Digital Health Funding Tops $1.9 Billion in 2013
Investors spent $146 million on digital medical devices—hardware or software designed to treat a specific disease or condition.Digital health funding surpassed $1.9 billion in 2013, up 39 percent compared with the previous year and more than doubling since 2011, according to a report from Rock Health, which funds and supports startups in the health care technology space. There were six major themes that comprised almost half of all digital health funding this year: electronic health records (EHR) and clinical workflow, analytics and big data, digital medical devices, wearables and biosensing, population health management and health care consumer engagement. The report noted EHR and clinical workflow, which consists of surround applications including support for clinical workflow, pulled in $245 million in funding, while $161 million was spent on data aggregation analysis to support a wide range of health care use cases. Investors spent $146 million on digital medical devices—hardware or software designed to treat a specific disease or condition, while wearable consumer devices that measure specific biometrics netted $136 million.
Finally, population health management, which consists of comprehensive platforms designed to manage the health of populations under the shift to risk-based payment methods, scored $126 million in investments, while consumer tools for the purchasing of health care services or health insurance (B2B and B2C) accrued $119 million in funding.