Industry News – VC is playing an increasing role in healthcare

January 5, 2019

It’s no secret that America’s healthcare system depends on private markets, and while provider groups, private insurers, and drug companies are widely known, the increasing presence of venture capital in today’s delivery system is only just emerging from the shadows.

 

The rise of VC and venture capital -backed, early-stage startups is causing quite a stir among patients and policy makers because progress in medicine is no longer exclusively fuelled by providers within the delivery system – instead, advancements are increasingly being made by innovators outside of it.

 

While VC-backed startups in digital health are creating opportunities to change the quality and cost of care, often by challenging current modes of care delivery, they pose potential risks to patient care and raise important questions for policy makers. To date, however, an analytic framework for understanding the role of venture capital in medicine is lacking. Read more here.