Skip to content Skip to navigation

VC Funding in Healthcare IT Continues to Climb

April 15, 2013
by Gabriel Perna
| Reprints

According to a new report from the Austin, Texas-based consulting firm, Mercom Capital Group, venture capital (VC) funding continues to trend upwards, with $493 million raised in the first quarter of 2013 being the highest ever for a single quarter.

Last year, health IT had its biggest year ever for VC funding, and this total in the first part of 2013 just continues that meteoric rise. With a new year has come more money available for funding.  The first quarter of 2013 saw 104 funding deals compared to 51 in the previous quarter. There were also 42 early stage deals this quarter compared to 14 in Q4 2012.

According to the report, the report from Mercom, the deals have focused on consumer-focused companies like mobile health, telehealth, personal health, social health, and scheduling. In addition, authors of the report say rating & shopping has become much more pronounced.

 “The enormous market opportunity in consumer-focused health has appeared to pique the interest of investors and is likely to continue to grow as witnessed by the surge in VC activity,” Raj Prabhu, CEO of Mercom Capital Group, said in a statement.

Health Catalyst, a provider of healthcare data warehousing, raised $41 million in Q1 2013, receiving the largest deal of the quarter. xG Health Solutions, a spinoff of Geisinger Health System that offers population health data analytics and patient and population-focused care management, was a close second, raising $40 million. They were followed by NantHealth, Fitbit, and One Medical Group.

In addition, mergers and acquisitions (M&A) activity was also dynamic during this quarter, with 46 transactions overall. The biggest ones were athenahealth’s acquisition of Epocrates for $293 million and Allscripts’ acquisition of dbMotion. For more on the latest M&A activity in this industry, be sure to check out the coming issue of the HCI 100.

The entire report can be read here: Healthcare IT Q1 2013 Funding and M&A Report



Insurers to CBO: Consider Private Insurers’ Data in Evaluations of Telemedicine

Eleven private insurers, including Aetna, Humana and Anthem, are urging the Congressional Budget Office (CBO) to consider the experience of commercial insurers when evaluating the impact of telemedicine coverage in Medicare.

AHRQ Developing New Patient Safety Surveillance Tool

With the aim of improving patient safety monitoring, the Agency for Healthcare Research and Quality (AHRQ) within the U.S. Department of Health and Human Services (HHS) is currently developing and testing an improved patient safety surveillance system.

Gates Foundation Awards $210M to UW's Population Health Initiative

The Bill and Melinda Gates Foundation is awarding $210 million to Seattle-based University of Washington’s Population Health Initiative, with the funds going toward the construction of a new building to serve as the initiative’s hub.

AHA Offers Interoperability Standards Recommendations to ONC

The American Hospital Association (AHA) has offered feedback to the ONC on the agency’s draft Interoperability Standards Advisory (ISA) that it issued in August.

Survey: Healthcare Orgs Not Taking Mobile Security Seriously Enough

More than half (56 percent) of healthcare professionals believe their organization could be doing more to educate employees on HIPAA compliance and the rules around sharing protected health information.

Mount Sinai’s Research Arm Using Data Analytics to Address Health Inequities

The Arnhold Institute for Global Health at the Icahn School of Medicine at Mount Sinai is partnering with DigitalGlobe to create the Health Equity Atlas Initiative (ATLAS), a platform that standardizes and maps population data in order to generate insights that address health inequities.