Digital health startups have managed to gather a new record amount of funding in just half the year, according to the Rock Health midyear report. Private investors collectively accumulated 5.4 billion dollars in just half the year, the largest investment made over the past decade in the sector.
Rock Health’s previous prediction that the pandemic might stifle funding was thankfully proven incorrect. The first quarter of the year saw a spike of $3 billion, slowing down by midyear, but this year is still expected to yield partnerships in larger numbers, with more capital, and amounting to more funding overall.
Rock Health lists a number of possible reasons for this spike in investment. The rekindling of interests in digital health during the pandemic was the primary reason among them. Public knowledge grew as well as the awareness of health in general. After reassessing their approach, investors allocated funding to this area of the market.
Reports indicated a large increase in demand for disease monitoring, telehealth, on-demand healthcare and behavioral health due to regulations such as the CMS redressing telemedicine services and allowing remote-billing for outpatients.
Restrictions were also loosened; clinicians can now practice their care outside their given state, which should help in better distributing medical systems. This will help ease the pressure of overburdened hospitals. This made it an overall good year so far for digital health, contrary to previous predictions.
“While some of these changes may not be permanent, it’s tough to close the barn door after the cat is out of the bag.” Said Rock Health “Consumers and providers have experienced the value and convenience of virtual care. We believe these new virtual care habits will create new care paradigms beyond the pandemic”.