Coyote Ventures Fireside Chat: Navigating (Potential) Changes in Health Policy for Startups (and their Investors)

Coyote Fireside Chats continued with a panel on February 27, 2025 on “Navigating (Potential) Changes in Health Policy for Startups and Investors.” We were grateful to be joined by Marc Ryan, (Co-founder of Lilac Software, author of Healthcare Labyrinth), Anthony D’Eredita (Principal and CEO at TrustWorks) and Jarrett Lewis (Partner at Public Opinion Strategies).

Our Fireside Chats aim to be transparent and tactical sessions to provide founders valuable lessons for navigating the healthcare landscape. This panel discussed potential policy and funding changes with the new administration, what business models may be impacted by these changes, and how to build resiliency as a founder or investor during times of turbulence. The discussion also included an overview presentation given by Jarrett Lewis, which can be found HERE. 

Here are some of the key themes and takeaways from this event:

What business models will be impacted  due to policy and funding changes?

While healthcare has not been a main focus on this administration, it is getting caught in the crosshairs. The increasing tension around the state of Medicaid funding can cause some concern. With possible reductions to Medicaid, a key area of focus for healthcare companies who rely more on federal reimbursement is shifting from standalone health services to integrated models that tie into broader networks. This will allow organizations to cater to larger populations. For example, home health services and ambulatory care models are beginning to extend beyond traditional settings, with telehealth playing a larger role, especially as reimbursement rates are anticipated to be lower than in-person care.

Science funding in the United States is also at risk. While policymakers like Susan Collins and Bill Cassidy are working to safeguard funding, there is a broader concern on the  impact of these cuts on innovation and care solutions more broadly.

What are some areas poised for growth? 

We will continue to see growth in cost-effective models like telehealth and remote patient monitoring (RPM). Value-based care, which aligns incentives around outcomes, is gaining traction as an efficient way to maintain quality care while lowering costs.

Telehealth and Site Neutrality: Telehealth is poised for growth, but it will be crucial to monitor reimbursement policies, which might favor lower-cost options for virtual care. While some drastic changes, like scrapping the Affordable Care Act (ACA), are less likely, cuts to healthcare coverage could have significant downstream effects. Site neutrality, which impacts Medicaid and Medicare reimbursement for in-person versus virtual procedures, is a key focus area. If successfully implemented, site neutrality could help bring down the high costs in the commercial world, but cuts are likely to continue through a mix of provider-side savings and legislative measures.

Care Management: Health plans are also transitioning from a focus on prior authorization (PA) to care management. This shift is being driven by transparency rules and the growing demand for better, more efficient care. In this environment, there’s an increasing emphasis on technology and data analytics to support better care outcomes. For health plan providers and vendors, this means demonstrating real value—whether it’s ROI, effective care management, or cost-saving measures.

Preventative Care: In sectors like maternal health, there’s a rising interest in preventative care models, including services like doula support. However, the potential for Medicaid cuts could threaten the expansion of such services in more states. 

How can founders prepare themselves and their business during times of market or policy turbulence? 

During times of market and policy volatility, it's important to focus on building resiliency. Some key tips for founders include:

• Understand what your B2B customers are going through so you can better anticipate their needs and position.

• Diversify revenue streams so as to not rely solely on government funding or policy-driven sources.

• Ensure that you can articulate your value proposition both in the short term and long term.

• Remain flexible and adaptable while staying true to the core mission of your company.

To conclude:

We hope this fireside chat series continues to be valuable, and we look forward to seeing you at our next session!

If you wish to submit your pitch to the Coyote Ventures team, please submit via the form on our website. 

Health Equity Summit:

Coyote Ventures is proud to announce the inaugural Health Equity Innovators Summit- a transformative gathering for industry leaders, startups, and investors committed to advancing health equity and women’s health.  The event will take place in San Francisco from April 10-11 2025.

To purchase tickets or get more information, visit the event website.