The rapid expansion of digital health options has been a boon to healthcare providers, but changes in funding patterns soon could lead to more mergers between telehealth companies, experts believe.
This expectation arises because organizations such as senior living and care facilities would prefer not to have to pay multiple healthcare companies for fragmented services and, also, recent analyses that indicate there is less money going around post-pandemic for digital health startups.
The overall trend in digital health investments has gone from a general boom period to a focus on specific, larger deals.
Data on the shift in the funding landscape comes from a Rock Health report in July, which showed startup funding peaked in 2021 at around $29 billion.
The speculation that this current financial climate could lead to more mergers and acquisitions wasn’t based on any specific potential deals. Companies that provide point solutions, however — singular services such as an app or digital tool for smartphones — may need to partner with larger companies, unless they are providing a very niche, valuable service, according to commentary in Healthcare Dive this week.
In the latter story, experts cited Teladoc Health as a good example of a digital platform that has offered more and more services under its platform umbrella.
Teladoc recently partnered with Microsoft for its artificial intelligence tools to provide automated clinical documentation as part of its services.
Big deals for startups are still happening; one new telehealth platform, TytoCare, received almost $50 million over the summer to build out its services. TytoCare’s Home Smart Clinic includes accessories such as a stethoscope that can allow for check-ups during a telehealth appointment.
In addition, funding and investment for AI tools is experiencing a relative boom as senior living and care providers look to find more ways to streamline or automate administrative tasks.
