HGP Health IT May Insights

June 05, 2019

HGP’s May Health IT Insights provides a summary of Health IT transactions, news, and public company performance during the month of May. Reflecting the ongoing trend to drive profits beyond care delivery, Bon Secours sold a 51% interest in its RCM subsidiary, Ensemble Health, to Golden Gate Capital for $1.2 billion.  Also in the RCM space, JP Morgan announced a $500mm acquisition of InstaMed, a processor of patient payments.  Apple expanded its monitoring capabilities with the acquisition of asthma monitoring company Tueo Health.  On the capital front, HGP monitored nearly $1.7 billion in global health IT investment.  The top five deals during the month accounted for $636mm of new capital and include Tempus (genomic decision support, $200mm), Zipline (supply delivery, $190mm), DocPlanner (patient scheduling, $93mm), and BHE Analytics (life sciences research, $78mm).




Noteworthy Transactions

Noteworthy themes in May include:

  • Multiple fitness companies raised money during the month including Noom (health coaching, $58mm) HealthIQ (health insurance, $55mm) Jawbone Health (wearable, $65mm), Cure.fit (health coaching, $75mm), and Beam Dental (smart toothbrush, $50mm).
  • Telemed was a dominant theme in May, with the following noteable investments: Quartet Health (mental health, $60mm), Talkspace (mental health, $50mm), Dispatch Health (on-demand healthcare, $33mm), Phil (prescription delivery, $25mm), and Zipline (supply delivery, $190mm).
  • In the life sciences sector, BHE Analytics (customer research) raised $78mm, Tempus (genomics) raised $200mm, and Axiom Real-Time Metrics (CTMS) raised an undisclosed amount.
  • The patient engagement sector saw a lot of activity with many capital raises including DocPlanner (online appointments, $93mm), Solera (chronic care management, $42mm), Health Monitor Network (marketing), Legwork (marketing, $17mm), and Outcome Health (content, buyout).

Other noteworthy M&A transactions include:

Other noteworthy investment transactions include:


Noteworthy News Headlines


Public Company Performance

HGP tracks stock indices for publicly traded health IT companies within four different sectors - Health IT, Payers, Healthcare Services, and Health IT & Payer Services. The chart below summarizes the performance of these sectors compared to the S&P 500 for the month of May:


The following tables include summary statistics on the four sectors tracked by HGP as well as the S&P 500 and NASDAQ for May 2019: