Government Incentives Push Healthcare IT Investment Funding Up 350% – the Gold Rush is On

Health IT Venture Capital FundingAccording to Mercom Capital Group, the number of health IT-related venture capital funding deals from Q1 2012 to Q1 2013 is up 350%, from 30 health IT-related venture capital funding deals to 104 deals.

In fact, most of that growth happened only this year with Q4 2012 reporting 51 health IT-related venture capital funding deals and Q3 2012 reporting 39 such deals according to a recent report from Mercom Capital Group.

This shouldn’t be too surprising considering the current upheavals in the American health care system. As one friend put it health care providers seem to be “caught in the middle of a perfect storm” with

  • rising health care costs and the uninsured problem demanding changes to how health care is paid for
  • increasing regulations in an effort to improve and/or manage health care delivery
  • a shift to immature computer-based systems that’s bringing additional cost and headaches to providers

Mary Mosquera from Healthcare IT News adds

The Patient Protection and Affordable Care Act has spurred “an incredibly fertile time for healthcare investing,” according to the report, “2013 Outlook on Healthcare Economics and Innovation,” released April 17. It is the healthcare investment firm’s fifth annual report.

Source: Health Reform Opens Door for Investments

Graph from iHealthBeat Data Points

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