BOOM IN DIGITAL HEALTH SERVICES AND COVID 19 TIMES
2020 is an unforgettable year for all the wrong reasons. All of us will be happy to put this year in the back of our memories for Covid-19 and its fallout for all of us, in different ways. Whether a business went bust, a job was lost or a loved one died. However, this year has been a bonanza year for companies dealing in the health industry (doctors, pharma companies, research companies, hospitals, and digital health providers). This is the year of the boom, innovation, and advancements. This year US digital health companies have been able to raise the US $ 5 billion in venture funding across the first six months of 2020. We can safely say that 2020 is the year when digital health services have come into their own.
As the world headed for its worst health and economic crisis in decades, the one industry which raised its head like the sunflower looking at the sun is the telehealth and digital health industry in the world. The need for such service is crucial in these unprecedented times. Some recent deals in the USA recently include Omada Health took over Physera for $ 30 million in May, adding virtual musculoskeletal services to its care offerings. Another great deal was of Virgin Pulse buying Blue Mesa to expand its employer offering to include remote diabetes care and prevention. These hot deals are among the may which saw the entry of big capital players in this trending market.
Big capital players such as venture capitalists, individuals who are worth a lot are among those who are putting in their megabucks into these digital health companies. They see the value and are ready to bet their pennies in return for pounds. More companies year on year are entering the public market. Schrödinger, which went public in February 2020, is up 439% from its price at IPO.
"The public market for digital health companies will continue to be robust with more money moving to later rounds encouraging more companies to consolidate or go public." Says Keith Figlioli, General Partner, LRVHealth. The COVID-19 era with the need for physical distancing, remote care, and monitoring are the driving force for this surge in digital health companies in terms of services, funding, and entry into the field. In early 2020, telemedicine also known as telehealth companies raised the US $ 926 million. As more people turn to telehealth and refuse to risk going to public health settings, the boom is getting bigger and better.
Telehealth powerhouse Amwell in the USA saw a 158% increase in usage this year, the benefits of convenience for consumers and capacity rationalization for providers means virtual care solutions are the order of the day.
Do you use telehealth services for consultation with your family physician, skin doctor, or dentist? If the answer is yes, then you are a part of digital health services with its increase. Your tablet, desktop, mobile device, and laptop are your gateways to digital health from the comfort of your homes.