HealthIT Investment — Round 2

In a recent Modern Healthcare article, healthcare providers are laying the groundwork for the next big advances in information technology.  HHS Secretary Sebelius recently announced that more than half of all doctors and other eligible providers have received Medicare or Medicaid incentive payments for adopting or meaningfully using electronic health records (EHRs).  HHS has met and exceeded its goal for 50 percent of doctor offices and 80 percent of eligible hospitals to have EHRs by the end of 2013.  That was phase 1.

Where do we go from here?  Rather than EHRs dominating health IT spending, the next round of investment is likely to address other IT needs.

As venture investors backing the startups innovating and implementing these new health IT technologies, we see a bright future.  In a recent column by David Jones, the firm’s chairman, he writes:

“I may have an extreme perspective on the importance of disrupting the status quo. I am a venture capitalist focused on funding innovative new providers of healthcare services, information and technology.  I spend a lot of my time in startup land where fast execution is the norm and complacency with high error rates and poor customer service is anathema, so it’s reflexive for me to paint the established system as slow-moving.

Over the last few months, however, I’ve surprised myself by musing on a new possibility:  Maybe ‘reform,’ for all its defects, really has launched meaningful change.”