Healthcare tech vendors are driving an increase in healthcare IoT deals in response to demand for remote patient monitoring technology. While COVID-19 could delay the next round of transactions, the spread of the virus only underscores the rationale behind acquisitions in this emerging corner of the healthcare tech market.
According to 451 Research's M&A KnowledgeBase, healthcare IoT purchases quadrupled between 2017 and 2019 and are currently well ahead of last year's pace, with 10 deals so far in 2020. Nearly three-quarters of the prints – and 75% of the $4bn spent on them – were acquisitions of remote patient monitoring targets.
Healthcare tech companies seeking to add remote patient monitoring capabilities have accounted for the bulk of healthcare IoT M&A spending. Examples announced this year include:
- Telecare provider Raziel Health's purchase of remote patient monitoring systems specialist Ideal Life. Raziel, which focuses on offering services for seniors, plans to incorporate Ideal Life's telehealth technology into its RazSafe COVID-19 home monitoring kit.
- Health analytics software maker Biofourmis' reach for home health monitoring software specialist Gaido Health. The addition of Gaido Health's remote vital signs monitoring capabilities could give Biofourmis a means of helping clinicians monitor recently discharged oncology patients from their homes.
- Healthcare information supplier CompuGroup Medical's pickup of remote patient monitoring software vendor H&S Qualità nel Software. CompuGroup expands beyond EHR and billing into telehealth with the acquisition of H&S.
These deals all come as healthcare and insurance vendors look for ways to lower the cost of care. As discussed in a separate 451 Research report, the infusion of emerging technologies such as machine learning has expanded interest in remote patient monitoring among healthcare providers who see promise in using wearables and other connected devices to collect and analyze data outside of a hospital setting. Further, remote patient monitoring has been recognized by 451 Research as the healthcare IoT technology best poised for widespread adoption given its potential to increase the overall efficiency of healthcare suppliers.
And, while coronavirus has done its fair share of late to lend an air of uncertainty to the trajectory of remote patient monitoring deals, it has also served to underscore the potential for increased use of the IoT-based technology application. According to a recent report from S&P Global Market Intelligence, the pressure on the US hospital system amid the COVID-19 response could heighten the role of IoT in helping to increase efficiencies, reduce costs and improve care.
Michael Hill is a tech M&A Analyst on the firm’s M&A KnowledgeBase team. His duties include researching, analyzing and proofing financials for relevant deals, performing private company research and writing about transactions.
Sheryl Kingstone leads 451 Research’s coverage for Customer Experience & Commerce, which covers the many aspects of how customer experience is a catalyst for digital transformation. She oversees the company’s coverage of a variety of customer experience software markets spanning ad tech, marketing, sales, commerce and service.
Keith Dawson is a principal analyst in 451 Research's Customer Experience & Commerce practice, primarily covering marketing technology. Keith has been covering the intersection of communications and enterprise software for 25 years, mainly looking at how to influence and optimize the customer experience.