Signify Premium Insights - Digital Health: Round-Up from July 2023
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Written by?Mark Lazell?Editor of Signify Premium Insights – Digital Health.
This article provides several links to our Signify Premium Insights, evaluating recent mergers and news events. To access these articles you will need a subscription or simply request a 30-day free trial below.
We kicked the month off by reporting on the possible sale of Nextech Systems . In our opinion, there will be no shortage of suitors for the US Tier-2 ambulatory EHR vendor, despite its total available market being in gradual (and likely terminal decline). We think having a relatively narrow focus shields speciality-specific ambulatory EHR vendors like Nextech from the storms blowing through the market.
But who might Nextech’s admirers be? Another private equity firm, perhaps? A Tier-1 vendor? Or is a merger with another Tier-2 vendor a realistic and viable option?
One thing’s for sure: whoever the buyer is will need deep pockets. Nextech is valued at $1.5B. But upcoming initiatives in the US such as the Making Care Primary (MCP) programme should open the door to plenty of opportunities going forward.
We analysed MCP in detail last month. A new reimbursement model aimed at helping small, independent primary care practices transition to fee-for-service to value-based care (VBC), the programme will apparently support the provision of technology for small practices and help them build out their ecosystems to deliver primary care profitably.
Much, it seems, must be ironed out before the 10-year programme’s 1 July 2024 launch, however. Not least the CMS ruling that any practice that is already part of an Accountable Care Organisation (ACOs) or the Medicare Shared Savings Programme cannot also participate in MCP.
This has, unsurprisingly, gone down like a lead balloon among ACOs who fear that many of their practices will simply switch to MCP and its upside-only risk structure.
We reckon there is a lot of mileage left in this debate before MCP kicks off.?
One ACO that will be closely watching the MCP story unfold is Aledade, Inc. which recently secured $260M in Series F funding.?CEO Farzad Mostashari has confirmed some of this cash would be used to bulk up the company’s tech capabilities and services, and that it would take an ‘opportunistic’ approach to acquisition to achieve this goal.
Aledade has raised an impressive $380M in the last 12 months, and a total of $660M to date, and has established the largest independent primary care practice (PCP) network in the US.
Could the MCP throw Aledade off its determined stride? Would it be wise to strengthen its portfolio by acquiring more sophisticated population health and predictive analytics tools to respond to the MCP threat??
Talking of determined strides and new funding rounds, acute care telemedicine provider Hicuity Health has also secured a new tranche that it aims to use to expand its presence ‘across service lines and support technology development initiatives’.
This almost certainly means bolstering its virtual nursing and virtual sitting services. These are the fastest-growing applications in high acuity telehealth, as Signify Research identified in the recently-published High Acuity Telehealth Report.?
While Hicuity Health is strongly placed in the market, competition in clinical surveillance and teleICU is heating up with the likes of Equum Health, Caregility, GE HealthCare, CLEW, SOC Telemed (now Access TeleCare) and AMD Global Telemedicine all making gains.
Can Hicuity respond to teleICU vendors and their new operating expenditure (OpEx) payment models which are proving attractive to smaller hospitals?
One company having a less rosy ride at present is Altera Digital Health . An overhaul of its Paragon EHR solution has certainly been well received, but in our view is not the definitive answer to its challenges.
Could a major upgrade to its Sunrise EHR bring a new dawn for Altera and turn the tide of its stuttering financial performance? And can its recently-relaunched Customer Success Programme be another launchpad for recovery?
July was also an opportunity to look at national level initiatives. In England, we looked ahead to the 14 August launch of a new IT procurement framework by the NHS for GP and primary care practice services. The ￡1B ($1.3B) framework replaces the three frameworks under the NHS Digital Care Services Catalogue.
There’s no doubt the new framework is generous in funding terms. But can it achieve what its predecessors couldn’t and break the stranglehold in primary care IT of EHR vendors EMIS and TPP??
We also took a deep dive into Saudi Arabia’s healthcare strategy, which is centred on the much-vaunted ?????? ???? ?????? ????? | Health Sector Transformation Program (HSTP) .
The HSTP is a hugely ambitious project that opens up an array of opportunities for international vendors in a market traditionally dominated by local firms.
The big question is how the big international vendors in particular make their play in the Kingdom. Few have yet really cracked the code of market entry in Saudi Arabia, and we’d expect to see plenty of joint ventures with local vendors.
It is a very different vendor playing field in Italy, which is itself in the throes of a large-scale national digital health initiative.
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Two recently-launched digital health tenders worth a cool combined €1.1B continues a flurry of tender activity in the country over the last two years. But the highly prescriptive nature of the previous tenders has proved onerous for many vendors who were obliged to arrange themselves into consortia in order to serve the broad technical criteria of the contracts.
Will the latest tender structures offer greater opportunities for specialist vendors?
About Signify Premium Insights – Digital Health
A subscription to Signify Premium Insights – Digital Health provides compelling thought leadership on the most pertinent developments in healthcare technology. This service utilises Signify Research’s expansive market data to properly appraise and interpret breaking news stories, major market moves and industry-changing announcements are evaluated as they unfold, and the considered opinions of Signify Research’s expert analysts are shared to provide Insight into current developments. Key vendors, technologies and conferences are followed, with updates carefully scrutinised to ensure that the most important details are revealed and properly assessed.?Subscription provides approximately 100 actionable and up to the moment Premium Insights per year as well as access to Signify Research’s Insight archive.?
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About Mark Lazell
Mark joined Signify Research in 2022 as Associate Editor to lead on the company’s Premium Insights - Digital Health service. Prior to Signify, Mark spent 25 years as an editor, publishing detailed analysis of healthcare and other high-tech sectors in the Middle East and Asia Pacific. He was the launch editor of Middle East Medical magazine, and produced detailed country reports and analysis, including interviews with regional policy makers and healthcare executives.
About the Signify Premium Insights Contributing Analysts
Signify Premium Insights rely heavily on the industry expertise from Signify Research’s expert medical imaging analyst team. This team brings with it many years of experience developing market reports, insights and providing consultancy services to the medical imaging industry.
Alex Green, Executive Director and Principal Analyst
Alex has 24 years’ experience in tech market intelligence. He leads on Signify Research’s Digital Health offerings focusing on integrated care IT, EHR/ EMR and telehealth. Prior to joining Signify he served as a Senior Research Director at IHS and as a Business Analyst/IT Project Manager in a joint NHS/ Government role.?
Kelly Patrick, Principal Market Analyst
Kelly joined Signify Research in 2020 as a Principal Analyst. She brings with her 12 years’ experience covering a range of healthcare technology research at IHS Markit/Omdia. Kelly’s core focus has been on the clinical care space, including patient monitoring, respiratory care and infusion.
Arun Gill, Senior Market Analyst
Arun joined Signify Research in 2019 as part of the Digital Health team focusing on EHR/EMR, integrated care technology and telehealth. He brings with him 10 years’ experience as a Senior Market Analyst covering the consumer tech and imaging industry with Futuresource Consulting and NetGrowth Consultants.management.?
Vladimir Kozynchenko?Senior Market Analyst
Vlad joined Signify Research in 2023 as Senior Market Analyst in the Digital Health team. He brings two years of experience in the consulting industry, having undertaken strategy, planning, and due diligence assignments for governments, operators, and service providers. Vlad holds an MSc degree with distinction in Business with Consulting from the University of Warwick.
About Signify Research
Signify Research provides healthtech market intelligence powered by data that you can trust. We blend insights collected from in-depth interviews with technology vendors and healthcare professionals with sales data reported to us by leading vendors to provide a complete and balanced view of the market trends. Our coverage areas are Medical Imaging, Clinical Care, Digital Health, Diagnostic and Lifesciences and Healthcare IT.
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