paddy.padmanabhan

Is digital health slowing down ?

Blog Post created by paddy.padmanabhan on Jul 26, 2016

Do we see a slowdown in digital health or is it just that the hype has gotten too far ahead of reality?  

Research firm Gartner released the findings of a survey earlier this month that indicate that most organizations are unprepared for digital business changes. An article in HBR discusses the results of a global survey on analytics programs by consulting firm E & Y, and gives this takeaway: most programs fail to meet expectations and ROI goals.   

The mid-year review of digital health investments by Venture Health fund Rock Health looks good at first glance – digital health investments at $ 2 Bn for H1 seems to keep it on pace with record-breaking years 2014 and 2015 with around $ 4.5 Bn in total funding for the year. However, H1 2016 is lower than the corresponding period for 2015, and TTM volume has flattened out. The IPO market is anemic, with only one IPO (NantHealth) this year, and publicly traded digital health companies are underperforming the S & P index overall as a group. Interestingly,  analytics/big data came in as the largest funding category.  

So while the E & Y survey is downbeat for analytics across all sectors, we may have something to cheer about based on VC funding patterns for analytics in healthcare.  

I was invited to speak earlier this month on the state of healthcare analytics at a customer event where the theme was the adoption of Hadoop and big data technologies. I have shared some of the thoughts I presented in a blog in CIO online where I discuss why the pace of analytics adoption is different across sectors, and even within an industry sector such as healthcare.   

 

 

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