The outcome of the presidential election is not expected to change the strength of the health-care IT sector, according to a new study by Mercom Capital Group.
Because health-care IT touches virtually everybody in some way, it's become a large market that piqued the interest of investors, and significant funding is flowing into private companies.
According to the study, conducted in the third quarter of 2012, health information management companies received $101 million of funding in 20 deals, followed by mobile health companies with $39 million in seven deals and social health network companies with $26 million in four deals. Another funded deal this quarter was $25.5 million raised by Telcare, a mobile health company that uses cellular machine-to-machine technology for diabetes and other chronic illnesses.
The reason for the strength: Federal programs such as the HITECH Act of 2009, which made greater amounts of health data available for use. This has made applications possible.
This is good news for health-care providers, because it ensures that innovative applications are available to help them pursue their goals of increased efficiency and patient safety.