Healthcare spending is rising at a robust clip globally due in part to a growing cohort of those aged 65 and older along with expanding access to quality healthcare in regions where many were previously being underserved. In the US alone, healthcare spending tops $4 trillion annually and is expected to keep rising over the next decade.
Source: National Health Expenditure Projections 2022-2031 (cms.gov)
Companies operating in the Healthtech sector provide solutions that help corporations, governments and healthcare providers deliver quality care, discover new drug therapies and improve patient outcomes while keeping costs contained. Six trends are driving M&A activity in this sector including telehealth, data analytics, AI, remote patient monitoring, streamlined services and VR.
Starting with the first trend, telehealth. This space is growing rapidly as delivering medical services digitally generates material cost and scheduling efficiencies. Illustrating this trend, Corum client Blue Bridge Technologies, which offers medical practice management systems in Latvia including a telehealth portal, was acquired by Everfield.
Pivoting to the second trend, data analytics. On the patient side, personalized treatment decisions leads to better patient outcomes and for healthcare organizations, data analytics is used to increase efficiency, control costs and provide better services. Highlighting this trend, Corum client Health eFilings, a company that enables professionals to leverage electronic health records data to improve the quality of patient care and lower costs, was bought by Alpha II to boost value creation for healthcare organizations early in the revenue cycle.
Moving on to the third trend, AI. The ability to generate faster and more accurate patient diagnoses and improve the drug discovery process has made this technology incredibly popular with investors. One deal here was the sale of Corum client Compellon, a provider of an AI-powered analytics platform optimized for healthcare data, to Clearsense to add predictive modeling solutions to its portfolio.
Our fourth trend is remote patient monitoring. Remote patient monitoring can be used in a variety of situations where healthcare professionals wish to track patient data between visits. From monitoring patients with chronic health conditions to post-hospitalization to senior care. An acquisition illustrating this trend was the sale of Corum client Collain Healthcare, which offers a virtual care platform with remote patient monitoring capabilities along with EHR and ERP solutions, to Harris Computer Systems to expand into long-term and post-acute care services.
Looking now at our fifth trend, streamlined services. Technology that improves operational efficiency and reduces costs is in high demand. A deal that highlights this trend includes the purchase of Corum client Avelead, a provider of a SaaS platform that automates and improves the revenue cycle in healthcare, by Streamline Health to expand its SaaS portfolio.
Finally, our last trend is VR. This technology is helping healthcare professionals train through immersive simulated experiences while also being deployed for patient therapy and treatment. Illustrating this trend, Oncomfort, a company that develops VR-based digital sedation therapeutic medical devices and related software, was purchased by HypnoVR in October 2023 to support its European growth plans.
Corum has decades of experience selling Healthtech companies across an array of subsectors. Investor demand for these firms is rock-solid as global healthcare spending continues to climb higher, with buyers eager to acquire companies offering innovative solutions to serious problems. Reach out to corum@corumgroup.com to learn more about the M&A process.
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