If you are wondering about the sanity of the market, wonder no more. Castlight came public at $16 a share and popped to over $40 a share. This for a company with $13 million in revenue and tens of millions of dollars in accumulated losses. And in a market with no barriers to entry and no proprietary value. Transparency and decision support will be, no, are, delivered free by a number of organizations. What are supposedly smart investors thinking? I suspect we will see a number of acquisitions made by Castlight to prop up a very bad business model. And we will see every other "transparency" or similar health care company try to go public.
Everyday Health, which offers health and wellness services and analytics for consumers, has filed for an initial public offering. It should be obvious to everyone by now that these are overcrowded spaces and these IPO filings are clear signs of a market top and impending bust in several health care areas.
Deloitte has announced the launch of ConvergeHealth, which will provide data analytics tools and consulting to the health care and life sciences industries.
Ambient Clinical Analytics, which will commercialize Mayo's decision support tools for the ER and ICU, has received over $1 million in initial funding.
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.