Venture capital funding for healthcare technology rebounds, investors log $1.6 billion in deals in Q3

“Rating, booking and comparison shopping companies had their best fundraising quarter since we began tracking the category,” said Prabhu: $728 million in 15 deals. Mobile health companies ranked second with $319 million in 59 deals – apps scored $206 million and wearables got $88 million. Personal health and wellness companies, meanwhile, accounted for $114 million in 17 deals.

On the provider side, practice management companies attracted $72 million across five deals; telehealth companies raised $65 million in 14 deals, and data analytics firms scored $61 million in 14 deals.”

http://www.healthcarefinancenews.com/news/health-it-vc-back-track-after-dip

Key for Health IT Entrepreneurs: Don’t Disrupt the Wrong Thing

http://onforb.es/1GCV3QI

“”We’re on the cusp of a revolution” that is much more than a technological change, Wachter pointed out. He added, “We will get it right if we figure out not only the technology, but the adaptive change” needed for doctors and nurses on the front lines of care.

That same blunt message of “don’t hype, don’t harm” was reinforced the next day by Blum in regard to digital health apps. Blum, also an internist, is Director of the Center for Digital Health Innovation at UCSF. Like Wachter, he’s a health IT leader, not a Luddite.”

Too many entrepreneurs, said Blum, come to him with “a fairy tale. There’s a new sensor, Bluetooth-enabled, and it zips right to your doctor, who’s waiting for this.”

Added Blum, “Someone’s delusional…. You can’t just dump data in the medical record. It needs to be in the care process.”

What Wachter and Blum were both warning about, albeit from different perspectives, is the danger of disruptive technology that disrupts the wrong things: upsets checks and balances that keep patients safe, makes working conditions more stressful and simply doesn’t play well with others.

“Technologies don’t fix things,” noted Blum, standing in front of a slide showing a frustrated user tearing out his hair. “At best, they’re an enabler.”
The key to business success, however, will be to disrupt medicine without disrupting the lives of those who practice it.”

Telemedicine Is Vital to Reforming Health Care Delivery-HBR Joseph C. Kvedar, MD

“The concept of telemedicine is not new (its roots go back to the late 1950s). In the 21st century, the widely held goal of improving health care outcomes while lowering costs is accelerating the shift from a one-to-one to a one-to-many model of care delivery, which telemedicine makes possible. Understanding telemedicine has now become crucial for decision makers in the health care industry, and I aim to help in that effort. Let me start by exploring some industry fundamentals.

The rising prevalence of chronic illnesses in an aging population puts pressure on the supply side of health care. Clinicians are not being trained fast enough to keep pace with the rate of service demand. In addition, given the rising cost of care, new models for reimbursing hospitals and other providers have begun to emphasize quality and efficiency rather than units of delivered services. And consumers are increasingly shopping on open markets for health insurance policies that require significant deductibles and out-of-pocket expenses. These trends underpin the need for a one-to-many model of care delivery that offers flexibility and transparency.”
https://hbr.org/2015/10/telemedicine-is-vital-to-reforming-health-care-delivery

Google Is Now Alphabet, And That Spells Big Things For Healthcare

To Start, Alphabet Will Include Many of Google’s Health Care Ventures
Alphabet will have a strong health care focus initially. For evidence, look no further than Page’s announcement memo, where he touts…
Calico: This biotech company, headed by the former CEO of Genentech, is researching the biology of aging and has already committed hundreds of millions of dollars to a new research facility.

Life Sciences: This wing of Google is working with Novartis to develop smart contact lenses to monitor bodily functions, such as blood sugar levels, via miniscule sensors.
Google Ventures: While Google’s hedge fund invested only 9% of its funds in 2012 and 2013 in health care companies, about 36% of its dollars went toward health care in 2014. As FORBES’s Matthew Herper reported on Monday, the fund just invested in the new CRISPR gene-editing platform, which is intended to enable scientists to easily cut-and-paste DNA.
http://www.forbes.com/sites/dandiamond/2015/08/11/google-is-now-alphabet-and-it-could-spell-big-things-for-healthcare/