Can Digital Health Companies Build a Sustainable Competitive Advantage?

By John Asalone, CEO Amino Health

January 2025

First, digital health solutions must be grounded in accepted clinical findings. A sustainable advantage requires earning and maintaining trust among patients, providers, and payers. This is achieved by integrating evidence-based protocols, partnering with leading research institutions, and demonstrating measurable outcomes through robust clinical validation. Solutions that fail to meet this bar risk becoming irrelevant or even harmful.

• Practical example: Amino partnered with Motive Practicing Wisely for provider quality data, since Motive has been accumulating physician benchmarking data for 20+ years, and is trusted by hundreds of payers and health systems. This helps establish clinical credibility quickly.

Second, achieving significant scale is essential. Scale not only lowers costs but also generates valuable data that can refine algorithms, personalize care, and drive insights into population health. Large networks of patients, providers, and partners create a flywheel effect, reinforcing the platform’s utility and market position. Scale also allows companies to navigate regulatory hurdles and compete effectively in a crowded market.

• Practical example: Amino automatically updates our search algorithm based on real-time demand signals and client-generated data. When one client identifies a low cost provider or system, all clients on the platform immediately benefit from the insight.

Finally, digital health solutions must seamlessly interface with existing healthcare systems. Interoperability with electronic health records, payer platforms, and provider workflows ensures adoption and reduces friction for stakeholders. Solutions that integrate effortlessly can enhance the efficiency of care delivery, reduce administrative burdens, and provide a unified experience for users.

• Practical example: Amino was built to be configurable on a client-level, which includes our raw data sources, which can be swapped for data pre-approved by the client. We also built a technology platform that can be delivered via white-label or API, as each client will have their own technology preference. 

Incorporating these three pillars allows digital health companies to build durable competitive advantages in an increasingly complex and fast-evolving industry. Those that fail to do so risk being outpaced by competitors or marginalized in a rapidly maturing market