Seth Merritt of Welby Health on Value Based Care Challenges and having the right Capital Mindset

In this conversation, David Paul interviews Seth Merritt, the founder of Welby Health, about value-based care in the healthcare industry. They discuss the challenges of implementing value-based care initiatives, the need for innovation in the healthcare system, and the difficulties faced by providers and payers. Seth shares his journey as an entrepreneur and the lessons he learned about raising capital and finding the right investors. Overall, the conversation highlights the complexities of the healthcare industry and the importance of finding solutions that work for both providers and payers. In this conversation, Seth Merritt discusses his experience with raising capital and the challenges of managing money in a startup. He emphasizes the importance of delivering value to investors and being thoughtful about the use of capital. Seth also shares his perspective on the changing dynamics of the market and the need for startups to focus on profitability and differentiation. He highlights the importance of stewardship and the long-term commitment required in the startup journey. Seth concludes by discussing his excitement about the future of his company, Welby Health, and the opportunities for growth and scaling. You can watch/listen to the podcast on YouTube, Spotify, and Apple.

Takeaways

• Implementing value-based care initiatives is challenging due to the complexities of the healthcare system and the resistance to change.
• Innovation in healthcare is necessary to improve patient outcomes and reduce costs, but it requires understanding the nuances of the industry.
• Finding the right investors and partners is crucial for the success of a healthcare startup, as they provide not only capital but also guidance and support.
• The healthcare industry needs solutions that work for both providers and payers, considering their different needs and constraints. Delivering value to investors is crucial in the startup journey.
• Being thoughtful about the use of capital and focusing on profitability are essential for long-term success.
• Differentiation and demonstrating real value are more important than just having a great idea or pitch.
• Stewardship and a long-term commitment are necessary to navigate the challenges of the startup world.
• Scaling a startup requires managing costs, finding the right talent, and charging what the company is worth.

Sound Bites

• "We were dealing with a lot of health systems and larger providers and administrative pieces of the organization versus the individual doctor working in his office and the patient who has hypertension and diabetes, they were just sort of like numbers on a chart."
• "Everyone complains about healthcare spending, but no one's really putting their money where their mouth is, you know, and trying to do anything about it."
• "You're asking doctors on their 2% margin to go pay for something else, even if it's the best thing ever, it's just not gonna happen."
• "The only thing contractually that VCs have to do is why are you money?"
• "Sometimes you just need the person that believes in you, right? Even if it is a dick."
• "This idea is actually real. That gave me like a little bit of push."

Chapters

07:22 The Need for Innovation in Healthcare

23:54 Delivering Value and Managing Money in Startups

34:10 Lessons Learned and Charging What You're Worth