustration: the disconnected process of scheduling and attending a doctor’s appointment, from filling out paperwork to navigating patient portals. “Hello, do these things talk to each other?” he quipped, urging entrepreneurs to address such inefficiencies.

The Promise and Challenges of Value-Based Care

During the conversation, Koshykov brought up value-based care, a model that rewards healthcare providers for improving patient outcomes rather than the quantity of services delivered. While Patel praised the model in theory, he acknowledged its limitations in practice.

“The problem is the infrastructure of the data that you need to ensure you’re doing the incentives in the right way,” Ritesh said. Value-based care requires comprehensive data to track patient outcomes, but many healthcare systems lack the connected systems necessary to measure the effectiveness of care.

Patel pointed to SCAN Health, a smaller operator that has successfully implemented value-based care for its Medicare population. For larger healthcare organizations, the challenge is more daunting. Without integrated systems, it’s difficult to collect the necessary data to measure and reward value. In essence, while Ritesh sees value-based care as a promising model, it’s not yet scalable due to the data infrastructure gaps in many healthcare organizations.

The Open Data Rule: A Game Changer for Entrepreneurs

Another major development Patel touched on was the open data rule, a policy aimed at making healthcare data more accessible to patients and entrepreneurs. “The open data rule is the culmination of this whole CMS implementation,” he explained.

Previously, healthcare data was controlled by a small number of companies, making it costly for entrepreneurs to access. “EPIC two years ago was charging up to $200,000 to get access to their system,” Patel shared. But the open data rule has changed that, mandating that healthcare data must be shared openly and accessible for innovation.

For our guest, this policy shift is a significant step forward. “Before it was all carrots, now they’re putting some sticks in place so that we can get things done,” he noted. With this new level of access, entrepreneurs now have more opportunities to create solutions that could improve patient care and healthcare delivery.

When Alex Koshykov asked whether something is dramatically improving the healthcare system, Ritesh Patel was optimistic. “I believe so, and I think it’s in three areas,” he shared, pointing to a shift in the past few years, catalyzed by the COVID-19 pandemic. The pandemic, Patel noted, forced the adoption of technology that had long been available but underutilized.

The Disconnect Between Healthcare Data and Margins

When Alex Koshykov raised the question of healthcare insurance companies having vast amounts of data, Ritesh Patel was quick to confirm, “They have all the data.” “But healthier patients need less money,” Koshykov continued, “so wouldn’t it make sense for them to push for faster adoption of...?” Patel cut in with a dose of reality. “What do you think the margin for a hospital is? Do you know what the margin of running a hospital is? It’s about 1.5%. I make more money at the little Curry House I have down in the East Village than a hospital does from a margin perspective,” he said with a laugh, highlighting the stark contrast between the cash-rich insurance companies and the razor-thin margins hospitals operate on.

“That’s the dilemma,” Patel continued. “You’ve got all the data and the money on one side, but the folks who have to deliver care are stuck managing margins, and the two sides haven’t come together on a model that works for both. It currently works for one, not the other.”

Ritesh pointed out that smaller healthcare operators, like SCAN Health Plan, are in a better position to manage costs and patient inflow, which helps them navigate this tight-margin ecosystem. But for large multisystem entities, such as the University of Pennsylvania Medical Center, which handles everything from oncology to maternity, the challenge is in unifying these services in a financially sustainable way.

Opportunities for Innovators in Healthcare

Koshykov then asked if this tension presented opportunities for innovation. Patel responded enthusiastically: “Big time! There are huge opportunities, particularly in areas like data and cost arbitrage.” He recounted how Express Scripts, now a giant in the pharmacy benefits management (PBM) sector, was originally born out of an innovative financial model. “Two City Bank guys realized all these pharmacies were sitting on billions in receivables. They thought, ‘Let’s buy them, pay them upfront, and then arbitrage the rest.’ That’s how Express Scripts came to be.”

Tackling Rural Health and Access to Care

Alex shifted gears to discuss a topic Ritesh is particularly passionate about: rural healthcare. “What do you think are the main barriers right now, and what innovations are most promising to improve access?” Koshykov asked.

“Rural health is a very big passion of mine,” Patel began, “because we take access for granted in the cities. But if you go to West Virginia, Wyoming, or Montana, some people have to drive 400 miles to the nearest hospital just to get basic care.”

Ritesh underscored the vastness of the U.S. and the gaps in healthcare infrastructure, lamenting that some areas still lack basic connectivity. “You can drive between Greenwich and Stamford in Connecticut — one of the wealthiest areas — and lose your cell signal. Imagine trying to do that for healthcare.”

He expressed hope that the Biden administration’s infrastructure bill, which allocates funds for expanding internet access in underserved areas, could make a big difference. “Once the infrastructure is there, we can start thinking about bringing care to people where they are, whether it’s telehealth or even more holistic solutions.”

Patel described an example of an innovative care model where patients with chronic conditions receive kits filled with devices like EKGs and blood pressure monitors, allowing them to manage their care from home. “But to make that work, they need connectivity. That’s the real key,” he emphasized. “With infrastructure in place, we can start delivering care at home in a way that we haven’t done before.”

The Long Road to Infrastructure Improvement

When Koshykov asked where the U.S. stands in terms of improving healthcare infrastructure, Patel was cautiously optimistic. “The bill was passed last year, and funding is slowly being distributed to the states. The biggest player right now is Verizon, which is going after the federal money to build out the infrastructure.”

However, Ritesh pointed out that while the grants will help fund the initial buildout, the business model around maintaining this infrastructure will also need to be sustainable. “Once the infrastructure is in place, you’ll see big improvements. But how long it will take depends on each state. That’s the challenge with the U.S. — each state is unique, with different priorities and approaches.”

To illustrate the current struggles, he shared a story of a nurse on the Sue Nation reservation who drives 300 miles to a Starbucks just to upload patient data to the hospital’s electronic health record system. “Imagine if she just had 3G capability — not even 5G! That’s the kind of promise we’re looking at with these infrastructure improvements.”

Tech Adoption Across the Globe

Alex Koshykov noted that Ritesh Patel has attended numerous digital health conferences worldwide, asking if there are noticeable differences in tech adoption across various regions.

“Yeah, definitely!” Ritesh responded. “There are pockets of places doing incredible things and others that are worse off than the U.S.” He highlighted Eastern Europe — specifically Lithuania, Estonia, and Ukraine — as regions significantly ahead in tech adoption. “Estonia was the first country to put everything on the blockchain, back in 2016-2017, long before most people were even considering it. They had no prior infrastructure, so they just leaped straight into mobile and new technologies.”

In contrast, Patel noted that many established European countries like Germany and Italy are facing slower adoption due to entrenched infrastructure and complex regulations. “You’d think the UK’s National Health Service would have a unified system, but every hospital runs on a different one — just like in the U.S.”

He also mentioned that Latin America faces serious challenges. “Doctors there are sometimes using WhatsApp to connect with patients. I wouldn’t trust my patient history to a Facebook app, but that’s the reality.”

However, Africa is booming with innovation, according to Ritesh. “Look at Rwanda, Ghana, and Nigeria. They’re doing amazing things — from healthcare delivery models to mobile currency systems underwritten by AXA. From a digital innovation perspective, Eastern Europe and Africa are really where most of the exciting stuff is happening.”

The South American Market: Opportunity or Risk?

Shifting focus to South America, Koshykov asked about the potential for startups to succeed in the largely unregulated healthcare market. Patel acknowledged the appeal but warned about the political volatility. “Brazil was doing well for a long time, but a government change flipped things upside down for entrepreneurs. Chile had some momentum too, but again, it’s risky.”

For those looking to enter the market, Ritesh recommended focusing on Colombia or Mexico. “Colombia is booming with new models, and Mexico is also a great option. Brazil has a lot of private hospitals, so there’s money to be made, but the political instability makes it risky.”

What Keeps Ritesh Patel Motivated

Alex wrapped up by asking what continues to motivate Ritesh, even after over a decade in the industry. Patel smiled and shared a piece of wisdom passed down from his father: “‘Impact one life positively in this life, and you’ll come back as a better person in your next.’ In healthcare, if you can positively impact even one person, that’s something.”

He also drew motivation from the passionate entrepreneurs he encounters daily. “There are so many smart people trying to solve big problems. How can we help them succeed?”

Patel also mentioned his monthly “Curry Club,” where like-minded people gather to share ideas. “We’ve had businesses start there, money raised there, and sadly, businesses fail too. But the whole idea is that if we work together instead of in silos, we can create real change. If we impact just one person, wow — look at what we’ve done!”

Advice for Early-Stage Startup Founders

To close, Alex asked for advice for early-stage digital health startup founders. Ritesh didn’t hesitate: “You have a great idea, and you think it’ll work. But before you go all in, meet with seven other people and test it with them first. Don’t go full throttle, raising money and betting your house on it until you’ve tested it outside your bubble.”

He emphasized the importance of running ideas by a diverse range of people: “If you wouldn’t do it yourself, or if your family wouldn’t do it, then change the bottle.”

Our previous episode was with Vadim Gordin: Best Time to Build in Digital Health