Four years ago, HGP introduced the HGP Health IT Market Evolution. The Health IT Market Evolution classifies the health IT market across four phases of innovation: Software Infrastructure, Expanding Care Continuum, Patient Empowerment, and Personalized Medicine. Driven by an expanding infrastructure of mobility and data and propelled by value-based payment reform, the evolution is likely to result in a decentralized and personalized care delivery model that will ultimately cater to a discretionary and informed consumer patient.
Health IT & Health
Information Services
Semi-Annual Market Review
July 2018
www.hgp.com
Copyright 2018 Healthcare Growth Partners
Health IT & Health Information Services:
Market Review July 2018
Table of Contents
Health IT Executive Summary
3
Health IT Market Trends
9
HIT M&A (Including Buyout)
12
Health IT Capital Raises (Non-Buyout)
17
Healthcare Capital Markets
18
Macroeconomics
22
Health IT Headlines
24
About Healthcare Growth Partners
27
HGP Transaction Experience
28
Appendix
31
1
2
3
4
5
6
7
8
9
10
Software
Infrastructure
Expanding Care
Continuum
Patient
Empowerment
Personalized
Medicine
Advanced CDS
Genetic Medicine
Drug Discovery
Remote Monitoring
Benefits Mgmt
Patient Engagement
Marketing
Health & Fitness
Care Management
Population Health
Connectivity
Telemed
Infrastructure Tech
Security/Compliance
PM/EMR/HIS
RCM/ERP
Health IT Executive Summary
Revisiting the HGP Health IT Market Evolution
Four years ago, HGP introduced the HGP Health IT Market Evolution. The Health IT Market Evolution
classifies the health IT market across four phases of innovation: Software Infrastructure, Expanding
Care Continuum, Patient Empowerment, and Personalized Medicine. Driven by an expanding
infrastructure of mobility and data and propelled by value-based payment reform, the evolution is
likely to result in a decentralized and personalized care delivery model that will ultimately cater to a
discretionary and informed consumer patient.
Despite the $28.5B of investment in US Health IT since 2014, health IT's broad-based impact on care
delivery, costs, and outcomes is still somewhat muted. We believe the value in health IT for patients
is accruing, with policy and regulation being the key determinants for the timing and force with
which this value will ultimately be unlocked at scale. US Health IT investment in 1H 2018 alone was
$4.8B across 141 transactions, annualizing to a 32% increase over 2017's $7.4B investment.
The following exhibit outlines the phases of the market evolution. Each phase lays the groundwork
for
th