Recently, Rock Health published their quarterly summary of digital health investment. In the first quarter of 2013, investment in digital health companies was up — yet again. Here’s the data:
In 1Q13, there were 37 digital health deals valued at $365 million. That’s a 35% increase in the capital invested a year prior, in 1Q12 ($269 million).
Among the other themes RockHealth pointed out in the report included the rise of remote patient monitoring. Nine of the 37 deals in the first quarter were companies in the remote patient monitoring sub-sector. According to the Report:
“A confluence of factors have led to the growth of remote patient monitoring tools including an aging population, dwindling healthcare resources, and penalties for readmissions. The U.S. market for remote monitoring was less than $4B in 2007, increased to $10.6B last year, and is expected to reach $20.9B by 2016, according to a report by Kalorama Information.”
We caught up with Alan Ying to discuss the remote monitoring sector and the healthIT exit market.
Q: What factors have led to the growth in remote patient monitoring?
Alan Ying: As the report mentioned, a growing aging population in this country, dwindling healthcare resources and penalties for readmissions are all factors pushing for innovation in remote patient monitoring. Also, advances in mobile technologies have enabled startups are able innovate quickly to meet the growing need in this market.
Q: The final point RockHealth made was whether a bubble was being created in healthIT. Do you think this level of investment is creating a bubble?
Alan Ying: Well, time will certainly tell. However, Berkery Noyes has reported that healthIT continues to be a growing segment of M&A transactions — making up 41% of the healthcare industry’s aggregate deal flow. That strong exit data is positive.