After the 2008 financial crisis, a new set of regulations protecting consumers and businesses opened the floodgates for a wave of fintech companies to develop into household names over the past decade. Now it may be the turn of care.
Part of the Dodd-Frank Wall Street Consumer Reform and Protection Act, passed in 2010, required financial institutions to provide consumers with electronic access to their financial information, either for personal use or for use by third parties. These regulations are why we can link our bank accounts to Venmo or Zelle to send money to our friends or why Stripe and Plaid have revolutionized the payment infrastructure for so many businesses.
Now the healthcare industry sees its own regulatory catalyst. The 21st Century Cures Act, passed in 2016 and set to take effect this year, outlines guidelines for information sharing, API standardization, and national infrastructure for sharing this type of information. An increase in healthcare innovation is mentioned as one of the goals of the law.
The question is, will healthcare startups tap into these regulatory guidelines with the same zeal that fintech founders have had over the past decade?