Innovations in healthcare result in exciting products and services that shape how consumers and providers experience care. They also present an opportunity that strikes a chord with investors.
In a recent Healthcare IT News article, Robert Herjavec, a global leader in information security and one of the stars of the popular television series, Shark Tank, spoke about the enormous potential for innovation in healthcare.
Herjavec, who said he was “very bullish on the healthcare market,” drew an interesting parallel between healthcare and cybersecurity.
Noting that "where there is innovation, there is opportunity," he pointed out that cybersecurity is a constantly evolving industry with "new technologies, new vulnerabilities,” and “new threat vectors" every two to three years. Because healthcare is also constantly evolving with "new drugs, new providers,” and “new ways to care for patients," it too provides exciting opportunities for investment.
Health IT and Digital Health
Just consider how investments in health IT and digital health alone have grown. According to global research and communications firm Mercom Capital Group, venture capital funding for health IT companies exceeded $5 billion for the first time in 2016. While this was a global figure, venture capital funding for health IT in the United States was the highest, comprising $3.4 billion of the $5.1 billion raised.
Digital health was also a strong investor draw in 2016. According to Rock Health, more venture dollars poured into digital health companies in the month of January 2016 than all of 2011 combined. And by the time Rock Health released its Digital Health Funding 2016 Midyear Review, the six categories of digital health that had garnered more than 50% of all digital health funding were:
- Analytics/big data (data aggregation and/or analysis that supports healthcare use cases)
- Wearables and biosensing (consumer wearables or accessory devices that detect specific biometrics)
- Population health management (comprehensive delivery system tools to manage the health of populations under the shift to value-based models)
- Personal health tools and tracking (software products used for tracking personal health like nutrition and physical activity, and managing health records)
- EHR/clinical workflow (electronic health records and surrounding applications, including clinical workflow support or augmentation)
- Digital medical devices (hardware/software designed to cure/mitigate/treat/prevent a specific disease or condition)
In addition, there were, and continue to be, high expectations for companies that make it easier for consumers and providers to navigate healthcare in an increasingly value-based care delivery system. A Fidelity 2017 sector outlook on healthcare offered these examples:
- Healthcare “disruptors,” such as those that leverage innovative technology or alternative approaches to care in an effort to drive down healthcare costs
- Business models that provide consumers with more choices among services or support the trend of consumers seeking better value for their healthcare dollars
- Telemedicine business models
- New products and medical devices that drive down healthcare costs, such as medical devices designed to make surgeries and diagnostics more efficient
Will We See You at HIMSS17?
At HIMSS17, we’re looking forward to more conversations around innovative healthcare products and services, along with the opportunity to hear from keynote speakers, including Robert Herjavec. Herjavec and fellow shark and well-known investor, Kevin O’Leary, will deliver a keynote on Thursday, February 23, 2017, from 1:15 p.m. to 2:30 p.m. EST at the conference, which runs from February 19-23 at the Orange County Convention Center in Orlando, Florida.Also, be sure to visit with the CareSync team at Booth #2393 February 20-22 to learn how our innovative approach to care coordination creates its own set of opportunities to improve patient care and increase practice revenue.