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.
Doximity claims more than 40% of US physicians as active users, and in January of this year announced that their physician network has grown to more than 250,000 members.
Doctors can use Doximity to collaborate on cases, further their careers, and stay up to date on specialty-specific news, but that’s not where they make their revenue.
“There are a lot of things we can do to make medical networking more efficient,” Doximity CEO Jeff Tangney told Health 2.0 when asked how the funds would be used.
“If you think about it, how would your life be different if you weren’t able to use email in your job? How out of touch would you be? That’s what it’s like to be a US physician. We see a lot of opportunity to improve the connectivity of physicians as a new business area.”
Like LinkedIn, Doximity is a recruiting tool for people looking to hire doctors. Tangney didn’t reveal all the numbers, but he did say that Doximity was cash flow positive in January for the first time. He also said that Doximity has 55 employees, somewhere around 200 hospital clients, and that a subscription to the recruiting product costs $12,000 per seat per year to send 50 messages per month.
With some back of the envelope math, and a guess of a burn of about $10-12 million a year, it figures out to about four subscribed seats per hospital. With about 5,000 hospitals in the US and some other revenue streams to pursue, it looks like Doximity has room to grow at a bare minimum.
Matthew Holt sat down with CareCloud President and CEO Albert Santalo to discuss the latest news from the Miami-based cloud practice management and EHR services provider. CareCloud got started in 2009 and since then has raised $55 million in angel and private venture funding and grown to 270 employees.
Currently, about 5,000 doctors use CareCloud for their practice management services with about a quarter of those doctors also using the CareCloud EHR. Santalo expects that number to grow to about 12,000 by the end of the year, explaining in three points why he thinks the market is primed for CareCloud’s cloud-based, integrated practice management and EHR system.
While Santalo’s grin says more than his answer when asked about a potential IPO, he shares some interesting thoughts on practice consolidation, meaningful use requirements, and the cloud in in-patient settings in this interview recorded at HIMSS last month.
The cloud, web, and mobile-based technologies developing in health that we call Health 2.0 had a big year in 2013 and look to be continuing full steam ahead in 2014.
Three things to know as the year takes off:
1. Professionals Facing Growth
Health 2.0 tools have been primarily consumer facing, but we’re beginning to see the gradual integration of Health 2.0 tools for professionals at the edges of the enterprise world in realms like patient care communication (WelVu), practice management (Simple Admit), and clinician workflow (Zipnosis).
Population health management in particular is an area where Health 2.0 companies (Phytel, Evolent) are experiencing relative success answering new demands from provider organizations needing to manage patient populations in different ways. Traditional enterprise software has not been designed for this type of challenge.
While Health 2.0 infiltrates the edges of the enterprise world, professional facing Health 2.0 tools are making significant inroads into the core workflow of small practice organizations. Practice Fusion, CareCloud, and Kareo are a few examples of companies making progress in this market.
2. Wearables and Trackers Explode, Divide
The tracking space continues to grow explosively with the addition, by our estimates, of around 100 new tools for self-management or tracking in 2013, and a whole slew of new tools that debuted at CES 2014. However, the tracking and wearables world is experiencing a division between consumer-oriented products and those with more clinical applications.
The consumer side of the equation is rife with interesting technology, including watches, clips, cuffs, and sleep tracking devices. Google’s latest purchase of Nest is vaguely related to this space as innovators continue to move towards smart tracking of the body and human activity generally. Of course, we are at the top of the hype cycle regarding wearables, but in general, tracking is growing rapidly and is increasingly becoming more passive and automatic in nature.