Many digital well being leaders are optimistic concerning the digital well being sector in 2025, however nonetheless anticipate headwinds, a current survey from Summit Well being Advisors revealed.
Summit Well being Advisors is a healthcare consulting agency. Its Digital Well being Go-to-Market Report was carried out in partnership with unbiased market analysis supplier PureSpectrum. It acquired responses from 103 digital well being senior leaders.
Listed below are 5 key findings:
1. Constructive outlook: Greater than 50% of leaders have a “very constructive” outlook on the digital well being financial panorama in 2025, whereas 31% are cautiously optimistic. One other 19% are uncertain or have a detrimental outlook, citing buyer budgets, financial uncertainty and competitors.
2. Funding panorama: About 79% of digital well being leaders mentioned their corporations are pursuing new funding capital within the subsequent 12 months. When requested about their greatest obstacles to elevating capital, 42% mentioned they’re frightened they gained’t get their desired phrases (valuation, rate of interest), 38% mentioned they’re involved they gained’t elevate their goal quantity and 36% anticipate challenges find new buyers.
“Whereas we suspected many digital well being corporations can be in search of funding round this time, roughly three or 4 years for the reason that record-setting investments of 2020 and 2021, the flood of corporations planning to lift is staggering,” mentioned Seth Joseph, founder and managing director of Summit Well being Advisors, in an electronic mail. “And contemplating over 41% of digital well being corporations are frightened about making payroll and 35% are struggling to accumulate new clients, the scenario could possibly be dire. 2025 might be a important inflection level in digital well being.”
3. Go-to-market challenges: The most important go-to-market challenges for digital well being corporations are rising market crowdedness, rising competitors, and the “incapability to successfully place in opposition to these aggressive threats,” in accordance with the report. To cope with competitors, 67% are planning to increase internationally, citing U.S. market saturation and unmet income expectations domestically.
“Competitors from massive incumbents and new entrants was essentially the most prevalent exterior problem digital well being corporations are dealing with at present,” Joseph mentioned. “On high of this, the commonest inner challenges corporations are combating is successfully differentiating their merchandise and growing compelling worth props. Understanding the aggressive panorama, market wants and your organization’s distinctive worth might be important to keeping off the competitors.”
4. Polarized on telehealth: About 50% of respondents mentioned telehealth is the digital well being subsector with the best progress potential over the subsequent 12 months, whereas 27.7% mentioned it has the least progress potential. As well as, 44% of executives mentioned telehealth is the place they predict essentially the most M&A exercise over the subsequent 12 months.
AI can also be high of thoughts for digital well being execs, with 43% saying there’s area for progress in AI functions and 41% saying it has proven robust ROI potential. Nevertheless, 25% mentioned AI is overhyped.
5. Companions for go-to-market efforts: About 31% of digital well being leaders consider their groups want to reinforce their understanding of their markets and competitors. Of this group, 94% view bettering this understanding as a high organizational precedence. Practically all respondents (99%) depend on exterior companions to assist develop and implement their go-to-market methods, with 71% reporting that almost all or all of their initiatives are supported by these exterior companions.
Picture: carloscastilla, Getty Photographs