Investors seem to be shrugging off politicking when it comes to ponying up money for digital healthcare deals.

Ongoing political discussions about overhauling the U.S. healthcare system by repealing and replacing Obamacare haven’t put a damper on investment in digital healthcare. Deals in the sector totaled $1.60 billion in the first quarter, an increase of 14.3% from $1.40 billion in the first quarter of 2016, says Austin, Texas-based healthcare investment research firm Mercom Capital Group.

“Digital health funding is off to a fast start this year and there was no visible ‘Trump effect’ on investments in the sector, at least in the first quarter,” says Mercom CEO Raj Prabhu.

The digital healthcare sector has now received $20 billion in venture capital funding since 2010.

The most heavily funded areas of digital and mobile healthcare in the first quarter included appointment booking at $315 million, mobile health at $230 million, data analytics at $193 million, population health management at $115 million, telemedicine at $112 million and social health networking at $102 million.

There were 49 healthcare information and digital healthcare merger and acquisition deals in the first quarter, including six group practice management transactions, five deals involving apps and data analytics companies and four consulting and telehealth deals, Mercom says.

advertisement

The biggest deal in the first quarter was the $1.1 billion acquisition of CoverMyMeds, a healthcare technology company that helps a physician or pharmacist complete insurance coverage determination forms for drugs. The buyer was McKesson, a distributor of medical supplies and a developer of information technology and care management products and services.

A total of 306 investors participated in healthcare information technology and digital healthcare deals in the first quarter, Mercom says.

“The digital healthcare sector has now received $20 billion in venture capital funding since 2010,” Mercom says.

Favorite

advertisement