2012 a breakthrough year for health tech investment, no matter who’s counting

We had earlier this month reported on Rock Health’s digital health estimate of $1.4 billion, up 45% vs. 2011 with 20% going towards the five biggest deals of the year [TA 8 Jan]. Now Austin, Texas-based Mercom Capital Group does its own slightly lower count of $1.2 billion in VC investment in what’s termed HIT, but this is 200% higher than their prior year total of $480 million. There’s overlap but difference in their five big companies: Castlight Health (provider comparison), 23andMe (personal genetics), GoHealth (health insurance comparison), Kinnser Software (home health clinical support) and the Practice Fusion EHR. Mercom also details the M&A activity topping $7 billion with McKesson being the most active acquirer. Finally, Mobile Health Market News did its own analysis and came up with $907 million, led by ‘health care IT service’, monitoring and consumer apps (although skewed wildly from Castlight Health in this category). What is also clear is that the pace slowed in 3rd and 4th quarters–and that the pace of 2013 investment very much depends on the US economic climate and the effects of government healthcare policy. Mercom: iHealthBeat (summary), MedCityNews, Healthcare IT News. Mobile Health Market News, mHealthWatch

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