In recent years, technology has driven multiple transformative changes in the healthcare industry, and at the dawn of 2023, it appears ready to continue shaping healthcare’s future. While the landscape for digital health funding has cooled and virtual healthcare utilization has dropped as the COVID pandemic wanes, experts remain upbeat about technology’s potential to bring new changes and improvements to U.S. healthcare in the new year.
Healthtech is likely to go back to basics this year, with venture capitalists focusing their attention on startups that are already demonstrating profitability or have a clearly defined pathway to doing so. While growth is still important, investors are likely to be far more selective, choosing companies that have mature business models, fair valuations, steady growth trajectories, and track records of stability, according to SVB Securities analyst Stephanie Davis.
Mental and behavioral health are likely to be key areas that receive funding, with demand far outpacing supply in spite of the numerous companies already in the space. Family planning and “femtech” are also expected to attract the notice of investors due to the increased focus on women’s health brought about by the Supreme Court’s controversial decision to overturn Roe v. Wade in Dobbs v. Jackson Women’s Health Organization in the summer of 2022.
Telehealth use has been falling since it peaked in spring 2020, but some experts are predicting it will see renewed growth, with volume moving away from urgent care visits to more personalized virtual care for chronic health conditions. Clinicians are using telehealth in new ways that offset the drop in consumer utilization, such as checking on patients after surgery, delivering care for patients undergoing chemotherapy, and consulting specialists in other health systems.
Artificial intelligence (AI) and machine learning (ML) are making further inroads into care, with the Food and Drug Administration (FDA) speeding approvals of medical AI and ML tools used to augment and support doctors and nurses. AI and ML are continuing to be woven into operational tools as well, automating clinical decision support, patient engagement, and revenue cycle management.
Cybersecurity is also likely to be a cornerstone of investment in 2023, with health systems facing far greater numbers of crippling attacks in recent years, resulting in the exposure of millions of patients’ data.
Overall, while markets are roiled and investors appear to be more cautious, there appears to be plenty of room for innovation and investment in healthcare, with new technologies driving positive changes in the industry this year and beyond.
