Bitcoin Enters Healthcare Sector Driven by Transparency and Cost Efficiency

Bitcoin, a cryptocurrency that has already made significant inroads into various sectors such as finance, energy, and politics, is now quietly entering the healthcare sector. This move is not merely speculative but is driven by the structural appeal of Bitcoin in a sector plagued by reverse incentives, opaque pricing, and costly intermediaries. Companies like CrowdHealth and Semler Scientific are at the forefront of this shift, embracing Bitcoin for its transparency and potential to reshape the healthcare landscape.

The U.S. healthcare system, valued at approximately $5 trillion, is characterized by high costs and frequent claim denials despite the high expenses associated with health insurance. Andy Schoonover, the founder and CEO of CrowdHealth, experienced this firsthand when his insurer refused to cover an $8,000 bill for his daughter’s ear tube surgery, despite it being deemed medically necessary. This experience led him to develop a cash-pay model, which eventually became CrowdHealth, a peer-to-peer platform where members fund each other’s healthcare needs. This model has attracted a significant number of bitcoiners who understand the incentives and structural issues within the healthcare system.

CrowdHealth allows members to pay a monthly fee, directly contributing to each other’s care and avoiding premiums and networks. Schoonover, who holds roughly 80% of his liquid assets in Bitcoin, believes that as patients delve deeper into the healthcare system, they recognize that hospitals, health networks, and government policies often work against their best interests. CrowdHealth has grown to over 10,000 members and is further integrating Bitcoin by allowing users to invest unused healthcare funds into the cryptocurrency. The long-term vision is to achieve Bitcoin circularity in healthcare, normalizing Bitcoin as a medium of exchange.

While CrowdHealth integrates Bitcoin at the user level, Semler Scientific takes a top-down approach. The medtech company adopted Bitcoin as its primary treasury reserve asset in 2024, becoming one of the first healthcare companies to do so. For Semler chairman Eric Semler, Bitcoin represents resilience, scarcity, and alignment, traits lacking in the healthcare system. Semler Scientific’s core product, QuantaFlo, is an FDA-cleared diagnostic tool for vascular disease, enabling early detection of cardiovascular issues. Semler emphasizes the importance of early detection and notes that healthcare could benefit from adopting principles found in Bitcoin’s design, such as decentralization, transparency, and reducing reliance on middlemen.

Semler Scientific’s Bitcoin strategy is not just about protecting cash in an inflationary environment but about owning the digital future. The company is exploring ways to mine Bitcoin creatively and integrate value into its shareholder model. Semler joined the board in 2023 to improve capital allocation and saw Bitcoin as the obvious next step, following Michael Saylor’s strategy concept. Despite its early-mover status, Semler Scientific remains a rarity in the medtech and biotech sectors. However, Semler believes healthcare is well-positioned to lead a treasury shift due to its steady cash flow, strict regulations, and need for long-term resilience.

The future of Bitcoin in healthcare, according to companies like CrowdHealth and Semler Scientific, is not about layering crypto onto a broken system but about rebuilding that system from the ground up using first principles. They see Bitcoin with the potential to make healthcare more affordable, build trust by putting patients in control, protect savings from inflation, and support better systems for sharing medical information. Schoonover envisions a future where bitcoiners fund one another’s procedures and doctors accept Bitcoin directly, cutting out insurers entirely. Semler imagines a more robust, future-proof treasury model that gives healthcare companies stronger balance sheets and global leverage.

Bitcoin won’t eliminate the need for regulation, nor will it immediately replace legacy players. However, it does offer interesting options. The examples of CrowdHealth and Semler Scientific suggest that some healthcare companies are exploring Bitcoin not for its popularity but as a response to challenges in the current system. The move towards Bitcoin in healthcare is a strategic shift, driven by the need for transparency, resilience, and alignment in a sector that has long been criticized for its inefficiencies and lack of patient-centricity.