2014, A Good Year for the Telehealth Industry

Richard A. Kimball, Jr.
Richard A. Kimball, Jr.

Things are looking up for the telehealth industry in 2015, especially if one takes into account the considerable changes it has undergone in the past year. Jenn Lonzer of Nuvium.com wrote that the telehealth industry has “made significant progress in 2014 – and not just in mindshare. For telehealth, it has been a year of development, experimentation, investment, and adoption.”

According to the most recent data available, the amount of money invested in digital health companies in the U.S. were estimated to be between an impressive 3-5 billion USD. “[B]oth Rock Health and StartUp Health have posted reports – as they always do – that tracked the amount of funding raked in by digital health companies over the past few months and for the year so far,” reported Brian Dolan of MobiHealthNews. “Rock Health has tracked $3 billion for funding for 2014, while StartUp Health has tracked a whopping $5 billion.”

Despite the $2 billion disparity in the numbers, what is clear is that quite a lot of money has been poured into telehealth in 2014. Dolan noted that counted among the top ten investment deals highlighted by StartUp Health was the $230 million raised by Preventice, a wearable medical device maker. “According to an SEC filing this transaction was mostly an equity exchange related to the company’s merger with eCardio. As part of the deal, the newly merged Preventice apparently raised about $108 million in cash from an accredited investor,” Dolan added.

Indeed, many notable funding rounds occurred this year, reported Lonzer. “American Well, a telehealth services company, has just completed an $80 million funding round,” she wrote. “Investments came from high-powered financial and healthcare institutions, such as Anthem and Jefferson Health Systems…” Lonzer also mentioned the $21 million from Venrock, Shasta Ventures, and Sir Richard Branson for Doctors on Demand, as well as the $50 million round of equity funding secured by Dallas-based Teladoc.

Clearly, from the numbers seen so far, 2014 was a fortuitous year for the telehealth industry. Investor willingness to put up money in support of the industry can be considered as indicative of future outcomes for the digital health services sector.

To learn more about telehealth, you can check out this article I wrote about the history of telehealth. – Richard A. Kimball

1 Response

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    I think were are seeing a critical shift in the delivery of healthcare services, now through the use of telecommunication technologies. This approach can help in developing countries and remote communities.

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