With 2022 closed, there is growing anticipation (trepidation?) about what is in store for digital health in the new year. Will venture funding trickle or will 2023 see more liquidity in the markets? What legal and policy changes can we expect to see? And how will the end of the Public Health Emergency (PHE) waivers affect telemedicine services and patient care?
In a recent episode of the Slice of Healthcare podcast, Nathaniel Lacktman sat with host Jared Taylor. Lacktman is Chair of Foley & Lardner’s national Telemedicine and Digital Health Industry Team, and a member of the ATA Board of Directors. They discussed the current state of affairs and what’s coming around the corner, including how to build sustainable telemedicine models, what venture capital firms will expect from digital health startups, and the legal and regulatory changes coming in 2023.
Lacktman said the digital health industry has “moved from a stage of growth-only to sustainability.” Venture firms do not expect startups to be profitable on day one, but they are seeking a direct path to profitability.
Remember: venture funds typically have a 10-12 year lifespan, with a two-four year deployment schedule. They have fiduciary and contractual obligations to deploy the money raised from limited partners for the purpose of investing in telemedicine and digital health companies. Read more.
