HealthTech Continue to Blur in 2019

The global health care industry doesn’t show any signs of slowing down in 2019. Aging and growing populations, greater prevalence of chronic diseases, and exponential advances in innovative, but costly, digital technologies continue to increase health care demand and expenditures.

According to PwC’s report on PE investment, the pace of private equity firm investment continues to quicken, as they increase their presence in a highly-fragmented health industry. HRI expects this trend to accelerate in 2019, giving traditional healthcare companies opportunities to sell all or portions of noncore assets and double-down on their core competencies.

Forbes predicts eight trends in 2019 in the healthcare industry: (1) 15% of global healthcare spending will be tied to Value-based Models; (2) Artificial Intelligence (AI) for healthcare IT Application will cross $1.7 billion by 2019; (3) Digital health tech catering to out of hospital will grow by 30% and cross $25 billion; (4) Asia becomes the New Local Innovation Hub for Global Drug and Device OEMs; (5) Analytics shift from Big Data to Meaningful Small Data by Hospital Specialty; (6) Healthcare will be a dominant vertical in voice applications; (7) Blockchain moves from Hype to Real Initial Commercial Implementations generating ROI; and (8) Innovative Private Insurance Models Shake up Healthcare Payer Industry.

According to Deloitte “2019 US and Global Health Care Industry Outlook”, digital technologies are supporting health systems’ efforts to transition to new models of patient-centered care and helping them develop “smart health” approaches to increase access and affordability, improve quality, and lower costs. Blockchain, artificial intelligence, and virtual reality are just some of the technologies disrupting healthcare.

These technologies are helping with diagnosis and treatment, speed, quality, and accuracy, and improving the patient experience. However, cybersecurity for healthcare organizations still lags far behind the standards that have been set in the finance and retail industries. Healthcare organizations are finally expected to take big steps in 2019 to close the gap between healthcare cybersecurity standards and the standards of other industries.

Hundreds of other promising new healthcare AI projects are currently being launched and there will undoubtedly be hundreds more in the remainder of 2019. Pharma companies are jumping on this trend by investing earlier in artificial intelligence technology than usual. As a result, there might be several major acquisitions of AI and machine-learning startups that significantly reshape the industry.

Castle Placement is actively raising capital for healthcare companies and has numerous healthcare investors in the U.S. and globally. Founded in 2009, Castle Placement raises equity and debt capital for private middle market companies across a broad spectrum of industries. Highly experienced investment bankers and a robust, data-driven, innovative technology platform – including artificial intelligence/machine learning – match great companies with global institutional investors. Castle Placement’s proprietary app, CPGO, connects companies with investors in real time. It has over 64,500 private equity, venture capital and strategic investors, family offices, pension funds, foundations, endowments, sovereign wealth funds, hedge funds, and lenders.

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Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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