Are Health Systems Putting Some Skin In The Game
People live longer than before, but the increase in their life expectancy is not putting less stress on the country's economy. With an aging population to take care of, healthcare costs are expected to rise. U.S. health care spending topped $4 trillion in 2020, and it has been projected to reach $6.2 trillion by 2028. To address the rising costs, health systems are investing in technology companies.
According to a report from Mercom Capital Group last year, there has been a global surge of healthcare-related investments made by strategic investors and venture capital firms. I expect the same momentum this year, shattering last year's record.
Many health systems are starting to invest and trust in early-stage tech companies or VC firms. Some notable ones to keep in mind are:
Memora Health Announces $40M Financing To Scale Platform for Simplifying Complex Care Delivery Memora Health Announces $40M Financing To Scale Platform for Simplifying Complex Care Delivery.
b.well Connected Health Secures $32 Million to Accelerate the Digital Transformation of Healthcare
St. Luke's University Health Network Joins Caduceus Capital Partners' Health System Innovation Council
Health systems aspire to leave behind their traditional approach to patient care, which is still dominated by the fee-for-service model that got us into this current financial crisis. They are rethinking how they deliver care and reach patients through investing in new technologies or partnering with solution providers. These types of arrangements help health systems identify high-potential technology companies to bring solutions to their organizations.