Health tech booming with bigger responsibility for patients
Health tech is one of the faster growing segments of the expansion stage ecosystem. The continuing consumerization of healthcare in tandem with macro trends such as aging demographics have ensured there is no shortage of market opportunities for health tech enterprises, consultancy Deloitte and market data firm PitchBook say in an overview of the health tech business 2021.
“Large healthcare organizations are often slow to renew tech stacks—but they will have to, eventually—which could provide incredibly lucrative opportunities for health tech companies looking to tackle parts of that overall value chain.”
The report summarizes that easy access is likely the most appealing feature health tech companies can emphasize. ”Whether it be for telehealth appointments with primary care providers who can rely on mailed at-home test kit results and emailed diagnostics data from wearables, or for live physical therapy guidance, consumerized healthcare can reduce the need for onerous travel and wait times.”
”Expansion-stage health tech companies must focus on partnering with incumbents that need specialized digital health experiences to retain customer loyalty. Customer segmentation, which requires actionable data on healthcare users and a seamless, user-friendly experience, will be key.”
”Health tech companies can also use more sophisticated data analysis packages, perhaps even employing machine learning techniques on large pools of patient data, to help prioritize desired outcomes from a given set of prescriptions and services.”
”Key concerns around data privacy and ownership will have to be balanced with transparency as individuals’ data is increasingly leveraged to provide them with personalized care; however, as healthcare costs remain high and patients demand increasing specialization, health tech companies will be able to capitalize on these opportunities.”
The report says that health tech has set record highs for both deal count and value in 2021. USD 23.8 billion invested across 556 completed transactions in the US.
”Rising healthcare costs, consumerization, the ongoing COVID-19 pandemic, and other major factors are encouraging a proliferation of health tech companies that have spread to several niches: Health tech enterprises are targeting multiple end markets, from telehealth to mobile clinic back-end platforms to data analytics platforms that support predictive personalization.”
“Health tech stands out—even among the fastest-growing sectors within this space. Between 2019 and 2020, aggregate expansion-stage deal value in healthcare more than doubled—rising from USD 8.3 billion to USD 17.4 billion—and 2021 thus far has seen even higher figures, with close to 560 completed transactions accounting for USD 23.8 billion overall.”
The report says it is easy to trace the multiple ways in which COVID-19 accelerated certain trends in health tech—most notable among them the significant funding and initiatives to modernize .
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