Mercom Capital Group, llc, a global communications and consulting firm, recently released its report on funding and mergers and acquisitions (M&A) activity in the Healthcare Information Technology (IT) sector for the third quarter of 2013.
According to the report, venture capital (VC) funding in the sector continued to rise in yet another record quarter with $737 million raised in 151 deals. The dollar amount of disclosed deals surpassed the second quarter total of $623 million. Year to date, the Healthcare IT sector has raised a disclosed $1.85 billion.
While the 2009 HITECH Act helped launch the sector through its $17 billion allocation towards the adoption of meaningful use of healthcare IT, private investments into the sector have continued to rise with increasing EHR adoption. Release of healthcare data by the U.S. Department of Health and Human Services has also contributed to the growth of healthcare products and applications focused on consumers.
"Funding into Healthcare IT is on pace to double over last year," said Raj Prabhu, CEO of Mercom Capital Group. "With major parts of the Affordable Care Act on the horizon, the focus is on health insurance exchanges, preventative care, wellness, population health, and a general shift from quantity to quality of care, which is reflected in this quarter's funding transactions."
Healthcare practice-focused technology companies received $489 million in 59 deals with population health, EHR/EMR, practice management, and data analytics companies all receiving attention this quarter.