Last year I got in a modest Twitter spat with Anand Sanwal the CEO of investor analytics company CB Insights. Anand writes a very amusing newsletter, has built a wildly successful business tracking venture investing (at $20-50K a client) and has recently taken on $10m in VC himself to build out his business which was already profitable. The spat was because in August 2015 (5 months ago) CB insights said that “Digital Health” investments totalled $3.5 billion in 2014. You can go read the article Stephanie Baum concocted from the Tweetstream but my point was that when CB Insights, a generalist analyst company, said that the investment in digital SMAC health was $3.5bn in 2014 they were wrong because 4 specialists (Health 2.0, Mercom, Rock Health and Startup Health) all said it was over $4.5bn.
What’s a billion between friends? Not much, but what I left unsaid until now is that if they’re 25% off the average in one sector, where are they in the other sectors they cover? But other than a few amused readers of MedCity News no one much cared and the world moved on.
Then everyone stared putting out their Q4 2015 numbers. Amusingly, but probably only to me, both Rock Health & Startup Health put out their Q4 numbers 2 weeks before the quarter/year ended, and missed a bunch of late deals! But by the time the revised numbers came in everyone was again in that middle $4 billion range and there was general agreement that funding was about flat in 2015 compared to 2014–albeit at a high level compared to what the Cinderella sector had been recently.
Health 2.0’s numbers in our report were $4.8 billion for the year, as shown on the left. (You can see more on these and some other data in our Q4 report here. In case you don’t know I co-run Health 2.0 as my day job and yes I own THCB). OK. All so far so ho-hum.
Then as the other numbers started coming out I noticed something a little odd. CB insights came out with its numbers for 2015, but something was different.
You’ll recall that I had poo-poohed their 2014 number shown as $3.477 Bn in their blog post here and displayed in the chart below. These are 2014 numbers shown in a post about investment in 2015, published in August 2015. And that was the number I’d started the original spat about. But when I looked at the post they released in January 2016, not only was the number for 2015 at $5.7 billion (remember Rock Health, Mercom & Health 2.0 all put it in the mid-high $4s) but the 2014 number had somehow climbed from about $3.5 billion to $5.1 billion. Again check the January post and check the chart I’ve lifted from it below. You’d think this was a curious jump and you’d be right. But nowhere in the post does it say why the total for 2014 in August 2015 was so different from the total for 2014 in January 2016.
Of course being the troublemaker I am, I asked about this on Twitter and got a classic no reply from Anand at CB insights.
So then I sent all this info off to Stephanie Baum at Medcity News thinking that she might like to write more about it.
I’m working on a long piece about Sharecare. Today at Health 2.0 my partner Indu Subaiya will be interviewing Jeff Arnold CEO of Sharecare about the progress they’ve made in the 5 years since he launched the company on stage at Health 2.0 in 2010.
Just to give you a little taster, I’m posting an interview with one of Sharecare’s clients and investors, the big Catholic hospital chain Trinity. I think this interview with Bret Gallaway at Trinity will whet your appetite for Jeff today and the longer article coming shortly. But it’s a great story about what is now a major platform for consumer health.
One of the most insightful and funniest writers in health care is recovering VC Lisa Suennen. With trusty sidekick Dave Shaywitz, she’s been doing Tech Tonics, one of these newly trendy (again) podcasts. And Sunday at Health 2.0 they interviewed my partner Indu Subaiya, and me. Want to know a little more aobut the backstory of Health 2.0? Listen in!
Who will be the Startup Champion of Fall 2015? Traction is the perfect opportunity to hone your skills and impress these venture capitalists to invest in your startup!
Traction will be launching the Health 2.0 Annual Fall Conference on Monday, October 5, 2015 at 8 AM. This competition specifically recruits companies ready for Series A in the $2-12M range.
Enter your company TODAY and pitch your startup to venture capitalists, angel investors, government officials, and even healthcare industry experts. Increase media exposure while forming connections with leading investors, while gaining the opportunity to gain advice from over 30 mentors and experts to further refine your business model.
The application deadline is TODAY Friday, August 14th at 11:59 ET.
In early September, 10 teams will be selected as finalists for two different tracks: professional facing and consumer facing tools. Emerging live at the conference, the competition will grant these lucky finalists access to exceptional mentors and fight for the title of “Startup Champion.”
Apply today to be selected as one of the 10 finalists to pitch live at Health 2.0’s Annual Fall Conference!
And of course you can buy tickets to Traction as an add on to the Health 2.0 conference itself.
Every quarter, Health 2.0 releases a summary set of data that explains where industry funding is going, which product segments are growing fastest, and where new company formation is happening. Health 2.0’s precision and clarity when it comes to market segmentation and product information make this quarterly release the cream of the freebie crop.
The major news this quarter is that funding has slowed compared to this time last year, notwithstanding a significant bump from Allscripts’ $200M investment in NantHealth on the last day of the month. Yet, we’re still seeing growth in the Health 2.0 Source Database — both in number of products and companies. We also highlight the release of the Apple Watch, the growing momentum around FHIR, some key moves in the data analytics space, and the success of the latest Health 2.0 IPOs. For more, flip through below.
I want to put this essay in the context of my day job as co-chairman of Health 2.0, where I look at and showcase new technologies in health. We have a three part definition for what we call Health 2.0. First, they must be adaptable technologies in health care, where one technology plugs into another easily using accessible APIs without a lot of rework and data moves between them. Second, we think a lot about the user experience, and over eight years we’ve been seeing tools with better and better user experiences–especially on the phone, iPad, and other screens. Finally, we think about using data to drive decisions and using data from all those devices to change and help us make decisions.
This is the Cal Pacific Medical Center up in San Francisco. The purple arrow on the left points to the door of the emergency entrance.
Cal Pacific is at the end of that big red arrow on the next photo. On that map there’s also a blue line which is my effort to add some social commentary. To the top left of that blue line in San Francisco is where the rich people live, and on the bottom right is where the poor people live. Cal Pacific is right in the middle of the rich side of town, and it’s where San Francisco’s yuppies go to have their babies.
Last year, on August 26, 2014 at about 1 am to be precise, I drove into this entrance rather fast. My wife was next to me and within an hour, we were upstairs and out came Aero. He’s named Aero because his big sister was reading a book about Frankie the Frog who wanted to fly and he was very aerodynamic. So when said, “What should we call your little brother?” She said, “I want to call him Aerodynamic.” We said, “OK, if he comes out fast we’ll call him the aerodynamic flying baby.” So he’s called Aero for short.
Thus began the Quest for Intra-Aero-Bili-ty –a title I hope will grow on you. The Bili part will become obvious in a paragraph or two.
Something had changed since we had been at Cal Pacific three years earlier for the birth of Coco, our first child.
If you look carefully at the top of Amanda’s head, there’s now a computer system. Like most big provider systems, Sutter–Cal Pacific’s parent company–has installed Epic and it’s in every room or on a COW (cart on wheels). Essentially we have spent the last few years putting EMRs in all hospitals. This is the result of the $24+ billion the US taxpayer (well, the Chinese taxpayer to be more accurate) has spent since the 2010 rollout of the HITECH act.Continue reading…
The use of the term ‘innovation’ is getting pretty worked up lately. In fact, almost every healthcare entity whether health plan, health system, IDN or even ‘mature ACO’ (morphed from an IPA or risk bearing PHO “chassis” or “carcass” as the case may be) seem to have anointed a ‘CIO’ as in ‘chief innovation officer’to steward the critical transformation from volume-to-value during a yet to be determined period of conflicting if not schizophrenic incentives coupled with its legacy cultural inertia.
In fact some institutions via branded ‘Centers for Innovation or Transformation‘ have made substantial investments in people and infrastructure (“bricks, sticks and platforms”) as well as the promise of the essential ‘firewall inoculation’ and separation from the ‘mother-house’ to catalyze the required re-engineering during a likely period of cannibalization of traditional revenue streams.
So the ancient Chinese curse (paraphrased below) most likely applies here:
..we live in ‘interesting times’ with both ‘danger and opportunity’ before us.
For those tasked with this challenge and fortunate enough to participate in conferences (Health 2.0, Exponential Medicine, Health Datapalooza, TEDMED to name a few of the trophy organizers) at the disruptive and transformational tip of the spear, the nature of the challenge including opportunities to meet and leverage connections of like minded and focus colleagues is a distinct strategic advantage.Continue reading…
Matthew Holt, Co-Chairman of Health 2.0 recently interviewed David Chao, Director of Industry Solutions at Mulesoft. Mulesoft is a “connectivity company” with a vision to connect the world’s data, devices, and applications. During this interview, David shares the challenges within health care and gives an insight into how Mulesoft is re-framing health care delivery and ensuring health data moves freely between multiple systems as well as within organizations to be delivered at the point of care when and where it’s needed the most.
You can see David during the Care Delivery Innovation: Reinventing Access and Expectations session at HxRefactored on April 1-2 in Boston, MA.
We hear a lot about how US medicine is broken, from how much we spend annually ($4 trillion) for unimpressive outcomes, to the growing epidemic of obesity and diabetes, to problematic financial models, to the growing malaise amongst doctors.
Across US health care, a lot of smart people are crafting solutions to these problems, but in my view the reality is that many of them are generating efficiencies on top of a broken product.
The real problem is that conventional primary care as it’s practiced today no longer serves the needs of most people, be they wealthy or under-served, be they patient or provider.
I am starting Parsley Health, a new kind of medical practice that directly addresses these problems, first by providing something called Functional Medicine rather than traditional primary care, and second by providing functional medicine in a tech driven, modern and affordable way.
What is Functional Medicine?
I became a functional medicine doctor because early on I recognized two major limitations of the conventional medicine.
I wanted to take a minute to address this study, since we participated in it directly. We are excited that we got to work with some very smart people to answer a question we also wanted to know the answer to. We jumped at the opportunity to find out—is having your physician introduce you to the app and help you sign up enough to kickstart a health journey?
What we learned is that just introducing people to MyFitnessPal wasn’t enough. People have to be ready and willing to do the hard work.
The app itself does work—if you use it. Our own data and the data from the study show that the more you log on, the more you use the app, the more success you will see. Users that logged in the most lost the most weight. In fact, we already know that 88% of users who log for 7 days lose weight.
We make tools designed to make it as clear and simple as possible for you to see the path to achieving your fitness goals. We are not, however, making a magic bullet—because there is no magic bullet. Ultimately, you’re the one who has to do the work.