Palantir Could Be One of The Best Healthcare Startups In The Market
What is healthcare?
The healthcare opportunity is a multi-trillion dollar opportunity. Realistically, it's bigger than we even know because there's going to be more problems showing up that we have yet to even imagine.
When most people think of healthcare, they picture a hospital or a dentist’s office. In reality healthcare is an extremely broad term encompassing all things related to health. Doctors’ offices, ambulances, psychiatrists, personal trainers, pharmaceutical companies and more all technically are part of healthcare.
Healthcare is so encompassing that most companies have entire divisions dedicated to healthcare as it pertains to them.
Roughly 30% of all data being generated is in some way related to this sector. With an estimated CAGR of 36% through 2025, it makes a lot of sense for Palantir to establish themselves here.
The issue at hand is that according to Sean, a data consultant from Invest to Live, the space is not ready for the level of technology Palantir is bringing.
Sean says, “We spent 40 billion dollars trying to solve for how the complexity of this problem and the truth is it was way too early and there was no one even close to being ready.”
“...these data warehouses are more developed now, there's been more work done in data architecture. It's in general obviously unleashed weaknesses…”
Is Healthcare Ready for Palantir?
“Healthcare is one of the more complicated things to try to get into. If [Palantir] want to get into the space [I’m] all for it, you know there's a lot of siloed infrastructure that we have in healthcare because of HIPAA regulations.” Says Kris Patel, a palantir investor and healthcare IT consultant.
“...Hospitals also don't exactly have tons of data analysts or or data engineers. They try to prioritize hiring healthcare professionals rather than, you know, people that are going to be wrangling data.”
Kris’ experience exists heavily in the hospital or patient to patient side of healthcare. Arguably the largest opportunity for data reconstruction, given how much information passes through those doors. Sadly, he indicates that many providers still lack even having electronic storage systems for their hospital records. Slightly concerning in this century.
The opportunity for Palantir may lay in the pharmaceutical sector for the time being. Hospitals are tight on funding generally, and even though Palantir would likely return a positive ROI. Scientists working more directly with raw data in the development of drugs are likely to understand the value of having one agnostic data aggregator. At the very least predictive modeling would be an easy sell for testing new drug effects.
Palantir’s bid to help
When COO Shyam Sankar went on CNBC stating how he believes Palantir is the most valuable healthcare startup in the world, he was likely just trying to garner attention. Saying such a bold statement is surely going to turn heads, and when you have a product that you know is one of the best in existence you feel confident in asserting yourself.
Shyam wanted to make other healthcare companies turn their heads and just acknowledge Palantir for what they are.
90% of all the data generated by humans comes from the last two years.
If 30% of that is purely healthcare related, Palantir needs to make themselves present.
Healthcare is a rapidly growing multi trillion dollar industry. Due to regulations many segments may be slow to adapt and acknowledge that they have too much data to handle on their own.
Palantir is a company that's worth 20 billion (as of the writing of this article) with 10% in cash, does 10% a year in ttm revenue. This is what winning looks like, the healthcare space is a multi-trillion dollar industry, with space for MANY winners.
Palantir also recently received deals with the CDC, Tampa Bay Hospital, and Cleveland Clinic - only furthering and bolstering the argument that when it comes to public health/academic health/hospital healthcare - Palantir may be a disruptor getting ready to be implemented across institutions worldwide.
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