As 2022 draws to a close, MobiHealthNews asked digital health executives about the biggest surprises and most noteworthy events that took place over the past year.
While the economic environment proved more challenging for startups, leaders noted several major deals – particularly by large retail players – and argued that consolidation could be a bigger trend next year.
Guillaume de Zwirek, founder and CEO of Artera (formerly WELL Health)
“Though not surprising, the market downturn was a noteworthy event this year. Even when you spot a market bubble, you often don’t know when it will burst. Another noteworthy trend is how retailers are moving aggressively to reshape their businesses and provide care for large populations. Examples: Walgreens with VillageMD, CVS with Signify Health, Best Buy with Current Health and Amazon with One Medical.”
Russell Glass, CEO of Headspace Health
“Point solutions across virtual care, and in particular, virtual mental health, have begun to be absorbed by larger telemedicine and platform companies. In 2023, as market pressures and more limited available funding force continued consolidation, I think we’ll continue to see this phenomenon play out – but at an even faster rate than we saw in 2022. And those that have scale, well-established unit economics and a clear path to profitability will emerge as the winners.”
Dr. Jon Bloom, cofounder and CEO of Podimetrics
“From a digital health perspective, 2022 was a reset year for many and a serious reality check. We went from sky-high growth to the sky is falling, and in 2023 I think this market-correction movement will continue forward. To me, the biggest surprise of 2022 was that, despite the market tanking, digital health companies continued to truck forward with huge deals. This includes massive acquisitions like Amazon and One Medical, as well as deals like CVS Health and Signify.”
Vijay Ravindran, CEO of Floreo
“The post-COVID environment is now upon us. Telehealth as a necessity has receded a little in the reopening of America.
The layoffs in Big Tech present an unprecedented opportunity to recruit top-shelf talent to startups that do have funding for the next couple of years. Great businesses are likely to be accelerated by the talent that is now available and willing to take the relative security of a startup that is well funded over the uncertainty with larger companies grappling with the economy’s macro issues.”
Christopher Lis, managing director of global healthcare intelligence at J.D. Power
“The trajectory of investment and spending in Q1 and Q2 2022 could be viewed more as adjustment periods after a boom seen in 2021. This shift isn’t surprising, but still noteworthy. While funding was down, M&A deal volume saw a small uptick in Q3 2022. More generally, adoption of digital tools has grown significantly among all physicians regardless of gender, specialty or age. The average number of digital health tools in use by a physician grew from 2.2 in 2016 to 3.8 in 2022.”