Impact Insights

Week in Review 8/1/2014

 

A recent report from KLAS finds that only Epic, Cerner, and Meditech gained hospital market share in 2013. According to FierceEMR, Epic had the highest overall percentage of new hospital customers though, as many of Cerner’s and Meditech’s new deals were “add-ons” with current clients. Overall, Epic and Cerner were the only vendors to have net gains in both the large (over 200 beds) and small (1-200 beds) hospital segments in 2013.

Impact Advisors Thoughts: The results don’t come as a surprise, but the study at least validates what many in the industry had suspected: Epic and Cerner continue to gain market share among hospitals of all sizes and Meditech is standing firm with some net gains among smaller facilities.

 

According to a new report from Mercom Capital, venture capital funding for HIT is at an all-time high. Roughly $1.8 billion (!) was raised in Q2 of 2014 – more than twice the amount raised in the previous quarter ($861M). Government Health IT reports that “practice-centric technology” companies raised $1.1B in 61 deals, with the most investment in practice management ($220M in 8 deals), analytics ($204M in 9 deals), and population health ($144M in 4 deals). Meanwhile, “consumer-facing” technology companies raised $678 million in 100 deals, led by investment in mobile health ($401M in 45 deals). 

Impact Advisors Thoughts:  The amount of VC funding for niche healthcare IT companies continues to be astounding. Investors clearly believe there is significant potential for these solutions, but only time will tell if that eventually translates to actual use and adoption by providers and consumers. For the consumer-facing mobile health companies in particular, we suspect that investment will likely increase even further in the next few quarters, given the excitement generated by Apple and Google’s recently announced mobile health platforms.

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