The DignifiHealth Method: Converting Internal Tools into Scalable Products
Some of the most powerful B2B products start as internal tools. In a recent episode of Category Visionaries, DignifiHealth CEO Richard Queen shared how his company evolved from a solution to an immediate operational problem into a platform transforming rural healthcare.
The journey began with a critical gap in healthcare operations. As CFO of a multi-specialty group, Richard’s team faced a common challenge when taking on risk-sharing contracts: “We had no ability to forecast cost, no ability to forecast utilization, no ability to know what patients needed higher levels of engagement.”
This wasn’t just a technical problem – it was deeply operational. Richard had spent years immersing himself in every aspect of healthcare operations: “You typically wouldn’t find me in my office. I’d be in the lab spinning down blood samples. I’ve been in full lead vests next to cardiologists, doing hard casts. I’ve run DaVinci robots. Whatever anybody would let me do, I would do.”
This hands-on experience, combined with his technical background (“I’ve been a technology geek since I could walk”), led to creating a prototype that would become DignifiHealth’s core platform. The initial validation was striking – they started receiving compliments from insurance payers, which Richard notes is “almost comical” in healthcare.
But rather than rushing to market, Richard took a methodical approach to product development. “Made many mistakes. Fail forward as is so often said,” he reflects. They tested the solution across different health systems and electronic medical records, refining it based on real-world feedback.
This careful validation process shaped their product philosophy. “We have an incredible amount of sophistication of machine learning and rules engines,” Richard explains, “but we keep that sophistication in the background. And what we deliver to the front end users is very simplistic by design.”
The approach resonated with investors. Despite being based in Kentucky rather than a major tech hub, they oversubscribed their initial fundraising goal of $3 million, raising $7 million “on a prototype with some case studies and a very ugly PowerPoint deck.” Their authentic connection to the problem proved more valuable than polished presentations.
Their go-to-market strategy reflects this same methodical approach. Rather than overwhelming prospects with their full platform, they start with focused solutions that deliver quick wins. The results speak for themselves: “100% of our clients have started with some part of our platform and have then further contracted with us for other parts of our platform.”
The impact validates their approach. Their platform has helped health systems achieve remarkable improvements: $500,000 in direct revenue through automated data feeds, an 84% increase in chronic care management enrollments, and improving point-of-care gap closure from 8-8.5% to 40-50% within six months.
For founders considering productizing internal tools, DignifiHealth’s journey offers valuable lessons. Their success stems from deeply understanding not just the technical problem, but the operational context in which it exists. As Richard puts it, “Success is really not the goal. Success is the byproduct of small acts of daily discipline that are done repeatedly.” In converting internal tools to market-ready products, this patient, validation-driven approach might be exactly what’s needed.