Funding for digital health ballooned during the pandemic. Now, some experts warn the bubble might be about to burst — or, at least, the sector is headed toward a correction, Politico reports.
Covid-19 prompted millions of patients to seek virtual care, thrusting telehealth into the mainstream and attracting mountains of capital funding into virtual care and digital health. In total, investors dropped $29.1 billion into digital health in 2021 — more than tripling 2019’s total and roughly doubling 2020’s, according to research and venture firm Rock Health.
But as the U.S. enters the pandemic’s next phase, funding dropped to $6 billion in the first quarter of 2022, still close to double 2020’s first quarter but the lowest quarterly total since 2020, according to the firm. Publicly traded digital health securities in Rock Health’s digital health index nose-dived by 38% between July and March. Read more.
