--- title: "Affordable Care Act: The Gazillion-Dollar Startup Machine - Inc." description: Startups are making their way into healthcare thanks to new regulations by the ACA PPACA Obamacare Transitioning from fee for service to outcome-based image: https://blog.nonstophealth.com/hubfs/Blog_pictures/state_of_liberty_blood_pressure.jpg --- [![Nonstop](https://blog.nonstophealth.com/hs-fs/hubfs/2022-nonstop/images/Nonstop_Logo-22-Horizontal%20(2).png?width=1501&name=Nonstop_Logo-22-Horizontal%20(2).png "Nonstop")](https://www.nonstophealth.com/) ** - [ Outcomes ](https://blog.nonstophealth.com/obamacare-the-gazillion-dollar-startup-machine#) - [![icon-1](https://blog.nonstophealth.com/hubfs/2022-nonstop/images/icon-1.svg) Benefits Nonstop Health can improve benefits and lower costs for employees and employers. ](https://www.nonstophealth.com/benefits) - [![icon-2](https://blog.nonstophealth.com/hubfs/2022-nonstop/images/icon-2.svg) Services & Technology Get the most out of your plan with easy administration and usage tracking. ](https://www.nonstophealth.com/services) - [ Resources ](https://blog.nonstophealth.com/obamacare-the-gazillion-dollar-startup-machine#) - [![icon-1](https://blog.nonstophealth.com/hubfs/2022-nonstop/images/icon-1.svg) Support Our support team is ready to help, whether you’re an employer, member, or broker. ](https://www.nonstophealth.com/support) - [![icon-3](https://blog.nonstophealth.com/hubfs/2022-nonstop/images/icon-3.svg) Case Studies Seeing our solution in action. ](https://offers.nonstophealth.com/case-studies) - [![icon-4](https://blog.nonstophealth.com/hubfs/2022-nonstop/images/icon-4.svg) Blog Insights and updates to help navigate the health insurance landscape. ](https://blog.nonstophealth.com) - [![icon-5](https://blog.nonstophealth.com/hubfs/2022-nonstop/images/icon-5.svg) Podcasts A collection of conversations built to inspire. ](https://www.nonstophealth.com/podcast) - [![icon-6](https://blog.nonstophealth.com/hubfs/2022-nonstop/images/icon-6.svg) Webinar & Guides Insights and resources to help your organization thrive. ](https://offers.nonstophealth.com/resources) - [ About Us ](https://blog.nonstophealth.com/obamacare-the-gazillion-dollar-startup-machine#) - [![icon-7](https://blog.nonstophealth.com/hubfs/2022-nonstop/images/icon-7.svg) Our Team Learn about who we are and what drives us. ](https://www.nonstophealth.com/about-us) - [![icon-8](https://blog.nonstophealth.com/hubfs/2022-nonstop/images/icon-8.svg) Careers Discover rewarding employment opportunities with Nonstop. ](https://www.nonstophealth.com/careers) - [ Account login ](https://www.nonstophealth.com/alert) - [ For employees ](https://members.prod.nonstophealth.com/) - [ For employers ](https://clients.nonstophealth.com/) - [ For brokers ](https://channel.nonstophealth.com/) - [ Contact Us ](https://www.nonstophealth.com/contact-us) # Affordable Care Act: The Gazillion-Dollar Startup Machine - Inc. ![](https://blog.nonstophealth.com/hubfs/Blog_pictures/state_of_liberty_blood_pressure.jpg) ![state_of_liberty_blood_pressure.jpg](https://blog.nonstophealth.com/hs-fs/hubfs/Blog_pictures/state_of_liberty_blood_pressure.jpg?width=640&name=state_of_liberty_blood_pressure.jpg "state_of_liberty_blood_pressure.jpg")*Photo: Getty Images* "Stashed away in the byzantine language of the Affordable Care Act are rules that have caused a big bang-size explosion in health care startups--led by founders who will reinvent the health care industry." -Jeff Bercovici recently commented on the opportunity the ACA presents to entrepreneurs, writing for Inc. Read the full article on [Inc.](http://www.inc.com/magazine/201604/jeff-bercovici/obamacare-health-care-startups.html) The Affordable Care Act has opened the doors for start-ups to create innovative solutions to a variety of healthcare needs, especially around the current, less-than-desirable “fee for service” model, shifting toward payment based on patient outcomes. The ACA has the potential to transform the healthcare sector, which represents one sixth of the American economy - about $3 trillion. "'Anytime you take a sector and apply a whole bunch of regulatory changes and economic incentives to it, it creates enormous opportunities for new entrants to come and take advantage,' says Bob Kocher, a venture capitalist at Venrock in Palo Alto, California. By his tally, the amount of funding going into technology-infused health care startups has more than doubled in the past five years, with $10 billion going into the formation of 500 new companies.” The influx of startups into the healthcare arena and transition from fee-for-service to outcome-based payment turns creates a simple business proposition - improve health, don't just deliver more healthcare. **Is your organization trying to find a solution to rising healthcare costs ** **and increased regulation from the ACA? 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