Funding in Digital Health $1.97 Billion in 2013 | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Funding in Digital Health $1.97 Billion in 2013

January 2, 2014
by Gabriel Perna
| Reprints

Funding in digital health increased 39 percent from 2012 and was up even higher from 2011, according to a new report from Rock Health, a company that provides funding and full-service support to startup companies.

Total funding in 2013 for digital health companies reached $1.97 billion, this compares to $1.4 billion in 2012, a 39 percent jump. The increase was 100 percent verse 2011. In total, there were 195 digital health deals above $2 million, demonstrating 38 percent annual growth and 135 percent growth verse 2011. Deal volume was up 38 percent verse 2012 and up 114 percent verse 2011.

According to the report, digital health outpaced other areas of healthcare funding, including funding in software, biotech, and medical device companies. The main themes of digital health were companies that dealt in electronic health record (EHR)/clinical workflow, analytics/big data, digital medical devices (such as clinically-oriented products with specific disease/condition focus), wearable and biosensing, population health management, and patient engagement.

The biggest deal was $100 million for Evolent Health, which provides population health management services. Next was for EHR vendor Practice Fusion $85 million and then it was OrthoSensor, a $48 million deal.

In terms of mergers and acquisition, the biggest deal was Vista Equity Partners, the owner of the Tampa -based electronic health record (EHR) and practice management software provider, Vitera Healthcare Solutions, bringing on Greenway Medical Technologies, a Carrollton, Ga.-based EHR software company.

Rock Health also tracked crowdfunding in digital health. In total, 120 crowdfunding campaigns raised $9.2 million. The majority were on Indiegogo, where there is a 40 percent success rate.

 

Topics

News

Former Michigan Governor to Serve as Chair of DRIVE Health

Former Michigan Governor John Engler will serve as chair of the DRIVE Health Initiative, a campaign aimed at accelerating the U.S. health system's transition to value-based care.

NJ Medical Group Launches Statewide HIE, OneHealth New Jersey

The Medical Society of New Jersey (MSNJ) recently launched OneHealth New Jersey, a statewide health information exchange (HIE) that is now live.

Survey: 70% of Providers Using Off-Premises Computing for Some Applications

A survey conducted by KLAS Research found that 70 percent of healthcare organizations have moved at least some applications or IT infrastructure off-premises.

AMIA Warns of Tax Bill’s Impact on Graduate School Programs in Informatics

Provisions in the Republican tax bill that would count graduate student tuition waivers as taxable income would have detrimental impacts on the viability of fields such as informatics, according to the American Medical Informatics Association.

Appalachia Project to Study Relationship Between Increased Broadband Access, Improved Cancer Care

The Federal Communications Commission and the National Cancer Institute have joined forces to focus on how increasing broadband access and adoption in rural areas can improve the lives of rural cancer patients.

Survey: By 2019, 60% of Medicare Revenues will be Tied to Risk

Medical groups and health systems that are members of AMGA (the American Medical Group Association) expect that nearly 60 percent of their revenues from Medicare will be from risk-based products by 2019, according to the results from a recent survey.