The health care plan issued by President Obama has been a boon for entrepreneurs and small businesses. This Affordable Care Act gives these small businesses a lot of support and helps for buying health insurance. Venture capitalists see this as a massive opportunity and they have been giving away lots of cash benefits for starting up health care centers across the US.
The investments made in health care setups grew at a whopping 64% in the first quarter of 2013 which is way higher than investments last year. Brad Weinberg, a partner at Blueprint Health and venture capitalists for new health care setups suggests that this is the best time for entrepreneurs for setting up health centers as all infrastructure is available like interest, support, and capital. Blueprint has been helping around 30 companies with $20,000 each for setting up health care centers for a stake of 6% in equity.
Health care was never the most sought after industry in the US as a technology was the booming sector. Even IT companies were more focused on social networking or game centers. However, the Affordable Care Act turned everybody’s focus on the health care industry, due to the huge financial incentives that it provided. There are more opportunities to set up newer units and speedily resolve many health problems.
Attractive financial incentives accompany the Affordable Care act. These are offered to health care providers to upgrade their medical equipment to newer models and the patients are encouraged to stay healthy always. People who work with the new startups have stated out of their experience, that the hospitals and insurance companies always look up to entrepreneurs for their innovative technologies. New startups are given huge aids to come up with new and cheap techniques to make healthcare a booming industry.
David Whitlinger, executive director of the New York eHealth Collaborative announced recently that the list of venture capitalists and health care providers that have registered with them is more than what they can deal with. Whitlinger runs a digital health accelerator program that had graduated its initial set of startups recently. This initiative selects a list of startups that have the potential to help New York’s medical program that finds dozens and dozens of venture capitals who are interested in investing in these setups.
Insurance leaders, medical centers and medical shops have gone on record to offer huge discounts and financial assistance for health startups that solve their problems. This has encouraged these small businesses and entrepreneurs to come out with new models and help the people in reducing their hospital visits. These entrepreneurs have found the able support of venture capitalists, who offer them the much-needed capital and support to set up their establishment. This is a mutually beneficial plan of the Affordable Care Act where the venture capitalists get a stake of equity of the fresh startups and these new businesses get the backing of established venture capitalists and enough capital to start working.