My fellow blogger Mark Douglas used to work with an investment bank and has, over the past few years, shared many interesting (and sometimes shocking) insights on how investors evaluate companies. Now, whenever I see an article related to investment in health IT firms, I wonder how Mark interprets the article.
According to an article in Information Week, investors are showing increased interest in medical software and information services companies with the level of investment increasing nearly 100% year over year. Of the $157M invested by venture capital firms:
- $77M for clinical decision support
- $37M for health administration software
- $15M for drug discovery and bioinformatics
- $13M for medical imaging
According to Jessica Canning, global research director for Dow Jones VentureSource, “the important part is that investors are really focusing on conveying more information about health care to patients and within the hospital organization itself.”
So, Mark, what is your take on the increased investment in healthcare IT?