E.D. Alliance | October 2024
The recent E.D. Alliance event provided insight to Kansas City’s economic developers on the region’s position as a digital health hub. Industry experts underscored KC’s strong talent pool, cost-effective operations and established ecosystem of digital health companies as driving factors of the region’s success in this rapidly evolving sector.
Panelists
The KC Network of Innovation
Digital health in Kansas City spans more than just digital medical records; it includes everything from wearable tech to advanced health care equipment.
The region is home to more than 120 digital health companies, a blend of industry giants – WellSky, Netsmart, and Garmin, to name a few – alongside a vibrant mix of startups and midsize firms.
As program manager of KC Digital Drive, a nonprofit aimed at making KC a leading digital hub, Jim Starcev highlighted that the organization is actively supporting approximately 15 emerging startups, many founded by seasoned professionals with deep roots in KC’s digital health legacy. This rich ecosystem fosters abundant opportunities for collaboration and innovation.
KC’s Workforce Advantage
Dick Flanigan, CEO of Digital Health KC, said it best: “Workforce is our superpower.”
With a 40+ year legacy beginning with Cerner, the region is home to a high concentration of tech professionals, creating a unique “talent ladder” that attracts digital health companies. More than 25,000 employees work at KC digital health companies – that’s 1 in 3 tech workers – 6,000+ of whom have more than a decade of experience.
Dominique Gross, CEO of digital health company Hart, Inc., referenced workforce as a major factor in the company’s decision to relocate its headquarters from California to Kansas City in Jan. 2024. She emphasized that many of the professionals working in the region, despite having global work opportunities, are passionate about contributing to KC-based companies and advancing the local digital health sector.
The challenge is maintaining this workforce advantage amidst a gap in regional tech recruitment. Kara Lowe, CEO of the KC Tech Council, noted that “we cannot recruit ourselves out of the talent gap,” and that the future growth of KC’s tech sector will require a balanced approach in attracting, developing and retaining talent.
Regional communities have a unique opportunity to connect with digital health companies aiming to expand in Kansas City. By reaching out proactively, local economic developers can engage in meaningful conversations about these companies' workforce and infrastructure needs. This collaborative approach not only anticipates future requirements but also creates a supportive environment to help digital health companies succeed and grow within the KC region. Get started with Digital Health KC’s directory of local digital health companies.
Infrastructure for Growth
Kansas City’s adaptability and central location make it appealing to digital health companies, benefitting from flexible office spaces and lower operating costs than other cities around the U.S. These factors are significant draws for digital health companies, particularly those with non-traditional tech office needs (ex. wet labs, manufacturing space).
KC’s established hub of companies also continues to attract new digital health business. For example, KC-founded Garmin is a leader in the production of health tech devices – digital health companies exclusively using these devices are choosing KC for their operations for close proximity to their supplier.
Kansas City’s distribution strengths offer a strategic advantage for digital health companies, particularly those performing kitting, assembly and shipping services. With quick access to 90% of the U.S. population, KC is an ideal logistics hub for digital health companies.
The Future of Digital Health
Panelists noted that the KC region thrives when companies work together to make the market a hub for digital health. This collaborative nature – true to the KC spirit – fosters a pipeline of talent and continued business innovation.
Kansas City’s potential in digital health is immense, and with a robust strategy, will continue to sustain and enhance its workforce, attract early-stage investors and grow programs for diverse digital health needs. As Kansas City strengthens its pull through collaboration, infrastructure and workforce development, the region’s digital health landscape is poised for continued growth and innovation.
Learn more about Kansas City’s strengths as a digital health hub and how you can engage.