FBI ‘Flash Alerts’ health organizations about hacker attacks (US)

[grow_thumb image=”http://telecareaware.com/wp-content/uploads/2014/08/keep-calm-and-encrypt-your-data-5.png” thumb_width=”150″ /]Late yesterday Reuters reported that the Federal Bureau of Investigation (FBI) issued a ‘flash alert’ to healthcare organizations, warning they are being targeted by “…malicious actors targeting healthcare related systems, perhaps for the purpose of obtaining Protected Healthcare Information (PHI) and/or Personally Identifiable Information (PII),” and that “These actors have also been seen targeting multiple companies in the healthcare and medical device industry typically targeting valuable intellectual property, such as medical device and equipment development data.” These alerts are sent to businesses by the FBI and Department of Homeland Security (DHS) to help prevent cyberattacks. This follows an April FBI alert warning healthcare companies that their security systems were lax compared to other sectors, making them highly vulnerable to hacker attacks. Our Monday report on the Community Health System attack on 4.5 million records at the the #2 US publicly traded hospital operator  (more…)

The drip of data breaches now a flood: 4.5 million records hacked–update

[grow_thumb image=”http://telecareaware.com/wp-content/uploads/2014/08/keep-calm-and-encrypt-your-data-5.png” thumb_width=”150″ /]Breaking News–updated at end  Earlier this year [TTA 23 Apr] this Editor commented on the fourth annual update from the Ponemon Institute plus a qualitative study from IS Solutions that contained mostly unwelcome news for healthcare IT departments in the US. Ponemon’s new estimate of data breaches’ cost per year: $5.6 billion. While making some progress in the existential threat that data breaches present to institutional and personal security, both reports also outlined the disconnect between HIT professionals busy dealing with and sealing off the mice of internal causes versus the looming, huge menace of the external criminal threat. We now know that Godzilla has arrived and he’s stomping ‘n’ chomping. Community Health Systems of Franklin, Tennessee claimed today as part of a SEC regulatory filing that hackers originating in China breached sensitive information in 4.5 million patient records accumulated over five years during April and June using cyberattacks and sophisticated malware.  (more…)

RockHealth mid-year 2013 digital health report; warm, not hot

RockHealth is back again with its 2013 Midyear Digital Health Funding Report (SlideShare link). The good news from 2012 [TTA 8 Jan] continues, but the growth rate for the half-year is down from the torrid pace of +45 percent increased funding 2012/2011 to a more modest +12 percent versus prior year, with 25 percent more deals done. Former darlings biotech and medical devices continue to sink like stones, down 2 and 29 percent respectively (PwC MoneyTree; also TTA 26 April). What is notable is the ‘small world’ concentration:

  • 90 digital health companies raised in excess of $2 million to date in 2013
  • 20 percent of all funding went into five deals: Proteus, Health Catalyst, Watermark Medical, NantHealth, HealthTap
  • 20 funders did two to three deals each
  • Remote patient monitoring, hospital administration, big data, EHRs and wellness by far lead the way
  • Maturity is still hard to find: only three 2012 A-round deals have proceeded to B round so far this year; seven 2012 B rounds have moved to C round
  • Crowdfunding has partially filled the ‘angel gap’ for companies in wearable fitness tech like Misfit and Amigo (plus HAPIfork), but the bulk of the action has been at non-healthcare specific sites like Indiegogo versus Medstartr and HealthTechHatch which take on a wider variety of health tech such as health management platforms, HIT and even education videos. The reality is that 40 percent do not meet their fundraising goals in an ‘all-or-nothing’ setup.

The cool-off reflects RockHealth’s chief Halle Tecco’s POV that both VC and angel investors are still dabbling in digital health–without a billion dollar success story, there’s still reluctance to put money where sentiment may be. Further at VentureBeat, but the reasons may go deeper….

Update 10 July: Long term, are VCs cooling because fundraising is off? Digital health is one of the few points of growth in a contracting VC investment market. Second quarter fundraising by US VCs dropped 54 percent to $2.88 billion, the weakest quarter for fundraising in almost two years, according to the National Venture Capital Association and Thomson Reuters. In addition, return performance for VC-funded companies has been off relative to the stock market. Less money=less funding. The ‘smaller, more agile fund’ trends may conversely help the smaller funding required for A and B (and modest C) rounds where digital health is still, but the Magic 8 Ball says ‘continue to dabble’. More room for crowdfunding? Reuters