Proving the Business Case for the Internet of Things

US funding for digital healthcare start-ups to hit $6.5 billion by 2017: Accenture

Iain Morris
September 24, 2014
 
US funding for digital healthcare start-ups is expected to hit $6.5 billion by 2017, according to a new study from Accenture.

Start-up funding for digital healthcare, including telehealth and wearable technology, will double over the next three years, growing from $3.5 billion in 2014 to $6.5 billion by the end of 2017, according to the research.

“A digital disruption is playing out in healthcare that will change social interactions, alter consumer expectations and, ultimately, improve health outcomes,” said Dipak Patel, the managing director of Accenture’s patient access initiatives. “This momentum will be sustained if digital healthcare start-ups apply capabilities that create a seamless patient experience and result in both medical cost savings and improved outcomes.”

Accenture reckons some $2.8 billion was used to fund digital health start-ups last year, the amount having grown at an annual rate of 31% since 2008.

It now forecasts that funding will reach $4.3 billion in 2015 before rising to $6.5 billion by the end of 2017.

Research also found that between 2008 and 2013 start-up funding totaled $10.2 billion across four segments – those being infrastructure capabilities, engagement solutions, treatment tools and diagnosis technology.

Infrastructure capabilities include interoperability and health analytics and accounted for about $2.9 billion in funding, while engagement solutions – such as wearable technology – received $2.6 billion in funding.

Treatment tools, which leverage technologies like telehealth to provide alternative care channels, also received $2.6 billion, and diagnosis technology, including remote monitoring services, took another $2.1 billion.

“Healthcare leaders will need to embrace digital capabilities, not only to stay relevant to consumers, but to influence behavioral change, improve access to care channels and reduce per patient costs,” added Patel. “Organizations need to weave digital capabilities into the core of their business models so technology becomes embedded in everything they do.”
 
 
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