Employers, insurers and providers are awash in digital health products that purport to streamline operations and patient care, from navigation tools to virtual therapy and fertility support.
But the wealth of vendors is overwhelming buyers, who are increasingly looking for one-stop shops that can handle more of their needs in one place, paving the way for increased merger and acquisition activity in a pared down funding environment, experts told Healthcare Dive.
The digital health sector boomed over the past decade, reaching a fever pitch in 2021 when U.S.-based startups raised more than $29 billion across over 730 deals, according to advisory and venture capital firm Rock Health. A 2021 report from the Iqvia Institute for Human Data Science found more than 350,000 health-related apps were available to consumers, and 22% were disease-specific.
But investment has since declined from its post-pandemic peak, which could leave some digital health startups, including point solutions, strapped for cash and more amenable to dealmaking. Read more.
