HGP Health IT
Annual Market Review
HEALTH IT & HEALTH INFORMATION SERVICES
JANUARY 2023
www.hgp.com
2
TABLE OF CONTENTS
Executive Summary
3
Health IT Market Trends
11
Health IT M&A (Including Buyout)
14
Health IT Capital Raises (Non-Buyout)
19
Healthcare Capital Markets
20
Macroeconomics
25
Health IT Headlines
28
About Healthcare Growth Partners
31
HGP Transaction Experience
34
1
9
8
7
6
5
4
3
2
Copyright© 2023 Healthcare Growth Partners
From armchair epidemiologists to armchair economists, never has society paid more attention to
subject matter previously overlooked. Of course, the economy has always been a discussion topic,
but the COVID economic response and the ensuing inflation and rising interest rate environment put
economic data and Federal Reserve Federal Open Market Committee (FOMC) meetings at the
forefront of the news cycle and social conversation.
Towards the end of 2022, overall market sentiment was pessimistic, reflecting a lack of confidence in
the FOMC to manage inflation without shocking the economy into recession. In early 2023, market
sentiment is flashing glimmers of hope based on encouraging economic data that signals the Fed may
be able navigate inflation and lead the economy into a soft landing. A full quarter of Q4 CPI prints is
signaling momentum that inflation can be contained in a resilient labor market. The market is
showing more signs of confidence, and while it remains early to extrapolate that into a true upswing,
sentiment appears to be moving in the right direction.
In an effort to make sense of the economic outlook and better understand how the market is
behaving, HGP will take our readers through the facts, relaying data and anecdotal observations to
help piece together the mosaic that shapes the current and future state of capital markets. As shown
in the table below, public growth tech, broader public markets, private HIT markets, and the FOMC all
experienced varying inflection points in response to the inflationary environment – notably growth
tech led the market downturn,