Obamacare and reforms in other developed countries have incentivized health providers to be more concerned about how efficiently and effectively they manage patient populations. So digital health is increasingly a big deal, and a venture capital bright spot.
In fact, venture capital database CB Insights reported in June that digital health startups brought in $2.03 billion during the first quarter of 2016.
A major VC money raise this year involved cancer care software company Flatiron Health. Flatiron pulled in $175, with Roche leading the round, according to a recent report by EP Vantage. Two other companies--tech-focused health insurer Oscar and fitness tracker maker Jawbone--also eact raised more than $100 million.
Sometimes, though, "smart" medical device technology hits a major stumbling block. One stumble that EP Vantage mentioned involved Proteus Digital Health, which had been working with Otsuka Pharmaceutical to package the antipsychotic drug Abilify with Proteus' technology for tracking whether patients are taking their meds. FDA sent Proteus and Otsuka back to the drawing board in April.
[Flatiron Health OncologyCloud image courtesy of Flatiron Health]