The a16z Show · Sunday, September 6, 2026
Yoo points out that the healthcare industry is under significant pressure due to rising labor costs and a shortage of workers, exacerbated by COVID-19. Government and payers are also pushing to reduce bloat, forcing traditional providers to rethink their business models.
“And at the same time, the incumbent industry is under extreme siege, right? So large hospital systems, large insurance companies, employers, put the majority of the bill for most insurance, premium dollars for a vast majority of Americans.”
“So labor has gotten much more expensive, labor has gotten much more constrained.”
“So you have all of this cost pressure on the incumbent system that has driven, you know, traditional providers and payers to say, our business model, like no longer works. Like the math doesn't math anymore.”