I was diagnosed with anorexia at 10 years old. Over the next several years, my family and I navigated a healthcare system that was mostly focused on how many days I stayed in a hospital bed instead of whether I was getting better.

I spent my entire freshman year of high school in and out of facilities, counting down 45-minute therapy slots while fighting a brain disorder that forces you to battle your own mind upwards of six times a day. The bills came in, claims were processed, and the checkboxes were ticked, but I was still struggling with anorexia.

Decades later, now as a founder and CEO of an eating disorder treatment program, I realize my teenage experience embodied the traditional healthcare business model to a T.

In traditional healthcare, revenue is tied to volume: More time in session results in more revenue. The more appointments booked, the more the facility can bill; the longer someone stays in treatment—and the more times they relapse—the more profitable the facility becomes.

If any consumer tech or hardware startup ran on this model, it would fail fast. It’s like going to an auto repair shop that charges by the hour, sends you home with a car that still stalls, and then charges you again when you have to tow it back into the shop.

The main problem is industry alignment. Fee-for-service models reward visit volume and usually lead to fragmented, episodic care. Value-based outcome models, on the other hand, tie reimbursement directly to clinical and financial outcomes.

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