PRx Blog

Here at Schwartz Communications, we're seeing a few more "green shoots" of recovery:  Companies in the healthcare IT sector are scoring a mini surge in VC funding after what seems like a protracted ice age. There's also been an uptick in mergers and acquisitions (AllScripts - Eclipsys is just one example).

 

According to Dow Jones VentureSource, VC's invested a healthy $7.75 billion  in 744 companies in Q2 2010. 

 

Of that, $157 million was funneled towards U.S. medical software and information services companies: a 91% improvement over the Q2 2009. Clinical decision support software ($77 million), health administration software ($37 million), medical software and information services ($15 million), drug discovery/bioinformatics software ($15 million) and medical imaging software ($13 million) led the pack. There were fewer sector deals overall, but larger amounts of capital raised. Increased interest in health information exchanges (HIE), accountable care organizations (ACOs) and new healthcare payment models represent the result of these investments.

 

Interestingly, many of these healthcare IT deals were early stage investments with a consumer focus - a growing area of our Healthcare IT practice. The recently released final rules on Meaningful Use, which in turn drives the allocation of ARRA stimulus money, is also helping drive this trend. We're hoping it's a trend that picks up steam!