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Report: VC funding for healthcare IT continues to grow

July 18, 2013
Healthcare Consulting By LW Consulting Inc.

Medical facilities across the nation are working hard to meet federal regulations in areas like electronic medical record (EMR) integration, ICD-10 implementation and Meaningful Use requirements. It is not easy to successfully adopt all of these initiatives, and often, a hospital consultant can help make the transition as smooth as possible.

However, money can also be an issue, but recent research shows that healthcare IT venture capitalist funding has been increasing over the years, and is expected to remain positive.

Mercom Capital Group recently released a report that shows healthcare IT funding raised $623 million this quarter. In total, there were 168 deals in that timeframe, which is a sharp increase from the 104 made last quarter. Furthermore, 2012 saw a total of 163 deals for a total of $1.2 billion on the year.

Mercom CEO Raj Prabhu said in a press release that VC funding for healthcare IT is now on pace to exceed $2 billion this year.

"The government's initiative to open up healthcare data has been a contributor to the surge in activity and investments in consumer-focused companies as they turn available data into usable applications and services," he said.

The press release added that medical imaging, data analytics and EHR/EMR companies were among the practice-focused technologies that received attention this quarter. Digital health companies and consumer-focused agencies were also prominent in VC fundraising. 

Regardless of how an institution is raising money to fund its healthcare IT capabilities, it is clear that facilities will need to keep pace as innovations continue to be made each day. Working with a healthcare IT consulting firm will ensure that an organization is able to adopt new initiatives and that all staff members understand how to use them properly to care for patients.