In today’s tightening economy, medical device makers face more hurdles with the dwindling post-COVID-19 investment boom and a selective investment approach in healthcare. A fall in funding for digital health startups and slimming operating margins have painted a challenging picture. However, experts in the field see this as an opportunity to drive change through innovation. Considering market instability and supply chain issues, startups preparing for funding rounds should expect thorough due diligence from potential investors. Despite inflation and rising interest rates, substantial investor appetite persists for new medical tech, evident from Q1 2023 digital health funding deals.
Hospitals and health systems adopt a more conservative approach towards technology investments, pressurizing device makers to show improved patient outcomes and lower provider costs. Device companies are urged to prioritize operational excellence. Meeting heightened third-party partner expectations. Even though mature devices hold a particular advantage, device makers aiming for commercialization must showcase timelines and steady progress. Lastly, despite the harsh economic climate, it is anticipated that a recovery and investment rebound will happen, offering substantial potential for adaptive device makers.
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[Source: Managed Healthcare Executive, September 11th, 2023]