From Internal Tool to Industry Standard: How DexCare’s Validation-First Approach Changed Healthcare Tech GTM

From Internal Tool to Industry Standard: How DexCare’s Validation-First Approach Changed Healthcare Tech GTM

Most startups rush to market. DexCare did the opposite. In a recent episode of Category Visionaries, CEO Derek Streat revealed how incubating their solution within Providence Health System created an unconventional but powerful path to market dominance in healthcare technology.

The Providence Innovation Engine

DexCare’s origin story challenges conventional startup wisdom. Instead of emerging from a garage or accelerator, it was born inside Providence Health System, one of the largest healthcare networks in the United States. “We really have been a product in production inside of this large health system for several years now at this point,” Derek explains. “And that provided us a lot of validation on the product and the value that it can provide all those stakeholders.”

Building From Real Problems

The company emerged from Providence’s innovative approach to problem-solving. As Derek describes it, they “created an organization within Providence to essentially solve problems that were being faced by that large health system.” This wasn’t just another innovation lab – it was a focused effort to address critical healthcare challenges that existing solutions couldn’t solve.

“A handful of things just can’t be solved by partners or invested in because they just simply don’t exist,” Derek notes. This gap in the market became DexCare’s opportunity, but their approach to seizing it was anything but conventional.

The Validation-First Advantage

While most startups validate their solutions through beta tests and pilot programs, DexCare had something more valuable: real-world validation at scale within one of healthcare’s largest players. This approach gave them two critical advantages:

1. Product Validation: Operating within Providence allowed them to refine their solution against real healthcare challenges.
2. Market Validation: They could prove their value proposition before approaching external customers.

Creating Category Credibility

This validation-first approach didn’t just improve their product – it transformed their go-to-market strategy. “That’s why we have investors like Kaiser Permanente and Providence and Mass General Brigham invested in this organization,” Derek explains. Their Providence success story opened doors to partnerships with other industry leaders.

From Internal Solution to Industry Standard

The transition from internal tool to independent company wasn’t automatic. DexCare became “one of four companies, I now believe, that have now spun out at this point,” Derek shares. This selective spin-out process ensured that only the most promising solutions became independent ventures.

Scaling Beyond Providence

Their approach to scaling focuses on thought leadership and strategic relationships. “We’re a complex solution sale in an enterprise market and one of the most kind of challenging markets out there,” Derek notes. “This is all about building thought leadership and relationships with the leading systems around the country.”

The results speak for themselves: “We’re either doubling or quadrupling every year across every metric you look at right now in the company,” Derek reveals. But perhaps more importantly, their growth validates their unconventional path to market.

The Future of Healthcare Tech GTM

DexCare’s success offers a new blueprint for bringing healthcare technology to market. Their vision extends beyond their current success: “Our vision is that everyone everywhere enjoys exceptional access to the best expertise to treat, prevent and cure illness,” Derek shares.

This expansive vision, combined with their validated approach, suggests a new way forward for healthcare technology companies. Instead of rushing to market with minimum viable products, they demonstrate the power of thorough validation within a real healthcare environment.

For B2B tech founders, especially those targeting regulated industries, DexCare’s journey offers a powerful lesson: sometimes the best path to market isn’t the fastest – it’s the one that builds the strongest foundation for long-term success.