Culling the Health Tech Herd

Culling the Health Tech Herd

The threat of economic cataclysm is in the air, following the failures of Silicon Valley and Signature banks.

For digital health companies, the growing sense of gloom follows a bleak 2022 during which venture capital investment in them fell by more than half, according to a report from industry analyst Pitchbook.

The biggest problem? Companies are under budget pressure and spending less on employee benefits.

Similarly, health systems are buying less technology as they continue to navigate financial challenges. Labor costs are up and patient volume is down, making operating margins tighter than ever, reports management consulting firm KaufmanHall.

“What a hospital or health system is willing to buy is a pretty narrow set of products,” said Rebecca Springer, who authored a report on the health tech market and is a senior health analyst at Pitchbook.

Medigy Insights

In a world driven by constant technological advancements, the health tech industry appears to be thriving, with an abundance of innovative solutions promising to revolutionize healthcare. However, beneath the glossy surface lies a complex reality of hidden challenges. A recent analysis uncovers the sobering truth that many health tech ventures face significant hurdles, ranging from regulatory roadblocks to uncertain market demands. This revelation prompts a necessary reflection on the delicate balance between fostering innovation and ensuring sustainable progress in the pursuit of improving global health.

Deploy this technology today

Next Article

  • Culling the Health Tech Herd

    Reducing Waste in Tests by Applying Data

    Where doctors are reimbursed for each test, it’s well known that they order more tests than necessary. Over time, payers have tightened criteria for reimbursements. The difficult trick is to balance …

    Posted Jun 12, 2023

Did you find this useful?

Medigy Innovation Network

Connecting innovation decision makers to authoritative information, institutions, people and insights.

Medigy Logo

The latest News, Insights & Events

Medigy accurately delivers healthcare and technology information, news and insight from around the world.

The best products, services & solutions

Medigy surfaces the world's best crowdsourced health tech offerings with social interactions and peer reviews.

© 2024 Netspective Media LLC. All Rights Reserved.

Built on May 29, 2024 at 11:21am