I remember reading somewhere (in a book by Taleb or Gladwell, or in a TEDTalk) that there are revolutionary apps that are used for diagnostics, as doctors screw up constantly. Those programs, I believe, are made by big health companies, which presumable have the data and expertise.
Separate from hospitals, we have private practice doctors. I'm not sure what space there is for startups on the needs of doctors. Obviously someone could likely make a lot of money if they could centralize billing and invoices in a manner better than HMOs, but I'm not sure what you would do.
Having said that, Paul Graham says a great startup provides a simple solution to an overlooked problem (etc) so I think there is a lot to be done here.
Depending on the practise, I believe there is plenty of room for something that can make a doctor's life easier. Perhaps some way of organising information and programs easier in a more logical manner?
I know my doctor has a desktop that is literally full with icons of various programs and resource links etc and I'm sure there are many others out there that are probably in the same boat that could benefit from something better. His particular practise serves most of its resource information off a central server so that all of the doctors that work there can access that information.
Just throwing some quick ideas out there, what about a Digg-like site for medical professionals? Something that automatically scrapes/submits information from various medical journal sites online so that medical professionals can work out relevancy for themselves?
Offtopic point: I have a very good relationship with my doctor and we've often talked about technology before in my past visits as that is one of his other hobbies, so I made sure to consult with him when I came up with my idea to see if he thought it was a viable solution to the problem we are tackling, so yeah - there is definitely room.
Regulations need to be considered, but a bigger challenge is that many powerful players (e.g. hospitals, health insurance cos.) who you often need to work with and can be risk-averse or capricious with respect to technology and startups. But that situation has improved hugely over the course of the last year or two.
As a result it seems like a good time for startups. Especially in the U.S., but not only there (differences between different countries health systems are often exaggerated). I doubt there's an industry where it's easier to find problems.
I'm not sure if we'll get in or not (as we dont have demonstrated experience in the startup world) but we will endevour to get our app released regardless.
In my opinion (based on doctors I know), smart people who are technophobic go into medicine.
But I do agree that this area should have tons of opportunity.
I also have Kurzweilian dreams for other ventures, but the regulations are so daunting that it's so hard to justify exploring healthcare products/services.