Rock Health recently reported on the digital health funding volume through the First Quarter of 2017. While their report noted that many providers remain cautious about selecting HIT providers until there is more clarity surrounding the Affordable Care Act, it was also very encouraging of the industry’s prospects overall.
In Q1 2017 alone, Rock Health found over 71 digital health deals totaling over $1B for the United States alone. This does not even include service companies, biotech or diagnostic companies, or those software providers that touch on healthcare but do not focus on it exclusively. That means the larger universe of deals could be significantly larger. Even in a cautious procurement environment, investors obviously understand the demands driving this sector and are actively seeking opportunities. This investor interest in digital health is further buttressed by the announcement of at least six new funds in the First Quarter and a high number of M&A deals.
For Orb Health in particular, the type and segmentation of these deals are a validation of our software plus service approach as well as our core competencies. The Orb Health platform intersects with five of the top six investment categories – analytics/big data, care coordination, telemedicine, patient engagement, and wearables. This overlay of our expertise with hot investment categories, coupled with our tremendous growth rate and key recent milestones (100,000 patients on the system) sets the company up nicely for a strong 2017.