According to statistics compiled by Mercom Capital Group, various capital funding in the US health IT sector had hit a record level of around US$623 million within the second quarter of 2013. These funding operations include venture capital funding along with merger and acquisition activities in the health IT industry across the nation.
There were 168 funding transactions in the quarter, according to the report. The first quarter of the year only had 104. There were only 163 deals in toal last year, demonstrating the turnaround of the sector.
Mercom Capital CEO, Raj Prabhu, expects venture capital funding in healthcare IT is set to surpass US$2 billion in this year. He said that the US government's effort to make healthcare data available to outside parties was the main catalyst causing the surge in investments.
The shift in venture capital cash moving from practice-focused technology towards consumer-focused initiatives became more noticeable in the second quarter.
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