Livongo was one of the hottest "digital" health companies, and investors may feel like they got a certain digit from the company, as Cigna drops it as a preferred vendor and the company's acquisition by Teladoc for an outrageous sum also look like less than a brilliant move. Two overpriced companies do not make one fairly valued one.
Large database firm Oracle is buying electronic medical records and administrative software vendor Cerner for $28.3 billion, a move that likely is aimed at further penetration in a heavy software use industry and at competitor Salesforce.
Bright Health, like Oscar Health and a couple of others, was going to be a new kind of health plan. The company has raised zillions of dollars and even after a disastrous IPO, has raised more money now from investors including Cigna Health, which is bottom fishing. They clearly are hoping Cigna will eventually take them out of their misery. The reason they have to raise all this money is they keep spending it fruitlessly and not making anything like a profit. The notion that these guys can seriously compete with the UnitedHealth's of the world is absurd. People who have a lot of money to invest are not always smart.
Athenahealth has done very well in the market for electronic medical records and other provider information systems. It is being sold by one set of investors to two private equity firms for $17 billion dollars. The company may be good, but that is far too high a price in a very competitive market. We are seeing the result of the fed pumping trillions of dollars into the economy. This will be a very leveraged deal which will eventually stress the company.
Investors may get the sharp end of the stick and swallow some losses, as Sword Health, which manages musculoskeletal conditions, raised an insane $163 million at an even more insane $2 billion valuation. There is nothing proprietary about what this company does, and no barriers to entry.
Crazy funding continues apace, as Medallion receives $30 million in new funding for doing something called digital health infrastructure which in this case just turns out to be helping doctors deal with licensing issues in various states.
Best Buy is another large corporation trying to make a bet on health care, in this case largely by providing remote patient monitoring services. The company made yet another significant acquisition in the space, buying Current Health.
Just so men don't feel left out, a company called Numan has raised $40 million for an app, yada, yada, yada, helping men with ED and other health issues. Also capital headed for tube city.
Money streams in to Flo, which sells an app for women to track menstrual cycles, etc. Investors hope they won't be left up a creek. $100 million in financing that is highly unlikely to ever generate a return.
More women's health investing, as Tia secures $100 million in fresh capital to create a "modern medical home" for women. Here is my rule, the more buzz words, the less likely you should invest.
The Healthy Skeptic is a website about the health care system, and is written by Kevin Roche, who has many years of experience working in the health industry. Mr. Roche is available to assist health care companies through consulting arrangements through Roche Consulting, LLC and may be reached at khroche@healthy-skeptic.com.
The Healthy Skeptic is a website about the health care system, and is written by Kevin Roche, who has many years of experience working in the health industry. Mr. Roche is available to assist health care companies through consulting arrangements through Roche Consulting, LLC and may be reached at khroche@healthy-skeptic.com.