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Healthcare Industry

Healthcare Industry

The Opportunity - the "Clinical Iceberg" for Health Services:

An increase in the aging population will result in an increased demand for healthcare services in general, including monitoring devices. Given the costs of managing elderly and chronically ill patients, the patient monitoring market has a lot of potential to grow.

The ecology of medical care is such that people generally relate to healthcare only in severe cases. This is because the medicine is traditionally concerned with health conditions that immediately threaten one’s life and limb. Yet, most health problems are not of this kind. Most of the time people are complaining of health problems that are vague, ill defined, and likely to contain scattered variation. Further, there are many health conditions, which are too complex to be explained and managed medically.

Concerns with body weight, skin conditions, such as acne, various aches, poor sleep, fatigue, or “catching cold easily” are well known examples.

Since 1960s, it is agreed that health problems occur frequently (in about 80% of the population) yet only a fraction are seen by professionals, including general practitioners (GP), specialists and complementary or alternative medicine (CAM).

This phenomenon, known as “clinical iceberg” has been confirmed in several studies, which revealed that the level of unreported, “ordinary care” remained unaffected by changes in the health care system.

EVITRADE Health Systems sees a great business opportunity in the fact that (a) people are becoming increasingly more informed about health maintenance issues and that (b) the persistently high demand for self-care systems is not being met. With our FAST* medical device and EPIC software systems we believe we can meet this demand for healthcare services.

Increasing Costs Will change Industry Focus

Possibly the biggest driver for spending in the patients monitoring market will be to promote greater precautionary testing and data acquisition from the patients monitors into paperless charting systems (EMRs) and to increase awareness of patient monitoring systems.

Patient monitoring and the digital delivery of Healthcare Service will be one of the primary drivers of growth and revenues in the Healthcare sector.

Policy is changing at the Federal level, cultural attitudes about wellness are evolving and new forms of technology are transforming the way patients relate to their bodies and the way clinicians practice medicine. One of the most important trends to watch is the growth of the digital health sector.

 

Digital Health Funding Tops $4.1B: 2014 Year in Review

Source: Teresa Wang, Jan 1, 2015, Rock Health

2014 was an incredible year for the digital health ecosystem, particularly for the 258 companies that has their coffers filled by investors. The year was a record-breaker from the start and by its close venture funding for digital health companies surpassed $4.1B, nearly the total of all three prior years combined. This represents a 125% YoY growth in funding compared to 2013.

It wasn't just the total dollars raised that significantly increased in 2014. We saw 295 deals close and an average deal size of $14.1M, an increase of nearly 40% YoY. (Note: Our venture funding data only includes disclosed US deals above $2M).

The top six categories that accounted for 44% of all digital health funding in 2014 were analytics and big data, healthcare consumer engagement, digital medical devices, telemedicine, personalized medicine, and population health management. Personalized medicine, defined as software used to support the practice of medicine customized to an individual's genetics, slid into the top six for the very first time this year. This growth in funding could be attributable to the technological innovations in both genomics and data analysis in recent years. The other five categories continue to see strong funding as a result of the changing healthcare legislative and reimbursement environment.

Investors are getting (really) active. In 2014, there were 344 dabbling investors (one or two deals per year) compared to only 121 back in 2011 - a nearly 3x increase. And there's a growing group of serial investors (three or more deals per year) establishing themselves in the space, with 55% of the serial investors of 2013 continuing to do 3+ deals in 2014. The most active investors in digital health represent a diverse mix of corporate, healthcare, technology, and agnostic venture funds.