Across boardrooms and innovation labs, established health systems and provider organizations are asking the same question: As capital again floods healthtech, how should incumbents respond? Members of the Senior Executive Healthcare Think Tank bring deep expertise in patient experience, workforce strategy, equity, policy and technology to help guide that answer.
In 2024, venture capital investment into healthcare rose to $23 billion (from $20 billion in 2023), with nearly 30% of that funding directed to AI-enabled ventures. In the first half of 2025, healthtech investors injected $6.4 billion into U.S.-based digital health companies—fueled largely by AI‑driven innovation. That renewed momentum intensifies the pressure—and the opportunity—for incumbents to move beyond incumbency toward true transformation.
However, the Think Tank’s experts caution: The window to adapt is narrow, and missteps risk disruption. What follows are thematic frameworks, expert-driven insights and real‑world examples to help senior executives in provider organizations navigate partnerships, acquisitions and internal innovation.
“Not every innovation integrates seamlessly into established care models, and poorly aligned partnerships can disrupt continuity of care or overwhelm the care staff.”
Partnering With Purpose: How to Align Innovation With Real‑World Workflows
When healthcare organizations explore partnerships with healthtech startups, the promise is often compelling: AI tools, virtual care platforms, triage bots and digital infrastructure can extend reach, modernize processes and improve outcomes. But according to Fereste Naseh, Founder and CEO of MeTime Healing LLC, such a promise must be anchored in how daily workflows actually function. She observes, “For private practices, new healthtech investment brings access to AI tools and digital infrastructure that can expand care and efficiency—but not every solution fits seamlessly into existing workflows.”
Naseh points out that condition‑specific tools may offer significant benefit—especially to smaller practices that may lack the capital to build them in‑house—but also offers a key warning: “Not every innovation integrates seamlessly into established care models, and poorly aligned partnerships can disrupt continuity of care or overwhelm the care staff.”
The implication for senior executives is clear. Before entering formal agreements, leaders should map real workflows, involve clinicians in pilot design, define clear success metrics and plan exit criteria. Only then can partnering with purpose deliver value—not just novelty.
“Hesitation or fragmented adoption could widen gaps, leaving slower players vulnerable to disruption by more agile competitors.”
Buy or Build: Leveraging Acquisitions Without Losing Control
For many incumbent health systems, acquisitions and partnerships offer a shortcut to deploying cutting‑edge solutions—especially as AI and condition‑specific care models gain momentum. Eugene Zabolotsky, CEO of Health Helper, describes this moment as one where “AI and digital infrastructure can streamline clinical workflows, optimize administrative operations and empower condition‑specific care models that improve outcomes while reducing costs.” That promise is enticing—but he warns of uneven uptake: “Hesitation or fragmented adoption could widen gaps, leaving slower players vulnerable to disruption by more agile competitors.”
According to Zabolotsky, the firms that succeed will not simply accumulate technologies. They choose whether to partner, acquire or build based on strategic advantage. He urges organizations to “act boldly,” noting that “the next wave of investment is less about incremental change and more about building healthcare systems that are truly intelligent, connected and patient‑centered.” This means defining what capabilities are core and must be controlled, versus those that can be bought or accessed via partners.
In practice, that suggests rigorous technical due diligence, cultural alignment post‑deal and clear integration plans. Senior executives should examine vendor’s data models, interoperability, potential regulatory exposure and capacity for long‑term support. Only with those guardrails can acquiring innovation deliver return without creating orphaned systems or misaligned investments.
“Incumbents are in an interesting position of controlling the distribution of solutions to patients.”
Waiting to Scale: Observing Early Signals Before Investing Deeply
Sometimes the strategic advantage lies not in being first, but in being wise about when to scale innovation. Mark Francis, Chief Product Officer of Electronic Caregiver, Inc., argues that incumbents are “in an interesting position of controlling the distribution of solutions to patients,” which gives them leverage to evaluate whether to build, buy or partner. He cites the rise of “ambient scribes” as a case study: These tools have drawn intense VC interest and are showing promise in improving operational burdens, yet Francis warns many are at risk of being “comets—bright lights across the sky which fade away.”
He explains: “Ambient scribes are not stand‑alone businesses. Rather, they are features within a more complete product—such as Microsoft Office or Epic EHR.” By watching carefully how these tools perform—looking at clinical outcomes, financial ROI, clinician workload—incumbents can determine whether to acquire, partner or build internally. He compares this to Apple’s approach to innovation—“not first to launch but first to scale”—and as a sensible strategy for systems with complex legacy, scale and regulatory demands.
For senior leaders, this means creating feedback loops: pilot trials with rigorous evaluation, monitoring how vendor tools fare over time, and keeping internal product or informatics teams ready to internalize high‑value capabilities. Rather than chasing every emerging trend, incumbents who filter for both promise and durability will avoid investing in “bright lights” that burn out too soon.
Key Points to Consider
- Prioritize fit over flash when evaluating tech partnerships. New AI and digital health tools can improve efficiency and outcomes, but only if they integrate smoothly into existing workflows and care models. Involve clinicians early and pilot before scaling.
- Use a strategic framework to decide when to build, buy or partner. Acquiring or partnering with startups can accelerate innovation—but only if technical integration, cultural alignment and long‑term fit are evaluated rigorously. Move fast, but with discipline.
- Watch early movers closely—then scale the solutions that prove value. Incumbents don’t always need to be first. Monitor emerging technologies like ambient AI scribes, assess impact and invest in scalable versions internally once value is clear and market fit is proven.
Bold Moves, Smart Strategies: What Comes Next
As venture capital returns to healthtech, incumbents stand at a critical inflection point. The window to act is now, but success will not go to the fastest mover—it will go to the most thoughtful innovator.
By aligning deep clinician needs with modular experimentation, maintaining governance over data and equity, and selectively deploying acquisitions or internal builds, established provider organizations can evolve without being disrupted. The next decade’s winners will be those who balance boldness with discipline and reassure patients, clinicians and regulators that innovation serves care, not sidetracks it.
