Healthcare IT Sector Review Update - Q1 2019

Market Commentary

• Healthcare technology assets continue to garner significant interest from both strategic and financial sponsors, as increasing regulatory complexity, ongoing technology adoption by constituents across healthcare, and the pervasive evolution towards value-based care underpin growth opportunities for innovative software tools
• Continued investor appetite for specialty and sector-specific EMR and revenue cycle management solutions, as providers demonstrate a clear preference for purpose-built, best-of-breed solutions
• Healthcare organizations continue to extend their focus beyond price and quality of care, with an increasing focus on patient and provider engagement and educational tools
• Sector innovations continue to target niche operational challenges including patient and staff management and monitoring, and compliance control solutions for vendors and clinicians
• Increasingly complex reimbursement arrangements in the face of rising healthcare costs have supported strong payer interest in specialized cost containment and payment integrity solutions

HW’s TMT Group advised iContracts on its acquisition by RLDatix, a portfolio company of TA Associates and Five Arrows.

Valuation and Operating Metrics¹

As of March 31, 2019 ($ in millions)​

How Machine Learnings Can Help Prevent Hospitalizations

Forbes  March 27, 2019

Preventable hospitalizations cost people, insurance companies, businesses, the government, and society considerable time, effort, and resources, that could have otherwise been allocated to more productive activities. Working to combat this preventable waste, along with not exposing patients to other potential diseases or medical issues during hospital stays, organizations are adopting artificial intelligence to reduce preventable hospitalizations. For example, machine learning algorithms can look for combinations of symptoms, medication usages, and physical exam measurements to identify potential patient concerns or areas to deploy preventative care.

Read the full article here.

FHIR, Cloud, Pop Health, and Social Determinants Spark New Security Challenges

Healthcare IT News  March 20, 2019

Technology trends today are allowing increased accessibility into health data, and its exchange, which demands new ways of thinking about how to protect sensitive information. New dimensions of risk when it comes to cybersecurity are also being introduced, as trends move towards interoperability and the use of AI, increased patient autonomy through mobile devices, and patient data sharing. As cloud computing becomes more prevalent given the increased efficiencies at a lower cost, third-party risks, lack of understanding, and data protection come to the forefront of potential concerns.

Read the full article here.

Industry Facing Headwinds in a "Perfect Storm" of Disruption

Healthcare IT News  March 18, 2019

A new survey shows trends such as consumerism and social determinants forcing providers and payers to fundamentally rethink how care is delivered and reimbursed. Given the changing environment towards increased access, convenience, and cost transparency for consumers, healthcare organizations are positioning themselves where patient experience and population health management are essential keys to success. While not all healthcare providers are incorporating social determinant data yet into their population health efforts, those that are have seen healthier patient populations along with increased reimbursements and revenue.

Read the full article here.

How Interoperable Data and a Renewed Focus on Wellness is Transforming Business Models

Deloitte  March 5, 2019

As the health insurance industry continues to evolve, transformational changes are expected as the sector transitions from a treatment-based model to a model focused on wellbeing and prevention. This new model within the industry will have a critical focus on data, and data interoperability, with the caveat of consumers owning their own data and level of or lack of willingness to share. According to industry research, as the health plan business model transforms, focus will be pulled away from claims processing and risk management, and re-focused on wellbeing and care of delivery, care enablement, and the underlying data platform.

Read the full article here.

Using Telehealth to Conduct Medication Reconciliation

Modern Healthcare  March 2, 2019

Given the fast paced environment in emergency rooms, one challenge noted by New York-Presbyterian/Weill Cornell Medical Center is the tedious yet critical process of performing a thorough medication reconciliation for patients being triaged. Performing a proper medication reconciliation can lead to the prevention of adverse drug events, which occur in nearly 5% of hospitalized patients. In order to combat this issue, organizations such as NY Presbyterian have expanded telehealth teams of pharmacy technicians alongside computer-aided decision support to conduct virtual consultations across multiple emergency sites and outpatient units.

Read the full article here.

Select Recent Private Placement Transactions²

1. FactSet
2. PitchBook

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