Navigating growth: Adapting Aussie digital health innovations for the US market

I'm working with several Aussie companies in the digital health space, and it's becoming clear that for many, there aren't enough consumers willing to pay, making the DTC model less attractive for hitting growth targets.


As a result, they're either:

- Exploring other markets (primarily the US and UK)
- Considering a B2B route to market through avenues like corporates or insurers.

For those who are looking at the US as a growth tactic, here are some of the core differences I've observed that may help you decide whether exploring this is the right move:

📖 Regulatory Landscape 📖

Difference: The US features a multi-tiered regulatory framework with the FDA at its core, whilst Australia relies on the centralised TGA.

Action: Engage a local regulatory consultant early to unravel the FDA processes.

Example: Cochlear navigated the FDA's detailed regulations through rigorous clinical trials, partnerships with regulatory experts, open communication with the FDA, and strict adherence to quality standards.

👊 Competition & Market Fragmentation 👊

Difference: The US is teeming with digital health startups, in contrast to the more consolidated Australian market.

Action: Research the market, identify potential gaps, and validate unique value propositions through interviews, fake door tests, or state-specific pilots.

Example: ResApp Health (acquired by Pfizer) carved a niche by being unique in using smartphone-only diagnostics for respiratory conditions, backed by clinical validation.

💰 Reimbursement Models 💰

Difference: The US's intricate reimbursement system involves private insurers, Medicare, and Medicaid, whilst Australia's more streamlined approach centres on Medicare.

Action: Familiarise yourself with the reimbursement criteria of leading private insurers and government programs. It might also be beneficial to collaborate with a university's health economics department or hire a consultant to refine or evaluate your pricing strategy.

Example: When expanding to the US, Atomo Diagnostics shifted their payment model from direct-to-consumer to business-to-business. This transition simplified patient access to their tests and facilitated reimbursement by insurance companies.


👯 Consumer Behaviour & Expectations👯

Difference: US consumers typically gravitate towards the latest digital health products and services, whereas Australian consumers prioritise those proven safe and effective.

Action: Conduct interviews with American consumers and test different propositions using fake door experiments. Don't assume the same consumer type in AU and the US have identical needs.

Example: Sleepfit. reconfigured its sleep health platform to align with the pace and preferences of American consumers.