2024 State of Affairs

Public Market Update: Average Sector Performance of All HealthTech Companies

Let’s first take a look at the HealthTech market.

Overall, compared to the end of February, the market is up! (+3.78% vs +6.39%). As a friendly comparison, SPDR’s Biotech ETF (XBI) came in at +5.1% by the end of Q1.

As we head into Q2, the Change Healthcare cybersecurity attack mentioned in last month’s discussion is still impacting the industry. According to a recent AMA survey, continued disruptions from the attack have been pushing doctors to pay for practice expenses with their personal funds. This is not sustainable and can have important implications for HealthTech performance and is something to watch.

Plus, interest rate cuts (if they happen), a possible escalating conflict in the middle east, and heightened tensions as we get closer to our election will likely all play a role in how crazy the overall market rollercoaster goes in the coming weeks.

Articles Worth Reading

HealthTech, Support

There is a lot of online chatter about how technology can’t necessarily solve many problems in healthcare, or fix the systemic issues plaguing the industry.

It’s true, as a sole solution, technology can’t solve anything. However, there is no doubt that it can be used to improve how we administer care and optimize our processes. We just have to use the healthcare technology wisely.

A recent article reports that Boston Medical Center is starting a new hospital-at home-service to help patients recover at home post-discharge and reduce readmission rates (average cost of readmissions in 2020 was $16,300). The service would entail the use of around-the-clock remote patient monitoring and provide daily physician e-visits, live clinician visits and on-demand access to care teams.

This program would employ multiple different HealthTech modalities, highlighting the importance of optimizing those technologies and ensuring that they are reliable. The associated costs of implementing such a program are high, but the use of technology (over fully manual processes) can help optimize workflows and and save in the long run.

As the population ages and health issues in the population become more complex (adding to the insanity of our already complex system), HealthTech is one way we can attempt to simplify things.

Read more about HealthTech, our subsector breakdown and analysis to understand more about where HealthTech can help.

Related content: The Evolution of FemTech and How It’s Shaping Women’s Health

Opinion

Coffee & Current Events

This month, I’d like to highlight some interesting industry news to peruse with your morning cup o’ joe.

🤰 The fate of rural maternal healthcare: Small hospitals around the country are shutting down their birthing centers, leaving women in those areas without adequate pre and post natal care.

📃 The latest health equity report: See how we’re doing as a nation, and the sentiment around our healthcare system. (Spoiler: its not that great, though we do love telemedicine)

🌬️ Folks can breathe easier with these prescription prices: This drug company is making it more affordable for some patients to get the treatments they need.

💉 GE Healthcare’s outlook: Read their report on what they think are the next big things coming to healthcare in 2024. (cough* cough* HealthTech *ahem)

Happy reading!

—Sanjana Vig MD/MBA (Anesthesiologist)

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