A look at CB insights’ latest report on mobile health startups and growth stage companies shows the dominance of on demand concierge care and telemedicine services. Teladoc’s preparations for its public debut reflect the confidence in this sector of digital health that the market has sufficiently matured enough to support the growth of these businesses. Altogether, the mobile health companies included in the report raised $1.3 billion in 114 financing deals.
Although some physicians take a dim view of telemedicine startups using a direct to consumer model, one venture investor watching this market closely said the interests of health systems and these companies are moving closer.
In a recent phone interview, New Enterprise Associates Partner Mohammad Makhzoumi, who heads the healthcare services and healthcare information technology investment practice, talked with MedCity News about concierge care investment trends. He noted that in addition to venture investors supporting these startups, health systems are also investing because they are seen as an excellent feeder for referrals to hospitals.
Pager is a good example of this trend. Founded by the former CTO of Uber, Pager partnered with Long Island Jewish Medical Center to deliver care in Manhattan — half of its doctors provide this service, which enhances the medical center’s own business.
“There’s an enormous supply of remote physicians for telehealth and on-demand services,” Makhzoumi said. “By and large, sophisticated health systems are viewing this as an opportunity not a threat.”
Given the strict readmission criteria for hospitals the Affordable Care Act ushered in, they have to turn over hospital beds as quickly as possible, Mekhzoumi added. Telemedicine and concierge care services are regarded by some as a useful service that can help hospitals meet higher expectations for patient outcomes.
Pager’s venture investors include Lux Capital, Montage Ventures, Goodwater Capital, Mayfield Fund, Summation Health Ventures. Other health provider housecall service startups listed in the report include: Medicast, Heal, Dose, Go2Nurse, and Curbside Care.
