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Venture Capital Returns To Health IT

From AIS's Health Business Daily:  Health care's venture capital chill may be thawing.

Lisa Suennen, a cofounder and managing member of Psilos Group says there's "tremendous interest" in the IT sector, though uncertainty about health reform and pending reimbursement cuts makes it "nearly impossible to determine which types of companies will thrive."

Investment sweet spots include:
  • Automating sales and support processes to reduce insurers' overhead and administrative costs.
  • Patient safety applications, particularly those with potential to reduce medical errors.
  • Assisting the newly insured with access to care issues, possibly in an OpenTable model .
  • Helping employers transfer retirees from group coverage to private Medicare plans.
  • Improving member health in the Medicaid population, estimated to increase by as much as 20 million beginning in 2014.
  • Supporting Accountable Care Organizations (ACOs) once the funding model becomes clearer.
(Please be aware that, though this blog is written by Steve Davis and the AIS Health Business Daily article linked above is also written by Steve Davis, we are two different Steve Davis's.   I know I appreciate your thoughtful attention and am pretty sure he does as well.)

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